Insteel Industries Inc. reported net earnings of $1.1 million, or $0.06 per share, for the first quarter of fiscal 2025, which remained unchanged from the prior year. Net sales for the quarter increased by 6.6% to $129.7 million from $121.7 million in the prior year, driven by an 11.4% increase in shipments.
The company's gross margin expanded by 210 basis points to 7.3% from 5.2% in the prior year quarter, primarily due to wider spreads between selling prices and raw material costs and higher shipment volume. Shipments benefited from favorable demand trends in infrastructure and commercial construction markets, as well as incremental volume generated from two recent acquisitions.
Insteel provided further details on its acquisitions, including Engineered Wire Products (EWP) for an adjusted purchase price of $67.0 million on October 21, 2024, and O’Brien Wire Products of Texas, Inc. (OWP) for an adjusted purchase price of $5.1 million on November 26, 2024. Both transactions were funded from cash on hand. The company incurred $0.7 million in restructuring charges and $0.3 million in acquisition costs during the quarter, noting that integration risk is substantially behind them.
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