#USA #financial results #FGI Industries #East Hanover #kitchen and bath

FGI Industries Reports Third Quarter 2025 Results

FGI Industries Ltd., a prominent supplier of kitchen and bath products, announced its financial results for the third quarter of 2025. The New Jersey-based company revealed a total revenue of $35.8 million, reflecting a slight decrease of 0.7% compared to the same period last year. Despite this drop in revenue, the company's gross profit increased to $9.5 million, representing a year-over-year growth of 2.0%. This resulted in a gross margin of 26.5%, up by 70 basis points from the previous year.

Revenue Breakdown

The revenue figures indicate a mixed performance across various segments. Specifically, the sanitaryware category saw an increase in revenue, reaching $22.9 million, up from $21.5 million in the third quarter of 2024. This boost can be attributed to successful sales strategies and growing demand. Conversely, the bath furniture segment experienced a revenue decline from $4.2 million to $3.7 million, and shower systems noticed a notable fall from $7.1 million to $5.9 million.

Despite these variances, FGI’s diversified approach, including international market expansion and strategic partnerships, has contributed positively to their operational outlook. CEO Dave Bruce noted that the company’s persistent efforts to adapt to a fluctuating market environment, especially concerning tariffs, are starting to show results.

Strategic Decisions and Future Directions

Bruce outlined that ongoing evaluations of the tariff impacts are crucial for their pricing strategies and customer relationships. He emphasized the importance of FGI's initiative to implement a China+1 sourcing strategy, aimed at diversifying supply chains to mitigate risks posed by geopolitical changes. This strategy has been complemented by a steady engagement with suppliers and an expansion in the company’s dealer network, particularly through its Covered Bridge brand.

Additionally, FGI has focused on enhancing its product portfolio by introducing innovative designs under its Isla Porter digital venture. This project is aimed at establishing strong connections within the premium design community, which could significantly enhance market visibility for FGI’s offerings.

Financial Performance and Future Guidance

Despite reporting a GAAP net loss attributable to shareholders of $1.7 million for the quarter, Bruce remained optimistic about the company's long-term strategic investments, focusing on internal growth initiatives. Notably, the company has executed cost-containment measures that resulted in a 2.6% reduction in operating expenses, totaling $9.1 million compared to the same quarter in 2024.

As the company prepares to address its fiscal 2025 goals, it has given guidance that estimates total net revenue in the range of $135 million to $145 million, with adjusted operating income anticipated to reach up to $1.5 million. Bruce reiterates the company's commitment to navigating the complexities of the current economic landscape while fostering growth and opportunity.

Conclusion

FGI Industries continues to demonstrate resilience amidst the challenges posed by the global market and environmental shifts. Through proactive strategies and a focus on customer relations, they are redefining their approach to growing as a leading brand in kitchen and bath products. The company remains determined to weather the ongoing economic changes while pursuing innovation and customer satisfaction at the forefront of its operational strategy.

For investors and market watchers, FGI’s upcoming quarterly earnings calls, scheduled for the second and fourth quarters, will provide further insights into the company's performance trends and strategic maneuvers moving forward. As of September 30, 2025, FGI holds a total liquidity of $14.2 million, underpinning its stable financial foundation as it strives to achieve its projected revenue and income goals in this fluid economic landscape.