FGIWW · FGI Industries Ltd.

FGI Industries Ltd. announced first quarter 2026 results showing total revenue of $30.5 million, a decline of 8.2% year-over-year, primarily driven by a 20.0% drop in sanitaryware revenue to $16.1 million due to softer US homebuilder business, uneven ordering, and lower Canadian retail sales. Offsetting this, bath furniture revenue rose 10.9% to $4.5 million, shower systems increased 14.0% to $6.5 million, and other revenue held steady at $3.3 million, reflecting new business wins and expansion in brands like Covered Bridge and digital joint venture Isla Porter. Gross profit fell 8.3% to $8.2 million but maintained a stable 26.8% margin amid tariff uncertainties and sourcing diversification efforts toward a China+1 strategy. Operating expenses dropped 13.1% to $8.9 million, driven by lower selling, distribution, tradeshow, and warehouse costs, narrowing the GAAP and adjusted operating loss to $0.7 million from $1.3 million prior year. GAAP net loss attributable to shareholders widened to $1.0 million or ($0.50) per diluted share from $0.6 million or ($0.33), with adjusted net loss improving to $0.7 million or ($0.39) per share. CEO Dave Bruce highlighted strategic investments in Brands, Products, and Channels, geographic expansion in Europe (up 15.4%) and India, and new product momentum despite regional declines in US (-5.9%) and Canada (-25.5%). CFO Jae Chung emphasized disciplined expense management and $7.9 million in liquidity as of March 31, 2026, prioritizing internal investments for growth. The company reaffirmed fiscal 2026 guidance for revenue of $134-141 million, adjusted operating income of $0.7-2.5 million, and adjusted net income of $(0.3)-1.1 million, signaling confidence in strategic initiatives amid macroeconomic challenges.