Operating income declined sharply from $20.2 million in 2025Q3 to $6.7 million in 2026Q2, as gross margins contracted to 9.6% amid slowing revenue growth.
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 | Sep'05 | Sep'04 | Sep'03 | Sep'02 | Sep'01 | Sep'00 | Sep'99 | Sep'98 | Sep'97 | Sep'96 |
|---|
| Sales/Revenue | 689.91M | 647.71M | 529.2M | 649.19M | 826.83M | 590.6M | 472.62M | 455.71M | 453.22M | 388.87M | 418.55M | 447.5M | 408.98M | 363.9M | 363.3M | 336.91M | 211.59M | 230.24M | 353.86M | 297.81M | 329.51M | 345.54M | 332.63M | 212.13M | 251.03M | 299.8M | 315.29M | 270.99M | 266.15M | 262.32M | 266.77M |
| Revenue Growth % | 20.94% | 22.39% | -18.48% | -21.48% | 40% | 24.96% | 3.71% | 0.55% | 16.55% | -7.09% | -6.47% | 9.42% | 12.39% | 0.16% | 7.83% | 59.23% | -8.1% | -34.94% | 18.82% | -9.62% | -4.64% | 3.88% | 56.81% | -15.5% | -16.27% | -4.91% | 16.34% | 1.82% | 1.46% | -1.67% | 2.47% |
| Cost of Goods Sold | 595.97M | 554.27M | 479.57M | 583.79M | 629.52M | 469.05M | 416.83M | 425.65M | 382.41M | 329.09M | 333.36M | 389.17M | 360.2M | 324.66M | 340.85M | 305.17M | 193.59M | 219.39M | 267.11M | 241.75M | 258.64M | 287.08M | 251.29M | 190.84M | 226.95M | 278.51M | 283.28M | 235.34M | 252.79M | 243.47M | 244.41M |
| COGS % of Revenue | - | 85.57% | 90.62% | 89.93% | 76.14% | 79.42% | 88.2% | 93.4% | 84.38% | 84.63% | 79.65% | 86.96% | 88.07% | 89.22% | 93.82% | 90.58% | 91.5% | 95.29% | 75.48% | 81.18% | 78.49% | 83.08% | 75.55% | 89.96% | 90.41% | 92.9% | 89.85% | 86.85% | 94.98% | 92.81% | 91.62% |
| Gross Profit | 93.93M | 93.44M | 49.63M | 65.4M | 197.31M | 121.55M | 55.79M | 30.06M | 70.81M | 59.78M | 85.19M | 58.33M | 48.77M | 39.23M | 22.46M | 31.74M | 17.99M | 10.85M | 86.75M | 56.06M | 70.87M | 58.46M | 81.34M | 21.29M | 24.08M | 21.29M | 32M | 35.65M | 13.35M | 18.85M | 22.36M |
| Gross Margin % | 13.62% | 14.43% | 9.38% | 10.07% | 23.86% | 20.58% | 11.8% | 6.6% | 15.62% | 15.37% | 20.35% | 13.04% | 11.93% | 10.78% | 6.18% | 9.42% | 8.5% | 4.71% | 24.52% | 18.82% | 21.51% | 16.92% | 24.45% | 10.04% | 9.59% | 7.1% | 10.15% | 13.15% | 5.02% | 7.19% | 8.38% |
| Gross Profit Growth % | - | 88.26% | -24.11% | -66.86% | 62.33% | 117.88% | 85.58% | -57.55% | 18.44% | -29.82% | 46.04% | 19.6% | 24.32% | 74.69% | -29.25% | 76.44% | 65.85% | -87.5% | 54.75% | -20.9% | 21.24% | -28.13% | 282.11% | -11.61% | 13.12% | -33.47% | -10.23% | 166.96% | -29.17% | -15.71% | 2.09% |
| Operating Expenses | 38.8M | 39M | 29.59M | 30.68M | 36.05M | 32.39M | 31.35M | 24.5M | 28.3M | 25.51M | 28.61M | 25.82M | 23.37M | 20.68M | 18.49M | 18.89M | 16.02M | 17.24M | 18.62M | 17.58M | 17M | 16.35M | 15.21M | 11.34M | 11.56M | 17.14M | 19.37M | 17.43M | 13.41M | 12.39M | 13.44M |
| OpEx % of Revenue | - | 6.02% | 5.59% | 4.73% | 4.36% | 5.48% | 6.63% | 5.38% | 6.25% | 6.56% | 6.84% | 5.77% | 5.71% | 5.68% | 5.09% | 5.61% | 7.57% | 7.49% | 5.26% | 5.9% | 5.16% | 4.73% | 4.57% | 5.35% | 4.61% | 5.72% | 6.14% | 6.43% | 5.04% | 4.73% | 5.04% |
| Selling, General & Admin | 38.79M | 39M | 29.59M | 30.68M | 36.05M | 32.39M | 31.35M | 24.5M | 28.3M | 25.51M | 28.61M | 25.82M | 23.37M | 20.68M | 18.91M | 19.61M | 16.02M | 17.24M | 18.62M | 17.58M | 17M | 16.35M | 15.21M | 11.34M | 11.56M | 17.14M | 19.37M | 17.43M | 13.41M | 12.39M | 13.44M |
| SG&A % of Revenue | - | 6.02% | 5.59% | 4.73% | 4.36% | 5.48% | 6.63% | 5.38% | 6.25% | 6.56% | 6.84% | 5.77% | 5.71% | 5.68% | 5.21% | 5.82% | 7.57% | 7.49% | 5.26% | 5.9% | 5.16% | 4.73% | 4.57% | 5.35% | 4.61% | 5.72% | 6.14% | 6.43% | 5.04% | 4.73% | 5.04% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 18K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -274K | -53K | -183K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 55.1M | 54.44M | 20.04M | 34.71M | 161.26M | 89.16M | 24.44M | 7.62M | 42.5M | 34.27M | 56.58M | 32.51M | 25.4M | 18.55M | 3.55M | 1.02M | 771K | -6.39M | 68.13M | 38.48M | 53.88M | 42.11M | 66.13M | 9.95M | -454K | -24.15M | 12.63M | 18.22M | -57K | 6.46M | 8.93M |
| Operating Margin % | 7.99% | 8.4% | 3.79% | 5.35% | 19.5% | 15.1% | 5.17% | 1.67% | 9.38% | 8.81% | 13.52% | 7.26% | 6.21% | 5.1% | 0.98% | 0.3% | 0.36% | -2.78% | 19.25% | 12.92% | 16.35% | 12.19% | 19.88% | 4.69% | -0.18% | -8.06% | 4.01% | 6.72% | -0.02% | 2.46% | 3.35% |
| Operating Income Growth % | - | 171.62% | -42.27% | -78.47% | 80.87% | 264.83% | 220.6% | -82.06% | 24.01% | -39.43% | 74.04% | 27.98% | 36.93% | 423.01% | 247.4% | 32.43% | 112.06% | -109.39% | 77.07% | -28.58% | 27.94% | -36.32% | 564.88% | 2290.75% | 98.12% | -291.17% | -30.65% | 32061.4% | -100.88% | -27.67% | 2.1% |
| EBITDA | 73.42M | 72.83M | 35.45M | 48.02M | 175.75M | 103.68M | 38.69M | 21.18M | 55.32M | 45.92M | 68.12M | 44.44M | 35.68M | 28.38M | 13.31M | 10.59M | 7.78M | 1.49M | 75.9M | 44.69M | 58.98M | 49.18M | 74.25M | 17M | 7.9M | -11.15M | 23.84M | 27.13M | 8.68M | 14.68M | 16.99M |
| EBITDA Margin % | 10.64% | 11.24% | 6.7% | 7.4% | 21.26% | 17.56% | 8.19% | 4.65% | 12.21% | 11.81% | 16.28% | 9.93% | 8.72% | 7.8% | 3.66% | 3.14% | 3.68% | 0.65% | 21.45% | 15.01% | 17.9% | 14.23% | 22.32% | 8.02% | 3.15% | -3.72% | 7.56% | 10.01% | 3.26% | 5.6% | 6.37% |
| EBITDA Growth % | 82.3% | 105.41% | -26.16% | -72.68% | 69.51% | 167.95% | 82.73% | -61.72% | 20.47% | -32.59% | 53.28% | 24.57% | 25.69% | 113.27% | 25.63% | 36.17% | 422.15% | -98.04% | 69.85% | -24.24% | 19.93% | -33.76% | 336.7% | 115.3% | 170.81% | -146.79% | -12.12% | 212.48% | -40.87% | -13.58% | 2.71% |
| D&A (Non-Cash Add-back) | 18.32M | 18.39M | 15.41M | 13.3M | 14.49M | 14.52M | 14.26M | 13.55M | 12.82M | 11.65M | 11.54M | 11.93M | 10.27M | 9.83M | 9.76M | 9.57M | 7.01M | 7.88M | 7.77M | 6.21M | 5.11M | 7.07M | 8.12M | 7.06M | 8.35M | 13M | 11.2M | 8.91M | 8.74M | 8.22M | 8.06M |
| EBIT | 55.5M | 53.86M | 25.38M | 41.84M | 161.82M | 86.2M | 24.28M | 7.62M | 42.74M | 34.3M | 56.45M | 33.28M | 25.46M | 18.23M | 3.35M | 1.06M | 873K | -32.06M | 68.77M | 38.89M | 53.88M | 41.72M | 57.76M | 9.95M | 194.2M | 4.15M | 315.29M | 18.22M | -57K | 6.46M | 10.2M |
| Net Interest Income | 472K | 2.02M | 5.34M | 3.62M | 235K | -75K | 367K | 125K | 401K | 112K | 8K | -309K | -242K | -221K | -602K | -920K | -351K | -497K | 127K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 534K | 2.07M | 5.43M | 3.71M | 326K | 21K | 473K | 293K | 515K | 248K | 166K | 11K | 10K | 14K | 21K | 38K | 102K | 144K | 721K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 62K | 52K | 89K | 87K | 91K | 96K | 106K | 168K | 114K | 136K | 158K | 320K | 252K | 235K | 623K | 958K | 453K | 641K | 594K | 0 | 0 | 4.23M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 331K | -631K | 5.25M | 7.04M | 465K | -3.06M | -269K | -168K | 127K | -105K | -2.83M | 455K | -194K | -554K | -821K | 488K | -1.55M | -497K | 42K | -181K | 32K | -3.35M | 1.02M | -10.06M | -10.93M | -13.96M | -9.2M | -2.54M | 565K | -2.47M | -827K |
| Pretax Income | 55.44M | 53.8M | 25.29M | 41.76M | 161.73M | 86.1M | 24.17M | 7.46M | 42.63M | 34.17M | 56.29M | 32.96M | 25.21M | 18M | 2.73M | 101K | 420K | -32.7M | 68.17M | 38.3M | 53.91M | 37.96M | 58.78M | -112K | -11.38M | -38.12M | 3.43M | 15.68M | 508K | 3.99M | 6.57M |
| Pretax Margin % | 8.04% | 8.31% | 4.78% | 6.43% | 19.56% | 14.58% | 5.11% | 1.64% | 9.41% | 8.79% | 13.45% | 7.37% | 6.16% | 4.95% | 0.75% | 0.03% | 0.2% | -14.2% | 19.27% | 12.86% | 16.36% | 10.99% | 17.67% | -0.05% | -4.53% | -12.71% | 1.09% | 5.79% | 0.19% | 1.52% | 2.46% |
| Income Tax | 12.92M | 12.79M | 5.98M | 9.34M | 36.72M | 19.49M | 5.16M | 1.86M | 6.36M | 11.62M | 19.05M | 11.25M | 8.57M | 6.26M | 917K | 488K | -38K | -11.76M | 24.46M | 14.01M | 19.53M | 13.71M | 22.07M | -6.83M | -16K | -14.36M | 1.31M | 5.69M | 180K | 1.45M | 2.33M |
| Effective Tax Rate % | 23.3% | 23.76% | 23.66% | 22.37% | 22.7% | 22.64% | 21.35% | 24.91% | 14.93% | 34.01% | 33.83% | 34.14% | 33.99% | 34.79% | 33.64% | 483.17% | -9.05% | 35.96% | 35.87% | 36.59% | 36.23% | 36.12% | 37.54% | 6101.79% | 0.14% | 37.68% | 38.22% | 36.3% | 35.43% | 36.41% | 35.41% |
| Net Income | 42.52M | 41.02M | 19.3M | 32.41M | 125.01M | 66.61M | 19.01M | 5.6M | 36.27M | 22.55M | 37.24M | 21.71M | 16.64M | 11.73M | 1.81M | -387K | 473K | -22.09M | 43.75M | 24.16M | 33.04M | 25.05M | 36.72M | 6.72M | -25.72M | -23.75M | 2.12M | 9.99M | -80K | -341K | 4.24M |
| Net Margin % | 6.16% | 6.33% | 3.65% | 4.99% | 15.12% | 11.28% | 4.02% | 1.23% | 8% | 5.8% | 8.9% | 4.85% | 4.07% | 3.22% | 0.5% | -0.11% | 0.22% | -9.59% | 12.36% | 8.11% | 10.03% | 7.25% | 11.04% | 3.17% | -10.25% | -7.92% | 0.67% | 3.69% | -0.03% | -0.13% | 1.59% |
| Net Income Growth % | 88.6% | 112.48% | -40.44% | -74.07% | 87.68% | 250.41% | 239.57% | -84.56% | 60.84% | -39.46% | 71.56% | 30.46% | 41.81% | 548.7% | 567.44% | -181.82% | 102.14% | -150.48% | 81.08% | -26.87% | 31.92% | -31.79% | 446.21% | 126.13% | -8.28% | -1219.94% | -78.76% | 12582.5% | 76.54% | -108.04% | -33.03% |
| Net Income (Continuing) | 42.52M | 41.02M | 19.3M | 32.41M | 125.01M | 66.61M | 19.01M | 5.6M | 36.27M | 22.55M | 37.24M | 21.71M | 16.64M | 11.73M | 1.81M | -387K | 458K | -20.94M | 43.72M | 24.28M | 34.38M | 24.5M | 32.03M | 6.72M | -4.02M | -23.75M | 2.12M | 9.99M | 328K | 2.54M | 5.2M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 15K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.17 | 2.10 | 0.99 | 1.66 | 6.37 | 3.41 | 0.98 | 0.29 | 1.88 | 1.17 | 1.95 | 1.15 | 0.89 | 0.64 | 0.10 | -0.02 | 0.03 | -1.27 | 2.47 | 1.32 | 1.79 | 1.35 | 2.00 | 0.40 | -1.52 | -1.40 | 0.13 | 0.59 | -0.00 | -0.02 | 0.25 |
| EPS Growth % | 88.7% | 112.12% | -40.36% | -73.94% | 86.8% | 247.96% | 237.93% | -84.57% | 60.68% | -40% | 69.57% | 29.21% | 39.06% | 540% | 554.55% | -181.78% | 102.12% | -151.42% | 87.12% | -26.26% | 32.59% | -32.5% | 400% | 126.32% | -8.57% | -1176.92% | -77.97% | - | 77.23% | -108.08% | -66.67% |
| EPS (Basic) | - | 2.11 | 0.99 | 1.66 | 6.41 | 3.44 | 0.99 | 0.29 | 1.90 | 1.19 | 1.99 | 1.18 | 0.91 | 0.65 | 0.10 | -0.02 | 0.03 | -1.27 | 2.49 | 1.33 | 1.80 | 1.38 | 2.08 | 0.40 | -1.52 | -1.40 | 0.13 | 0.59 | -0.01 | -0.02 | 0.25 |
| Diluted Shares Outstanding | 19.57M | 19.56M | 19.57M | 19.57M | 19.63M | 19.53M | 19.38M | 19.34M | 19.28M | 19.22M | 19.05M | 18.8M | 18.66M | 18.35M | 17.99M | 17.56M | 17.56M | 17.38M | 17.71M | 18.31M | 18.47M | 18.56M | 18.4M | 16.92M | 16.93M | 16.91M | 16.97M | 16.93M | 17.24M | 16.87M | 16.8M |
| Basic Shares Outstanding | 19.48M | 19.48M | 19.5M | 19.5M | 19.52M | 19.34M | 19.28M | 19.24M | 19.08M | 19.01M | 18.75M | 18.42M | 18.26M | 17.95M | 17.66M | 17.56M | 17.47M | 17.38M | 17.55M | 18.14M | 18.31M | 18.21M | 17.68M | 16.92M | 16.93M | 16.91M | 16.97M | 16.93M | 16M | 16.87M | 16.8M |
| Dividend Payout Ratio | - | 53.05% | 263.88% | 127.26% | 32.93% | 46.98% | 12.17% | 41.26% | 58.82% | 115.36% | 56% | 10.18% | 13.18% | 56.23% | 117.25% | - | 445.67% | - | 4.89% | 9.01% | 6.73% | 2.26% | - | - | - | - | 95.71% | 20.31% | - | - | 47.14% |
Commodity Input Price Volatility
According to the company's recent financial disclosures, revenue growth has decelerated significantly from a peak of 32.1% in 2025Q4 to 7.5% in 2026Q2, reflecting the inherent volatility of the construction-linked steel fabrication market and the cooling demand for standard welded wire reinforcement products.
The sharp decline in top-line expansion suggests that the initial post-pandemic surge in construction activity has normalized. Investors should monitor whether the current growth rate can be sustained by infrastructure-related demand or if further deceleration is likely as residential housing starts remain pressured by interest rate sensitivity.
As reported in quarterly income statements, gross margins contracted from a high of 17.1% in 2025Q3 to 9.6% in 2026Q2, highlighting the company's vulnerability to the timing mismatch between raw steel wire rod procurement costs and the pricing of finished structural reinforcement products.
This margin compression indicates that the company's ability to pass through input cost inflation to customers is limited by competitive market dynamics. The reliance on the 'metal spread' suggests that profitability will remain highly sensitive to commodity price fluctuations until a more favorable product mix is achieved.
Based on the provided income statement data, operating income fell from $20.2 million in 2025Q3 to $6.7 million in 2026Q2, demonstrating that fixed overhead costs are not scaling efficiently as revenue growth slows and gross profit margins tighten across the manufacturing footprint.
The inability to maintain operating margins during periods of revenue deceleration suggests that the company's cost structure remains heavily weighted toward fixed operational expenses. This lack of operating leverage warrants further investigation into management's ability to rationalize costs during cyclical downturns.
Analysis of recent filings reveals that stock-based compensation expenses have remained elevated, reaching $1.3 million in 2026Q2, which exerts persistent downward pressure on net income and complicates the assessment of true operational profitability during periods of declining earnings per share.
The recurring nature of these non-cash charges suggests that reported EPS may be masking the underlying volatility of the core business. Investors should consider adjusting for these expenses to better understand the cash-generating capacity of the firm's manufacturing operations.
While the company maintains a fortress balance sheet, the 48.1% decline in EPS growth in 2026Q2 suggests that the current business model may be ill-equipped to handle sustained commodity price volatility, potentially leading to further margin erosion if infrastructure demand fails to offset residential weakness.
Short-term performance appears heavily dependent on external macro factors rather than internal operational improvements. The market may be overestimating the protective nature of the 'Buy America' provisions if competitive pricing pressure from integrated mills continues to intensify.
Quick answers to the most common questions about buying IIIN stock.
For fiscal year 2025, Insteel Industries, Inc. (IIIN) reported total revenue of $647.7M. This represents a 142.8% increase compared to $266.8M in 1996.
Insteel Industries, Inc. (IIIN) is profitable, generating $41.0M in net income for the fiscal year ending 2025 with a net profit margin of 6.3%.
Insteel Industries, Inc. (IIIN) reported an operating income of $54.4M, resulting in an operating profit margin of 8.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Insteel Industries, Inc. (IIIN) generated $93.4M in gross profit for the year, representing a gross profit margin of 14.4%. This demonstrates the company's core pricing power and production efficiency.