UFI · Unifi, Inc.

Unifi, Inc. delivered substantial profitability improvements in Q3 FY2026 despite an 11.3% YoY decline in net sales to $130.0 million, attributed to lower customer ordering patterns amid geopolitical, trade, and tariff uncertainties. Gross profit marked a dramatic turnaround to $9.1 million (7.0% margin) from a $0.4 million loss, primarily propelled by $10.6 million gross profit increase in the Americas segment through multi-year cost reduction efforts, though partially offset by lower sales. Brazil saw a modest $0.2 million gross profit decline due to import pricing pressures despite 3.5% sales growth, while Asia's gross profit fell $0.8 million on reduced volumes. SG&A expenses dropped 9.0% to $11.2 million from cost-cutting measures. Operating loss narrowed sharply to $0.1 million from $13.9 million, aided by higher gross profit, lower SG&A, and a $1.8 million foreign currency gain. Net loss improved to $2.3 million ($0.12 per share) from $16.8 million ($0.92 per share), with Adjusted EBITDA flipping to $4.0 million from $(4.9) million. Balance sheet strength advanced with $8.0 million Q3 operating cash flow and YTD $24.4 million, enabling debt reduction to $94.9 million (Net Debt $68.4 million). REPREVE fiber revenues rose to $38.2 million (29% of sales), signaling sustained innovation focus. CEO Eddie Ingle highlighted operational realignment for stronger profitability from lower revenues and customer partnerships for sustainable growth. Q4 outlook anticipates responsive price increases for petrochemical inflation, improved Brazil/Asia performance, and Americas challenges offset by value-added products, with emphasis on cash flow and innovation investment amid fluid geopolitics.