Insteel Industries Inc. reported net earnings of $10.2 million, or $0.52 per diluted share, for the second quarter of fiscal 2025, a notable increase from $6.9 million, or $0.35 per diluted share, in the prior year period. Net sales surged by 26.1% to $160.7 million from $127.4 million, driven by a 28.9% increase in shipments.
The company's gross margin expanded by 300 basis points to 15.3% from 12.3% in the same quarter last year, reflecting higher shipment volumes, lower unit manufacturing costs, and contributions from recent acquisitions. For the first six months of fiscal 2025, net sales increased to $290.4 million, and gross profit rose to $34.1 million, with gross margin widening to 11.7% from 8.8%.
H.O. Woltz III, President and CEO, highlighted that the expansion of the Section 232 steel tariff to derivative products, including PC strand, eliminated a significant competitive disadvantage for Insteel, which is expected to reduce the adverse impact of low-priced PC strand imports. However, the restoration of Section 232 steel tariffs for shipments from Canada and Mexico is expected to cause costs to rise and curtail North American supplies, requiring a disciplined approach to pricing and tariff exposure management.
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