Insteel Industries Inc. reported fiscal second‑quarter 2026 results, posting net earnings of $5.2 million, or $0.27 per share, on net sales of $172.7 million. Gross profit was $16.5 million, giving a gross margin of 9.6 percent for the quarter that ended March 28 2026.
The earnings miss was driven by a combination of higher raw‑material costs and weather‑related operational disruptions. Steel wire rod prices rose $90 per ton during the quarter, squeezing the company’s pricing power. Severe winter weather slowed production and shipment volumes, and several projects that were scheduled for delivery in Q2 were delayed to later in the fiscal year, further reducing revenue.
Compared with the same quarter a year earlier, net earnings fell from $10.2 million ($0.52 per share) to $5.2 million, while net sales grew 7.5 percent from $160.7 million to $172.7 million. Gross profit declined from $24.5 million to $16.5 million, and the gross margin narrowed from 15.3 percent to 9.6 percent, reflecting the impact of higher material costs and lower shipment volumes.
Management highlighted that the company’s liquidity remains strong, with a net cash balance of $15.1 million and no debt. The CFO noted that the quarter’s results were weaker than expected because of the combined effect of winter weather disruptions, lower spreads between selling prices and raw‑material costs, and higher unit conversion costs. The company plans to invest about $20 million in 2026 to improve productivity, expand its engineered structural mesh business, and enhance capacity.
Looking ahead, Insteel expects demand to remain solid in 2026 and anticipates a gradual margin recovery in Q3 as price increases, favorable carrying values, and higher operating rates take effect. The company remains confident that postponed demand will be realized during the remainder of the fiscal year.
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