US based Insteel Industries Inc. announced its fourth quarter results declaring they were negatively impacted by rising input costs but confidently looking forward into the next fiscal year.
The company reported net earnings of $7.7 million for its fiscal year 2026 ended October 3, 2026, compared to net earnings of $9.0 million in the third quarter of this year, and $14.6 million in the fourth quarter of the fourth quarter of the previous year.
In contrast, net sales were on an upward trajectory. For the fourth quarter, sales were $209.3 million, compared to $197.7 million in the third quarter, and $177.4 million in the same quarter a year ago. Net sales increased 17.9 percent year over year, driven by a 6.6 percent increase in average selling prices and a 10.6 percent rise in shipments, which benefited from an additional week under the company's fiscal calendar.
This resulted in gross profits declining to $21.0 million from $28.6 million in the prior year quarter, and gross margin narrowed to 10.0 percent from 16.1 percent the prior year, as higher raw material costs and inflation in freight and operating costs outpaced higher selling prices. Gross profit was $20.1 million, or 10.2 percent of net sales, in the third quarter of 2026.
Further, fourth quarter results included $0.7 million in restructuring charges related to the consolidation of the company's welded wire operations.
In one of many wins for the company in the year, Insteel ended the fiscal year debt free with $37.5 million in cash and no borrowings outstanding under its $100.0 million revolving credit facility.
Insteel's president H.O. Woltz III said, “Our fourth quarter results reflect the challenging cost environment we have navigated for the last two years. While we have recovered a substantial portion of elevated costs through price increases, rising costs are relentless.” He pointed to historically high levels of wire rod prices, coupled with elevated freight costs taking a toll on the margins for the company.
Woltz concluded that the company will remain focused on improving cost competitiveness and operating efficiency for a better fiscal 2027.
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