FGIWW · FGI Industries Ltd.

FGI Industries reported challenging Q4 2025 results with revenue declining 14.4% year-over-year to $30.5 million, driven by decreases across regions (U.S. -15.5%, Canada -16.9%, Europe -5.6%) and product categories (sanitaryware -12.2%, bath furniture -34.9%, shower systems -13.9%, other -9.0%). Despite revenue pressure from a cautious customer environment amid tariff uncertainties, gross profit fell only 6.8% to $8.1 million, expanding gross margin by 210 basis points to 26.7% due to better mix from higher-margin businesses, tariff implementation, and freight costs. Operating expenses declined 12.0% to $8.8 million, supporting a narrower GAAP operating loss of $0.7 million versus $1.3 million prior year. Adjusted metrics showed similar improvement. GAAP net loss widened to $2.6 million ($1.37/share) from $0.4 million ($0.21/share), primarily due to valuation allowance on deferred tax assets and other non-recurring items; adjusted net loss improved slightly to $0.6 million ($0.29/share). Full-year 2025 revenue dipped just 1.0% to $130.5 million, demonstrating resilience amid tariff volatility. Balance sheet reflects $1.9 million cash, $11.9 million debt, and $8.5 million total liquidity. Management highlights progress in Brands, Products, and Channels strategy, expansion of Covered Bridge and Isla Porter JV, and China+1 sourcing diversification. CEO Dave Bruce noted pickup in 2026 activity, while CFO Jae Chung emphasized BPC investments and expense discipline. FY2026 guidance signals modest revenue growth to $134-141 million with positive adjusted operating income of $0.7-2.5 million, reflecting optimism despite tariff fluidity.