IIIN News & Events

Stock futures are experiencing modest gains in early trading as optimism around a strong outlook from Taiwan Semiconductor Manufacturing bolsters technology sentiment and lifts semiconductor and AI-related shares. This suggests investor risk appetite is returning after recent weaker sessions. Analysts note that TSMC's robust quarterly results and plans for expanded U.S. manufacturing have injected fresh confidence into the chip sector and could support broader tech leadership even as markets await further corporate earnings.Still, broader sentiment remains mixed and cautious after a two-day losing streak for major U.S. indexes, driven by profit-taking in technology shares and concerns around banking sector pressures, including regulatory risks and proposals on credit card rate caps that have weighed on financial stocks.Currency and bond markets have also shifted in response to these cross-currents, contributing to the broader risk-on yet cautious tone.In pre-market trading, S&P 500 futures rose 0.49%, Nasdaq futures rose 1.07% and Dow futures slipped 0.07%.Check out this morning's top movers from around Wall Street, compiled by The Fly.HIGHER -Penumbraup 13% after entering into a definitive agreement under which Boston Scientificwill acquire the company in a cash and stock transaction that values Penumbra at $374 per shareSpotifyup 1% after announcing that it is raising prices for premium subscriptionsUP AFTER EARNINGS -TSMCup 5%Insteelup 5%BlackRockup 2%DOWN AFTER EARNINGS -Morgan Stanleydown 1%Goldman Sachsdown 1%LOWER -Boston Scientificdown 4% after announcing its agreement to acquire PenumbraInstacartdown 5% after Uberand Krogerannounced the launch of nearly 2,700 stores on the Uber Eats, Uber, and Postmates apps

Reports Q1 revenue $159.9M vs. $129.72M last year. "Despite industry statistics that would indicate softening construction activity, our markets were resilient during our Q1 and shipment volumes held up," said CEO H.O. Woltz III. "Nonresidential construction remained a key demand driver, supported by infrastructure spending and data center activity. While residential markets remain soft, we are encouraged by early signs of stabilization. As anticipated, first quarter shipments reflected the typical seasonal slowdown, and margins were impacted by the consumption of higher-cost raw material inventories. While forecasters have raised questions surrounding future construction activity, we continue to experience positive customer sentiment and expect 2026 to offer solid opportunity for Insteel. The downward trajectory of interest rates, together with contributions from our recent investments, causes us to be optimistic about our prospects. With that said, we remain concerned about the significant steel price premium in the U.S. relative to the global market, and we expect finished products markets exposed to imports to remain highly competitive. As we have stated previously, only about 10% of our revenues are directly affected by import competition. Looking ahead, we are optimistic that Insteel is positioned for a year of strong performance."

Reports Q4 revenue $177.4M vs. $134.3M last year. The strong performance was driven primarily by wider spreads between selling prices and raw material costs, along with higher shipments of Insteel's concrete reinforcement products. These gains were partially offset by higher selling, general, and administrative expenses, mainly reflecting increased incentive plan costs. "Our fourth quarter was reasonably strong, supported by steady operational improvements and continued strength in our core markets," said H.O. Woltz III, President and CEO of Insteel. "Over the course of the quarter, we addressed raw material sourcing challenges that had constrained production, although not until the end of the quarter were lead times more normal for the season. The supply of hot rolled steel wire rod, our primary raw material, meaningfully improved due to increased domestic production and substantial offshore purchases. Eliminating the raw material constraint enabled us to better align production with customer demand and reduce lead times as we closed the year. As we enter fiscal 2026, market conditions are generally strong and stable, although residential construction remains moribund, as it has been for much of the year. Our recent acquisitions contributed meaningfully to our fiscal 2025 results and continue to perform well, driving higher shipment volumes and strengthening our competitive position in key markets. That said, we are closely monitoring broader macroeconomic conditions which could weigh on customer sentiment and demand. Nevertheless, we remain cautiously optimistic about the 2026 outlook, confident in our long-term strategy, and pleased with our market position."

Q2 EPS includes $0.7M in restructuring charges and acquisition-related costs, which collectively reduced net earnings per share by 3c. Reports Q2 revenue $160.7M vs. $127.4M last year. "We are encouraged by the strengthening demand for our products that began during our first quarter," said H.O. Woltz III, CEO. "The positive momentum we experienced through our Q2 was driven by improving business conditions and rising customer confidence, trends that are not fully reflected in the broader macroeconomic indices generally used to measure the strength of the construction industry. It is important to note that our results, and my comments, reflect conditions we experienced prior to the recent turmoil created by the changing tariff policy of the Trump Administration. Nevertheless, as we move into the second half of FY25, we are encouraged by the pace of activity in our markets and believe it is likely to continue through the summer and into the fall. A beneficial aspect for Insteel of the Trump Administration's recent tariff actions was the expansion of the Section 232 steel tariff to derivative products, including PC strand, which eliminated the significant competitive disadvantage that the Section 232 tariff created for Insteel in 2018. This important development should reduce the adverse impact of low-priced PC strand imports within the U.S. market. At the same time, the Section 232 steel tariff was restored for shipments to the US from Canada and Mexico. Costs will rise in the US as a result of this action and, together with the impact of several steel wire rod capacity reductions that have been announced in the US, North American supplies will be severely curtailed. Significantly, however, because we have lived with the Section 232 steel tariff for many years, we view the impact of the Administration's recent actions as positive for the Company since the Section 232 tariff was expanded to derivative products, and steel is generally not subject to reciprocal tariffs. We are assessing the potential impact of reciprocal tariffs on offshore purchases of capital equipment, spare parts and operating supplies. It is clear, however, that the possible imposition of these new tariffs would cause costs to rise substantially. This new environment requires a disciplined approach to pricing and that we manage our tariff exposure to every extent possible."