FGI Industries Reports Q2 2026 Earnings with Revenue Growth and Improved Profitability
FGI Industries Ltd. (FGI) reported second-quarter results for fiscal year 2026, showing a revenue increase of $31.9 million, representing 2.9% growth compared to the prior-year period. The improvement was driven by strong performance in its Sanitaryware and Shower Systems segments. Gross margin expanded significantly from 28.1% to 33.4%, contributing to a gross profit of $10.7 million—an increase of 22.5%. U.S. revenue grew by 20.3% due to recovery following previous tariff impacts, while Canada and Europe saw declines attributed to competitive pricing pressures and weak demand. Despite the overall growth in profitability, FGI reported a GAAP net income of $1.3 million or $0.65 per diluted share for Q2 2026 compared to a loss of $1.2 million in the prior-year period. The company maintained full-year revenue guidance between $134 million and $141 million but noted market caution may push results toward the lower end. Management also highlighted ongoing challenges from tariffs, retail struggles in Canada, and flat conditions in the R&R (Remodeling & Repair) space. FGI plans to open a new distribution center in Houston by year-end 2026 as part of its strategy for improved southern U.S. logistics.
