FGI Industries (FGI) Q2 2026 earnings summary

Executive summary

• Revenue grew 2.9% year-over-year to $31.9 million in Q2 2026, driven by strong sanitaryware and shower systems performance, while bath furniture and other segments declined.

• Gross margin expanded by 530 basis points to 33.4%, with gross profit up 22.5% year-over-year, supported by trade-related recoveries and favorable product mix.

• Net income for Q2 was $1.1 million to $1.3 million, reversing a prior year loss; adjusted net income was $1.2 million.

• Strategic focus remains on product innovation, margin improvement, and geographic expansion, with continued investment in brands and channels.

• Maintained a capital-efficient, outsourced manufacturing model supporting strong free cash flow.

Financial highlights

• Q2 2026 revenue: $31.9 million (+2.9% YoY); gross profit: $10.7 million (+22.5% YoY); gross margin: 33.4% (+530 bps YoY).

• Operating income was $1.4 million, reversing a loss of $0.8 million in the prior year; adjusted operating margin was 4.4%.

• Net income attributable to shareholders was $1.1–$1.3 million, or $0.65 per diluted share; adjusted net income was $1.2 million.

• Operating expenses decreased to $9.3 million, mainly due to lower selling/distribution costs and warehouse optimization.

• Total liquidity at quarter-end was $7.9 million, with $4.4 million in cash and $13.0 million in total debt.

Outlook and guidance

• Fiscal 2026 guidance reaffirmed: total net revenue of $134–141 million, adjusted operating income of $0.7–2.5 million, and adjusted net income of $(0.3)–1.1 million, excluding non-recurring items.

• Management expects to trend toward the lower end of guidance due to ongoing market caution and delayed customer programs.

• Sufficient liquidity is anticipated to meet working capital and debt obligations over the next 12 months.

• Guidance excludes trade-related recoveries and certain non-recurring items.