Revenue growth accelerated to 17.9% year over year in 2026Q4 to $209.3M, but gross margin simultaneously compressed to 10.0% from 16.1% and net margin halved to 3.7%, indicating the top-line gain appears volume-led with limited pricing power against rising steel costs.
Insteel Industries, Inc. (IIIN) annual income statement — 30-year revenue, gross profit & net income history
| Metric | Oct'26 | 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 |
|---|
| Sales/Revenue | 739.51M | 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 |
| Revenue Growth % | 14.17% | 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% |
| Cost of Goods Sold | 663.83M | 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 |
| COGS % of Revenue | 89.77% | 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% |
| Gross Profit | 75.68M | 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 |
| Gross Margin % | 10.23% | 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% |
| Gross Profit Growth % | -19% | 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% |
| Operating Expenses | 38.11M | 41.63M | 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 |
| OpEx % of Revenue | 5.15% | 6.43% | 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% |
| Selling, General & Admin | 37.36M | 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 |
| SG&A % of Revenue | 5.05% | 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% |
| 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 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 756K | 2.63M | 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 |
| Operating Income | 37.57M | 51.81M | 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 |
| Operating Margin % | 5.08% | 8% | 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% |
| Operating Income Growth % | -27.48% | 158.51% | -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% |
| EBITDA | 55.3M | 70.2M | 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 |
| EBITDA Margin % | 7.48% | 10.84% | 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% |
| EBITDA Growth % | -21.22% | 97.99% | -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% |
| D&A (Non-Cash Add-back) | 17.73M | 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 |
| EBIT | 38.35M | 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 |
| Net Interest Income | 809K | 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 |
| Interest Income | 872K | 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 |
| Interest Expense | 63K | 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 |
| Other Income/Expense | 721K | 2M | 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 |
| Pretax Income | 38.29M | 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 |
| Pretax Margin % | 5.18% | 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% |
| Income Tax | 8.74M | 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 |
| Effective Tax Rate % | 22.83% | 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% |
| Net Income | 29.55M | 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 |
| Net Margin % | 4% | 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% |
| Net Income Growth % | -27.97% | 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% |
| Net Income (Continuing) | 29.55M | 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 |
| 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 |
| 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 |
| EPS (Diluted) | 1.51 | 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 |
| EPS Growth % | -28.1% | 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% |
| EPS (Basic) | 1.52 | 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 |
| Diluted Shares Outstanding | 19.52M | 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 |
| Basic Shares Outstanding | 19.46M | 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 |
| Dividend Payout Ratio | 73.52% | 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% | - | - |
Quick answers to the most common questions about buying IIIN stock.
For fiscal year 2026, Insteel Industries, Inc. (IIIN) reported total revenue of $739.5M. This represents a 181.9% increase compared to $262.3M in 1997.
Insteel Industries, Inc. (IIIN) is profitable, generating $29.5M in net income for the fiscal year ending 2026 with a net profit margin of 4.0%.
Insteel Industries, Inc. (IIIN) reported an operating income of $37.6M, resulting in an operating profit margin of 5.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Insteel Industries, Inc. (IIIN) generated $75.7M in gross profit for the year, representing a gross profit margin of 10.2%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Steel input cost spread compression
Metrics are mathematically derived from official filings.
Revenue Growth Decoupled From Earnings
Insteel's revenue growth accelerated to 17.9% year over year in 2026Q4, extending a four-quarter streak of positive top-line gains, but the expansion appears volume-led rather than price-led given concurrent gross margin compression to 10.0% from 16.1% a year prior.
Sequential momentum also appears intact, with 2026Q4 revenue of $209.3M representing the highest quarterly print in the two-year window and a 5.9% step-up from 2026Q3. The divergence between top-line acceleration and earnings contraction suggests volume growth has been secured at the expense of realized spreads, a dynamic investors should monitor into the next reporting cycle rather than treating headline growth as a clean signal of improving fundamentals.
Gross Margin Compression Resumes
Gross margin compressed to 10.0% in 2026Q4 from 16.1% in 2025Q4, a roughly 610 basis point swing that suggests raw material cost inflation is outpacing Insteel's ability to pass through pricing within its welded wire and engineered structural products portfolio.
The margin trajectory shows a peak-to-trough pattern consistent with commodity steel cycle behavior — gross margin peaked at 17.1% in 2025Q3 and has compressed for three consecutive quarters since. This pattern suggests Insteel operates with structurally limited pricing power relative to larger integrated peers, and the 2025Q1 trough of 7.3% implies the current 10.0% may not represent the floor if input costs continue to outpace realizations.
Negative Operating Leverage Reappears
Operating income fell to $9.9M in 2026Q4 from $18.9M in 2025Q4 despite 17.9% revenue growth, a clear negative operating leverage pattern as SG&A of $10.4M stayed near prior-year levels while gross profit declined by $7.6M.
SG&A discipline appears relatively intact at $10.4M in 2026Q4 versus $9.7M in 2025Q4, a modest 7.2% increase that indicates management has not allowed overhead to balloon with revenue. However, with gross profit down $7.6M year over year, the fixed-cost absorption benefit of revenue growth has been entirely overwhelmed, and operating margin of 4.8% is now approaching the 3.6% trough observed in 2024Q4 — a level that historically coincides with trough-cycle pricing.
EPS Contraction Outpaces Revenue
Diluted EPS declined 45.9% year over year in 2026Q4 to $0.40, with net margin compressing to 3.7% from 8.2%, indicating reported earnings quality remains heavily dependent on gross spread dynamics rather than structural cost control.
Net income of $7.7M in 2026Q4 compares to $14.6M in 2025Q4, a decline that tracks closely with gross profit deterioration, suggesting limited distortion from below-the-line items in the reported figure. Stock-based compensation of $1.3M is a modest drag on a $9.9M operating income base but not determinative; the absence of R&D expense is consistent with a commodity fabrication model rather than a technology-differentiated manufacturer, and the underlying earnings power appears tied principally to spread dynamics rather than structural advantages.
Steel Spread Risk Dominates Narrative
The bear case centers on sustained gross margin compression — 2026Q4 gross margin of 10.0% sits well below the 17.1% peak in 2025Q3 — suggesting the recent revenue acceleration may reflect mix or volume shifts that do not translate into earnings durability.
Peer benchmarking reinforces the concern — Insteel's 10.0% gross margin now trails Nucor at 11.9% and Steel Dynamics at 13.0%, positions that have historically been more favorable for IIIN relative to its smaller scale. Investors should evaluate whether the recent revenue acceleration reflects a deliberate market share capture strategy that structurally sacrifices margin, or a temporary mix shift, as the distinction materially changes the durability of current growth rates and warrants further investigation into segment-level disclosures.