Insteel Industries' Q3 2025: Backlogs, Supply Woes, and Conflicting Business Signals

Backlog and demand, wire rod supply and import, business activity and backlog conditions, impact of raw material shortages, and backlog length and market conditions are the key contradictions discussed in Insteel Industries' latest 2025Q3 earnings call.



Earnings and Revenue Growth:
- Insteel Industries reported net earnings of $15.2 million, or $0.78 per share, for Q3 2025, a significant increase from $6.6 million, or $0.34 per share, in the prior year.
- The growth was driven by higher shipment volumes and a significant recovery in spreads between selling prices and raw material costs.

Shipment and Pricing Trends:
- Insteel's shipments increased by 10.5% year-over-year and 3.5% sequentially in Q3 2025.
- Average selling prices rose by 11.7% year-over-year and 8.2% sequentially, reflecting price increases implemented throughout fiscal 2025.

Gross Profit and Margin Improvement:
- Gross profit for the quarter increased by $15.4 million from a year ago to $30.8 million, with gross margin expanding by 650 basis points to 17.1%.
- This improvement was primarily due to an expansion in spreads as the increase in average selling prices outpaced the rise in raw material costs during the quarter.