FGI Industries (FGI) Q4 2024 earnings summary

Executive summary

• Fourth quarter 2024 revenue rose 15% year-over-year to $35.6 million, driven by growth across all business lines, geographies, and strategic investments in organic initiatives.

• Gross margin for Q4 was 24.6%, down 460 basis points from the prior year, impacted by increased marketing, promotional expenses, and sales mix.

• Operating expenses increased 28.4% to $10 million, resulting in a GAAP operating loss of $1.3 million and adjusted operating loss of $1.1 million.

• Adjusted net income for Q4 was $(0.7) million, compared to $0.9 million in the prior year.

• Strong revenue growth in Bath Furniture (+40.2%), Shower Systems (+17.0%), and custom kitchen cabinetry (+68.3%) highlighted segment performance.

Financial highlights

• Q4 revenue was $35.6 million, up from $31.0 million in Q4 2023.

• Q4 gross profit was $8.7 million, a 3.2% decrease year-over-year.

• Q4 operating loss was $1.3 million; adjusted operating loss was $1.1 million.

• Q4 net loss attributable to shareholders was $0.4 million; adjusted net loss was $0.7 million.

• Total liquidity at quarter-end was $15.6 million.

Outlook and guidance

• Fiscal 2025 revenue guidance is $135–$145 million.

• Adjusted operating income guidance is $(2.0) million to $1.5 million; adjusted net income guidance is $(1.9) million to $1.0 million, both excluding non-recurring items.

• Guidance incorporates anticipated tariff pressures, assumes a flat industry outlook, and expects growth from new programs and market expansion.

• Anticipates contributions from UK and India divisions as early as 1Q25.