Insteel Industries (NYSE:IIIN) reported a sharp increase in first-quarter profitability on Thursday, bolstered by robust demand in infrastructure and commercial construction markets that allowed the company to widen the spread between selling prices and raw material costs.
For the fiscal first quarter ended December 27, 2025, the nation’s largest manufacturer of steel wire reinforcing products posted net earnings of $7.6 million, or $0.39 per share.
This represents a nearly sevenfold increase from the $1.1 million, or $0.06 per share, reported in the same period a year ago.
The results comfortably beat the $0.33 per share consensus estimate among analysts.
Net sales climbed 23.3% to $159.9 million, driven primarily by an 18.8% increase in average selling prices and a 3.8% rise in shipment volumes.
The higher pricing reflects strategic moves made over the past year to offset rising operating costs, while shipment growth was supported by steady non-residential construction activity and contributions from recent acquisitions.
The company's gross margin expanded by 400 basis points to 11.3%, up from 7.3% a year earlier.
Management attributed this expansion to the favorable "spreads" and lower unit manufacturing costs.