Insteel Industries, Inc. announced financial results for its second quarter of fiscal 2026 ended March 28, 2026.
Net earnings for the second quarter of fiscal 2026 decreased to $5.2 million from $10.2 million in the same period a year ago. Insteel said in a statement that second quarter results were unfavorably impacted by narrower spreads between selling prices and raw material costs, lower shipments and elevated unit manufacturing costs. In the first half, the company’s net earnings increased to $12.8 million, from $11.3 million in the corresponding period last year.
Net sales increased 7.5 percent to $172.7 million from $160.7 million in the same quarter last year, driven by a 14.2 percent increase in average selling prices, partially offset by a 5.9 percent decline in shipments. The company said the decline in shipments was driven mainly by widespread and prolonged winter weather disruptions across most markets, which limited construction activity and constrained operating schedules for both customers and Insteel. On a sequential basis, shipments grew 6.9 percent from the first quarter, while average selling prices rose one percent. In the first half, the company’s net sales increased to $332.6 million from $290.4 million for the same period last year, driven by a 16.2 percent rise in average selling prices partially offset by a 1.5 percent decrease in shipments.
“Winter weather affected most of our facilities and geographies during the quarter, limiting shipments as construction activity slowed and the supply chain experienced operational disruptions,” said H.O. Woltz III, Insteel’s President and CEO. “Additionally, certain projects that had initially scheduled deliveries in Q2 were delayed until later in our fiscal year, unrelated to weather conditions. I should emphasize that these are delays rather than cancellations. We view these events as temporary and not indicative of underlying demand, which we continue to believe is healthy. If our assumption is correct, shipment levels should strengthen, supported by continued momentum in nonresidential construction markets, the typical seasonal pickup in activity, and the carryover of weather-delayed projects.”
Mr. Woltz added, “Beyond the near-term effects of winter weather, broader market forces continue to shape our operating environment, particularly those tied to raw material availability and pricing, evolving U.S. trade policy, and ongoing geopolitical tension in the Middle East. Domestic hot-rolled wire rod prices remain far above global levels. Inflationary conditions continue to adversely affect our cost profile as we have experienced increased tariff costs, significant increases in energy costs, and recently, sharply escalating freight costs. As we move forward, we will remain focused on disciplined pricing, operational efficiency, and maintaining strong relationships with our customers, which we believe positions us to navigate these market conditions effectively.”