Insteel Industries Q1 revenue rises, helped by strong demand for reinforcement products

Overview

• Steel wire products maker's fiscal Q1 revenue rose 23.3% yr/yr

• EPS for fiscal Q1 beat analyst expectations

• Company paid $19.4 mln special cash dividend in qtr

Outlook

• Company expects 2026 to offer solid opportunity despite import competition

• Insteel is optimistic about prospects due to lower interest rates

• Company sees nonresidential construction as key demand driver

Result Drivers

• DEMAND FOR REINFORCEMENT PRODUCTS - Stronger demand for concrete reinforcement products drove results, supporting wider spreads between selling prices and raw material costs

• HIGHER SELLING PRICES - 18.8% increase in average selling prices contributed to revenue growth, reflecting pricing actions to offset increased costs

• INFRASTRUCTURE DEMAND - Favorable demand trends in infrastructure and commercial construction markets boosted shipments

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "hold"

• The average consensus recommendation for the construction supplies & fixtures peer group is "buy."

• Wall Street's median 12-month price target for Insteel Industries Inc is $39.00, about 15.7% above its January 14 closing price of $33.70

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nBw6s1x5pa

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