FST (KBSX) investor relations material

Executive summary

• Revenue for Q2 2026 increased 9.7% year-over-year to $12.6 million, driven by higher aftermarket sales in both steel and graphite product lines.

• Net loss narrowed to $1.05 million ($0.02 per share) from $3.03 million ($0.07 per share) in Q2 2025, reflecting improved gross profit, lower operating expenses, and reduced foreign exchange losses.

• Operating income turned positive at $259,899, a $949,387 improvement from an operating loss in the prior year quarter.

• For the first half of 2026, net income was $831,189 ($0.02 per share), a $6.7 million improvement from a net loss in the first half of 2025.

Financial highlights

• Gross profit for Q2 2026 was $6.0 million, up from $5.3 million in Q2 2025.

• Total assets as of June 30, 2026, were $62.9 million, with cash and cash equivalents of $8.2 million.

• Net cash provided by operating activities for the first six months was $1.15 million, compared to net cash used of $4.3 million in the prior year period.

• Shareholders’ equity increased to $15.95 million from $15.55 million at year-end 2025.

Outlook and guidance

• Management anticipates continued revenue growth through year-end, supported by new product launches, expanded OEM programs, and increased regional sales coverage.

• Additional cost-control measures will be implemented to enhance production efficiency and manage expenses.

• Liquidity and available credit facilities are expected to be sufficient to fund operating requirements for the next 12 months.