olivlawolivlaw

olivLaw · US equity research

Insteel Industries Inc. IIIN

Steel Works, Blast Furnaces & Rolling & Finishing Mills · SIC 3310 · Vertical: Steel Works, Blast Furnaces & Rolling & Finishing Mills (SIC 3310)

28.91USD+1.23% · 1 dayClose 04 Nov 2026

Insteel Industries is the largest U.S. manufacturer of steel wire reinforcing products for concrete, including PC strand and welded wire reinforcement for mainly nonresidential construction. Net sales reached 739.5 million USD in fiscal 2026, but gross margin narrowed under high raw material costs, making wire rod price trends a key point to follow.

The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).

At the close of 04 Nov 2026, Insteel Industries Inc. (IIIN) stock was 28.91 USD (+1.23% on the day), with market capitalisation 559.5 m USD, P/E 19.1 on diluted EPS of 1.51 USD over the last 12 months, dividend yield 3.87%, beta 0.92, 52-week range 24.48–38.11 USD. Latest reported quarter (Q4 2026): revenue of 209.3 m USD (+17.9% YoY), net income of 7.7 m USD (−47.0% YoY), diluted EPS 0.40 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
559.5 m USD
shares as of 27 Oct 2026
P/E (TTM)
19.1
Diluted EPS TTM 1.51 · TTM to 03 Oct 2026
E/P (TTM)
5.22%
TTM to 03 Oct 2026
Dividend yield
3.87%
DPS 12m 1.12
Beta (2y)
0.92
Volatility (1y) 41%
52-week range
24.4838.11

Price history

Loading chart…

Technical reading

RSI (14)
46.9
neutral
Bollinger (20, 2)
27.64 – 30.86
in the lower half of the band · %B 0.40 · band width 11.0%
SMA 50 / 200
29.71 / 30.86
downtrend (price < SMA50 < SMA200)
MACD (12, 26, 9)
-0.34 / -0.32
MACD below signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month−2.9%−2.0%−0.9 pp—
3 months−11.9%−2.2%−9.7 pp—
6 months+8.2%+4.3%+4.0 pp—
Year to date−8.7%+10.6%−19.3 pp—
1 year−7.8%+10.5%−18.2 pp+19.1%
3 years−2.9%+73.7%−76.6 pp+35.3%
5 years−32.6%+61.7%−94.3 pp—
Max drawdown (1y)
−35.8%
26 Feb 2026 → 19 May 2026
Max drawdown (5y)
−49.9%
04 May 2022 → 08 Apr 2025
Compound annual growth (5y)
−7.6%
S&P 500 +10.1%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q4 2026 · 03 Oct 2026

Revenue
209.3 m USD
+17.9% YoY
Net income
7.7 m USD
−47.0% YoY
Diluted EPS
0.40
−46.6% YoY
net / operating
3.7% / unavailable

Quarterly margins

Quarterly statements · USD

Fiscal yearQ1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26Q3 '26Q4 '26
Revenue129.7 m160.7 m179.9 m177.4 m159.9 m172.7 m197.7 m209.3 m
Cost of revenue120.2 m136.1 m149.1 m148.8 m141.9 m156.2 m177.6 m188.3 m
Gross profit9.5 m24.5 m30.8 m28.6 m18.1 m16.5 m20.1 m21.0 m
SG&A7.9 m10.8 m10.6 m9.7 m8.8 m9.7 m8.5 m10.4 m
Depreciation & amortisation4.4 m4.6 m ≈4.7 m ≈4.7 m4.6 m4.4 m ≈4.4 m ≈4.4 m
Interest expense13.0 k13.0 k14.0 k12.0 k13.0 k23.0 k12.0 k15.0 k
Pre-tax income1.5 m13.3 m19.8 m19.2 m9.6 m6.8 m11.7 m10.2 m
Income tax381.0 k3.1 m4.6 m4.7 m2.0 m1.6 m2.7 m2.5 m
Net income1.1 m10.2 m15.2 m14.6 m7.6 m5.2 m9.0 m7.7 m
Diluted EPS0.060.520.780.74 ≈0.390.270.460.40 ≈
Operating cash flow19.0 m-3.3 m ≈28.5 m ≈-17.0 m-701.0 k5.1 m ≈13.7 m ≈18.6 m
Capex2.7 m2.2 m ≈1.6 m ≈1.7 m1.5 m4.4 m ≈3.2 m ≈2.7 m
Dividends paid20.0 m582.0 k ≈582.0 k ≈583.0 k20.0 m583.0 k ≈581.0 k ≈581.0 k
Share repurchases617.0 k1.1 m ≈224.0 k ≈307.0 k745.0 k0 ≈1.9 m ≈457.0 k

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 45 percentile of its own 40-quarter history (min 4.2, median 19.5, max 220.6; quarters with earnings only).

Fiscal years

Fiscal year20192020202120222023202420252026
Revenue455.7 m472.6 m590.6 m826.8 m649.2 m529.2 m647.7 m739.5 m
Revenue YoY+0.6%+3.7%+25.0%+40.0%−21.5%−18.5%+22.4%+14.2%
Net income5.6 m19.0 m66.6 m125.0 m32.4 m19.3 m41.0 m29.5 m
Net income YoY−84.6%+239.6%+250.4%+87.7%−74.1%−40.4%+112.5%−28.0%
Diluted EPS0.290.983.416.371.660.992.101.51
Diluted EPS YoY−84.6%+237.9%+248.0%+86.8%−73.9%−40.4%+112.1%−28.1%
net %1.2%4.0%11.3%15.1%5.0%3.6%6.3%4.0%
Free cash flow-3.9 m49.1 m52.4 m-10.2 m111.5 m39.1 m19.0 m24.8 m

Reported results vs expectations

Loading…

Balance sheet & financial health

Fiscal year 2026 · 03 Oct 2026

Cash
37.5 m USD
Financial debt
unavailable USD
Net debt
unavailable USD
Equity
379.6 m USD
Total assets
480.4 m USD
Debt / equity
unavailable
Current ratio
3.72x
ROE
7.9%
ROA
6.3%
FCF margin
3.4%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2024
529.2 m
2025
647.7 m
2026
739.5 m

SEC (XBRL)· 29 Oct 2026verified

Cost of revenue
2024
479.6 m
2025
554.3 m
2026
663.8 m

SEC (XBRL)· 29 Oct 2026verified

Gross profit
2024
49.6 m
2025
93.4 m
2026
75.7 m

SEC (XBRL)· 29 Oct 2026verified

SG&A
2024
29.6 m
2025
39.0 m
2026
37.4 m

SEC (XBRL)· 29 Oct 2026verified

Depreciation & amortisation
2024
15.4 m
2025
18.4 m
2026
17.7 m

SEC (XBRL)· 29 Oct 2026verified

Interest expense
2024
89.0 k
2025
52.0 k
2026
63.0 k

SEC (XBRL)· 29 Oct 2026verified

Pre-tax income
2024
25.3 m
2025
53.8 m
2026
38.3 m

SEC (XBRL)· 29 Oct 2026verified

Income tax
2024
6.0 m
2025
12.8 m
2026
8.7 m

SEC (XBRL)· 29 Oct 2026verified

Net income
2024
19.3 m
2025
41.0 m
2026
29.5 m

SEC (XBRL)· 29 Oct 2026verified

Diluted EPS
2024
0.99
2025
2.10
2026
1.51

SEC (XBRL)· 29 Oct 2026verified

Weighted average diluted shares
2024
19.6 m
2025
19.6 m
2026
19.5 m

SEC (XBRL)· 29 Oct 2026verified

Dividend per share
2024
2.62
2025
1.12
2026
1.12

SEC (XBRL)· 29 Oct 2026verified

Balance sheet · USD

Cash
2024
111.5 m
2025
38.6 m
2026
37.5 m

SEC (XBRL)· 29 Oct 2026verified

Receivables
2024
58.3 m
2025
78.7 m
2026
89.3 m

SEC (XBRL)· 29 Oct 2026verified

Inventories
2024
88.8 m
2025
137.8 m
2026
150.8 m

SEC (XBRL)· 29 Oct 2026verified

Current assets
2024
267.3 m
2025
261.9 m
2026
286.3 m

SEC (XBRL)· 29 Oct 2026verified

Property, plant & equipment, net
2024
125.5 m
2025
128.7 m
2026
124.2 m

SEC (XBRL)· 29 Oct 2026verified

Goodwill
2024
9.7 m
2025
37.8 m
2026
37.8 m

SEC (XBRL)· 29 Oct 2026verified

Intangibles (excl. goodwill)
2024
5.3 m
2025
16.6 m
2026
14.9 m

SEC (XBRL)· 29 Oct 2026verified

Total assets
2024
422.6 m
2025
462.7 m
2026
480.4 m

SEC (XBRL)· 29 Oct 2026verified

Accounts payable
2024
37.5 m
2025
48.2 m
2026
62.5 m

SEC (XBRL)· 29 Oct 2026verified

Current liabilities
2024
47.0 m
2025
66.0 m
2026
76.9 m

SEC (XBRL)· 29 Oct 2026verified

Equity
2024
350.9 m †
2025
371.5 m †
2026
379.6 m †

SEC (XBRL)· 29 Oct 2026verified

Cash flow · USD

Operating cash flow
2024
58.2 m
2025
27.2 m
2026
36.6 m

SEC (XBRL)· 29 Oct 2026verified

Capex
2024
19.1 m
2025
8.2 m
2026
11.8 m

SEC (XBRL)· 29 Oct 2026verified

Free cash flow
2024
39.1 m ≈
2025
19.0 m ≈
2026
24.8 m ≈

SEC (XBRL)· 29 Oct 2026derived

Investing cash flow
2024
-19.6 m
2025
-75.7 m
2026
-12.4 m

SEC (XBRL)· 29 Oct 2026verified

Financing cash flow
2024
-52.7 m
2025
-24.4 m
2026
-25.4 m

SEC (XBRL)· 29 Oct 2026verified

Dividends paid
2024
50.9 m
2025
21.8 m
2026
21.7 m

SEC (XBRL)· 29 Oct 2026verified

Share repurchases
2024
1.8 m
2025
2.3 m
2026
3.2 m

SEC (XBRL)· 29 Oct 2026verified

Computed indicators

Growth

Revenue growth (YoY)
14.2%
computed by olivLawFY 2026
Revenue CAGR 3Y
4.4%
computed by olivLawFY 2023 → FY 2026
Revenue CAGR 5Y
4.6%
computed by olivLawFY 2021 → FY 2026
EBIT growth (YoY)
unavailable
input data missing
Net income growth (YoY)
-28.0%
computed by olivLawFY 2026
Net income CAGR 3Y
-3.0%
computed by olivLawFY 2023 → FY 2026
Net income CAGR 5Y
-15.0%
computed by olivLawFY 2021 → FY 2026
EPS growth (YoY)
-28.1%
computed by olivLawFY 2026
EPS CAGR 3Y
-3.1%
computed by olivLawFY 2023 → FY 2026
EPS CAGR 5Y
-15.0%
computed by olivLawFY 2021 → FY 2026
FCF growth (YoY)
31.1%
computed by olivLawFY 2026

Profitability

Gross margin
10.2%
computed by olivLawFY 2026
EBITDA margin
unavailable
input data missing
EBIT margin
unavailable
input data missing
Net margin
4.0%
computed by olivLawFY 2026
FCF margin
3.4%
computed by olivLawFY 2026

Returns

ROE
7.9%
computed by olivLawFY 2026 · balance sheet at 03 Oct 2026
ROA
6.3%
computed by olivLawFY 2026 · balance sheet at 03 Oct 2026
ROIC
unavailable
input data missing
ROCE
unavailable
input data missing
Payout ratio (EPS)
74.2%
computed by olivLawFY 2026
Payout ratio (FCF)
87.5%
computed by olivLawFY 2026

Balance sheet

Net debt
unavailable
input data missing
Net debt / EBITDA
unavailable
input data missing
Debt / equity
unavailable
input data missing
Interest coverage
unavailable
input data missing

Liquidity

Current ratio
3.7x
computed by olivLawbalance sheet at 03 Oct 2026
Quick ratio
1.8x
computed by olivLawbalance sheet at 03 Oct 2026
Cash ratio
0.5x
computed by olivLawbalance sheet at 03 Oct 2026

Cash

Operating cash flow
36.6 m USD
computed by olivLawFY 2026
Capital expenditure
11.8 m USD
computed by olivLawFY 2026
Free cash flow
24.8 m USD
computed by olivLawFY 2026
FCF conversion
84.1%
computed by olivLawFY 2026
Cash conversion
unavailable
input data missing

Efficiency

Days sales outstanding
41 days
computed by olivLawFY 2026 · balance sheet at 03 Oct 2026
Days inventory outstanding
79 days
computed by olivLawFY 2026 · balance sheet at 03 Oct 2026
Days payables outstanding
30 days
computed by olivLawFY 2026 · balance sheet at 03 Oct 2026
Cash conversion cycle
90 days
computed by olivLawFY 2026 · balance sheet at 03 Oct 2026

Market and valuation

Market capitalisation
559.5 m USD
computed by olivLawbalance sheet at 03 Oct 2026
Enterprise value
unavailable
input data missing
Market cap / net income TTM
18.9x
computed by olivLawFY 2026
P/E (TTM)
19.1x
computed by olivLawFY 2026
Earnings yield
5.2%
computed by olivLawFY 2026
P/B
1.5x
computed by olivLawbalance sheet at 03 Oct 2026
P/S
0.8x
computed by olivLawFY 2026 · balance sheet at 03 Oct 2026
EV/EBITDA
unavailable
input data missing
EV/EBIT
unavailable
input data missing
EV/Sales
unavailable
input data missing
P/FCF
22.5x
computed by olivLawFY 2026 · balance sheet at 03 Oct 2026
FCF yield
4.4%
computed by olivLawFY 2026 · balance sheet at 03 Oct 2026
Dividend yield
3.9%
computed by olivLawFY 2026
Shareholder yield (distributions)
4.4%
computed by olivLawFY 2026 · balance sheet at 03 Oct 2026

Risk

Altman Z
unavailable
input data missing

Valuation

olivLaw classification

Neutral profile

Score: 53 / 100

A scoring methodology on indicators and valuation, not investment advice.

Closing price

28.91 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 559.5 m USD

Key indicators

Market capitalisation
559.5 m USD
computed by olivLawbalance sheet at 03 Oct 2026
P/E (TTM)
19.1x
computed by olivLawFY 2026
P/B
1.5x
computed by olivLawbalance sheet at 03 Oct 2026
EV/EBITDA
unavailable
input data missing
ROE
7.9%
computed by olivLawFY 2026 · balance sheet at 03 Oct 2026
Net margin
4.0%
computed by olivLawFY 2026
Revenue growth (YoY)
14.2%
computed by olivLawFY 2026
Dividend yield
3.9%
computed by olivLawFY 2026

Coverage and freshness

30/37 reporting lines present
Latest full fiscal year: 2026
Latest reported period: 03 Oct 2026
Latest balance sheet date: 03 Oct 2026
Share count (cover of the latest filing), as of: 27 Oct 2026
Source: SEC (XBRL)published 29 Oct 2026
verified 2418derived 221

Score by group

  • Valuation52
  • Returns57
  • Quality80
  • Balance sheet100
  • Growth18

Estimated value range

Low
14.72
USD per share
Mid
16.88
USD per share
High
19.79
USD per share
Price: 28.91 USD
The price is above the range
Potential to the central value: -41.6% (value / price − 1)
Margin of safety: -71.2% (1 − price / value)
Agreement between methods: single method · 1 methods used · 1 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 14.72 – 19.79 USD.

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • DCF (discounted cash flow)unavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
  • Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
  • Peers: P/Eunavailable · not enough peers
  • Dividend discount (DDM)14.72 – 19.79 (Mid 16.88)
Multiple comparisons use the SIC vertical: Steel Works, Blast Furnaces & Rolling & Finishing Mills (SIC 3310)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Neutral profile · Score 53/100

FactorValueScoreWeight used
ROIC · Qualityunavailableunavailable—
Net margin · Quality4.0%83 (vs peers)10%
FCF conversion · Quality84.1%77 (on a fixed band)10%
Revenue CAGR 3Y · Growth4.4%37 (on a fixed band)13%
EPS CAGR 3Y · Growth-3.1%0 (on a fixed band)13%
Net debt / EBITDA · Balance sheetunavailableunavailable—
Interest coverage · Balance sheetunavailableunavailable—
Current ratio · Balance sheet3.7x100 (on a fixed band)7%
P/E (TTM) · Valuation19.1x49 (on a fixed band)17%
EV/EBITDA · Valuationunavailableunavailable—
FCF yield · Valuation4.4%55 (on a fixed band)13%
Shareholder yield (distributions) · Returns4.4%64 (on a fixed band)10%
Payout ratio (FCF) · Returns87.5%46 (on a fixed band)7%

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet· partial100/100 · 1/3 factors with a value
  • Growth18/100 · 2/2 factors with a value
  • Quality80/100 · 2/3 factors with a value
  • Returns57/100 · 2/2 factors with a value
  • Valuation52/100 · 2/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

INSTEEL INDUSTRIES INC. (IIIN). Latest full fiscal year: 2026; data up to 2026-10-03.

Figures computed from the financial statements: revenue 739.5 m USD in 2026; YoY growth 14.2%; net margin 4.0%; ROE 7.9%.

The estimated value range is 14.72–19.79 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 16.88 USD, the price of 28.91 USD leaves a potential of -41.6% (value / price − 1) and a margin of safety of -71.2% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

olivLaw score 53/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: balance. Not investment advice.

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • Net margin: 4.0%
  • FCF conversion: 84.1%
  • Current ratio: 3.7x

What contradicts it

  • EPS CAGR 3Y: -3.1%
  • The price is above the estimated value range

Not assessed (insufficient data or a ratio without meaning): ROIC, Net debt / EBITDA, Interest coverage, EV/EBITDA.

Versus the vertical median

Steel Works, Blast Furnaces & Rolling & Finishing Mills (SIC 3310) · same industry (4-digit SIC) · compared with 6 companies

Multiples and returns vs the median

P/E
19.1x
vertical median —
EV/EBITDA
—
vertical median 24.7x
P/S
0.8x
vertical median 0.7x
above median (+10.2%)
P/B
1.5x
vertical median 1.9x
below median (−20.6%)
ROE
7.9%
vertical median -0.5%
above median
Net margin
4.0%
vertical median 0.6%
above median (+533.0%)
EBIT margin
—
vertical median 5.5%
Revenue YoY
14.2%
vertical median 7.6%
above median (+86.7%)
Net debt/EBITDA
—
vertical median 7.5x
Dividend yield
3.9%
vertical median 1.2%
above median (+226.5%)

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
WORWorthington Enterprises, Inc3.2 bn19.616.3%11.5%+19.7%+18% / +47%
WSWorthington Steel, Inc.2.1 bn—-3.6%-0.7%+11.3%+20% / +47%
ROCKGibraltar Industries, Inc.1.3 bn—-15.6%-10.4%+11.0%−13% / −35%
IIINInsteel Industries Inc.559.5 m19.17.9%4.0%+14.2%−8% / −3%
FRDFriedman Industries Inc279.8 m17.910.4%2.7%−13.9%+91% / +223%
GGBGerdau S.A.——2.5%2.0%+4.2%+28% / +24%
SIDNational Steel Co——-17.4%-5.9%−3.9%−51% / −76%

1- and 3-year price returns: for IIIN from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
17.27
Total return -37% · Per year -37%
30.53
Total return 10% · Per year 10%
45.98
Total return 64% · Per year 64%
3 years
16.74
Total return -33% · Per year -12%
33.30
Total return 28% · Per year 9%
55.07
Total return 107% · Per year 27%
5 years
16.22
Total return -29% · Per year -7%
36.32
Total return 48% · Per year 8%
65.96
Total return 158% · Per year 21%
What moves the 3-year price the most
  • Exit P/E± 8.32
  • Net margin± 5.83
  • Annual revenue growth± 4.79
  • Annual dilution± 0.49

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

Possibly outdated: the newest document it read is from 22 Oct 2026; since then the company filed 10-K (29 Oct 2026).

In brief

Insteel Industries is the largest U.S. manufacturer of steel wire reinforcing products for concrete, including PC strand and welded wire reinforcement for mainly nonresidential construction. Net sales reached 739.5 million USD in fiscal 2026, but gross margin narrowed under high raw material costs, making wire rod price trends a key point to follow. 13

SWOT

Strengths

  • Leading national position in concrete wire reinforcement and a network of U.S. plants close to customers 1.
  • A debt-free balance sheet and solid cash balance give flexibility during difficult periods 3.

Weaknesses

  • Gross margins have been squeezed by high wire rod costs and inflation in freight and operations 3.
  • The company relies on a commodity raw material and has no derivative instruments to hedge price exposure 1.
  • Demand is cyclical and hard to forecast because backlog is minimal 1.

Opportunities

  • Expanding the ESM business and investing in PC strand could support higher volumes 3.
  • Publicly funded infrastructure and data center demand could sustain activity 3.
  • Consolidating WWR operations could bring cost reductions if the plan delivers as expected 3.

Threats

  • Imports from countries not covered by anti-dumping duties may limit market share and margins 1.
  • Changes in trade and tariff policy can affect prices and domestic demand 1.
  • A prolonged construction slowdown or costlier financing could reduce demand 1.

Risks

  • Wire rod price volatilityhigh

    The cost and availability of wire rod can fluctuate sharply, and the company does not use derivatives to hedge it 1.

  • Trade and tariff policyhigh

    Changes to tariffs and import rules could shift input costs and competitive pressure 12.

  • Cyclical demand and soft constructionmedium

    Construction levels and project funding drive volumes directly, and minimal backlog makes demand hard to forecast 13.

  • Operating cost inflationmedium

    Labor, energy and freight costs could rise faster than selling prices 13.

  • Operational interruptionslow

    Equipment failures or plant outages could cut output, and insurance may only partly cover losses 1.

Investment thesis

What would need to be true (bull case)

  • If ESM expansion and infrastructure demand hold, the company could exceed current volumes, and its debt-free balance sheet gives room to maneuver 3.
  • If the announced WWR consolidation delivers the cost reductions, margins could recover gradually even with expensive wire rod 3.
  • Its national leadership and U.S. plant network could help defend market share against imports, especially where anti-dumping duties limit foreign competition 1.

What would break the thesis

  • If wire rod prices stay high, margins could remain under pressure and selling price increases may not fully recover costs 3.
  • If tariffs or the trade regime change, costs and demand could be affected in ways that are hard to predict 12.
  • A weaker construction market could reduce volumes, and net earnings could keep falling if costs stay elevated 3.

What to watch

  • Gross margin trend and wire rod price levelsQ1 2027
  • Realization of cost reductions from WWR consolidation2027
  • Execution of planned capital expenditures of about 30 million USD2027
  • Tariff policy and anti-dumping measures on PC strandnext 10-K

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

Possibly outdated: the newest document it read is from 22 Oct 2026; since then the company filed 10-K (29 Oct 2026).

The business

Insteel Industries Inc. is the parent holding company of two subsidiaries and makes prestressed concrete strand (PC strand) and welded wire reinforcement (WWR), including ESM, concrete pipe reinforcement and standard welded wire reinforcement. Its products are sold mainly to concrete product makers, and about 85% of fiscal 2025 sales were related to nonresidential construction 1. The company operates 11 U.S. manufacturing facilities and aims to be the lowest cost producer in its industry 13. 1

Its growth strategy combines organic opportunities with acquisitions in related markets; in October 2024 it bought Engineered Wire Products assets for an adjusted price of 67.0 million USD, and in November 2024 it acquired certain O'Brien Wire Products of Texas assets 1. After the deals, its WWR operations were consolidated and the Warren, Ohio facility was closed 1. The company was debt-free at October 3, 2026 and held 37.5 million USD in cash 3.

Demand is seasonal and cyclical, tied to construction activity, with shipments usually highest in the third and fourth fiscal quarters 1. Backlog is minimal because of short customer lead times 1. The main raw material is hot-rolled carbon steel wire rod, and selling prices tend to follow wire rod prices, although timing gaps can shift margins 1.

Segments

PC strand (prestressed concrete strand)

PC strand is a high strength seven-wire strand used to impart compression in precast concrete elements such as bridges, parking decks and buildings 1. It is the product where the company competes with imports from countries subject to anti-dumping duties 1.

Welded wire reinforcement (WWR), including ESM

WWR includes ESM, an engineered made-to-order product often a lower cost reinforcing solution than hot-rolled rebar, plus CPR for concrete pipe and SWWR for crack control in slabs and driveways 1. Growth in the ESM business broadened the customer base and supported shipments in the fourth quarter of fiscal 2026 3.

Concrete pipe reinforcement and standard products

CPR is an engineered product used as primary reinforcement in concrete pipe, box culverts and precast manholes, while SWWR is a standard secondary product for residential and light nonresidential work 1. The company reports no single customer at 10% or more of net sales 1.

Market context

The U.S. concrete reinforcement market is concentrated, and Insteel presents itself as the largest U.S. producer 1. Demand depends on construction activity, funding for infrastructure projects and broader economic conditions 1. In fiscal 2026 an 11.5% rise in average selling prices was the main driver of sales growth 3.

The company describes publicly funded infrastructure as a solid base, while private nonresidential activity is mostly data center projects and the broader construction market remains soft 3. U.S. wire rod prices are elevated and availability is limited, which may require buying imported rod 3.

Trends

  • Wire rod cost and marginsheadwind

    U.S. wire rod prices have stayed at historically high levels, above global prices, and gross margin contracted in the fourth quarter of fiscal 2026 3. If selling prices cannot keep pace with costs, margins could stay under pressure.

  • Public infrastructure and data centerstailwind

    Publicly funded infrastructure and data center projects are described as key demand sources 3. They could support volumes if funding remains stable 1.

  • Steel tariffs and importsmixed

    Section 232 tariffs on steel were increased, and PC strand is subject to the tariff rate on its steel portion 1. Tariffs may protect domestic producers while also raising input costs 1.

  • WWR operations consolidationtailwind

    Consolidating welded wire operations and widening the ESM customer base are meant to lower costs and support growth 3. The company expects substantial cost reductions if the plan is executed 3.

Competitive position

Competition is based on price, quality and service 1. Major rivals include vertically integrated producers that also make wire rod, and imports are a significant factor in PC strand and SWWR segments not subject to Buy America rules 1.

The company argues that its market positions, broad product range, national footprint and low-cost production place it well against other producers 1. That advantage depends on its ability to recover raw material costs during periods of price pressure 1.

  • Wire Mesh Corporation

    Main competitor for both welded wire and PC strand, named in the 10-K 1.

  • Nucor CorporationNUE

    Vertically integrated producer making wire rod and concrete reinforcing products, named as a competitor 1.

  • Oklahoma Steel & Wire

    Vertically integrated competitor across several product lines and regions 1.

  • Sumiden Wire Products Corporation

    Main competitor in PC strand, named in the 10-K 1.

News & filings

In the press

The latest news item in our archive is from 04 Sept 2026; the newest SEC filing is from 29 Oct 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.

SEC filings

Sources

  1. [1] Form 10-K, fiscal year ended 2025-09-27 · SEC / Insteel Industries Inc. · 23 Oct 2025
  2. [2] Form 10-Q, quarter ended 2026-06-27 · SEC / Insteel Industries Inc. · 16 Jul 2026
  3. [3] Form 8-K, results release (exhibit 99.1) · SEC / Insteel Industries Inc. · 22 Oct 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.