Teleconferência de Resultados do 2º Trimestre de 2026 da FGI Industries (FGI): Margem Expande, Guidance Reafirmado

Principais destaques

• A receita no 2T26 subiu 2,9% em relação ao mesmo período do ano anterior, atingindo US$ 31,9 milhões, impulsionada pelo crescimento nos segmentos de Louças Sanitárias e Sistemas de Chuveiro.
• O lucro bruto aumentou 22,5%, para US$ 10,7 milhões, enquanto a margem bruta se expandiu de 28,1% para 33,4%, principalmente devido a ressarcimentos relacionados ao comércio exterior.
• O lucro operacional GAAP melhorou para US$ 1,4 milhão, revertendo o prejuízo de US$ 0,8 milhão. O lucro líquido GAAP atribuível aos acionistas atingiu US$ 1,3 milhão, em comparação ao prejuízo de US$ 1,2 milhão no mesmo período do ano anterior.
• As despesas operacionais caíram de US$ 9,5 milhões para US$ 9,3 milhões, refletindo custos de vendas e distribuição menores e a otimização de armazéns.
• A FGI reafirmou suas projeções para 2026, incluindo receita entre US$ 134 milhões e US$ 141 milhões. No entanto, a administração indicou que condições de mercado mais fracas podem colocar os resultados perto do limite inferior dessa faixa.
• A administração espera que o momento favorável em Sistemas de Chuveiro continue e que a linha de armários Covered Bridge volte a crescer no segundo semestre de 2026.

Principais dados financeiros

Desempenho operacional e dos negócios

Os segmentos de Louças Sanitárias e Sistemas de Chuveiro registraram crescimento de receita na comparação anual. O segmento de Louças Sanitárias foi beneficiado pela normalização das compras dos clientes após interrupções relacionadas a tarifas no ano anterior, além de programas de clientes lançados recentemente. O segmento de Sistemas de Chuveiro ganhou tração por meio de novos produtos e expansão na distribuição para clientes.

A categoria de Móveis para Banheiro e outras categorias de produtos continuaram enfrentando condições de mercado mistas. A administração afirmou que o mercado de reformas e reparos permaneceu relativamente estável, tornando as promoções de vendas para clientes uma ferramenta cada vez mais importante para impulsionar vendas incrementais e ganhos de participação de mercado.

A FGI está otimizando sua rede de distribuição e prevê abrir um novo armazém em Houston até o final de 2026. A instalação visa dar suporte à distribuição no sul dos EUA e expandir o território atendido pelos negócios da empresa de marcas sob contrato no atacado.

Geograficamente, o Canadá continuou sendo o mercado mais pressionado. A atividade atacadista canadense recuperava-se lentamente, enquanto o varejo enfrentava pressões competitivas e de preços. O mercado dos EUA foi descrito como cauteloso e amplamente estável, exceto por ganhos atrelados a novos programas de clientes. O ritmo de pedidos na Europa permaneceu consistente, com avanços na expansão do atacado e ganhos de participação de mercado.

Projeções da administração

A FGI manteve suas projeções para todo o ano de 2026:

As projeções excluem ressarcimentos relacionados ao comércio exterior. O lucro operacional ajustado também exclui determinados itens não recorrentes, enquanto o lucro líquido ajustado exclui determinados itens não recorrentes e inclui um ajuste para participação de não controladores.

A administração afirmou que os pedidos de clientes e o ritmo de remessas mantiveram-se relativamente consistentes, mas a cautela com estoques e a fraqueza do mercado em geral podem empurrar o desempenho para o limite inferior da faixa projetada. Novos programas de clientes previstos para serem lançados durante o segundo semestre oferecem uma potencial compensação.

Riscos e pontos de atenção

• A administração considera os ressarcimentos do trimestre relacionados ao comércio exterior como uma compensação parcial pontual de custos absorvidos desde o ano anterior, e não como um fator recorrente de geração de resultados.
• A FGI acredita ter recebido todos ou a grande maioria dos ressarcimentos relacionados à IEEPA, enquanto tarifas, outros impostos de importação e reembolsos de IVA (tax drawbacks) relacionados a fornecedores continuam sendo despesas recorrentes.
• A administração prevê que a cobrança de tarifas adicionais possa afetar os negócios a partir do início de 2027.
• Os clientes permanecem cautelosos quanto ao acúmulo de estoques, e o mercado norte-americano está amplamente estável.
• O varejo canadense continua enfrentando pressões competitivas e de preços.
• Alguns lançamentos de novos programas de clientes foram adiados devido às condições de mercado, embora a administração tenha afirmado que os atrasos não estavam relacionados ao desempenho de vendas.

Destaques da sessão de perguntas e respostas dos analistas

Sobre as tarifas, a administração afirmou que o valor específico do reembolso será incluído no formulário Form 10-Q da empresa. A FGI acredita ter recebido a totalidade ou quase a totalidade dos ressarcimentos relacionados à IEEPA, mas ressaltou que os custos contínuos do comércio exterior permanecerão.

Sobre as promoções, a administração relatou que a FGI trabalhou com clientes em promoções maiores de Louças Sanitárias durante o trimestre. Descontos seletivos vêm sendo aplicados para gerar negócios incrementais em um mercado de reparos e reformas relativamente estável.

Sobre produtos de marca, a administração destacou o progresso contínuo em Sistemas de Chuveiro. O centro de distribuição planejado para Houston deve oferecer outro canal para expandir a presença atacadista de marcas sob contrato da FGI, enquanto a empresa continua a dar suporte aos produtos de marca própria e de terceiros dos clientes.

Sobre a visibilidade para o segundo semestre, a administração citou padrões estáveis de pedidos e remessas, lançamentos planejados de programas de clientes, momento contínuo favorável em Sistemas de Chuveiro e a expectativa de recuperação dos armários Covered Bridge. No entanto, uma demanda mais fraca e uma gestão cautelosa de estoques levaram os executivos a apontar para o limite inferior das projeções de receita, que foram mantidas inalteradas.

Transcrição completa da teleconferência de resultados

Transcrição completa da teleconferência de resultados

Comentários da administração

Operator

Good day, and welcome to the FGI Industries, Inc. Second Quarter 2026 Results Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Jae Chung, Chief Financial Officer. Please go ahead.

Jae Chung

Thank you. Welcome to FGI Industries 2026 Second Quarter Results Conference Call. Leading the call today are Chief Executive Officer, David Bruce; and Chief Financial Officer, Jae Chung. We issued a press release after the market closed yesterday detailing our recent operational and financial results.

I would like to remind you that management's commentary and responses to questions on today's conference call may include forward-looking statements, which, by their nature, are uncertain and outside of the company's control.

Although these forward-looking statements are based on management's current expectations and beliefs, actual results may differ materially. For a discussion of some of the factors that could cause actual results to differ, please refer to the Risk Factors section of our latest filings with the SEC, including our Form 10-K for the year ended December 31, 2025.

Additionally, please note that you can find reconciliations of historical non-GAAP financial measures in the press release issued yesterday and in the appendix of this presentation, which is available on the company's website.

Today's call will begin with a performance review and strategic update from Dave Bruce, followed by a financial review from Jae Chung. At the conclusion of these prepared remarks, we will open the line for questions.

With that, I'll turn the call over to Dave.

David Bruce

Thank you, Jae. Good morning, everyone, and thank you for joining our call today. I am pleased to report another quarter of revenue growth and improved operating expense performance for FGI. Revenue increased 2.9% year-over-year in the second quarter, and we remain disciplined in managing our cost structure, delivering lower operating expenses while continuing to invest in our brands, products and channels, or BPC, growth strategy. These efforts continue to strengthen our market position and create new opportunities for long-term growth.

Our strongest performance came from our Sanitaryware and Shower Systems businesses, both of which delivered year-over-year revenue growth. Sanitaryware benefited from the normalization of customer purchasing activity following last year's tariff-related disruptions, along with contributions from recently launched customer programs. Our Shower Systems business also continued to gain traction as new products and expanded customer distribution contributed to growth.

While market conditions remain mixed, particularly within our Bath Furniture and other product categories, we continue to manage the business with discipline and remain focused on opportunities where we see the strongest long-term potential.

Looking ahead, we expect Covered Bridge cabinetry to resume growth in the second half of the year. We also expect continued momentum in our Shower Systems business as recently introduced products and customer programs continue to expand, providing additional opportunities for growth through the remainder of 2026.

Although the external environment continues to evolve, including ongoing trade and tariff developments, I am proud of how our team has remained focused on execution. Their ability to adapt to changing market conditions while continuing to serve our customers has positioned FGI well for the remainder of the year.

With that, I'll turn the call over to Jae for a more detailed review of our financial results.

Jae Chung

Thank you, Dave, and good morning, everyone. I will begin by providing additional details on the quarter, followed by an update on our current liquidity and balance sheet.

For the second quarter 2026, revenue totaled $31.9 million, an increase of 2.9% compared to the second quarter of 2025. Gross profit was $10.7 million in the quarter, an increase of 22.5% year-over-year. Our gross margin increased to 33.4% in the quarter compared to 28.1% in the prior year, driven by trade-related recoveries in the quarter.

Our operating expenses decreased to $9.3 million compared to $9.5 million in the prior year due primarily to lower selling and distribution costs and optimizing our warehouse operations. These efforts are part of our broader initiative to diversify our supply chain and reduce freight costs. We expect to begin operations at a new warehouse in Texas to support distribution across the Southern United States.

GAAP operating gain was $1.4 million, improving from an operating loss of $0.8 million in the prior-year period. The improvement in the operating loss was a result of trade-related recoveries, which were reflected in the cost of goods sold and a decrease in total operating expenses.

GAAP net income attributable to shareholders was $1.3 million compared to a loss of $1.2 million in the same period last year. Adjusted net income was $1.2 million compared to a loss of $1.2 million in the same period last year.

Moving to our balance sheet. At the end of the second quarter, FGI had $7.9 million in total liquidity. Our 2026 guidance remains unchanged and does not include trade-related recoveries. Our revenue guidance is $134 million to $141 million. The adjusted operating income guidance is $0.7 million to $2.5 million.

The adjusted net income guidance is a loss of $0.3 million to a gain of $1.1 million. Please note that the guidance for adjusted operating income excludes certain nonrecurring items. Adjusted net income excludes certain nonrecurring items and includes an adjustment for minority interest.

That concludes our prepared remarks. Operator, we are now ready for the question-and-answer portion of our call.

Operator

[Operator Instructions] The first question comes from Reuben Garner with Benchmark Company.

Perguntas e respostas

Reuben Garner

You referenced tariffs a few times. I was wondering if you could offer some clarity on any refunds you may have received to date, what might be on the come? And then I guess, the net effect for you guys, I know there's been a [Technical Difficulty] years, but just kind of where it's all shaking out today?

Jae Chung

Yes. Reuben, we're in the process of finalizing our Q, and the specific information on the amount of the refund will be in the Q to be released tomorrow. As far as further recoveries specifically related to IEEPA, we believe we've received all or the vast majority of it. So you can see the actual numbers tomorrow. And Dave, do you want to comment?

David Bruce

Yes. I think that we view any of these recoveries is really it's just a partial offset to the impact that we had to absorb going all the way back to last year. And we still continue to pay various trade-related expenses, not only tariffs but also other duties and VAT tax drawbacks that some of our suppliers are impacted by. And we expect, quite frankly, some additional tariff levies to be impacted at the beginning of next year.

So this is not a -- it's an ongoing, I'll call it, saga with the tariffs. It's not something that we anticipate is going to go away. And we continue to support our customers as we have recently and in the past, right? So we're looking at the recoveries as a onetime thing here, but the impact of tariffs are going to continue.

Reuben Garner

How about at your customer, what have you seen in terms of discounting relative to I don't know, normal discounting this time of year? Has that been increased at all with the changes in the tariffs or inventory levels or anything else at the retail level?

David Bruce

Yes. I think discounting, I would call it more promotional opportunities. We've taken -- I shouldn't say taken, but we've worked closely with some of our customers on promotional opportunities. We drove some larger promotions with our sanitary ware in the quarter.

The market overall, as we've discussed before, continues to be relatively flat in the R&R space. Promoting products is becoming a viable way for us to drive continued growth in market share. And I think that's what we see more than anything is opportunities to reach out to our customers and offer some discounting to try to drive incremental business.

Reuben Garner

Okay. And then last one for me. Your -- the products that you guys -- the branded sort of FGI branded products that you've been trying to grow over the last couple of years, what's kind of next on that front? Any big opportunities on the come in terms of expanding those kind of higher-margin businesses for you?

David Bruce

Yes. I think that's a great question. We're really -- we've become really successful and continue to be successful with our branded products in our -- particularly in our Shower Systems business that would be across our doors spaces and balls.

And I think in the call, we mentioned -- it was just a quick blur, but we mentioned our new distribution center that we are going to open by the end of this year in Houston. We're entering that quite shortly. That is going to be another avenue for us to expand territories on our wholesale business with our contract brand. So we're very excited about that. We've been working on that for a long time.

So yes, that -- our BPC strategy, despite the fact that we also obviously are large supporters of our larger customers' proprietary and private label, we continue to expand our own brand presence strategically throughout the market.

Operator

The next question comes from Greg Gibas with Northland Securities.

Gregory Gibas

I wanted to maybe just ask more basically on just kind of your visibility on back half growth, given you reaffirmed guidance. And what kind of gives you confidence in how the back half will trend, whether it's kind of your discussions with customers or just overall demand you're seeing in the market? If anything has changed maybe since your last provided guidance?

David Bruce

Yes. I think things have held where we have expected. The market, like I mentioned just on the previous call, it's relatively soft. There's still a cautionary tone in the market when it comes to building up inventory. Order placements have been relatively consistent and cadence on shipping. But we didn't change guidance. So I would venture to say that we're probably based on the softer market, looking at maybe more lower end on the guidance levels.

But we're also optimistic because we still are implementing some of our -- some new programs to customers that will launch. Some of those were delayed just due to various market issues, not anything in particular to do with the sales.

But we would anticipate -- we've taken all that into account to understand would we have wanted to change the guide. And we want to keep the guide where it's at, but we would probably venture to say we're going to look towards more of the lower side just based on the cautionary tone right now in the marketplace and some of the pressures that exist.

Gregory Gibas

Great. That's helpful. And then maybe similarly, just if you could discuss kind of puts and takes of kind of the demand across your channels geographically, but also kind of customer type.

David Bruce

Sure. Yes. We've had a little more pressure in our Canadian sales. That's been the most pressured this year. Initially, in the first part of the year, it was across both of our wholesale and retail. Wholesale is recovering slowly. Retail has been a little bit of a struggle. There's been a lot of competitive and pricing pressures up in the market, which we're addressing.

And then in the U.S., it's been more of, like I said, sort of a cautionary, flat market other than where we're taking share on incremental gains on new programs. And then on our European business, very similar. They've been pretty strong and consistent. Order cadence has been good. We've been expanding into our wholesale trade in the European market.

But there hasn't been any outlying bigger wins outside of -- with the market pressure over there, obviously, that still exists. But we've been very proud of actually the progress we've been able to make in taking -- particularly taking share on the wholesale side, which has been very important over in Europe.

Operator

This concludes our question-and-answer session. I would like to turn the conference back over to David Bruce for any closing remarks.

David Bruce

Thank you for your time and interest today. We really appreciate your continued support of FGI. Stay well. And if we don't connect during the quarter, we look forward to speaking with you on our next call.

Operator

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.