Thu, Apr 17, 4:09 PM (36 days ago)
**Insteel Industries Inc. (IIIN) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Q1 2025 revenue increased by 26.1% to $160.7 million from $127.4 million in Q1 2024, driven by higher shipments and acquisitions. - **Profit Margins:** Gross profit margin improved to 15.3% in Q1 2025 from 12.3% in Q1 2024. Net profit margin was 6.4% in Q1 2025 compared to 5.4% in Q1 2024. - **Earnings:** Net earnings rose by 47.4% to $10.2 million in Q1 2025 from $6.9 million in Q1 2024. Earnings per share (EPS) increased to $0.53 from $0.36. - **Cash Flow:** Operating activities provided $15.7 million in cash, but investing activities used $76.3 million due to acquisitions. Financing activities used $22.4 million, primarily for dividends and share repurchases. **Key Metrics and Trends:** - **Acquisitions:** Insteel acquired Engineered Wire Products (EWP) and O’Brien Wire Products of Texas (OWP), expanding market presence and strengthening competitive position. - **Restructuring:** Insteel incurred $662,000 in restructuring charges related to facility closures and equipment relocation. - **Debt and Liquidity:** No borrowings were outstanding on the $100 million revolving credit facility as of Q1 2025. Cash and cash equivalents decreased to $28.4 million from $111.5 million in Q4 2024. - **Share Repurchases:** Insteel repurchased $1.1 million worth of shares in Q1 2025, with $17.6 million remaining under the authorization. **Uncertainties and Future Operations:** - **Market Conditions:** Insteel faces uncertainties due to global economic conditions, tariffs, and competitive pricing pressures. - **Seasonality:** Construction activity and demand for Insteel's products are seasonal, with higher shipments and profitability typically in the third and fourth quarters. - **Outlook:** Insteel expects continued market recovery, increased shipments, and contributions from recent acquisitions to drive financial results in the second half of 2025. **Ticker:** IIIN