Insteel Industries Inc. reported net earnings of $15.2 million, or $0.78 per share, for the third quarter of fiscal 2025, a substantial increase from $6.6 million, or $0.34 per share, in the prior year period. Net sales rose 23.4% to $179.9 million from $145.8 million, driven by an 11.7% rise in average selling prices and a 10.5% increase in shipments.
Gross profit improved to $30.8 million from $15.4 million in the prior year quarter, with gross margin expanding to 17.1% from 10.6%, reflecting improved market conditions. For the first nine months of fiscal 2025, net sales increased to $470.3 million, and net earnings reached $26.5 million, or $1.35 per diluted share, an 80.9% increase year-over-year.
The company experienced sourcing challenges during the quarter due to reduced domestic capacity for steel wire rod, necessitating supplementation with offshore volumes. H.O. Woltz III, President and CEO, noted that the unexpected decision by the Administration to double the Section 232 tariff on steel imports will affect costs for substantial offshore purchases, requiring disciplined pricing strategies to recover these higher costs. Despite these challenges, Insteel remains confident in its business outlook, with recent acquisitions contributing meaningfully to performance and customers expressing optimism.
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