FGI

Image source: The Motley Fool. Thursday, Aug. 13, 2026 at 9:00 a.m. ET Chief Executive Officer - David Bruce Chief Financial Officer - Jae Chung Operator: Good day, and welcome to the FGI Industries, Inc. Second Quarter 2026 Results Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Jae Chung, Chief Financial Officer. Please go ahead. Jae Chung: Thank you. Welcome to FGI Industries 2026 Second Quarter Results Conference Call. Leading the call today are Chief Executive Officer, David Bruce; and Chief Financial Officer, Jae Chung. We issued a press release after the market closed yesterday detailing our recent operational and financial results. I would like to remind you that management's commentary and responses to questions on today's conference call may include forward-looking statements, which, by their nature, are uncertain and outside of the company's control. Although these forward-looking statements are based on management's current expectations and beliefs, actual results may differ materially. For a discussion of some of the factors that could cause actual results to differ, please refer to the Risk Factors section of our latest filings with the SEC, including our Form 10-K for the year ended December 31, 2025. Additionally, please note that you can find reconciliations of historical non-GAAP financial measures in the press release issued yesterday and in the appendix of this presentation, which is available on the company's website. Today's call will begin with a performance review and strategic update from Dave Bruce, followed by a financial review from Jae Chung. At the conclusion of these prepared remarks, we will open the line for questions. With that, I'll turn the call over to Dave. David Bruce: Thank you, Jae. Good morning, everyone, and thank you for joining our call today. I am pleased to report another quarter of revenue growth and improved operating expense performance for FGI. Revenue increased 2.9% year-over-year in the second quarter, and we remain disciplined in managing our cost structure, delivering lower operating expenses while continuing to invest in our brands, products and channels, or BPC, growth strategy. These efforts continue to strengthen our market position and create new opportunities for long-term growth. Our strongest performance came from our Sanitaryware and Shower Systems businesses, both of which delivered year-over-year revenue growth. Sanitaryware benefited from the normalization of customer purchasing activity following last year's tariff-related disruptions, along with contributions from recently launched customer programs. Our Shower Systems business also continued to gain traction as new products and expanded customer distribution contributed to growth. While market conditions remain mixed, particularly within our Bath Furniture and other product categories, we continue to manage the business with discipline and remain focused on opportunities where we see the strongest long-term potential. Looking ahead, we expect Covered Bridge cabinetry to resume growth in the second half of the year. We also expect continued momentum in our Shower Systems business as recently introduced products and customer programs continue to expand, providing additional opportunities for growth through the remainder of 2026. Although the external environment continues to evolve, including ongoing trade and tariff developments, I am proud of how our team has remained focused on execution. Their ability to adapt to changing market conditions while continuing to serve our customers has positioned FGI well for the remainder of the year. With that, I'll turn the call over to Jae for a more detailed review of our financial results. Jae Chung: Thank you, Dave, and good morning, everyone. I will begin by providing additional details on the quarter, followed by an update on our current liquidity and balance sheet. For the second quarter 2026, revenue totaled $31.9 million, an increase of 2.9% compared to the second quarter of 2025. Gross profit was $10.7 million in the quarter, an increase of 22.5% year-over-year. Our gross margin increased to 33.4% in the quarter compared to 28.1% in the prior year, driven by trade-related recoveries in the quarter. Our operating expenses decreased to $9.3 million compared to $9.5 million in the prior year due primarily to lower selling and distribution costs and optimizing our warehouse operations. These efforts are part of our broader initiative to diversify our supply chain and reduce freight costs. We expect to begin operations at a new warehouse in Texas to support distribution across the Southern United States. GAAP operating gain was $1.4 million, improving from an operating loss of $0.8 million in the prior-year period. The improvement in the operating loss was a result of trade-related recoveries, which were reflected in the cost of goods sold and a decrease in total operating expenses. GAAP net income attributable to shareholders was $1.3 million compared to a loss of $1.2 million in the same period last year. Adjusted net income was $1.2 million compared to a loss of $1.2 million in the same period last year. Moving to our balance sheet. At the end of the second quarter, FGI had $7.9 million in total liquidity. Our 2026 guidance remains unchanged and does not include trade-related recoveries. Our revenue guidance is $134 million to $141 million. The adjusted operating income guidance is $0.7 million to $2.5 million. The adjusted net income guidance is a loss of $0.3 million to a gain of $1.1 million. Please note that the guidance for adjusted operating income excludes certain nonrecurring items. Adjusted net income excludes certain nonrecurring items and includes an adjustment for minority interest. That concludes our prepared remarks. Operator, we are now ready for the question-and-answer portion of our call. Operator: [Operator Instructions] The first question comes from Reuben Garner with Benchmark Company. Reuben Garner: You referenced tariffs a few times. I was wondering if you could offer some clarity on any refunds you may have received to date, what might be on the come? And then I guess, the net effect for you guys, I know there's been a [Technical Difficulty] years, but just kind of where it's all shaking out today? Jae Chung: Yes. Reuben, we're in the process of finalizing our Q, and the specific information on the amount of the refund will be in the Q to be released tomorrow. As far as further recoveries specifically related to IEEPA, we believe we've received all or the vast majority of it. So you can see the actual numbers tomorrow. And Dave, do you want to comment? David Bruce: Yes. I think that we view any of these recoveries is really it's just a partial offset to the impact that we had to absorb going all the way back to last year. And we still continue to pay various trade-related expenses, not only tariffs but also other duties and VAT tax drawbacks that some of our suppliers are impacted by. And we expect, quite frankly, some additional tariff levies to be impacted at the beginning of next year. So this is not a -- it's an ongoing, I'll call it, saga with the tariffs. It's not something that we anticipate is going to go away. And we continue to support our customers as we have recently and in the past, right? So we're looking at the recoveries as a onetime thing here, but the impact of tariffs are going to continue. Reuben Garner: How about at your customer, what have you seen in terms of discounting relative to I don't know, normal discounting this time of year? Has that been increased at all with the changes in the tariffs or inventory levels or anything else at the retail level? David Bruce: Yes. I think discounting, I would call it more promotional opportunities. We've taken -- I shouldn't say taken, but we've worked closely with some of our customers on promotional opportunities. We drove some larger promotions with our sanitary ware in the quarter. The market overall, as we've discussed before, continues to be relatively flat in the R&R space. Promoting products is becoming a viable way for us to drive continued growth in market share. And I think that's what we see more than anything is opportunities to reach out to our customers and offer some discounting to try to drive incremental business. Reuben Garner: Okay. And then last one for me. Your -- the products that you guys -- the branded sort of FGI branded products that you've been trying to grow over the last couple of years, what's kind of next on that front? Any big opportunities on the come in terms of expanding those kind of higher-margin businesses for you? David Bruce: Yes. I think that's a great question. We're really -- we've become really successful and continue to be successful with our branded products in our -- particularly in our Shower Systems business that would be across our doors spaces and balls. And I think in the call, we mentioned -- it was just a quick blur, but we mentioned our new distribution center that we are going to open by the end of this year in Houston. We're entering that quite shortly. That is going to be another avenue for us to expand territories on our wholesale business with our contract brand. So we're very excited about that. We've been working on that for a long time. So yes, that -- our BPC strategy, despite the fact that we also obviously are large supporters of our larger customers' proprietary and private label, we continue to expand our own brand presence strategically throughout the market. Operator: The next question comes from Greg Gibas with Northland Securities. Gregory Gibas: I wanted to maybe just ask more basically on just kind of your visibility on back half growth, given you reaffirmed guidance. And what kind of gives you confidence in how the back half will trend, whether it's kind of your discussions with customers or just overall demand you're seeing in the market? If anything has changed maybe since your last provided guidance? David Bruce: Yes. I think things have held where we have expected. The market, like I mentioned just on the previous call, it's relatively soft. There's still a cautionary tone in the market when it comes to building up inventory. Order placements have been relatively consistent and cadence on shipping. But we didn't change guidance. So I would venture to say that we're probably based on the softer market, looking at maybe more lower end on the guidance levels. But we're also optimistic because we still are implementing some of our -- some new programs to customers that will launch. Some of those were delayed just due to various market issues, not anything in particular to do with the sales. But we would anticipate -- we've taken all that into account to understand would we have wanted to change the guide. And we want to keep the guide where it's at, but we would probably venture to say we're going to look towards more of the lower side just based on the cautionary tone right now in the marketplace and some of the pressures that exist. Gregory Gibas: Great. That's helpful. And then maybe similarly, just if you could discuss kind of puts and takes of kind of the demand across your channels geographically, but also kind of customer type. David Bruce: Sure. Yes. We've had a little more pressure in our Canadian sales. That's been the most pressured this year. Initially, in the first part of the year, it was across both of our wholesale and retail. Wholesale is recovering slowly. Retail has been a little bit of a struggle. There's been a lot of competitive and pricing pressures up in the market, which we're addressing. And then in the U.S., it's been more of, like I said, sort of a cautionary, flat market other than where we're taking share on incremental gains on new programs. And then on our European business, very similar. They've been pretty strong and consistent. Order cadence has been good. We've been expanding into our wholesale trade in the European market. But there hasn't been any outlying bigger wins outside of -- with the market pressure over there, obviously, that still exists. But we've been very proud of actually the progress we've been able to make in taking -- particularly taking share on the wholesale side, which has been very important over in Europe. Operator: This concludes our question-and-answer session. I would like to turn the conference back over to David Bruce for any closing remarks. David Bruce: Thank you for your time and interest today. We really appreciate your continued support of FGI. Stay well. And if we don't connect during the quarter, we look forward to speaking with you on our next call. Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. Before you buy stock in Fgi Industries, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Fgi Industries wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. FGI (FGI) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Revenue growth was primarily driven by the Sanitaryware and Shower Systems segments, benefiting from normalized customer purchasing patterns following prior-year tariff disruptions. Sanitaryware performance was bolstered by the successful implementation of recently launched customer programs and increased promotional activity to drive market share. Management attributed the significant gross margin expansion to trade-related recoveries, which partially offset the cumulative impact of tariffs absorbed since the previous year. Operating expense improvements resulted from a disciplined focus on optimizing warehouse operations and diversifying the supply chain to reduce freight costs. The company is utilizing a 'Brands, Products, and Channels' (BPC) strategy to expand its own brand presence, particularly within the wholesale trade and Shower Systems business. Market conditions remain mixed, with Bath Furniture facing headwinds while Sanitaryware shows resilience through targeted promotional opportunities. Management expects the Covered Bridge cabinetry business to return to growth during the second half of 2026. A new distribution center in Houston, Texas, is scheduled to open by year-end to support wholesale territory expansion across the Southern United States. Full-year 2026 guidance remains unchanged, though management indicated results may trend toward the lower end due to a cautionary market tone and inventory building constraints. The company anticipates ongoing trade-related pressures, including potential new tariff levies expected to impact the business at the beginning of next year. Future growth is expected to be supported by the continued rollout of new customer programs that were previously delayed by market issues. The quarter included significant trade-related recoveries reflected in the cost of goods sold, which management characterized as a one-time benefit. Management noted that the vast majority of expected recoveries related to IEEPA have now been received. Ongoing risks include competitive pricing pressures in the Canadian retail market and a generally flat Repair and Remodel (R&R) environment. The company continues to absorb various trade-related expenses, including duties and VAT tax drawbacks impacting suppliers, despite recent recoveries. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management believes they have received the vast majority of recoveries related to IEEPA, with specific figures to be disclosed in the upcoming 10-Q filing. Recoveries are viewed as only a partial offset to long-term tariff impacts, which management expects to persist and potentially increase next year. FGI is working closely with customers on promotional opportunities rather than broad discounting to drive growth in a flat market. Larger promotions in the sanitary ware segment were used during the quarter to capture incremental market share. Guidance was maintained despite a 'cautionary tone' in the market regarding inventory levels and order placements. Management signaled that results might lean toward the lower end of the provided range due to general market softness and program timing. Canada remains the most pressured region due to retail competition, while the U.S. market is described as flat but stable. The European business has shown consistency, with management successfully taking share in the wholesale trade channel despite broader market pressures.

EAST HANOVER, N.J., Aug. 12, 2026 /PRNewswire/ -- FGI Industries Ltd. (Nasdaq: FGI) ("FGI" or the "Company"), a leading global supplier of kitchen and bath products, today announced results for the second quarter 2026. SECOND QUARTER 2026 HIGHLIGHTS(As compared to the second quarter of 2025) Total revenue of $31.9 million, +2.9% y/y Gross profit of $10.7 million, +22.5% y/y Gross margin of 33.4%, +530 bps y/y Operating income of $1.4 million and net income attributable to shareholders of $1.3 million Adjusted operating income of $1.4 million1 Adjusted net income of $1.2 million MANAGEMENT COMMENTARY Dave Bruce, CEO of FGI, stated, "FGI reported total revenue of $31.9 million in the quarter, representing a year-over-year increase of 2.9%. Gross profit was $10.7 million, an increase of 22.5% compared to the prior year. The gross margin was 33.4% compared to 28.1% in the second quarter of 2025. The industry outlook remains uncertain due to tariffs and economic uncertainty but FGI's strategic investments in our Brands, Products and Channels strategy continues. FGI and our customers continue to evaluate diversifying and broadening our geographic sourcing. Revenue increased 20.3% in the U.S., while revenue decreased 24.5% in Canada and 21.0% in the European market. Revenue from sanitaryware and shower systems increased 5.9% and 15.2% year-over-year due to a recovery of US business from the prior year which was affected by the implementation of tariffs as well as recently launched programs. Canada and Europe reflect softer demand environments compared to the prior year. Bath Furniture and Other business segments decreased 15.5% and 9.2%, respectively, compared to the prior year period reflecting a softer demand environment due, in part, to continued tariff-related uncertainty in customer purchasing decisions. Covered Bridge further expanded its geographies and increased its dealer count. Isla Porter, our custom kitchen joint venture, continues to establish relationships with the premium design community with on-trend products. In India, we added more dealers as we expand our presence there." Bruce continued, "We are excited about our new product introductions and continue to invest in our brands and our future growth initiatives in our core businesses." Jae Chung, Chief Financial Officer of FGI, commented, "Total revenue increased 2.9% year-over-year in the second quarter. FGI continues to invest in long-term growth through our BPC strategy and exercise discipline in overall operating expenses, which decreased 2.9% year-over-year to $9.3 million due primarily to lower selling and distribution and the optimization of our warehouse operations. In the quarter, FGI received IEEPA recoveries which are included in cost of goods sold that partially offset costs not passed through to our customers. In July, Section 301 tariffs were permanently implemented replacing the temporary Section 122 tariffs. FGI ended the second quarter with total available liquidity of $7.9 million. We believe the best use of our capital is for internal investment in order to attract new customers, expand existing relationships, develop new products and manufacturing capabilities and expand into new jurisdictions, and this will remain our priority in the near term." SECOND QUARTER 2026 RESULTS Revenue totaled $31.9 million during the second quarter of 2026, an increase of 2.9% compared to the prior-year period despite the on-going and fluid tariff environment. Sanitaryware revenue was $19.1 million during the second quarter of 2026, an increase from $18.1 million in the prior-year period. Bath Furniture revenue was $3.5 million during the second quarter of 2026, a decrease from revenue of $4.1 million in the prior-year period. Shower Systems revenue was $6.0 million during the second quarter of 2026, an increase from $5.2 million last year. Other revenue, primarily from Kitchen Cabinets, was $3.2 million during the second quarter, a decrease from $3.5 million in the prior year. Gross profit was $10.7 million during the second quarter of 2026, an increase of 22.5% compared to the prior-year period. Gross profit margin was 33.4% during the second quarter of 2026, an increase from 28.1% in the prior-year period. Operating income was $1.4 million during the second quarter of 2026, improving from an operating loss of $0.8 million in the prior-year period. Adjusted operating income was $1.4 million during the second quarter compared to a loss of $0.8 million in the prior-year-period. The improvement in operating income (loss) and adjusted operating income (loss) from the prior year was primarily a result of increased gross profit and a decrease in selling and distribution costs. Operating margin and adjusted operating margin were both 4.4% during the second quarter, up from (2.7%) in the same period last year. The Company reported GAAP net income attributable to shareholders of $1.3 million, or net income of $0.65 per diluted share during the second quarter of 2026, versus net loss of $1.2 million, or $0.64 per diluted share, in the same period last year. Adjusted net income for the second quarter of 2026 was $1.2 million, or $0.60 per diluted share, versus adjusted net loss of $1.2 million, or $0.61 per diluted share, for the same prior-year-period. All share and per-share data gives retroactive effect to the reverse share split of the preference shares and ordinary shares at a ratio of 1-for-5 that became effective July 31, 2025. FGI holds earnings calls only for the second and fourth quarters, but releases results of operations via press releases and SEC filings on a quarterly basis. Inquiries may continue to be submitted to [email protected] or by phone at 973-515-7190. FINANCIAL RESOURCES AND LIQUIDITY As of June 30, 2026, the Company had $4.4 million of cash, $13.0 million of total debt and $3.4 million of availability under its credit facilities net of letters of credit. Total liquidity was $7.9 million at June 30, 2026. FINANCIAL GUIDANCE The Company reaffirms its fiscal 2026 guidance as follows: Total net revenue of $134-141 million Total adjusted operating income of $0.7-2.5 million Total adjusted net income of $(0.3)-1.1 million Note that total adjusted operating income excludes certain non-recurring extraordinary items and trade related recoveries; total adjusted net income excludes certain non-recurring extraordinary items and trade related recoveries and include an adjustment for minority interest. SECOND QUARTER CONFERENCE CALL FGI will conduct a conference call on Thursday, August 13 at 9:00 am Eastern Time to discuss the quarterly results. A webcast of the conference call and accompanying presentation materials will be available in the Investor Relations section of the Company's corporate website at https://investor.fgi-industries.com. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time to register and download and install any necessary audio software. To participate in the live teleconference: To listen to a replay of the teleconference, which will be available through August 27, 2026: ABOUT FGI INDUSTRIES FGI Industries Ltd. (Nasdaq: FGI) is a leading global supplier of kitchen and bath products. For over 30 years, we have built an industry-wide reputation for product innovation, quality, and excellent customer service. We are currently focused on the following product categories: sanitaryware (primarily toilets, sinks, pedestals, and toilet seats), bath furniture (vanities, mirrors and cabinets), shower systems, custom kitchen cabinetry and other accessory items. These products are sold primarily for repair and remodel activity and, to a lesser extent, new home or commercial construction. We sell our products through numerous partners, including mass retail centers, wholesale and commercial distributors, online retailers and specialty stores. Non-GAAP Measures In addition to the measures presented in our consolidated financial statements, we use the following non-GAAP measures to evaluate our business, measure our performance, identify trends affecting our business and assist us in making strategic decisions. Our non-GAAP measures are: Adjusted Operating Income, Adjusted Operating Margins and Adjusted Net Income. These non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). They are supplemental financial measures of our performance only, and should not be considered substitutes for net income, income from operations or any other measure derived in accordance with GAAP and may not be comparable to similarly titled measures reported by other entities. We define Adjusted Operating Income as GAAP income from operations excluding the impact of certain non-recurring income and expenses, including non-recurring compensation expenses related to our initial public offering ("IPO"), as well as income taxes at historical average effective rate and net income attributable to non-controlling shareholders. We define Adjusted Net Income as GAAP income before income taxes excluding the impact of certain non-recurring income and expenses, such as non-recurring compensation expenses related to our IPO, as well as income taxes at historical average effective rate and net income attributable to non-controlling shareholders. We define Adjusted Operating Margins as Adjusted Operating Income divided by revenue. We use these non-GAAP measures, along with GAAP measures, to evaluate our business, measure our financial performance and profitability and our ability to manage expenses, after adjusting for certain one-time expenses, identify trends affecting our business and assist us in making strategic decisions. We believe these non-GAAP measures, when reviewed in conjunction with GAAP financial measures, and not in isolation or as substitutes for analysis of our results of operations under GAAP, are useful to investors as they are widely used measures of performance and the adjustments we make to these non-GAAP measures provide investors further insight into our profitability and additional perspectives in comparing our performance over time on a consistent basis. With respect to the Company's expectations of its future performance, the Company's reconciliations of guidance for full year 2026 Adjusted Operating Income and 2026 Adjusted Net Income are not available, as the Company is unable to quantify certain amounts to the degree of precision that would be required in the relevant GAAP measures without unreasonable effort. FORWARD-LOOKING STATEMENTS This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The use of words such as "anticipate," "expect," "could," "may," "intend," "plan", "see" and "believe," among others, generally identify forward-looking statements. These forward-looking statements include, among others, statements regarding FGI's guidance, the Company's growth strategies, outlook and potential acquisition activity, the tariff environment, the macroeconomic instability and its associated impact on the national and global economy and the residential repair and remodel market, the Company's planned product launches and new customer partnerships and the effect of supply chain disruptions and freight costs. These forward-looking statements are based on currently available operating, financial, economic and other information, and are subject to a number of risks and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results. A variety of factors, many of which are beyond our control, could cause actual future results or events to differ materially from those projected in the forward-looking statements in this release. For a full description of the risks and uncertainties which could cause actual results to differ from our forward-looking statements, please refer to FGI's periodic filings with the Securities & Exchange Commission including those described as "Risk Factors" in FGI's annual report on Form 10-K for the year ended December 31, 2025, and in subsequent reports we file from time to time thereafter. FGI does not undertake any obligation to update forward-looking statements whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. Non-GAAP Measures The following table reconciles GAAP income from operations to Adjusted Operating Income (Loss) and Adjusted Operating Margins, as well as GAAP net income to Adjusted Net Income for the periods presented. View original content to download multimedia:https://www.prnewswire.com/news-releases/fgi-industries-announces-second-quarter-2026-results-302849945.html

FGI Industries Ltd. (FGI) came out with quarterly earnings of $0.6 per share, beating the Zacks Consensus Estimate of a loss of $0.23 per share. This compares to a loss of $0.6 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +360.87%. A quarter ago, it was expected that this company would post a loss of $0.12 per share when it actually produced earnings of $0.39, delivering a surprise of +425%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. FGI Industries, which belongs to the Zacks Retail - Home Furnishings industry, posted revenues of $31.89 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.36%. This compares to year-ago revenues of $31 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. FGI Industries shares have lost about 20.2% since the beginning of the year versus the S&P 500's gain of 12.9%. While FGI Industries has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for FGI Industries was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.06 on $37 million in revenues for the coming quarter and -$0.72 on $136 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Home Furnishings is currently in the bottom 13% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Williams-Sonoma (WSM), is yet to report results for the quarter ended July 2026. This seller of cookware and home furnishings is expected to post quarterly earnings of $2.05 per share in its upcoming report, which represents a year-over-year change of +2.5%. The consensus EPS estimate for the quarter has been revised 0.1% higher over the last 30 days to the current level. Williams-Sonoma's revenues are expected to be $1.91 billion, up 4.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report FGI Industries Ltd. (FGI) : Free Stock Analysis Report Williams-Sonoma, Inc. (WSM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

EAST HANOVER, N.J., July 31, 2026 /PRNewswire/ -- FGI Industries Ltd. (Nasdaq: FGI) ("FGI" or the "Company"), a leading global supplier of kitchen and bath products, today announced that it will issue financial results for the second quarter 2026 after the market close on Wednesday, August 12, 2026. Management will conduct a conference call on Thursday, August 13, 2026, at 9:00 am Eastern Time to discuss the quarterly and full-year results. A webcast of the conference call and accompanying presentation materials will be available in the Investor Relations section of the Company's corporate website at https://investor.fgi-industries.com. To listen to a live broadcast, we recommend going to the site at least 15 minutes prior to the scheduled start time to register and download and install any necessary audio software. To participate in the live teleconference: To listen to a replay of the teleconference, which will be available through August 27, 2026: ABOUT FGI INDUSTRIES FGI Industries Ltd. (Nasdaq: FGI) is a leading global supplier of kitchen and bath products. For over 30 years, we have built an industry-wide reputation for product innovation, quality, and excellent customer service. We are currently focused on the following product categories: sanitaryware (primarily toilets, sinks, pedestals, and toilet seats), bath furniture (vanities, mirrors and cabinets), shower systems, customer kitchen cabinetry and other accessory items. These products are sold primarily for repair and remodel activity and, to a lesser extent, new home or commercial construction. We sell our products through numerous partners, including mass retail centers, wholesale and commercial distributors, online retailers and specialty stores. FORWARD-LOOKING STATEMENTS This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The use of words such as "anticipate," "expect," "could," "may," "intend," "plan", "see" and "believe," among others, generally identify forward-looking statements. These forward-looking statements include, among others, statements regarding FGI's guidance, the Company's growth strategies, outlook and potential acquisition activity, the tariff environment, the macroeconomic instability and its associated impact on the national and global economy and the residential repair and remodel market, the company's planned product launches and new customer partnerships and the effect of supply chain disruptions and freight costs. These forward-looking statements are based on currently available operating, financial, economic and other information, and are subject to a number of risks and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results. A variety of factors, many of which are beyond our control, could cause actual future results or events to differ materially from those projected in the forward-looking statements in this release. For a full description of the risks and uncertainties which could cause actual results to differ from our forward-looking statements, please refer to FGI's periodic filings with the Securities & Exchange Commission including those described as "Risk Factors" in FGI's annual report on Form 10-K for the year ended December 31, 2025, and in quarterly reports on Form 10-Q filed thereafter. FGI does not undertake any obligation to update forward-looking statements whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. View original content to download multimedia:https://www.prnewswire.com/news-releases/fgi-industries-announces-second-quarter-results-conference-call-date-302840338.html

EAST HANOVER, N.J., May 14, 2026 /PRNewswire/ -- FGI Industries Ltd. (Nasdaq: FGI) ("FGI" or the "Company"), a leading global supplier of kitchen and bath products, today announced results for the first quarter 2026. FIRST QUARTER 2026 HIGHLIGHTS (As compared to the first quarter of 2025) Total revenue of $30.5 million, -8.2% y/y Gross profit of $8.2 million, -8.3% y/y Gross margin of 26.8%, 0 bps y/y Operating loss of $0.7 million and net loss attributable to shareholders of $1.0 million Adjusted operating loss of $0.7 million1 Adjusted net loss of $0.7 million MANAGEMENT COMMENTARY Dave Bruce, CEO of FGI, stated, "FGI reported total revenue of $30.5 million in the quarter, representing a year-over-year decrease of 8.2%. Gross profit was $8.2 million, a decrease of 8.3% compared to the prior year. The gross margin was 26.8%, no change compared to the first quarter of 2025. The industry outlook remains uncertain due to tariffs but FGI's strategic investments in our Brands, Products and Channels strategy continues. FGI and our customers continue to evaluate a China+1 strategy to diversify and broaden our geographic sourcing. Revenue declined 5.9% and 25.5% in the U.S. and Canada markets, and increased 15.4% in the Europe market. Sanitaryware revenue decreased 20.0% year-over-year due to softer US homebuilder-related business from certain customers, uneven ordering patterns and lower retail sales in Canada. Bath furniture, shower systems and other increased 10.9%, 14.0% and 2.5%, respectively, compared to the prior year period reflecting positive momentum and new business wins. Covered Bridge further expanded its geographies and increased its dealer count. Isla Porter, our digital custom kitchen joint venture, continues to establish relationships with the premium design community with on-trend products. In India, we added more dealers as we expand our presence there." Bruce continued, "We are excited about our new product introductions and continue to invest in our brands and our future growth initiatives in our core businesses." Jae Chung, Chief Financial Officer of FGI, commented, "Total revenue decreased 8.2% year-over-year in the fourth quarter. FGI continues to invest in long-term growth through our BPC strategy and exercise discipline in overall operating expenses, which decreased 13.1% year-over-year to $8.9 million due primarily to lower selling and distribution, tradeshow and warehouse costs. FGI ended the first quarter with total available liquidity of $7.9 million. We believe the best use of our capital is for internal investment in order to attract new customers, expand existing relationships, develop new products and manufacturing capabilities and expand into new jurisdictions, and this will remain our priority in the near term." FIRST QUARTER 2026 RESULTS Revenue totaled $30.5 million during the first quarter of 2026, a decrease of 8.2% compared to the prior-year period despite the on-going and fluid tariff environment. Sanitaryware revenue was $16.1 million during the first quarter of 2026, a decrease from $20.2 million in the prior-year period. Bath Furniture revenue was $4.5 million during the first quarter of 2026, an increase from revenue of $4.1 million in the prior-year period. Shower Systems revenue was $6.5 million during the first quarter of 2026, an increase from $5.7 million last year. Other revenue, primarily from Kitchen Cabinets, was $3.3 million during the first quarter, remaining stable compared to revenue of $3.3 million in the prior year. Gross profit was $8.2 million during the first quarter of 2026, a decrease of 8.3% compared to the prior-year period. Gross profit margin remained steady at 26.8% during the first quarter of 2026, unchanged from the prior-year period. Operating loss was $0.7 million during the first quarter of 2026, improving from an operating loss of $1.3 million in the prior-year period. Adjusted operating loss was $0.7 million during the first quarter compared to $1.3 million in the prior-year-period. The improvement in operating loss and adjusted operating loss from the prior year was primarily a result of a decrease in selling and distribution cost as well as lower R&D costs. Operating margin and adjusted operating margin were (2.3%) and (2.3%) during the first quarter, respectively, up from (3.9%) and (3.8%) in the same period last year. The Company reported GAAP net loss attributable to shareholders of $1.0 million, or net loss of $0.50 per diluted share during the first quarter of 2026, versus net loss of $0.6 million, or $0.33 per diluted share, in the same period last year. Net loss for the first quarter of 2026 and 2025 included valuation allowance on deferred tax assets, business expansion expense and non-recurring IPO-related compensation. Excluding these items, adjusted net loss for the first quarter of 2026 was $0.7 million, or $0.39 per diluted share, versus adjusted net loss of $1.1 million, or $0.56 per diluted share, for the same prior-year-period. All share and per-share data gives retroactive effect to the reverse share split of the preference shares and ordinary shares at a ratio of 1-for-5 that became effective July 31, 2025. FGI holds earnings calls only for the second and fourth quarters, but releases results of operations via press releases and SEC filings on a quarterly basis. Inquiries may continue to be submitted to [email protected] or by phone at 973-515-7190. FINANCIAL RESOURCES AND LIQUIDITY As of March 31, 2026, the Company had $2.7 million of cash, $13.1 million of total debt and $5.3 million of availability under its credit facilities net of letters of credit. Total liquidity was $7.9 million at March 31, 2026. FINANCIAL GUIDANCE The Company reaffirms its fiscal 2026 guidance as follows: Total net revenue of $134-141 million Total adjusted operating income of $0.7-2.5 million Total adjusted net income of $(0.3)-1.1 million Note that total adjusted operating income excludes certain non-recurring items and total adjusted net income excludes certain non-recurring extraordinary items and includes an adjustment for minority interest. ABOUT FGI INDUSTRIES FGI Industries Ltd. (Nasdaq: FGI) is a leading global supplier of kitchen and bath products. For over 30 years, we have built an industry-wide reputation for product innovation, quality, and excellent customer service. We are currently focused on the following product categories: sanitaryware (primarily toilets, sinks, pedestals, and toilet seats), bath furniture (vanities, mirrors and cabinets), shower systems, customer kitchen cabinetry and other accessory items. These products are sold primarily for repair and remodel activity and, to a lesser extent, new home or commercial construction. We sell our products through numerous partners, including mass retail centers, wholesale and commercial distributors, online retailers and specialty stores. Non-GAAP Measures In addition to the measures presented in our consolidated financial statements, we use the following non-GAAP measures to evaluate our business, measure our performance, identify trends affecting our business and assist us in making strategic decisions. Our non-GAAP measures are: Adjusted Operating Income, Adjusted Operating Margins and Adjusted Net Income. These non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). They are supplemental financial measures of our performance only, and should not be considered substitutes for net income, income from operations or any other measure derived in accordance with GAAP and may not be comparable to similarly titled measures reported by other entities. We define Adjusted Operating Income as GAAP income from operations excluding the impact of certain non-recurring income and expenses, including non-recurring compensation expenses related to our initial public offering ("IPO"), as well as income taxes at historical average effective rate and net income attributable to non-controlling shareholders. We define Adjusted Net Income as GAAP income before income taxes excluding the impact of certain non-recurring income and expenses, such as non-recurring compensation expenses related to our IPO, as well as income taxes at historical average effective rate and net income attributable to non-controlling shareholders. We define Adjusted Operating Margins as Adjusted Operating Income divided by revenue. We use these non-GAAP measures, along with GAAP measures, to evaluate our business, measure our financial performance and profitability and our ability to manage expenses, after adjusting for certain one-time expenses, identify trends affecting our business and assist us in making strategic decisions. We believe these non-GAAP measures, when reviewed in conjunction with GAAP financial measures, and not in isolation or as substitutes for analysis of our results of operations under GAAP, are useful to investors as they are widely used measures of performance and the adjustments we make to these non-GAAP measures provide investors further insight into our profitability and additional perspectives in comparing our performance over time on a consistent basis. With respect to the Company's expectations of its future performance, the Company's reconciliations of guidance for full year 2026 Adjusted Operating Income and 2026 Adjusted Net Income are not available, as the Company is unable to quantify certain amounts to the degree of precision that would be required in the relevant GAAP measures without unreasonable effort. FORWARD-LOOKING STATEMENTS This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The use of words such as "anticipate," "expect," "could," "may," "intend," "plan", "see" and "believe," among others, generally identify forward-looking statements. These forward-looking statements include, among others, statements regarding FGI's guidance, the Company's growth strategies, outlook and potential acquisition activity, the tariff environment, the macroeconomic instability and its associated impact on the national and global economy and the residential repair and remodel market, the company's planned product launches and new customer partnerships and the effect of supply chain disruptions and freight costs. These forward-looking statements are based on currently available operating, financial, economic and other information, and are subject to a number of risks and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results. A variety of factors, many of which are beyond our control, could cause actual future results or events to differ materially from those projected in the forward-looking statements in this release. For a full description of the risks and uncertainties which could cause actual results to differ from our forward-looking statements, please refer to FGI's periodic filings with the Securities & Exchange Commission including those described as "Risk Factors" in FGI's annual report on Form 10-K for the year ended December 31, 2025, and in subsequent reports we file from time to time thereafter. FGI does not undertake any obligation to update forward-looking statements whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. Non-GAAP Measures The following table reconciles GAAP income from operations to Adjusted Operating Income (Loss) and Adjusted Operating Margins, as well as GAAP net income to Adjusted Net Income for the periods presented. View original content to download multimedia:https://www.prnewswire.com/news-releases/fgi-industries-announces-first-quarter-2026-results-302772675.html

This article first appeared on GuruFocus. Release Date: April 10, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. FGI Industries Ltd (NASDAQ:FGI) maintained a solid foundation despite broader industry challenges, thanks to strategic investments in organic growth initiatives. The company's gross margin expanded by 210 basis points to 26.7% this quarter, driven by better performance in higher-margin businesses. FGI's geographic expansion into India and growth in covered bridge kitchen cabinetry are promising for future growth. Operating expenses decreased due to optimized warehouse operations, contributing to an improved operating loss compared to the previous year. The company has made progress in diversifying its geographic sourcing, securing partnerships outside of China, which will help mitigate uncertainties. Fourth-quarter revenue decreased by 14.4% compared to the same period in 2024, impacted by tariff headwinds and prior year order pull forwards. Gross profit decreased by 6.8% year-over-year, reflecting challenges in the sanitary wear and shower systems businesses. GAAP net loss attributable to shareholders increased to $2.6 million from $0.4 million in the same period last year. The industry outlook remains uncertain due to the current tariff environment and geopolitical issues, affecting demand and order patterns. FGI's full-year revenue and gross profit were each down less than 1% compared to the prior year, indicating challenges in achieving growth. Warning! GuruFocus has detected 4 Warning Signs with FGI. Is FGI fairly valued? Test your thesis with our free DCF calculator. Q: Could you provide more detail on the assumptions in the end markets relative to the full-year guidance? A: Dave Bruce, CEO: We had significant momentum going into 2025, but global trade issues disrupted some of that. Despite uncertainties, including the Middle East conflict, we feel comfortable with our key customers and new programs, some of which were delayed due to tariff uncertainties. Overall, we are confident in the foundational aspects of our business across broader categories. Q: How has demand looked year-to-date compared to the fourth quarter, and who would benefit from any tariff refunds? A: Dave Bruce, CEO: We are pleased with Q1 performance so far, despite ongoing uncertainties. We expect tariffs, particularly those negated by the Supreme Court, to return in other forms. It's too early to predict tariff adjustments, but we are planning for potential changes throughout the year. Q: Can you elaborate on the pickup in activity in Q1 2026 compared to Q4 2025? A: Dave Bruce, CEO: In Q4 2024, there was significant order pull forward due to anticipated tariffs, which impacted year-over-year comparisons. The major tariff impact in early 2025 caused customers to pause orders, affecting inventory momentum and ordering patterns. This timing effect contributed to the quarterly business results. Q: What progress have you made with the China Plus One strategy for diversifying geographic sourcing? A: Dave Bruce, CEO: We have made good progress, securing partnerships outside China, including Thailand. This diversification will help mitigate uncertainties in China. We are also exploring other regions outside Southeast Asia and are confident in executing these strategies in the short term. Q: Could you discuss growth opportunities related to your BPC strategy, particularly in India and other regions? A: Dave Bruce, CEO: India is a significant growth area, with dealer additions in Mumbai and Delhi. We have also launched a wholesale initiative in Germany, which is progressing well. In the U.S., we are establishing better representation and distribution for the wholesale business and evaluating our logistics footprint to serve new markets effectively. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

EAST HANOVER, N.J., April 9, 2026 /PRNewswire/ -- FGI Industries Ltd. (Nasdaq: FGI) ("FGI" or the "Company"), a leading global supplier of kitchen and bath products, today announced results for the fourth quarter and full-year 2025. FOURTH QUARTER 2025 HIGHLIGHTS (As compared to the fourth quarter of 2024) Total revenue of $30.5 million, -14.4% y/y Gross profit of $8.1 million, -6.8% y/y Gross margin of 26.7%, +210 bps y/y Operating loss of $0.7 million and net loss attributable to shareholders of $2.6 million Adjusted operating loss of $0.7 million1 Adjusted net loss of $0.6 million FULL-YEAR 2025 HIGHLIGHTS (As compared to full-year 2024) Total revenue of $130.5 million, -1.0% y/y Gross profit of $35.3 million, -0.5% y/y Gross margin of 27.0%, +10 bps y/y Operating loss of $2.4 million and net loss attributable to shareholders of $6.1 million Adjusted operating loss of $2.4 million Adjusted net loss of $2.6 million MANAGEMENT COMMENTARY Dave Bruce, CEO of FGI, stated, "FGI reported total revenue of $30.5 million in the quarter, representing a year-over-year decrease of 14.4%. Gross profit was $8.1 million, a decrease of 6.8% compared to the prior year. The gross margin was 26.7%, an increase of 210 basis points compared to the fourth quarter of 2024 driven by the better relative performance of some of our higher margin businesses. Customers continued to evaluate the impact of tariffs on their businesses amid the Supreme Court decision in February and subsequent response by the administration. The industry outlook remains uncertain due to tariffs but FGI's strategic investments in our Brands, Products and Channels strategy continues and is bearing fruit becoming a positive driver of revenue growth. FGI and our customers continue to evaluate a China+1 strategy to diversify and broaden our geographic sourcing. FGI's fourth quarter revenue decreased 14.4% compared to the prior year period. Revenue declined 15.5%, 16.9% and 5.6% in the U.S., Canada and Europe markets. Sanitaryware, bath furniture and shower system revenue decreased 12.2%, 34.9% and 13.9% compared to the prior year period. Our Other segment revenue, including Covered Bridge, declined 9.0% compared to the prior year. Covered Bridge further expanded its geographies and increased its dealer count. Isla Porter, our digital custom kitchen joint venture, continues to establish relationships with the premium design community with on-trend products. In India, we added more dealers as we expand our presence there." Bruce continued, "We are excited about our new product introductions and continue to invest in our brands and our future growth initiatives in our core businesses. "The tariff environment in 2026 remains fluid. FGI navigated through the volatility of the tariffs in 2025 with full year revenue and gross profit each down less than 1% compared to the prior year. Despite the cautious order environment by our customers in the fourth quarter, we are seeing a pickup in activity as we begin 2026." Jae Chung, Chief Financial Officer of FGI, commented, "Total revenue decreased 14.4% year-over-year in the fourth quarter. FGI continues to invest in long-term growth through our BPC strategy and discipline in overall operating expenses, which decreased 12.0% year-over-year to $8.8 million. FGI ended the fourth quarter with total available liquidity of $8.5 million. We believe the best use of our capital is for internal investment in order to attract new customers, expand existing relationships, develop new products and manufacturing capabilities and expand into new jurisdictions, and this will remain our priority in the near term." FOURTH QUARTER 2025 RESULTS Revenue totaled $30.5 million during the fourth quarter of 2025, a decrease of 14.4% compared to the prior-year period despite the on-going and fluid tariff environment. Sanitaryware revenue was $19.1 million during the fourth quarter of 2025, a decrease from $21.8 million in the prior-year period. Bath Furniture revenue was $2.3 million during the fourth quarter of 2025, a decrease from revenue of $3.5 million in the prior-year period, as a result of our broader strategic focus on diversifying our product mix and expanding higher-growth categories. Shower Systems revenue was $5.8 million during the fourth quarter of 2025, a decrease from $6.7 million last year. Other revenue, primarily from Kitchen Cabinets, was $3.3 million during the fourth quarter, remaining stable compared to revenue of $3.6 million in the prior year. Gross profit was $8.1 million during the fourth quarter of 2025, a decrease of 6.8% compared to the prior-year period. Gross profit margin increased to 26.7% during the fourth quarter of 2025, up 210 basis points from the prior-year period due to the implementation of tariffs, higher freight costs and better relative performance from some of our higher margin businesses. Operating loss was $0.7 million during the fourth quarter of 2025, improving from an operating loss of $1.3 million in the prior-year period. Adjusted operating loss was $0.7 million during the fourth quarter compared to $1.1 million in the prior-year-period. The improvement in operating loss and adjusted operating loss from the prior year was a result of a decrease in selling and distribution cost as well as lower R&D costs. Operating margin and adjusted operating margin were (2.2%) and (2.2%) during the fourth quarter, respectively, up from (3.5%) and (3.2%) in the same period last year. The Company reported GAAP net loss attributable to shareholders of $2.6 million, or net loss of $1.37 per diluted share during the fourth quarter of 2025, versus net loss of $0.4 million, or $0.21 per diluted share, in the same period last year. Net loss for the fourth quarter of 2025 and 2024 included valuation allowance on deferred tax assets, business expansion expense and non-recurring IPO-related compensation. Excluding these items, adjusted net loss for the fourth quarter of 2025 was $0.6 million, or $0.29 per diluted share, versus adjusted net loss of $0.7 million, or $0.34 per diluted share, for the same prior-year-period. All share and per-share data gives retroactive effect to the reverse share split of the preference shares and ordinary shares at a ratio of 1-for-5 that became effective July 31, 2025. FGI holds earnings calls only for the second and fourth quarters, but releases results of operations via press releases and SEC filings on a quarterly basis. Inquiries may continue to be submitted to [email protected] or by phone at 973-515-7190. FINANCIAL RESOURCES AND LIQUIDITY As of December 31, 2025, the Company had $1.9 million of cash and cash equivalents, total debt of $11.9 million and $6.6 million of availability under its credit facilities net of letters of credit. Total liquidity was $8.5 million at December 31, 2025. FINANCIAL GUIDANCE The Company provides its fiscal 2026 guidance as follows: Total net revenue of $134-141 million Total adjusted operating income of $0.7-2.5 million Total adjusted net income of $(0.3)-1.1 million Note that total adjusted operating income excludes certain non-recurring items and total adjusted net income excludes certain non-recurring extraordinary items and includes an adjustment for minority interest. FOURTH QUARTER CONFERENCE CALL FGI will conduct a conference call on Friday, April 10 at 9:00 am Eastern Time to discuss the quarterly results. A webcast of the conference call and accompanying presentation materials will be available in the Investor Relations section of the Company's corporate website at https://investor.fgi-industries.com. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time to register and download and install any necessary audio software. To participate in the live teleconference: To listen to a replay of the teleconference, which will be available through April 24, 2026: ABOUT FGI INDUSTRIES FGI Industries Ltd. (Nasdaq: FGI) is a leading global supplier of kitchen and bath products. For over 30 years, we have built an industry-wide reputation for product innovation, quality, and excellent customer service. We are currently focused on the following product categories: sanitaryware (primarily toilets, sinks, pedestals, and toilet seats), bath furniture (vanities, mirrors and cabinets), shower systems, customer kitchen cabinetry and other accessory items. These products are sold primarily for repair and remodel activity and, to a lesser extent, new home or commercial construction. We sell our products through numerous partners, including mass retail centers, wholesale and commercial distributors, online retailers and specialty stores. Non-GAAP Measures In addition to the measures presented in our consolidated financial statements, we use the following non-GAAP measures to evaluate our business, measure our performance, identify trends affecting our business and assist us in making strategic decisions. Our non-GAAP measures are: Adjusted Operating Income, Adjusted Operating Margins and Adjusted Net Income. These non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). They are supplemental financial measures of our performance only, and should not be considered substitutes for net income, income from operations or any other measure derived in accordance with GAAP and may not be comparable to similarly titled measures reported by other entities. We define Adjusted Operating Income as GAAP income from operations excluding the impact of certain non-recurring income and expenses, including non-recurring compensation expenses related to our IPO, unusual litigation and business expansion expense. We define Adjusted Net Income as GAAP income before income taxes excluding the impact of certain non-recurring income and expenses, such as non-recurring compensation expenses related to our IPO, unusual litigation and business expansion expense, as well as income taxes at historical average effective rate and net income attributable to non-controlling shareholders. We define Adjusted Operating Margins as Adjusted Operating Income divided by revenue. We use these non-GAAP measures, along with GAAP measures, to evaluate our business, measure our financial performance and profitability and our ability to manage expenses, after adjusting for certain one-time expenses, identify trends affecting our business and assist us in making strategic decisions. We believe these non-GAAP measures, when reviewed in conjunction with GAAP financial measures, and not in isolation or as substitutes for analysis of our results of operations under GAAP, are useful to investors as they are widely used measures of performance and the adjustments we make to these non-GAAP measures provide investors further insight into our profitability and additional perspectives in comparing our performance over time on a consistent basis. With respect to the Company's expectations of its future performance, the Company's reconciliations of guidance for full year 2025 Adjusted Operating Income and 2025 Adjusted Net Income are not available, as the Company is unable to quantify certain amounts to the degree of precision that would be required in the relevant GAAP measures without unreasonable effort. FORWARD-LOOKING STATEMENTS This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The use of words such as "anticipate," "expect," "could," "may," "intend," "plan", "see" and "believe," among others, generally identify forward-looking statements. These forward-looking statements include, among others, statements regarding FGI's guidance, the Company's growth strategies, outlook and potential acquisition activity, the tariff environment, the macroeconomic instability and its associated impact on the national and global economy and the residential repair and remodel market, the company's planned product launches and new customer partnerships and the effect of supply chain disruptions and freight costs. These forward-looking statements are based on currently available operating, financial, economic and other information, and are subject to a number of risks and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results. A variety of factors, many of which are beyond our control, could cause actual future results or events to differ materially from those projected in the forward-looking statements in this release. For a full description of the risks and uncertainties which could cause actual results to differ from our forward-looking statements, please refer to FGI's periodic filings with the Securities & Exchange Commission including those described as "Risk Factors" in FGI's annual report on Form 10-K for the year ended December 31, 2024, and in quarterly reports on Form 10-Q filed thereafter. FGI does not undertake any obligation to update forward-looking statements whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. Non-GAAP Measures The following table reconciles GAAP income from operations to Adjusted Operating Income (Loss) and Adjusted Operating Margins, as well as GAAP net income to Adjusted Net Income for the periods presented. View original content to download multimedia:https://www.prnewswire.com/news-releases/fgi-industries-announces-fourth-quarter-and-full-year-2025-results-302738646.html

Revenue decline of 14.4% in Q4 was primarily attributed to a difficult year-over-year comparison against a significant order pull-forward in late 2024. Management noted a 'whipsaw effect' in ordering patterns as customers paused activity in mid-2025 to assess the impact of major tariff shifts. Gross margin expansion of 210 basis points was driven by a strategic shift toward higher-margin businesses within the Brands, Products, and Channels (BPC) framework. Operating loss improved year-over-year due to the optimization of warehouse operations, a decrease in selling and distribution costs, and lower R&D spending. The company is actively executing a 'China Plus One' strategy, securing new manufacturing partnerships in Thailand and other regions to mitigate trade policy risks. Geographic expansion into India is gaining momentum, with recent successful penetration into the Delhi market following initial growth in Mumbai. Full-year 2026 revenue guidance of $134 million to $141 million assumes continued recovery from 2025 trade disruptions. Management anticipates ongoing uncertainty regarding trade and tariffs for the balance of the year, expecting some negated tariffs to return in new forms. Growth projections rely on the rollout of new wholesale bath initiatives in Germany and the expansion of U.S. distribution footprints. The 2026 guidance framework assumes that underlying demand trends remain positive despite macro volatility and geopolitical tensions in the Middle East. Strategic focus remains on high-grading the portfolio to sustain margin improvements even if volume recovery remains gradual. The Supreme Court decision in February and subsequent tariff actions created a fluid environment that pressured sanitaryware and shower system volumes. Net loss figures include non-recurring items such as valuation allowances on deferred tax assets and IPO-related compensation. The company is currently evaluating its U.S. logistics and distribution center footprint to better serve expanding wholesale territories. Total liquidity stood at $8.5 million at year-end, providing the foundation for 2026 organic growth initiatives. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management expressed comfort with current category momentum despite global trade issues and geopolitical uncertainty. Q1 2026 activity has met internal expectations so far, showing improved stability compared to the volatile ordering patterns of 2025. FGI has secured additional partnerships in Thailand and is exploring further options outside of Southeast Asia. The company expects these new sources to have a tangible impact on the business in the short term by lessening reliance on Chinese manufacturing. India remains a key growth pillar, with a growing dealer network expanding from Mumbai into the Delhi region. A new wholesale bath initiative in Germany, supported by a local distribution center, has shown strong performance over the last 8 to 10 months. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.

Image source: The Motley Fool. Tuesday, Aug. 12, 2025 at 9:00 a.m. ET Chief Executive Officer — David Bruce Chief Financial Officer — Jae M. Chung David Bruce: Thank you, Jae. Good morning, everyone, and thank you for joining our call today. I am pleased to share our second quarter results reflect the strategic investments we've made in our organic growth initiatives across our brands products and channels or BPC strategy. FGI reported total revenue of $31 million in the quarter, representing a year-over-year increase of 5.5%. Gross profit was $8.7 million, a decrease of 2.9% compared to the prior year. Gross margin was 28.1% compared to 30.5% in the second quarter of 2024, a decline of 240 basis points due primarily to the ongoing tariff environment. FGI was impacted by an industry-wide pause during the quarter as customers evaluated the impact of tariffs on their businesses. FGI and our customers continue to evaluate a China Plus One strategy to diversify and broaden our geographic sourcing. The industry outlook remains uncertain due to tariffs, but our strategic investments in our brands, products and channels have driven revenue growth well above the market. FGIs second quarter revenue increased compared to the second quarter of 2024 due to the growth in our Sanitaryware, Bath Furniture and Covered Bridge cabinetry businesses, while Shower Systems revenue declined. Revenue declined 0.4% in the U.S. and grew 2% and 36.7% in Canada and Europe, respectively. Sanitaryware revenue increased 4.3% year-over-year in the second quarter compared to the prior year period. Our Bath furniture revenue increased 2.7% year-over-year as our shift to market-aligned program pricing and design drove new business wins. The Shower Systems business reported a decrease in revenue of 11.2% even as demand trends remain positive. Other revenue primarily covered bridge, increased 67.7% in the quarter driven by continued order momentum, expanded geographies and higher dealer count. Isla Porter, our digital custom kitchen joint venture continues to establish relationships with the premium design community with on- trend products via an AI-backed digital sales platform. Our geographic expansion in Europe and India holds significant promise of driving growth in coming quarters. Our strategic growth initiatives are progressing well and are expected to fuel above-market organic future growth. I commend our FGI team for their dedication to our long-term objectives, positioning the company for success for the remainder of 2025 and beyond. Before I hand it over to Jae, I want to say a few words about tariffs. The increasing tariff environment in 2025 remains fluid. FGI is working with our suppliers and customers to support one another as we navigate the new normal together. We went through a similar process during the first Trump administration's tariff increases, so this is not new to us. We are confident that we can work through what comes given the close relationships we have cultivated over the years with our vendors and customers. We are seeing the order pipeline recovering even as some customers remain cautious due to the continued tariff uncertainty. With that, I'll hand it over to Jae for a more detailed financial review. Jae M. Chung: Thank you, Dave, and good morning, everyone. I will begin by providing additional details on the quarter, followed by an update on our current liquidity and balance sheet. Finally, I will conclude with our guidance for the full year 2025. As Dave mentioned, for the second quarter 2025, revenue totaled $31 million, an increase of 5.5% compared to the second quarter of 2024. Gross profit was $8.7 million in the quarter, a decrease of 2.9% year-over-year. Our gross margin declined to 28.1% in the quarter compared to 30.5% in the prior year. Our operating expenses increased 1.3% to $9.5 million from $9.4 million in the prior year due primarily to investing in initiatives related to our BPC growth strategy, including Isla Porter in India and onetime costs related to optimizing our warehouse operations. GAAP operating loss was $0.8 million in the quarter, down from a negative $0.5 million in the prior year. Lower gross margin and higher operating expenses due to investing in our growth initiatives accounted for the loss. Moving to our balance sheet. At the end of the second quarter, FGI had $16.4 million in total liquidity, which we believe is more than sufficient to fund our growth initiatives. We are maintaining our 2025 guidance as follows: Our revenue guidance is $135 million to $145 million. The adjusted operating income guidance is negative $2 million to a positive $1.5 million. The adjusted net income guidance is negative $1.9 million to a positive $1 million. Please note that the guidance for adjusted operating income excludes certain nonrecurring items. Adjusted net income excludes certain nonrecurring items and includes an adjustment for minority interests. That concludes our prepared remarks. Operator, we are now ready for the question-and-answer portion of our call. Operator: [Operator Instructions] The first question comes from Reuben Garner with Benchmark. Reuben Garner: Thank you. Good morning, guys. Let's see, you referenced your customers kind of pausing for tariffs. I'm curious, is that more so they're concerned about demand degradation from the consumer itself? Or is it about just kind of the moving target on the tariff front and not wanting to buy inventory at tariff levels that could potentially come lower? Or is it a combination of the 2? David Bruce: Yes. So that's a great question. And as we sit here in August, this tariff pause took place back at the beginning of the quarter. And if you remember, the tariffs that were originally announced were quite large and substantial and then subsequently had been reduced. So because of that tremendous uncertainty, there was a pause because everyone was trying to determine at the time have they brought product in with those larger tariffs, it would have been impacted dramatically. So due to the uncertainty, there was a length of time, several weeks where orders were pulled and that obviously impacted the quarter. But since we've been feeling really good about our order pipeline and how it's been moving along. So we don't feel that we're going to see something like that again. But as you also have watched the more recent news regarding tariffs, some things are still unsettled. China tariff discussions were paused again for another 90-day reprieve. So I think there'll still be some caution in the marketplace, but not to the extreme that we saw at the early part of Q2, which impacted our numbers in the quarter. Reuben Garner: Okay. And the China Plus One strategy you referenced, is that in all segments of your business, including Sanitaryware? I know that's a place in the past that's been heavily sort of reliant on China? David Bruce: Yes, you're 100% correct. And yes, it will be impacting all of our businesses. And we will -- there's some things we won't be able to reveal quite yet, but we are extremely active right now in diversifying our global sourcing base. And as I've said to a lot of people more recently, there'll be a completely different picture from a global sourcing footprint map this time next year than you've seen today from our company. So there'll be impacts across all the product categories for FGI. Reuben Garner: Okay. And I know we have limited history with you guys being a public company, but it looks like your operating expenses historically were higher in the second quarter than the first, and they were lower. Just curious if that was kind of a temporary pullback on your end tied to the uncertainty. How should we expect, I guess, both gross margin and operating expenses to trend in the second half? What's embedded in the guidance? David Bruce: Yes. I mean -- so we understood and took action based on what we saw occurring in the quarter. We were very diligent in watching our expenses. We have some expense levers to pull to do that. In our margins, we -- I think we had said when our margins got substantially higher previously, we didn't expect them to remain that high, but we still saw a realistic picture in the upper 20s to continue. And we still believe that based on, again, the pipeline and particularly what we've talked about, the growth of new programs and new introductions, which is where most of the growth is coming from at this point. Jae M. Chung: Yes. I mean as far as the expenses are concerned, I think it was very prudent to try to keep a very careful eye on where we're spending our expense dollars. So we've cut where we could without sacrificing growth for the future. And I would expect that we would continue that process throughout the year and into 2026. Reuben Garner: Okay. Just a clarification for me, and this is my last question. The upper 20s that's a gross margin comment. And is that the back half we think we can get there even with the tariff situation? David Bruce: Yes. I mean, we have pretty good confidence that the new businesses that we continue to implement. And I say that positively because those were some of the things that were paused a bit in Q2. Those new programs should allow us, if all goes well and as planned to achieve those margin levels. Operator: The next question comes from Greg Gibas with Northland Securities. Gregory Thomas Gibas: David and Jay. I wanted to, I guess, follow up on your ability to navigate the effects of tariffs with vendors and customers and then kind of how maybe the negotiations have gone, if you touch on maybe how that's played out as expected maybe to date? And just kind of how those discussions have gone? David Bruce: Yes. I think it's been a little different than last time. We've been through this before, as I mentioned. And the first time this happened back in '18, it was sort of like an initial impact of tariff, and it was -- I think that the biggest difference was the amount of uncertainty that surrounded tariffs the first time was quite small, because things were sort of firm and then everybody implemented a plan to work with customers on pricing adjustments and work with our suppliers. This time, things were quite fluid and still are quite fluid. And the amount of the tariffs were so large, there was obviously only so much any supplier could do or any factory. But we still worked together with our customers and our suppliers, and we adjusted pricing where we could to help our customers maintain value. And what I mean by that is the key that we see is how do we continue to maintain value in a certain price band for certain products in certain categories to make them make sense. You also saw, I think, in the market, in some cases with us, but definitely with others, you saw a shift in where maybe efforts were going to -- where to invest in products. Certain products may be lost value and were more challenging to maintain a value for the end consumer. And I think you're going to continue to see that going into next year, you're going to see better value products that offer a very fair price and good quality more so than ever before. I think you might have read that private label businesses that we're pretty strong in have been doing quite well because we offer a greater value in many cases than some of the brands potentially. So it's -- that's the big difference. The uncertainty this time and the length of time of this uncertainty with the lack of a definitive final tariff adjustments globally, not just from China, have made things more challenging. But through all of that, what we have seen is our adjustment with our customers work. And more importantly, all of the new businesses that we've been talking about and the new wins and taking share in the market continued to happen. Some of that has been a little delayed, but the execution plans are in place right now to continue through, and we'll see results from that from going into Q3 and Q4. Gregory Thomas Gibas: Great. That's helpful. And totally makes sense regarding your commentary about the most severe impact of the tariffs and at least the kind of lag or pauses on decision-making taking place at the beginning of the quarter. You noted you feel good about the order pipeline and kind of how it's improved. I wonder if you could kind of maybe provide a little bit more color on the degree of the improvement, maybe since the beginning of Q2 to maybe where we are today in terms of those pauses and kind of uncertainty on decision making? David Bruce: Yes. I would say that we were on a positive trajectory going into this pre-tariff impact. And we had, like I mentioned, newer programs that were scheduled to launch. And some of that got delayed, obviously, that wasn't canceled, and orders were paused. So everything was sort of just a big slowdown all at one time. that had a more precipitous impact in a short period of time. And I would say, for the most part, we're back to feeling that same momentum that we had prior to this, right? And there's peaks and valleys there with some little one-offs of individual customers or products that we're still trying to get our hands around. And of course, we're still navigating the global tariff environment. And I think the added differential is the acceleration that we've had with our global sourcing initiatives, which will start to impact our business this year. but we'll have a much more dramatic I'll say, impact overall next year, especially when you look overall at our global footprint compared to what it was at the beginning of this year. So I think the offering that we're going to be able to bring to our customer base as far as global sourcing options and derisking their sourcing in China particularly, will be pretty dramatic for us. Gregory Thomas Gibas: Got it. And I know it's had effects on quarters in the past. Anything worth calling out in terms of the timing of product programs, either favorable or unfavorable in the quarter in any way? David Bruce: No. Like I said, they were -- some of them were -- we had new launches scheduled for the summer in some cases with some customers. Some of them are smaller, some of them are larger. And of course, when the tariffs hit in April, that delayed some of that, right? But now we're looking at things that take place in Q3 and early Q4. So the impact to this year was a little bit reduced. But as we probably mentioned earlier at the end of last year, that's sort of been baked into our guidance because we anticipated these tariffs, as you know. And it's hard to know exactly how much time would be impacted when tariffs were announced. We didn't anticipate the gravity of the tariffs as early as they were. But luckily, like I said, our pipeline seems to be coming back a little quicker than we thought. So all in all, it's sort of evened out. So we're pretty comfortable where we stand right now. Gregory Thomas Gibas: Okay. Got it. And I guess, lastly, just another clarification question on gross margins. Did you kind of provide any specifics in terms of what's embedded in your guidance for the back half or simply kind of a return to improvement in the back half versus what we saw in Q2? David Bruce: Yes. I mean you can imply based on our numbers. I mean, what you saw so far through the first. I mean, we -- our implication is we're keeping that guidance because our expectation is that we're going to rebound based on what our original plan was. We'll still capture -- even though they're delayed, we'll capture some impact in 2025 in the new programs, a little bit less. But again, we sort of strategically baked some of that in when we built the guidance because we knew this tariff impact was going to come one way or the other. Operator: remarks. David Bruce: Thank you for your time and interest today to everyone. We really appreciate your continued support of FGI. Stay well. And if we don't connect during the quarter, we look forward to speaking with you on our next call. Thank you. Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. Thank you. Before you buy stock in Fgi Industries, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Fgi Industries wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Fgi Industries (FGI) Q2 2025 Earnings Transcript was originally published by The Motley Fool