FGI Industries Announces Third Quarter 2026 Results

Dave Bruce, CEO of FGI Industries

“FGI reported total revenue of $31.7 million in the quarter, representing a year-over-year decline of 11.6%. The quarter reflected a challenging market environment, with continued softness in housing and remodeling activity, reduced customer purchasing and delayed projects weighing on demand across several product categories. Despite these headwinds, gross profit was $8.7 million, and gross margin expanded to 27.6% from 26.5% in the third quarter of 2025, reflecting product mix management and ongoing cost discipline. During the quarter, FGI secured new toilet and vanity program awards that broaden our opportunity for future sales growth. Ongoing commercial pipeline activity also provides additional opportunities to expand business. New programs had not yet ramped sufficiently to offset the decline in the period, and we remain focused on translating awarded business into shipments. Management continued to emphasize pricing and margin discipline, balancing opportunities to rebuild volume with the profitability of new and existing business. Revenue decreased 11.9% in the U.S., 9.0% in Canada and 21.8% in Europe, reflecting the broader demand environment. Sanitaryware and shower systems declined 16.6% and 22.9%, respectively, while other revenue, primarily our Covered Bridge custom kitchen cabinetry business, grew 32.8% year-over-year. Covered Bridge continued to expand its geographies and dealer count, and Isla Porter, our custom kitchen joint venture, continues to establish relationships with the premium design community with on-trend products.”

Jae Chung, Chief Financial Officer of FGI Industries

“Revenue declined 11.6% year-over-year in the third quarter, reflecting softness in our core North American sanitaryware and shower system categories. Operating expenses remained disciplined, declining on a year-to-date basis, and we continued to advance our commercial pipeline and strengthen sales reporting and account-level performance tracking. Inventory management, expense control and operational efficiency remain key priorities. FGI ended the third quarter with total available liquidity of $6.3 million. We remain focused on converting new program awards into revenue, improving sales performance in Canada, pursuing additional commercial opportunities and maintaining cost and margin discipline as we navigate a challenging market environment. We believe the best use of our capital continues to be internal investment to attract new customers, expand existing relationships, develop new products and manufacturing capabilities, and expand into new jurisdictions.”