Insteel Plans $30 Million FY2027 CapEx, Including About $20 Million for Mesh

Insteel Industries Inc. plans $30 million in capital spending for fiscal 2027, including about $20 million to expand engineered structural mesh capacity as rising input costs and tariffs have pressured margins.

The expansion is not backed by committed orders, and demand when the added capacity comes online is uncertain. Management has limited visibility but considers the investment essential. It has also highlighted capital returns and balance-sheet flexibility.

Insteel expects infrastructure work and data-center demand to support fiscal 2027 results. A recovery in private nonresidential construction remains tentative, while housing is unlikely to improve soon.

CEO H.O. Waltz characterized 2026 demand as uneven. Public funding supported infrastructure markets, but private nonresidential construction fell short and housing remained weak.

Rising input costs, raw-material scarcity and a 50% Section 232 tariff have pressured margins. Pricing recovery has been difficult, and Canadian supply has become uncompetitive.