Insteel: A Quality Player Riding An Upcycle
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Stephen Simpson20.56K FollowersFollow5ShareSavePlay(9min)CommentsSummaryInsteel Industries remains a well-run, cyclical steel products company benefiting from improved demand and a more balanced U.S. tariff landscape.IIIN exceeded FY’25 expectations with stronger volumes, robust pricing, and a five-point operating margin improvement to 8.4%, nearly doubling EBITDA year-over-year.Heading into 2026, I anticipate double-digit revenue growth, margin expansion toward 14% EBITDA, and a 10% free cash flow yield supporting potential special dividends or buybacks.Fair value estimates range from $36–$39, but volatility remains high due to cyclical end-markets, tariff policy risks, and input cost fluctuations. Varavut Noovong/iStock via Getty Images It’s tough to get maximum value from owning a good house in a bad neighborhood, but it’s even tougher when the neighborhood changes seemingly every year. That’s one way to think about Insteel Industries (This article was written byStephen Simpson20.56K FollowersFollowStephen Simpson is a freelance financial writer and investor.Spent close to 15 years on the Street (sell-side, buy-side, equities, bonds).Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.