Revenue: As of FY2026 Q1, the actual value is USD 159.92 M, missing the estimate of USD 161.97 M.EPS: As of FY2026 Q1, the actual value is USD 0.39, beating the estimate of USD 0.375.EBIT: As of FY2026 Q1, the actual value is USD 9.26 M.Insteel Industries Inc. operates as a single reportable segment, focusing on steel wire reinforcing products for concrete construction applications.<h4>Operational Metrics</h4><ul><li>Gross Profit: For the three months ended December 27, 2025, gross profit increased by 89.5% to $18.1 million, representing 11.3% of net sales, compared to $9.5 million, or 7.3% of net sales, in the prior year quarter. This improvement was driven by higher spreads between average selling prices and raw material costs ($6.9 million), lower manufacturing costs ($1.3 million), and increased shipments ($390,000).</li><li>Selling, General and Administrative Expense (SG&amp;A): SG&amp;A expense for the three months ended December 27, 2025, rose by 11.1% to $8.8 million (5.5% of net sales), from $7.9 million (6.1% of net sales) in the prior year quarter. This increase was primarily due to higher compensation ($725,000), employee benefit ($353,000), and bad debt ($150,000) expenses, partially offset by a - $524,000 year-over-year change in the cash surrender value of life insurance policies.</li><li>Restructuring Charges, Net: Net restructuring charges for the three months ended December 27, 2025, were $51,000, including $48,000 for equipment relocation and $3,000 for facility closure costs related to the EWP Acquisition. In the prior year quarter, net restructuring charges totaled $696,000. Cumulative restructuring charges since the initiative’s start amount to $2.0 million for EWP, with less than $0.1 million in additional costs expected through the second quarter of fiscal 2026. For the OWP Acquisition, cumulative restructuring charges totaled $0.3 million, with approximately $0.1 million in additional costs expected.</li><li>Acquisition Costs: No acquisition-related costs were recorded for the three months ended December 27, 2025, compared to $271,000 in the prior year quarter.</li><li>Interest Income: Interest income decreased by $416,000 to - $370,000 for the three months ended December 27, 2025, compared to - $786,000 in the prior year quarter.</li><li>Net Earnings: Net earnings for the three months ended December 27, 2025, increased to $7.6 million from $1.1 million in the prior year quarter, driven mainly by increased gross profit and lower restructuring and acquisition costs, partially offset by higher SG&amp;A expense and lower interest income.</li><li>Effective Income Tax Rate: The effective income tax rate for the three months ended December 27, 2025, decreased to 21.0% from 26.1% in the prior year quarter.</li></ul><h4>Cash Flow</h4><ul><li>Cash Flow from Operating Activities: Operating activities used - $701,000 of cash during the first quarter of 2026, mainly due to a net increase in working capital, partially offset by net earnings adjusted for non-cash items. In the prior year, operating activities provided $19.0 million of cash.</li><li>Cash Flow from Investing Activities: Investing activities used - $1.6 million of cash during the first quarter of 2026, a significant decrease from - $73.9 million in the prior year period. Capital expenditures decreased to $1.5 million from $2.7 million in the prior year period and are expected to total up to approximately $20.0 million for fiscal 2026.</li><li>Cash Flow from Financing Activities: Financing activities used - $20.7 million of cash during the first quarter of 2026, which included $20.0 million for dividend payments (including a $19.4 million special dividend) and - $745,000 for common stock repurchases.</li></ul><h4>Unique Metrics</h4><ul><li>Share Repurchases: During the quarter ended December 27, 2025, Insteel Industries Inc. repurchased $745,000 (23,905 shares) of its common stock. As of December 27, 2025, $16.4 million remained available for future share repurchases under the existing authorization.</li></ul><h4>Future Outlook and Strategy</h4>Insteel Industries Inc. anticipates strong performance in fiscal 2026, supported by positive customer sentiment and robust demand in core markets like nonresidential construction, infrastructure spending, and data center activity. The company expects continued contributions from recent investments and will focus on expense management, realizing acquisition synergies, aligning production with demand, improving productivity, and evaluating further acquisition opportunities. While remaining cautious about the U.S. steel price premium and competitive import markets, Insteel 工业 notes early signs of stabilization in residential markets.

Insteel Industries | 10-Q: FY2026 Q1 Revenue Misses Estimate at USD 159.92 M