Insteel Industries Q1 revenue rises, helped by strong demand for reinforcement products

Reuters
Jan 15
Insteel Industries Q1 revenue rises, helped by strong demand for reinforcement products

Overview

  • Steel wire products maker's fiscal Q1 revenue rose 23.3% yr/yr

  • EPS for fiscal Q1 beat analyst expectations

  • Company paid $19.4 mln special cash dividend in qtr

Outlook

  • Company expects 2026 to offer solid opportunity despite import competition

  • Insteel is optimistic about prospects due to lower interest rates

  • Company sees nonresidential construction as key demand driver

Result Drivers

  • DEMAND FOR REINFORCEMENT PRODUCTS - Stronger demand for concrete reinforcement products drove results, supporting wider spreads between selling prices and raw material costs

  • HIGHER SELLING PRICES - 18.8% increase in average selling prices contributed to revenue growth, reflecting pricing actions to offset increased costs

  • INFRASTRUCTURE DEMAND - Favorable demand trends in infrastructure and commercial construction markets boosted shipments

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q1 Sales

Miss

$159.90 mln

$161.97 mln (2 Analysts)

Q1 EPS

Beat

$0.39

$0.38 (2 Analysts)

Q1 Net Earnings

Miss

$7.60 mln

$8.32 mln (1 Analyst)

Analyst Coverage

  • The one available analyst rating on the shares is "hold"

  • The average consensus recommendation for the construction supplies & fixtures peer group is "buy."

  • Wall Street's median 12-month price target for Insteel Industries Inc is $39.00, about 15.7% above its January 14 closing price of $33.70

  • The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nBw6s1x5pa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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