--- title: "Insteel Industries | 10-Q: FY2026 Q2 Revenue Misses Estimate at USD 172.65 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/283030843.md" datetime: "2026-04-16T16:06:31.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/283030843.md) - [en](https://longbridge.com/en/news/283030843.md) - [zh-HK](https://longbridge.com/zh-HK/news/283030843.md) --- # Insteel Industries | 10-Q: FY2026 Q2 Revenue Misses Estimate at USD 172.65 M Revenue: As of FY2026 Q2, the actual value is USD 172.65 M, missing the estimate of USD 178.23 M. EPS: As of FY2026 Q2, the actual value is USD 0.27, missing the estimate of USD 0.64. EBIT: As of FY2026 Q2, the actual value is USD 6.763 M. Insteel Industries Inc. operates as a single reportable segment, with its Chief Operating Decision Maker evaluating performance based on consolidated net earnings. #### Segment Revenue - **Net Sales by Product Line**: - For the three months ended March 28, 2026, welded wire reinforcement net sales were $106,480 thousand and prestressed concrete strand net sales were $66,173 thousand, totaling $172,653 thousand. - For the three months ended March 29, 2025, welded wire reinforcement net sales were $100,019 thousand and prestressed concrete strand net sales were $60,637 thousand, totaling $160,656 thousand. - For the six months ended March 28, 2026, welded wire reinforcement net sales were $214,851 thousand and prestressed concrete strand net sales were $117,726 thousand, totaling $332,577 thousand. - For the six months ended March 29, 2025, welded wire reinforcement net sales were $182,473 thousand and prestressed concrete strand net sales were $107,903 thousand, totaling $290,376 thousand. - **Net Sales by Geographic Region**: - For the three months ended March 28, 2026, U.S. net sales were $172,112 thousand and foreign net sales were $541 thousand, totaling $172,653 thousand. - For the three months ended March 29, 2025, U.S. net sales were $158,984 thousand and foreign net sales were $1,672 thousand, totaling $160,656 thousand. - For the six months ended March 28, 2026, U.S. net sales were $331,332 thousand and foreign net sales were $1,245 thousand, totaling $332,577 thousand. - For the six months ended March 29, 2025, U.S. net sales were $287,758 thousand and foreign net sales were $2,618 thousand, totaling $290,376 thousand. #### Operational Metrics - **Three Months Ended March 28, 2026 vs. March 29, 2025**: - Net sales increased 7.5% to $172,653 thousand from $160,656 thousand, driven by a 14.2% increase in average selling prices, partially offset by a 5.9% decrease in shipments. - Gross profit decreased 32.8% to $16,493 thousand (9.6% of net sales) from $24,529 thousand (15.3% of net sales), primarily due to higher manufacturing costs and lower spreads between average selling prices and raw material costs. - Selling, general and administrative (SG&A) expense decreased 10.1% to $9,712 thousand (5.6% of net sales) from $10,800 thousand (6.7% of net sales), mainly due to lower compensation and employee benefits expense. - Restructuring charges, net, were $0 thousand compared to $662 thousand in the prior year quarter. - Acquisition costs were $0 thousand compared to $27 thousand in the prior year quarter. - Interest income decreased 80.7% to - $61 thousand from - $316 thousand. - Effective income tax rate increased to 23.3% from 23.2%. - Net earnings decreased 49.0% to $5,217 thousand from $10,230 thousand. - **Six Months Ended March 28, 2026 vs. March 29, 2025**: - Net sales increased 14.5% to $332,577 thousand from $290,376 thousand, reflecting a 16.2% increase in average selling prices partially offset by a 1.5% reduction in shipments. - Gross profit increased 1.5% to $34,553 thousand (10.4% of net sales) from $34,058 thousand (11.7% of net sales), primarily due to higher spreads between average selling prices and raw material costs. - SG&A expense decreased 1.2% to $18,472 thousand (5.6% of net sales) from $18,687 thousand (6.4% of net sales), mainly due to lower compensation expense. - Restructuring charges, net, were $51 thousand compared to $1,358 thousand in the prior year period. - Acquisition costs were $0 thousand compared to $298 thousand in the prior year period. - Interest income decreased 60.9% to - $431 thousand from - $1,102 thousand. - Effective income tax rate decreased to 22.0% from 23.5%. - Net earnings increased 13.3% to $12,810 thousand from $11,311 thousand. #### Cash Flow - **Six Months Ended March 28, 2026 vs. March 29, 2025**: - Net cash provided by operating activities was $4,370 thousand, a decrease from $15,665 thousand in the prior year period, primarily due to a net increase in working capital, including a $21,204 thousand increase in inventories and a $2,667 thousand increase in accounts receivable. - Net cash used for investing activities was - $6,328 thousand, a significant decrease from - $76,338 thousand in the prior year period, mainly due to the absence of large business acquisitions. - Capital expenditures increased to $5,894 thousand from $4,893 thousand. - Net cash used for financing activities was - $21,584 thousand, compared to - $22,441 thousand in the prior year period, including $20,561 thousand for dividend payments and $745 thousand for common stock repurchases. #### Unique Metrics and Strategic Summary - **Goodwill**: Goodwill of $25,924 thousand was recognized from the EWP Acquisition, and $2,085 thousand from the OWP Acquisition, primarily representing expected synergies. - **Credit Facility**: As of March 28, 2026, Insteel Industries Inc. had a $100,000 thousand revolving credit facility with $98,700 thousand of borrowing capacity available and $1,300 thousand in outstanding letters of credit, with no outstanding borrowings. - **Share Repurchases**: For the six months ended March 28, 2026, the company repurchased $745 thousand of common stock (23,905 shares), with $16,400 thousand remaining available under the authorization. - **Strategic Focus**: Insteel Industries Inc.’s business strategy focuses on achieving market leadership, operating as the lowest cost producer, and pursuing growth opportunities within core businesses through market penetration or footprint expansion. - **Impact of Inflation**: The company is subject to inflationary risks from raw material costs, labor, freight, and energy, but has generally adjusted selling prices to recover cost increases and successfully implemented price increases during the first half of 2026. #### Outlook Insteel Industries Inc. expects shipment levels to strengthen in the second half of fiscal 2026 due to continued momentum in nonresidential construction, typical seasonal activity, and the carryover of weather-delayed projects. The company remains optimistic about demand across its end markets and believes it is well-positioned to benefit from increased activity levels. Despite concerns about domestic hot-rolled steel prices and ongoing inflationary pressures, Insteel Industries Inc. is focused on managing expenses, realizing acquisition synergies, aligning production with demand, and improving manufacturing efficiency. ### Related Stocks - [IIIN.US](https://longbridge.com/en/quote/IIIN.US.md) ## Related News & Research - [Insteel Industries; the Infrastructure Input That Cannot Be Swapped Out](https://longbridge.com/en/news/286813861.md) - [Standex Stock Has Surged 60%. 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