US-based Insteel Industries reported net earnings of $7.7 million for the fourth quarter of fiscal 2026, down from $14.6 million a year earlier. Sales rose 17.9%, but higher raw material, freight and operating costs outpaced gains in selling prices.
The quarter ended October 3. Net sales reached $209.3 million, compared with $177.4 million in the same period last year and $197.7 million in the third quarter. Average selling prices increased 6.6%, while shipments rose 10.6%; the shipment figure benefited from an extra week in the company’s fiscal calendar.
Gross profit fell to $21 million from $28.6 million a year earlier, and gross margin narrowed to 10% from 16.1%. In the third quarter, gross profit was $20.1 million, or 10.2% of sales. Fourth-quarter results also included $0.7 million in restructuring charges related to the consolidation of the company’s welded wire operations.
Insteel President H.O. Woltz III said the company had been navigating a difficult cost environment for the past two years. The company recovered a substantial portion of higher costs through price increases, he said, but raw material and freight costs continue to rise and weigh on margins.
“We will remain focused on improving cost competitiveness and operating efficiency for fiscal 2027,” Woltz said.
Insteel ended the fiscal year debt-free, with $37.5 million in cash and no borrowings under its $100 million revolving credit facility.
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