Insteel Industries Inc. reported its financial results for the fourth quarter and fiscal year ended October 3, 2026, revealing a decrease in net earnings while net sales saw a notable increase. The company, the largest manufacturer of steel wire reinforcing products for concrete construction applications in the U.S., attributed its performance to a combination of operational changes and market conditions.
For the fourth quarter, Insteel reported net earnings of $7.7 million, or $0.40 per share, down from $14.6 million, or $0.74 per diluted share, in the same quarter last year. The decline was partly due to $0.7 million in restructuring charges related to the consolidation of its welded wire operations, which impacted earnings per share by $0.03. Despite the drop in net earnings, net sales increased by 17.9% to $209.3 million, compared to $177.4 million in the prior-year quarter.
The increase in sales was driven by higher average selling prices and increased shipments, aided by an extra week in Insteel's fiscal calendar. Average selling prices rose by 6.6%, reflecting adjustments made in response to rising raw material and operational costs. Shipments also increased by 10.6%, bolstered by a broader customer base within the engineered structural mesh segment, which helped maintain volumes despite a soft construction market.
Insteel's gross profit for the fourth quarter was reported at $21.0 million, representing a gross margin of 10.0%, down from 16.1% in the previous year. This decline was attributed to higher raw material costs and inflationary trends affecting freight and operating expenses, which outpaced the increases in average selling prices.
Operating activities generated $18.2 million in cash during the quarter, a significant improvement compared to a cash usage of $17.0 million in the prior-year quarter. This positive cash flow was primarily due to favorable changes in net working capital. The company's net cash balance stood at $37.5 million, with no debt outstanding as of October 3, 2026.
Insteel announced plans to consolidate its welded wire operations, a strategic move aimed at enhancing operational efficiency. The company believes that this consolidation, along with a favorable demand outlook for fiscal 2027, will support its growth prospects moving forward.
For the fiscal year 2026, Insteel reported net earnings of $29.5 million, or $1.51 per diluted share, down from $41.0 million, or $2.10 per diluted share, in fiscal 2025. The results for fiscal 2026 included $0.8 million in restructuring charges, which reduced earnings per diluted share by $0.03. In contrast, fiscal 2025 results included $2.6 million of restructuring charges and acquisition-related costs, which reduced earnings per diluted share by $0.10.
Despite the challenges faced in the construction market, Insteel's broader customer base and ongoing operational efficiency initiatives are expected to sustain its performance in the upcoming fiscal year.
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