Unifi (UFI) 2026财年第四季度业绩电话会议：利润率复苏与6000万美元资产出售

Unifi（纽约证券交易所代码：UFI）2026财年收官表现强劲，营收实现增长，毛利润转正，现金流生成能力增强。管理层表示，尽管市场压力持续存在，但通过削减成本、整合产能布局以及优化产品组合，公司的盈利能力正在不断改善。

核心要点

• 2026财年第四季度净销售额同比增长4%至1.442亿美元，主要受益于巴西市场的推动、美洲和亚洲市场的企稳，以及“超越服饰”（Beyond Apparel）业务的强劲势头。
• 毛利润达到1,430万美元，毛利率从上年同期的负0.8%大幅改善至约10%。
• 调整后EBITDA为820万美元，同比改善1,230万美元。净亏损为120万美元。
• 全年自由现金流达到2,150万美元，较2025财年改善超过5,000万美元。季度末净负债降至6,740万美元。
• Unifi签署协议，拟以6,000万美元出售非战略性美国房地产及过剩资产。管理层预计该交易将显著减少债务，同时不会对生产能力或客户服务造成影响。
• 展望2027财年，管理层预计随着重组行动的全年成效显现，公司销售额和盈利能力将实现同比增长。

关键财务数据

业务与经营业绩

巴西

巴西是表现最强劲的地区业务贡献者。销售额增加了510万美元，即增长17.8%，毛利润增加了640万美元。出货量增加和有利的定价对业绩形成了支撑。

管理层表示，Unifi受益于其作为该地区最大的加弹聚酯纤维制造商的领先地位。由于部分进口竞争对手减少了经营活动，公司能够快速响应并服务客户。此外，在海外石化成本上涨的背景下，其极具竞争力的原材料优势也对定价和毛利润提供了支撑。

美洲

由于销量仍面临逆风，美洲地区的销售额下降了1%。然而，该板块实现了330万美元的毛利润，连续第二个季度实现毛利润转正。

管理层将这一改善归因于产能布局整合、成本优化以及更严格的产品组合管理。地毯和树脂销量在季度末有所回升，这些“超越服饰”业务的利润率高于Unifi的大宗商品产品。

亚洲

亚洲地区的销售额增加了110万美元，毛利润增加了50万美元。轻资产模式有助于维持稳定的利润率，但关税的不确定性继续压制着包括中国、越南和印度尼西亚在内的各市场客户活动。

管理层报告称，客户对REPREVE Takeback和REPREVE+特种产品的采样和兴趣持续增加。公司预计，随着关税和供应链政策进一步明确，创新相关产品的销量将在2027财年逐步改善。

创新与“超越服饰”

“超越服饰”业务在包装、地毯、军事和战术应用领域保持强劲势头。树脂销量受益于进口受阻以及国内充足的供应，而由于物流中断，地毯领域的本土采购变得愈发重要。

Unifi还强调了Fortisyn在军事和战术应用中获得日益广泛的采用。管理层表示，其优异的性能、色彩一致性以及与REPREVE尼龙结合的潜力正在引发市场关注。

公司继续加大对REPREVE、REPREVE Takeback和ThermaLoop保温材料的投资。管理层重申了到2030年使REPREVE占纤维销售额50%的目标，同时也承认循环利用产品的推广普及速度慢于预期。

管理层业绩指引

在成本重组、运营效率提升和产品组合优化的全年成效支撑下，管理层预计2027财年的销售额和盈利能力将实现同比增长。

展望下一季度，Unifi预计巴西地区的销售额和盈利能力将实现同比增长。美洲地区的营收环境预计仍将面临挑战，但管理层预计高附加值产品和“超越服饰”业务将推动利润率实现同比及环比改善。

亚洲是目前营收面临最大挑战的板块。管理层预计近期季度的销售额仍将面临困难，但对利润的影响相对较小，并认为在本财年后期有望迎来创新驱动的销量增长。

2027财年的资本支出计划为700万至900万美元，主要用于维护和冗余备用项目。资本配置将继续聚焦于客户服务、生产能力和资产负债表的改善。

风险与关注事项

• 关税的不确定性正在导致部分品牌推迟或减少在亚洲市场的经营活动。
• 原油价格、通货膨胀、地缘政治局势以及石化成本波动继续对行业需求、原材料及产品定价产生影响。
• 美洲地区的出货量依然承压，而亚洲地区短期内面临营收挑战。
• REPREVE Takeback和ThermaLoop保温材料的市场接受进度慢于管理层预期。
• 计划中6,000万美元的资产出售仍需完成土地分割、法律审查及其他常规交割工作，不过管理层表示目前没有任何剩余事项引发担忧。

分析师问答环节亮点

管理层表示，由于Unifi可以利用往年结转的营业净亏损和税收抵免，这笔6,000万美元的资产交易产生的税负损耗应极小。这些资产被规划为工业用途（包括数据中心），管理层称相关规划障碍已经消除。

该交易涉及北卡罗来纳州亚德金维尔（Yadkinville）厂区的仓库及其邻近土地。Unifi强调，此次出售不会减少生产能力或影响其服务客户的能力。管理层还表示，目前并未考虑进一步的资产变现。

在资本配置方面，Unifi计划在考虑其他重大资本计划之前，优先考虑降低债务、提高运营可靠性和保障生产能力。管理层还指出，早期对EvoCooler设备的投资将在未来逐步提供额外产能。

财报电话会议完整文字实录

完整财报电话会议逐字稿

管理层陈述

Operator

Good morning, and thank you for attending Unifi's fourth quarter fiscal 2026 earnings conference call. During this call, management will be referencing a webcast presentation that can be found in the Investor Relations section of unifi.com. Please familiarize yourself with Page 2 on the Slide deck for cautionary statements and non-GAAP measures. Today's conference is being recorded. [Operator Instructions] Our speakers are listed on page 3 on today's presentation and include Al Carey, Executive Chairman; Eddie Ingle, Chief Executive Officer; A.J. Eaker, Chief Financial Officer. I will now turn the call over to Al Carey. [Operator Instructions]

Albert Carey

Good morning, everyone, and I thank you for joining our earnings call today. I'm happy to lead the call off with some good news. We're seeing very nice progress in our efforts to reposition Unifi for sustainable growth in the long term. You know, we began this effort about 18 months ago, and I think you'll see in our Q4 earnings that we're beginning to show some of the improvement. And A.J. will take you through that in the next few minutes.

There were three steps in this transformation when we got started. The first one was to reduce our costs significantly, so we began by closing the Madison facility and reduced our excess capacity. We also resized our labor force, improved efficiencies throughout our manufacturing footprint, and we also optimized the portfolio to remove unprofitable items from our lineup. All of that was step one, and all of that work is now complete. And A.J. will take you through all of that.

Step two was to improve our cash management and also lower our debt. And we've dramatically reduced inventories over the last 18 months. We've also seen our capital discipline improve, cost controls, and you'll see that as well in our Q4 results. The next step on step two is to close on a purchase agreement signed this week for property and excess assets for $60 million, and Eddie will tell you more about this deal, but when the deal is closed, it will have a dramatic impact on our net debt and our balance sheet.

And the third and final step is to ramp up our revenue growth. Now I'll tell you that revenues in our industry over the last 12-plus months have struggled. It's an industry that's got lots of macro issues such as oil prices, shifting tariff rates, and inflation. I'll let you know here, though, that we're not sitting around waiting for things to change. We've taken charge of our own revenue growth plan, and you'll see more of that as the next couple of quarters unfold.

We're now seeing some evidence that we're seeing improved demand for our innovations and also for our business in Central America and overall U.S., and most of that will probably happen as we get towards this middle of the year. So we're at a pivot point for our company right now. And I'd like to make two final comments before handing it off to our CEO, Eddie. We're not celebrating. We aren't even close to finishing our work, but I will tell you that it's all about revenue right now, and we're all over it, and you will see that improve.

The second comment I wanted to make is about our management team. We've taken out costs. We've cut inventories. We've reworked management processes, which is not the most fun stuff to work on. But I'll tell you, the quality of our management team has a lot to do with the progress that we've made up until now. This is a determined, never-give-up team, and I would emphasize the word team. I'd say out of our top 20 executives that were here when we got going on this initiative, 19 of them are still with us today. And one of the biggest reasons for my optimism is the quality of this team today. So now let me turn it over to their leader, Eddie Ingle.

Edmund Ingle

Thanks, Al. I'm very pleased to be able to say that we closed out fiscal 2026 on a strong note with 4% top-line growth and another quarter of improving profitability and cash generation. This stronger financial performance reflects the successful execution of our initiatives over the past several quarters to realign our cost structure, optimize our operations, and enhance our margin performance through improved portfolio management.

Importantly, the progress we've made from these efforts has strengthened our operating foundation and increased our confidence in our ability to navigate these very difficult and challenging market conditions, but at the same time supporting our customers with differentiated solutions and drive sustainable growth over the long term. I'd like to call out our recent agreement for the sale of non-strategic assets in the U.S., as Al mentioned.

We look forward to moving along with this deal, which once concluded, will have no impact to our operations and ability to service customers while at the same time allowing us to retire a material portion of our outstanding debt. Said another way, the sale of these warehouses and adjacent land is not reducing in any way the existing production capacity in our Yadkinville, North Carolina, complex. Before I dive deeper into our near-term priorities, our innovation progress, and what lies ahead for Unifi in fiscal 2027, I'm going to turn the call over to A.J. to walk you through the financial details for the quarter. A.J.?

A.J. Eaker

Thank you, Eddie. I'll start off by discussing our consolidated financial highlights for the quarter on Slide 4. Consolidated net sales for the quarter were $144.2 million, up 4% again on a year-over-year basis. The improvement in net sales reflects strong performance in our Brazil segment, stabilization in the Americas and Asia, as well as increasing momentum across our Beyond Apparel initiatives.

Consolidated gross profit was $14.3 million, and gross margin was approximately 10% during the period, compared to gross loss of $1.1 million and gross margin of negative 0.8% for the prior year period. Our net loss came in at $1.2 million, but its comparability is skewed as Q4 last year included a gain on the sale of the Madison facility and was partially offset by associated transition costs. When excluding those items, adjusted net loss was $9.5 million better than the year-ago period.

Adjusted EBITDA during this period was $8.2 million, a $12.3 million improvement on a year-over-year basis. The continued improvement in performance this quarter is another indication that the operational initiatives we've been executing are taking hold. The work we've done to streamline our cost structure and improve efficiency continues to translate into stronger financial results.

Turning now to Slide 5. In the Americas, net sales were down 1% as the region continues to face volume headwinds. Despite the slightly lower sales during the quarter, we did generate gross profit of $3.3 million, a significant year-over-year gain again. This marks the second quarter in a row of delivering positive gross profit in the Americas. The continued improvement in the Americas demonstrates that our footprint consolidation and cost optimization initiatives are delivering the intended results, driving greater efficiency and strengthening the profitability of our domestic operations.

Slide 6 displays our Brazil segment, which saw net sales increase by $5.1 million, or 17.8%, and gross profit improved by $6.4 million. The strong performance there during the period was driven by higher sales volumes and favorable pricing dynamics amid the volatile cost environment stemming from Middle East conflicts, reflecting the continued demand stability and growth potential in the region.

On Slide 7, the Asia segment had net sales and gross profit increased by $1.1 million and $500,000 respectively, primarily due to the portfolio strength in that region. While we still have uncertainty in the Asia market, our asset-light model has allowed us to maintain stable margins in the segment, and tariff certainty in the future should eventually normalize the business.

Slide 8 outlines our improving balance sheet and capital structure. During this fourth quarter, we generated $1 million in free cash flow, bringing full-year free cash flow to $21.5 million. That's over a $50 million improvement versus prior year, fiscal '25. CapEx for the quarter came in at a low $1.1 million, and our full-year CapEx was constrained at $5 million, a 50% decline compared to the prior period as we continue to closely manage all spending.

Now, we recognize this level of CapEx will need to adapt for long-term health, and we've allocated between $7 million and $9 million for maintenance and redundancy projects in fiscal '27. Our net debt was reduced to $67.4 million at the end of the quarter, a meaningful improvement from any recent period, and our working capital remains balanced and healthy. We're very pleased with this performance, beating our expectations laid out in the prior earnings call and indicative of our ability to generate positive momentum even in difficult conditions.

Looking ahead to fiscal '27, our focus will remain on driving disciplined capital allocation while continuing to explore additional options to further strengthen our balance sheet. Included in those additional options is our plan to sell two non-strategic real estate assets in the U.S. We're able to work with a known buyer to identify portions of the business that benefit their future operations while having no impact to our ability to serve customers and maintain production capacities. Upon closing, we would significantly improve our leverage and balance sheet, and we look forward to providing additional commentary as the closing nears and completes.

This concludes the financial overview, and I'll pass the call back to Eddie.

Edmund Ingle

Thank you, A.J. As A.J. outlined, the initiatives we have implemented to improve our operations are showing the early signs of a more resilient and flexible business model, which has positioned us to better navigate market volatility while at the same time supporting our goal of creating sustainable long-term growth. Let's turn to Slide 9, which outlines the strategic priorities that will continue to guide our execution.

As we discussed in detail during our third quarter earnings call, our objective is to return Unifi to sustainable long-term growth and enhanced profitability. We are accomplishing this by staying focused on four key priorities. First, we will continue to build on the operational improvements that we've implemented and ensure we don't lose any of the enhancements to the businesses that we've made. At the same time, we will continue to invest in our capabilities and technologies and reinforce and scale our platform of sustainable solutions built around our premier brand, REPREVE.

Next, we have a culture built around innovation and new product development, and we will continue to invest in tools and resources necessary to advance the customer adoption of our innovative solutions and to support future growth. And finally, we are focused on making sure we do everything we can to navigate the current trade and geopolitical environment that has created some challenges for us. Now, we're focused on positioning Unifi for a more consistent top-line growth as a broader operating environment improves.

And it is encouraging to see the momentum we are building across several of our innovative initiatives, particularly with Beyond Apparel. During the quarter, we saw positive momentum within packaging, military applications, and carpet. Our resin business, in particular, which goes primarily into the packaging sector, has seen significant growth in volumes as the imports have been somewhat muted due to the tariffs and available domestic supply. We do expect this segment of our business to remain robust at least through the next few quarters.

The carpet business in Q4 of fiscal 2026 also saw a meaningful increase in volumes as our local supply chain became more important due to the logistical challenges that were exacerbated from March onwards. We remain very positive about the opportunities that the military and tactical market will bring to us, and we continue to see building momentum in that space. Overall, I'm happy to say we're pleased with the progress on our Beyond Apparel initiatives and look forward to providing more growth updates in the next few quarters.

Moving on to Slide 10, this past quarter we kicked off April with our annual Champions of Sustainability event, celebrating our partners and their commitment to sustainability through their use of REPREVE and REPREVE Takeback. We welcomed many of our top brand customers to our Yadkinville, North Carolina factory for an engaging program featuring industry leaders shared insights on circularity and the future of the supply chain.

The inquiries and conversations with our brands and mills, as well as the strong interest in learning about how we make our circular offerings, gave us tangible evidence that REPREVE Takeback and ThermaLoop insulation are hitting the sustainable goals of many companies. While adoption is slower than expected, we remain confident that we have the best circular fiber solution on the market.

Now, April also marked Earth Month, generating strong momentum across social media as brands highlighted their sustainability initiatives with REPREVE. We partnered with brands such as Dagne Dover, Dolce Vita, and Democracy Clothing to develop collaborative content showcasing our partnership, featured product collections, and the collective environmental impact that together we've achieved. In June, World Oceans Day provided an opportunity to spotlight REPREVE Our Ocean through collaborations with several key brand partners.

Tiffany & Co. announced the launch of three limited edition Tiffany T Smile bracelets made with REPREVE Our Ocean cordage. We also partnered with Me by Jennie Garth on a reel highlighting the use of REPREVE Our Ocean in their denim collection, while The Sak spoke to their use of REPREVE in a collaborative reel as part of World Ocean Week's campaign. Lastly, we are energized to see the growth and expanding adoption of Fortisyn into critical applications, including those for the U.S. military and tactical markets. Feedback from the markets is that the performance properties of Fortisyn, along with the color consistency that we can deliver, results in a fabric form that excels in the most critical environments.

Moving to Slide 11. As we start out the new fiscal year, it is clear that the hard work and focus on cash generation is beginning to show up in the numbers. And we are confident that we are starting off the new fiscal year on the right footing. Our outlook and how we anticipate sustaining our financial momentum for fiscal 2027 is as follows. We will continue to focus on leveraging our improved cost footprint while investing in innovation and strategically managing our balance sheet to capitalize and grow our business as conditions improve.

We also anticipate that our sales and profitability results will improve on a year-over-year basis as we begin to recognize the full-year benefits of our past strategic actions. For the upcoming quarter, we expect our Brazil segment to see improved sales and profitability year-over-year as we leverage our strong competitive position and advantageous supply chain. Within our Asia segment, we continue to see opportunities to expand the adoption of our innovative technologies and circular solutions, which we believe will support future revenue growth and strengthen our market position as the tariff situation eventually gains better clarity.

This is our most challenged business segment today in terms of revenues, but we are expecting improved volumes of our new innovations to come to fruition as we move through the fiscal year. In the Americas, we expect that the broader market environment will remain challenging in terms of revenues, but our focus will continue to remain on driving growth in margin-accretive revenues from our value-added products and Beyond Apparel initiatives. And this business segment is expected to yield improved year-over-year and sequential margins.

As we look ahead, we remain focused on driving long-term growth, maintaining disciplined capital allocation, and executing initiatives that further enhance the strength of our business. While we enter the new fiscal year with improved financial flexibility and a stronger foundation, our focus remains on continuing to execute our strategy, delivering value for our customers, and building on the progress we've made to create long-term shareholder value.

And in closing, I would like to take a brief moment to thank our whole team here at Unifi for their hard work and efforts. Making these initial improvements to our business was a true team effort, and I'm confident that we have the right people in place to ensure that we will continue to remain on track with achieving our priorities. With that, I would now like to open the line for questions. Thank you. Operator?

Operator

We will now begin the question-and-answer session. [Operator Instructions] Your question comes from the line of Anthony Lebiedzinski with Sidoti.

分析师问答

Anthony Lebiedzinski

Certainly nice to see the improvement in sales and profitability in fiscal Q4. So I guess I'll start off with Brazil, which had a great quarter. Just wondering if you could expand on the actions that you're taking to leverage your competitive position there and the advantageous supply chain dynamics?

Edmund Ingle

Yes, certainly, Anthony, and thanks for the positive comments. Brazil is in a very interesting environment. We were able to increase revenues and volumes because of the fact that we have a very robust supply chain. When some of the importers who we compete with pulled back on their sales, we were able to do two things really: Service the customers very efficiently and very quickly because we are the largest manufacturer of textured polyester in the region.

And second of all, we were able to manage pricing very efficiently as the situation in Iran changed and the petrochemical costs, especially the overseas petrochemical costs, accelerated. So we took the advantage of having a very cost-competitive raw material situation and expanded that into very robust gross profits.

Anthony Lebiedzinski

Sounds good. Okay. And then turning to Asia, how are you thinking about pricing and volumes there on a go-forward basis? And as far as the competitive landscape there, have you seen any notable changes? How do we think about that?

Edmund Ingle

It's challenging, to be frank, Anthony. The good thing is we are competing against virgin, and virgin petrochemicals have increased very rapidly. The cost of the recycled materials haven't gone up as much, although they have increased. The real challenge that we're seeing in Asia is there's an uncertainty still around the tariffs that are causing some of the brands to pull back, whether that's in China or that's in Vietnam or Indonesia where we sell a lot of our products into.

The good news is we are still seeing a lot of sampling and traction with our REPREVE Takeback and REPREVE specialty products, what we call REPREVE+. And so while it's challenging today, you know, we do think once this situation turns, as it relates to both petrochemical costs and the supply chains which are being constrained, and as we move through the year, we're going to see expanded volumes and revenues, although this quarter will be quite challenging from a revenue point of view, but not so much profit.

Anthony Lebiedzinski

Right, okay, got it, okay. And then, you know, in terms of the Americas segment. So you talked about some margin-accretive revenue that you're seeing from value-added products. Just wondering if you could expand on that. Maybe share perhaps what portion of revenue is that and the margin profile of these value-added products?

Edmund Ingle

Yes, as Al mentioned at the beginning of the call, we have done a lot of portfolio management and tried to stay focused on the products that are generating good profits for us. And on top of that, this Beyond Apparel initiative, we did see some really positive growth at the tail end of Q4 for both our carpet business and our resin business. These are -- they have better margins than our normal commodity business, and we're still continuing to focus on growing those.

And then looking to the future, I feel very excited about Fortisyn. Fortisyn is this brand that's very competitive on the marketplace. It offers a very, very consistent color matching. And also, we're finding that some of this market is also going to be served by REPREVE Nylon, which is very exciting for us because if we can offer performance, color consistency, and sustainability, it does appear to be getting a lot of traction out there.

So as we move through this year, we are confident, as we said in several calls before, that we can get to some meaningful revenue growth. And along with that, the higher margin business. As you could expect from a sustainable and high-performance product.

Anthony Lebiedzinski

Got you. Okay. And then as far as Beyond Apparel, is there any way you guys could quantify what portion of your sales came from Beyond Apparel in fiscal 2026? How do we think about the outlook for fiscal '27? As it relates to Beyond Apparel?

A.J. Eaker

It's a good question, Anthony. We're certainly pushing hard in the Beyond Apparel space, as Eddie mentioned, several of those programs and initiatives. We'll look forward to providing some more transparency on that as we get settled into fiscal '27 and can break out some of that detail for you, but as Eddie mentioned, fiscal '27 we do see growth in each of those areas as well as the margin-accretive products as we better manage this portfolio and target the programs that deliver value both on the customer side and the Unifi side.

Anthony Lebiedzinski

Okay. And then -- so obviously you guys have done a nice job with monetizing your assets last year with the Madison facility and now with the announcement on Monday that you're looking to sell off the non-strategic assets with land and warehouse space. So are there any other perhaps additional assets that you may look to monetize or do you think this is it for now?

A.J. Eaker

Yes, Anthony, good question. I would say that the hopper is empty in that regard. We're very pleased with this deal as we work through that in the next couple months. Very beneficial from a leverage perspective and happy we found great terms and situation with this buyer that we can move through, but at this point, certainly the hopper is empty in further regard.

Anthony Lebiedzinski

Understood. Okay. And then, last question for me. So now that the business is performing better with a leaner cost structure, how are you thinking about capital allocation priorities? Has anything changed meaningfully or how do we think about that?

A.J. Eaker

As we move into closing out this deal, we'll certainly have a huge benefit to leverage in the balance sheet. We're going to maintain a very diligent capital allocation priority, making sure the business, our ability to deliver to customers, and maintain production capacities will remain top priority. So with that, the debt profile would be much improved, and then no major capital plans outside of that at this time. We'll want to get through this transaction, spend a bit of time, and then provide you some more updates in the future.

Albert Carey

Anthony, I just mentioned one other thing. We made a big investment in EvoCooler a while back before the market slowed down post-COVID. Those are going to come in to be handy, and we'll reap the benefits of those machines as time goes on. It'll give us more capacity.

Anthony Lebiedzinski

Right, yes.

Operator

Next question comes from the line of Randy Baron with Pinnacle.

Randy Baron

I want to echo Anthony's remarks. It's really amazing the turnaround that you guys have done. I think, Al, to point out that 19 of the 20 executives are still there is a real feather in your cap, so kudos to you guys. I have just a specific question on the real estate and then a broader one. Maybe A.J., this is for you. Can you walk us through the milestones between now and December? Kind of what needs to accomplish to close this deal. And then related to that, my sense is with your NOLs, there's not going to be much tax leakage. So if you can just give us a sense of the $60 million roughly, how much will actually come into Unifi's coffers once this deal is done?

A.J. Eaker

Good question, Randy. Thanks for the comments, also similar to Anthony's. I'll start with the tax question you mentioned and then pass it over to Eddie for some of those milestones. But you are correct there. The NOLs and the credits that we're carrying forward from some of those tougher years will be beneficial in this transaction. We expect minimal tax leakage from this transaction. Nowhere in the millions of dollars range at this point. So that will be a benefit to closing this transaction out and utilizing some of those NOLs and carry-forwards from prior years. I'll let Eddie take the milestones question from there.

Edmund Ingle

Yes, we had signed the PSA, as you know, over the weekend, and we had been working on this for several months. We're very far along in the process. It's a complex deal because we are carving out part of our assets in Yadkinville, and some of the subdivision work that we've had to do has taken some time, but we're very, very close to completing that and expect that to get done in the next few days.

We have just a few ancillary things that we need to do, some of the exhibits in our PSA that we have to go through, a lot of legal stuff, but I don't see, none of the things that we have ahead of us to get to closing are of any concern to us today. So some work to do, but just the normal.

Randy Baron

And I just want to make sure, is there any regulatory review on this? Or does the municipality have a chance to bid on it, you know, counter?

Edmund Ingle

Yes, so these assets are in either the city of Yadkinville -- the town of Yadkinville, or within the control of the town of Yadkinville. They're zoned industrial, which includes data center zoning, so we have passed all the hurdles around that aspect of this deal.

Randy Baron

That's wonderful. I mean, when I pencil that out, you're essentially going to be bank debt-free at the end of this calendar year, which is remarkable. And a great turnaround again. I just have one other question on REPREVE. I mean, this remarkable turnaround that you guys just reported is even more notable because REPREVE hasn't fully kicked in yet. I know that you don't know when the military will come and the specifics, but as you look out, call it three years, five years. Can you talk a little bit about what percent of the revenue you think REPREVE could be? And Anthony was asking about the higher margins. I mean, that kind of shifts the whole margin profile. So if you just riff on that.

Edmund Ingle

Yes, we've had a goal to get 50% of our fiber sales to be REPREVE. And we pushed that out, our last sustainability report that we published, to 2030. We still are very confident in the brand. The brand represents a lot of investment on our side. It has a FiberPrint technology, which is a technology that allows you to prove using our U-TRUST verification system that it is actually made of sustainable materials. That's getting more and more important, the transparency and the trusting part of our brand offering.

We're also seeing quietly behind the scenes brands still trying to become more sustainable. There's a lot of tension in the marketplace around the environmental impact of apparel. And the brands are quietly working towards making sure they can offer more circular solutions. And we're right there with our REPREVE Takeback. So while it's been a challenging few years because of the market dynamics in Asia and also with some of the brands themselves have had some challenging times trying to reposition themselves.

We are not seeing any of the brands back off on their sustainability targets, except for maybe one or two. But for the most part, the offering we have with REPREVE is known to be 100% recycled. And it has a lot of brand power in the marketplace. And we expect that to grow. And especially on the circular side, REPREVE Takeback and our REPREVE ThermaLoop insulation offering. So we're confident that it's going to grow and we're putting innovation performance technologies on top of our sustainability platform, which is why we talk about our REPREVE+ business in Asia growing. But thanks for the question.

Operator

There are no further questions at this time. That concludes our Q&A session and today's call. Thank you all for joining. You may now disconnect.