KBSX · FST Corp.

FST Corp. delivered a strong operational turnaround in the first quarter of 2026, driven by robust growth in its OEM business and KBS Graphite product lines. Revenue rose 36% year-over-year to $14.65 million, primarily fueled by a 70% increase in OEM sales and a 64% jump in KBS Graphite Shaft sales, with the successful launch of the KBS TGBlack Driver Shaft cited as a key driver. This top-line expansion, combined with improved fixed cost absorption and production efficiency, drove gross margin expansion from 46% to 52%. Consequently, the company swung to an operating profit of $2.18 million from a loss of $0.84 million in the prior-year period. Net income attributable to shareholders was $1.87 million, or $0.04 per share, compared to a loss of $2.78 million in Q1 2025. Despite the profit, operating cash flow remained negative at $(0.40) million, though this represented an improvement from $(1.08) million in the prior year. The balance sheet reflects a working capital deficit with current liabilities of $31.50 million exceeding current assets of $30.14 million. Management expressed confidence that current liquidity and cash flows will fund operations for the next 12 months. Looking ahead, the company plans to expand European distribution, pursue additional OEM partnerships, and implement cost controls, though it anticipates freight rate variability may impact near-term margins.