Insteel Industries Q2 Net Income Falls 49% to $5.2M as Margins Compress

Insteel Industries Inc. (NYSE: IIIN), a manufacturer of steel wire reinforcing products for concrete construction, reported net income of $5.2 million for the quarter ending March 28, 2026, down 49% from $10.2 million in the same quarter last year. The profit decline came despite a 7.5% increase in net revenue to $172.7 million from $160.7 million. Read more earnings reports.

The company's gross profit fell 33% to $16.5 million from $24.5 million in the year-ago quarter, as cost of goods sold rose 15% to $156.2 million from $136.1 million. Gross margin contracted to 9.6% from 15.3% a year earlier.

For the six months ending March 28, 2026, Insteel posted net income of $12.8 million on revenue of $332.6 million, compared to net income of $11.3 million on revenue of $290.4 million for the same period last year. The company's diluted earnings per share for the quarter were $0.27, down from $0.52 in the prior-year quarter.

Selling, general and administrative expenses declined 10% to $9.7 million in the second quarter from $10.8 million a year earlier. For the six-month period, SG&A expenses edged down to $18.5 million from $18.7 million.

Cash from operations fell to $4.4 million for the first half of fiscal 2026 from $15.7 million in the prior-year period. The company's cash and cash equivalents totaled $15.1 million as of March 28, 2026, down from $38.6 million at the end of fiscal 2025 on September 27, 2025.

Insteel's inventory balance increased 15% to $159.0 million as of March 28, 2026, from $137.8 million six months earlier. Accounts payable rose 29% to $62.2 million from $48.2 million over the same period.

The company used $21.6 million for financing activities during the six-month period, compared to $22.4 million in the prior year. Capital expenditures totaled $6.3 million for the first half of fiscal 2026, down from $76.3 million a year earlier when the company was engaged in acquisition activity.

Total assets declined to $460.5 million as of March 28, 2026, from $462.7 million at fiscal year-end. Stockholders' equity decreased to $364.5 million from $371.5 million over the same period. The company had 19.4 million shares outstanding as of the quarter end.