Q1 2026 Earnings Presentation (05/14/2026 00: 00

Published: 2026-05-14 16:42:10 ET FGI

Published on 05/14/2026 at 04:42 pm EDT

First Quarter 2026

Leading global B2B supplier of Kitchen and Bath Products

FGI is a leading global B2B supplier of Kitchen and Bath products with a reputation of Innovation, Quality and Service developed over 30 years in conjunction with our parent company, Foremost Groups Ltd.

Revenue by Product Category

For the Three Months Ended March 31, 2026

Others

11.0%

Shower System

21.2%

Sanitaryware 52.9%

Bath Furniture 14.9%

Founded in 1988 IPO in January 2022

Revenue by Geographic Location

For the Three Months Ended March 31, 2026

Rest of the World

EU 11.7%

3.0%

Canada 20.0%

USA 65.3%

Strong Growth Opportunity

BPC strategy offers meaningful growth potential

Stable Long-Term Market

Repair and Remodel market has historically generated stable growth over time; limited exposure to

new construction

Attractive Operating Model

Outsourced manufacturing model and strong partner relationships provide flexibility and downside

Revenue by Channel

SpeFcoiraltthye Three Months Ended March 31, 2026

11.0%

E-commerce Mass Retail

8.0% 34.0%

Wholesale / Commercial 47.0%

protection

Capital Efficient Model

Capital-lite model designed to drive strong free cash flow conversion

Recent Performance

$131 MM Annual Revenue Business(2)

Annual Gross Profits of

$35.3 MM(2)

See attached appendix for reconciliation of GAAP and non-GAAP financial measures

Revenue, Gross Profit, and Market/Channel Mix as of December 31, 2025

Diverse Business Mix Provides Stability

Sanitaryware

$80MM in 2025 Sales (62% of sales)

Bath Furniture

$14MM in 2025 Sales (11% of sales)

Shower Systems

$23MM in 2025 Sales (17% of sales)

Kitchen Cabinetry, etc.

$13MM in 2025 Sales (10% of sales)

Sanitaryware segment markets and sells toilets, sinks, pedestals, and toilet seats.

Bath Furniture segment markets and sells vanities, mirrors, and cabinets.

Shower systems segment markets and sells shower walls, shower doors, and shower basins.

Other segment consists primarily of our custom kitchen cabinetry business.

Opportunity to drive significant shareholder value

We are dedicated to driving shareholder value through a strict focus on our strategic priorities which include our BPC strategy to drive organic growth, enhanced financial performance, and a disciplined capital deployment philosophy.

Diversified Portfolio and History of Innovation

Diversified mix of products, market segments and sales channels

Tradition of strong innovation with leading 'on-trend' designs: Innovation, Quality, Services

Attractive Growth Opportunity

Brands, Products, Channels (BPC) growth strategy

Margin Improvement Initiatives

More favorable mix and efficiency measures to drive margin improvement

Attractive Operating Model

Capital-lite manufacturing model and strong partner relationships

Favorable long-term industry trends

Despite recent headwinds, kitchen and bath are most significant areas of home improvement, Stability of R&R market

Capital Deployment Strategy

Re-invest, Bolt-on acquisitions, Return of Capital

Gross Margin

First quarter gross margin was 26.8%, no change from the prior year quarter.

BPC Update

Brands

FLUSH GUARD®

gaining acceptance

Covered Bridge Cabinetry®

continued geographic expansion and increased dealer network

Channels

India expansion

UK expansion

Financial Position

We ended the quarter with $10.5 million of net debt(1) and total liquidity of $7.9 million, which we believe is sufficient to fund our growth initiatives.

Revenue

First quarter revenue decreased 8.2% year-over-year.

Operating Loss

Operating loss improved year-over-year due to lower operating expenses.

Fluid Tariff Environment

The demand outlook remains fluid as customers evaluate the tariff environment.

(1) See attached appendix for reconciliation of GAAP and non-GAAP financial measures

Total Revenue

$MM

Gross Profit

$MM

Adjusted Operating Income(1)

$MM

Adjusted Net Income(1)

$MM

$134.3 $127.8 $35.9 $34.5

$33.2 $30.5

$8.9 $8.2

$(1.3)

$(0.7)

$(2.7)

$(1.8)

$(1.1)

$(0.7)

$(1.8)

$(2.2)

1Q25 1Q26 LTM

1Q25

LTM 1Q26

1Q25 1Q26 LTM

1Q25

LTM 1Q26

1Q25 1Q26 LTM

1Q25

LTM 1Q26

1Q25 1Q26 LTM

1Q25

LTM 1Q26

Revenue decreased 8.2% compared to the prior-year period due to a decrease in Sanitaryware business while Bath Furniture, Shower Systems and Other showed growth.

Gross profit was $8.2 million during the first quarter of 2026, a decrease of 8.3% compared to last year.

Adjusted Operating Loss was $0.7 million as we continue to prioritize strategic initiatives that help continue to expand our market presence in new regions/ channels, introduce new products and position the business for future incremental growth. We are being disciplined with overall expenses.

Adjusted Net Loss for the first quarter of 2026 was $0.7 million, versus adjusted net loss of $1.1 million for the same period last year.

(1) See attached appendix for reconciliation of GAAP and non-GAAP financial measures

Revenue by Product Category

Sanitaryware

$MM

$80.8 $76.3

Bath Furniture

$MM

$15.8 $14.7

Shower Systems

$MM

$25.4

$23.4

Other

$MM

$13.5

$12.3

$20.2 $16.1

$4.1 $4.5

$5.7 $6.5

$3.3 $3.3

1Q25 1Q26 LTM

1Q25

LTM 1Q26

1Q25 1Q26 LTM

1Q25

LTM 1Q26

1Q25 1Q26 LTM

1Q25

LTM 1Q26

1Q25 1Q26 LTM

1Q25

LTM 1Q26

Sanitaryware revenue was down 20.0% from the prior-year period due to softer US homebuilder-related business from certain customers, uneven ordering patterns and lower retail sales in Canada.

Bath Furniture revenue increased 10.9% to

$4.5 million during the quarter, an increase of $0.4 million in the prior-year period.

Shower Systems revenue was up 14.0% from the prior-year period.

Other revenue, which consists primarily of the custom kitchen cabinetry business, increased 2.5% to $3.3 million this quarter, up from $3.3 million last year. Covered Bridge continues to expand geographies and grow dealer count.

Cash & Availability ($MM)

$17.8

$17.4

$16.3

$15.6

$16.4

$16.5

$14.3 $14.2

$7.9

1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26

Net Debt (1) ($MM)

$11.9

$12.2

$10.5

$9.9

$10.0

$9.4

$8.1

$8.4

1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26

$12.3

$12.7

$12.6

$14.2

$14.0

$13.8

$12.8

$11.6

$15.3

Inventory ($MM)

Balance sheet and liquidity continues to support ongoing working capital needs

Cash and availability under our facilities was $7.9 million at 1Q26

Inventory has increased by $2.6 million from 1Q24

Net debt(1) was $10.5 million at 1Q26

10 (1) See attached appendix for reconciliation of GAAP and non-GAAP financial measures

$134 - 141 million

Net Revenue

$0.7 - 2.5 million

Adjusted Operating Income

$(0.3) - 1.1 million

Adjusted Net Income

Guidance for adjusted operating income is presented on an adjusted basis and excludes certain non-recurring items. Guidance for adjusted net income is presented on an adjusted basis and excludes certain non-recurring extraordinary items and includes an adjustment for minority interest. All guidance is current as of the time provided and is subject to change. The Company's reconciliations of full year 2026 Adjusted Operating Income and 2026 Adjusted Net Income are not available, as the Company is unable to quantify certain amounts to the degree of precision that would be required in the relevant GAAP measures without unreasonable effort.

STRONG ORGANIC GROWTH POTENTIAL

We pursue a "BPC" strategy: focus on Brands, Products and sales Channel. Our BPC plan is the key driver of our growth strategy.

Ample liquidity to support ongoing growth of business

TRUSTED GLOBAL SUPPLIER

We are global, diversified, and reputable supplier of quality kitchen & bath products (Innovation, Quality, Service). With decades of continuous innovation and strategic investment, we have become a trusted partner for many of the world's largest retailers and wholesalers.

VALUE-ACCRETIVE BOLT-ONS

We may engage in selective "bolt-ons" and large, strategic M&A, should such opportunities clear our return-on-capital hurdles.

ATTRACTIVE MARGIN OPPORTUNITY

As a carve-out division from our parent company, we will leverage our independence and our prior investments to generate improved financial performance.

For the Three Months Ended

March 31,

For the Twelve Months Ended

March 31,

2026 2025 2026 2025

Loss from operations

USD

$ (691,409)

USD

$ (1,280,859)

USD

$ (1,812,606)

USD

$ (3,059,516)

Adjustments:

Non-recurring IPO-related share-based compensation

19,906

199,063

Business expansion expense

Adjusted Operating Loss

$ (691,409)

$ (1,260,953)

$ (1,812,606)

185,310

$ (2,675,143)

Revenue

$ 30,501,460

$ 33,212,548

$ 127,817,564

$ 134,277,102

Adjusted Operating Margins (%)

(2.3)

(3.8)

(1.4)

(2.0)

For the Three Months Ended

March 31,

For the Twelve Months Ended

March 31,

2026

USD

2025

USD

2026

USD

2025

USD

Loss before income taxes

$ (1,118,487)

$ (1,555,087)

$ (3,902,414)

$ (3,321,615)

Adjustments:

Non-recurring IPO-related share-based compensation

19,906

199,063

Business expansion expense Adjusted loss before income taxes

(1,118,487)

(1,535,181)

(3,902,414)

185,310

(2,937,242)

Less: income taxes at 18% rate

(201,328)

(276,333)

(702,435)

(528,704)

Less: net loss attributable to non-controlling shareholders (173,760) (186,465) (973,175) (593,983)

Adjusted Net Loss $ (743,399) $ (1,072,383) $ (2,226,804) $ (1,814,555)

1Q24

2Q24

3Q24

4Q24

1Q25

2Q25

3Q25

4Q25

1Q26

Total debt

$11,442,651

$ 9,692,200

$12,485,497

$14,502,367

$13,171,555

$12,558,500

$14,076,346

$11,868,828

$13,143,690

Less: cash

3,319,066

1,307,092

3,044,662

4,558,160

1,226,365

2,519,117

1,875,682

1,899,801

2,659,190

Net debt

$ 8,123,585

$ 8,385,108

$ 9,440,835

$ 9,944,207

$11,945,190

$10,039,383

$12,200,664

$ 9,969,027

$10,484,500

Disclaimer

FGI Industries Ltd. published this content on May 14, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 14, 2026 at 20:40 UTC.