Flexible Solutions International (FSI) Q4 2024 earnings summary

Executive summary

• 2024 revenue remained flat at $38.23 million, with net profit rising to $3.04 million ($0.24/share) from $2.78 million ($0.22/share) in 2023.

• Operating cash flow improved to $7.08 million ($0.57/share), up from $4.60 million ($0.37/share) in 2023.

• NanoChem division contributed about 70% of revenue, focusing on biodegradable polymers for agriculture and water treatment.

• Temporary $385,000 loss from the Florida LLC sale reduced 2024 net income by $0.03/share, but is expected to yield a large profit over the full term.

• Major CapEx of $4 million announced for a new food-grade contract, with production expected to start in Q4 2025.

Financial highlights

• 2024 sales were $38,234,860, nearly unchanged from $38,324,806 in 2023.

• Net income for 2024 was $3,038,529 ($0.24/share), up from $2,775,864 ($0.22/share) in 2023; would have been $0.27/share excluding the LLC sale loss.

• Operating cash flow for 2024 was $7,082,952 ($0.57/share), up from $4,604,320 ($0.37/share) in 2023.

• Income before income tax in 2024 was $4,952,800, compared to $3,623,250 in 2023.

• Depreciation and stock compensation expense in 2024: $2,630,606; in 2023: $2,081,399.

Outlook and guidance

• Growth expected in the second half of 2025, driven by new food-grade product launches and recovery in LLC and food customer demand.

• Revenue from the new food-grade contract could reach up to $30 million/year by 2026 if all milestones are met.

• Panama plant to begin production in Q3 2025, reducing tariff exposure and improving logistics for international sales.

• Efforts to mitigate tariff impacts and recover rebates are expected to support growth over the next two years.