FGI Industries announced first-quarter 2025 revenue of $33.2 million, an 8.0% increase year-over-year, driven by strong performance in Bath Furniture, which rose 32.7%, and Covered Bridge cabinetry, which surged 135.7%. Gross profit increased by 5.8% to $8.9 million, but gross margin compressed by 60 basis points to 26.8% due to China-related tariffs and higher freight costs.
The company reported an operating loss of $1.3 million for the quarter, compared to an operating loss of $0.3 million in Q1 2024. GAAP net loss attributable to shareholders was $0.6 million, or $0.07 per diluted share, a decline from net income of $0.4 million, or $0.04 per diluted share, in the prior-year period.
Operating expenses increased by 16.6% to $10.2 million, primarily due to investments in the BPC growth strategy, Isla Porter, warehouse optimization, and the India business. As of March 31, 2025, FGI's cash and cash equivalents were $1.2 million, with total debt of $13.2 million and total liquidity of $14.3 million.
Critically, the company was not in compliance with certain financial covenants related to its debt coverage ratio under its East West Bank credit facility as of March 31, 2025. The East West Bank facility's maturity was extended to June 21, 2025, and FGI is in discussions with the lender regarding a waiver for the covenant breach.
The company reiterated its fiscal 2025 guidance, projecting revenue between $135 million and $145 million, adjusted operating income between negative $2.0 million and positive $1.5 million, and adjusted net income between negative $1.9 million and positive $1.0 million.
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