Insteel Industries (NYSE:IIIN), the nation's largest manufacturer of steel wire reinforcing products for concrete construction, today reported financial results for its second fiscal quarter ended March 28, 2026.
The company navigated a challenging three-month period marked by significant weather-related operational hurdles and tightening margins.
For the second quarter, Insteel reported net earnings of $5.2 million, or $0.27 per share, a decrease from $10.2 million, or $0.52 per diluted share, in the prior-year period.
While net sales actually rose 7.5% to $172.7 million, the growth was driven entirely by a 14.2% increase in average selling prices aimed at offsetting rising input costs.
This was countered by a 5.9% decline in shipment volumes, which management attributed to widespread and prolonged winter weather across key markets that restricted both customer project timelines and Insteel's own production schedules.
The quarterly performance was further impacted by a compression in spreads between selling prices and raw material costs.
Consequently, gross profit fell to $16.5 million from $24.5 million a year ago, with gross margins narrowing to 9.6% from 15.3%.
Despite the quarterly dip, the company showed sequential momentum, with shipments rising 6.9% compared to the first quarter of fiscal 2026.
For the first six months of fiscal 2026, Insteel’s performance remains ahead of the previous year.
Net earnings for the half-year period rose to $12.8 million ($0.65 per diluted share), up from $11.3 million ($0.58 per share) in the first half of fiscal 2025.
Total sales for the six-month period reached $332.6 million, a notable increase from $290.4 million in the prior-year period.