Insteel Industries (NYSE: IIIN) saw its stock surge 6.85% in pre-market trading on Thursday following the release of its impressive second-quarter 2025 financial results. The company, which is the largest manufacturer of steel wire reinforcing products for concrete construction applications in the United States, reported earnings that significantly exceeded analyst expectations.

For the quarter ended March 29, 2025, Insteel reported earnings per share (EPS) of $0.52, handily beating the analyst consensus estimate of $0.27 by 92.6%. The company's quarterly sales reached $160.7 million, marking a substantial 26.1% increase from $127.4 million in the same period last year. This top-line figure also surpassed analyst estimates of $149.85 million by 7.21%.

Insteel's strong performance was underpinned by several positive factors. The company saw a significant expansion in its gross margin, which rose to 15.3% from 12.3% in the prior-year quarter. This improvement was attributed to higher shipment volumes, lower unit manufacturing costs, and contributions from recent acquisitions. Net earnings for the quarter stood at $10.2 million, reflecting the company's robust operational execution. Moreover, Insteel's management expressed optimism about the market outlook, citing improving customer demand and rising confidence in the construction industry. This positive sentiment, combined with the better-than-expected financial results, likely fueled investor enthusiasm and contributed to the stock's pre-market rally.