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 to 33.4% from 28.1%, supported by favorable product mix, cost controls, and $2.7 million in tariff-related recoveries.

• Net income for Q2 was $1.3 million, or $0.65 per diluted share, reversing a prior year loss; adjusted net income was $1.2 million.

• Strategic focus remains on product innovation, margin improvement, and geographic expansion, with new product launches and supply chain optimization underway.

• 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).

• Q2 net income: $1.3 million (vs. $−1.2 million YoY); adjusted net income: $1.2 million.

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

• Operating margin and adjusted operating margin were 4.4%, up from (2.7%) last year.

• 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.

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

• Management expects growth in Covered Bridge Cabinetry and continued momentum in shower systems for the second half of 2026.

• Cautionary market tone may result in performance toward the lower end of guidance.

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