FGI Industries (FGI) investor relations material

Executive summary

• Revenue increased 5.5% year-over-year to $31.0 million in Q2, driven by growth in Sanitaryware, Bath Furniture, and Covered Bridge cabinetry, while Shower Systems declined.

• Gross margin declined to 28.1% from 30.5% year-over-year due to tariffs, inflation, and higher freight costs.

• Net loss widened to $1.4 million for Q2 2025 from $23,000 in Q2 2024, reflecting higher operating and interest expenses.

• Operating loss was $0.8 million, and adjusted net loss was $1.2 million, both impacted by investments and one-time costs.

• Strategic investments in brands, products, and channels are supporting revenue growth above the market despite industry-wide caution from tariffs.

Financial highlights

• Q2 2025 revenue: $31.0 million, up 5.5% year-over-year.

• Gross profit: $8.7 million, down 2.9% year-over-year.

• Gross margin: 28.1%, down from 30.5% last year.

• Adjusted operating margin for Q2 2025 was (2.7)%.

• Cash and cash equivalents stood at $2.5 million, with total liquidity of $16.4 million as of June 30, 2025.

Outlook and guidance

• Fiscal 2025 guidance reiterated: total net revenue of $135–145 million, adjusted operating income of $(2.0)–1.5 million, and adjusted net income of $(1.9)–1.0 million, excluding nonrecurring items.

• Management expects gross margins in the upper 20s for the second half, assuming new programs proceed as planned.

• Strategic focus remains on product innovation, organic growth, and efficient capital deployment.

• Liquidity improvement expected from cost controls and new product launches.

• Guidance excludes certain non-recurring and extraordinary items and includes adjustments for minority interest.