Insteel Industries Fiscal Q3 Profit Jumps
Insteel Industries (NYSE:IIIN) reported its fiscal Q3 2025 earnings on July 17, delivering net income of $15.2 million ($0.78 per share), a gross margin expansion of 650 basis points to 17.1%, and a year-over-year shipment volume increase of 10.5%. The earnings call highlighted aggressive pricing actions, higher inventories, enhanced financial flexibility, strategic responses to tariff uncertainty, and improved integration of recent acquisitions, all against the backdrop of supply constraints and mixed construction indicators.
Gross profit (GAAP) rose $15.4 million year over year to $30.8 million, with average selling prices increasing 11.7% year over year and 8.2% sequentially from fiscal Q2, while the inventory position at quarter-end represented 2.7 months of shipments on a forward-looking basis, based on forecast fiscal Q4 shipments. The company is leveraging both timely price actions and first-in, first-out inventory practices to manage a volatile cost environment.
This adept management of both pricing power and inventory flow positions Insteel Industries to preserve and potentially enhance profitability amid ongoing raw material volatility.
Source Fool.com
