Unifi (UFI) investor relations material

Executive summary

• Achieved 4.1% year-over-year revenue growth in Q4, with significant improvement in gross profit and positive cash flow, driven by cost reduction, operational optimization, and portfolio management initiatives.

• Completed a three-step transformation: cost reduction (facility closure, labor resizing), improved cash management and debt reduction (inventory cuts, asset sale agreement), and a focus on ramping revenue growth and innovation.

• Management team stability and operational discipline credited for progress; 19 of 20 top executives remain.

• Initiatives beyond apparel and sustainability partnerships, such as REPREVE Takeback and ThermaLoop Insulation, supported operational momentum.

• Geopolitical and tariff uncertainties continue to impact global operations.

Financial highlights

• Q4 consolidated net sales were $144.2 million, up 4.1% year-over-year, driven by strong Brazil segment and stabilization in Americas and Asia.

• Gross profit reached $14.3 million (gross margin 9.9%), compared to a gross loss of $1.1 million (margin -0.8%) last year.

• Adjusted EBITDA was $8.2 million, a $12.3 million improvement year-over-year.

• Free cash flow for Q4 was $1 million, $21.5 million for the full year, and cash provided by operating activities was $26.5 million for the year.

• Net debt reduced to $67.4 million, down from $85.3 million year-over-year.

Outlook and guidance

• Fiscal 2027 is expected to see continued year-over-year improvement in sales and profitability, leveraging cost improvements, innovation, and disciplined capital allocation.

• Brazil segment anticipated to see further sales and profit growth; Asia segment to benefit from innovation adoption as tariff clarity improves, but remains pressured by regional volatility.

• Americas segment faces revenue headwinds but aims for margin-accretive growth from value-added products and Beyond Apparel initiatives.

• CapEx for FY27 planned at $7–9 million for maintenance and redundancy projects.