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- **Tariff-Driven Margin Expansion**: 16.1% gross margin vs. 8.6% prior year, +760bps.
- **$20M CapEx for Growth**: Modernization to reduce costs and expand capacity.
- **Resilient Nonresidential Demand**: Infrastructure and data centers offset housing weakness.
- **Liquidity Strength**: $38.6M cash, no debt, $24M returned to shareholders in 2025.

**【CEO Summary Section】**
- Revenue growth driven by nonresidential construction, with 9.8% year-over-year shipments and 20.3% price increases offsetting 50% tariffs on imported steel.
- Acquisitions in Ohio and Texas enhanced production capacity and operational efficiency.
- Fiscal 2026 capital expenditures of $20 million planned for plant modernization and IT infrastructure.
- Residential construction remains a drag (15% of revenue), while data centers and infrastructure projects offset weakness.

**【CFO Financial Commentary】**
- Q4 net income: $14.6M ($0.74/share) vs. $4.7M ($0.24) prior year, +215%.
- Gross profit: $16.3M (16.1% margin) vs. $8.6M (8.6%), driven by pricing and mix.
- Cash flow: $17M from operations, $38.6M ending cash, no debt.
- FY2025 share buybacks: 76,000 shares ($2.3M).

**【Q&A Highlights】**
- Inventory: 3.5 months (up from 2.7Q3) due to offshore wire rod purchases.
- Tariff strategy: Importing 50% of wire rod to mitigate domestic shortages.
- Data center demand: 'filling the gap' from housing weakness.
- IIJA funding: 'runway' for infrastructure projects through 2026.
- Risk: 15% revenue exposure to housing, 85% to nonresidential.
- 2026 outlook: Nonresidential strength, cautious on housing recovery.

Insteel Industries, Inc. (IIIN) Q4 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

IIIN

IIIN fundamentals

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