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    Tyson Bauer • KC Capital

    Tyson Bauer's questions to Insteel Industries Inc (IIIN) leadership

    Tyson Bauer's questions to Insteel Industries Inc (IIIN) leadership • Q3 2025

    Question

    Tyson Bauer of Kansas City Capital Associates asked for a comparison of the EWP acquisition to past deals, clarification on whether challenges in meeting demand were due to capacity constraints or margin protection, the sustainability of current margins, the impact of the weak residential market, the year-end cash outlook, the magnitude of the domestic wire rod shortage, and a comparison of the current business environment to the 2021-2022 period.

    Answer

    H.O. Woltz III, Chairman, President & CEO, clarified that while the EWP acquisition was very good, the 2011 IV acquisition was more transformative for the company. He attributed challenges in meeting demand to raw material shortages and staffing issues, not margin protection, and expressed confidence that margins would remain strong. Woltz suggested that infrastructure spending is offsetting weakness from the residential sector. He estimated that imports would cover a 25-30% domestic shortfall in wire rod and found the current market fundamentally different and difficult to compare to the post-COVID 2021-2022 period.

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    Tyson Bauer's questions to Insteel Industries Inc (IIIN) leadership • Q2 2025

    Question

    Tyson Bauer of KC Capital asked for a comparison between the current market strength and the COVID-era recovery, questioned the company's pricing power and competitive response to price increases, and sought confirmation on whether favorable trends in ASP, shipment growth, and spreads would continue. He also inquired about the outlook for end markets and asked for clarification on the incentive compensation accrual.

    Answer

    H.O. Waltz (Executive) differentiated the current environment from the post-COVID period, stating that today's fundamentals are more solid and based on real demand rather than inventory rebuilding. He noted that tight raw material supplies across the industry lessen sensitivity to competitive pricing, and he anticipates elevated prices continuing through Q3. Waltz also mentioned that commercial construction markets are showing encouraging signs of life. Scot Jafroodi (CFO) clarified that the incentive accrual is not a catch-up but is directly tied to the strong performance during the quarter.

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    Tyson Bauer's questions to Insteel Industries Inc (IIIN) leadership • Q1 2025

    Question

    Tyson Bauer from KC Capital asked about the primary drivers for 2025 revenue growth (price vs. volume), specific annual savings from recent cost synergies, the full-year SG&A outlook, the relative importance of interest rates versus tariffs, and details on emerging opportunities like data centers and DOT budgets.

    Answer

    Executive H.O. Waltz indicated that revenue growth would be driven by acquisitions and likely rising selling prices due to tight raw material supply, though the market's sustainability beyond Q2 is uncertain. He did not quantify annual savings but noted the closed plant was operating at a loss. CFO Scot Jafroodi projected an additional $900,000 in amortization expense for the year. Waltz identified tariffs as a more significant factor for Insteel than interest rates and stated the company remains focused on its core construction markets rather than new emerging segments.

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