Insteel reports Q4 EPS 29c vs. $1.24 last year

Reports Q4 revenue $157.5M vs. $208.0M last year. Despite improved demand, Insteel’s Q4 results were unfavorably impacted by narrower spreads between selling prices and raw material costs and higher unit manufacturing costs relative to the prior year quarter. “In the wake of record financial results in the previous year, FY23 presented a highly challenging business environment that required rebalancing our supply chain, a significant downward reset of steel prices and ongoing weakness in the residential construction market. In the face of these substantial headwinds, we are encouraged by the improving underlying demand for our products during Q4 despite the current competitive landscape,” commented H.O. Woltz III, CEO. “Looking ahead to FY24, we are aware of the risks associated with higher interest rates and the implications for the broader U.S. economy and, ultimately, our end markets. Moreover, leading indicators and industry forecasts for nonresidential building construction are signaling a slowdown in activity from the elevated levels of recent years. Nevertheless, we remain cautiously optimistic as customer sentiment is mostly positive, and spending associated with the Infrastructure Investment and Jobs Act is expected to accelerate as we progress through fiscal 2024 and help drive demand. During Q4, we successfully commissioned one of our recent capital projects, with the remaining two projects expected to be completed in the first half of FY24. These strategic investments in our facilities will allow us to broaden our product offering and expand our capacity while reducing the cash cost of operations.”