TABER, ALBERTA, Jan. 26, 2026 (GLOBE NEWSWIRE) -- FLEXIBLE SOLUTIONS INTERNATIONAL, INC. (NYSE-AMERICAN: FSI), is the developer and manufacturer of biodegradable polymers for oil extraction, detergent ingredients and water treatment as well as crop nutrient availability chemistry. Flexible Solutions also manufactures biodegradable and environmentally safe water and energy conservation technologies. In addition, FSI is increasing its presense in the food and nutrition supplement manufacturing markets. Today ...

Core Viewpoint - Flexible Solutions International, Inc. reported a modest increase in revenue for Q4 and full year 2025, indicating a transitional year with expectations for improved performance in 2026, particularly in food grade products [1][2][3]. Financial Performance - Q4 2025 revenue rose to $9.10 million from $8.84 million in Q4 2024, marking an approximate 3% year-over-year increase [2]. - Full year revenue for 2025 was $38.50 million, up from $38.23 million in 2024, reflecting a full year increase of about 1% [2]. Company Operations - The CEO highlighted that 2025 was a year of transition due to the construction of a new factory in Panama and the retooling of the Illinois factory for new contracts, which impacted agricultural performance [3]. - The company anticipates that food grade production will significantly increase revenue in 2026 [3]. Company Overview - Flexible Solutions International specializes in biodegradable polymers for various applications, including oil extraction, detergents, water treatment, and crop nutrients [1][4]. - The company has expanded into the food and nutrition supplement manufacturing markets, having obtained FDA food grade approval for its Peru, IL plant in 2022 [4].

Financial Data and Key Metrics Changes - Sales for Q3 2025 increased by 13% compared to Q3 2024, reaching $10.56 million versus $9.31 million [13] - Q3 2025 recorded a loss of $503,000 or $0.04 per share, compared to a profit of $612,000 or $0.05 per share in Q3 2024 [13][14] - Operating cash flow for the first nine months of 2025 was $4.26 million or $0.34 per share, down from $5.91 million or $0.47 per share in 2024 [15] Business Line Data and Key Metrics Changes - The Nanocam Division (NCS) represents the majority of revenue, focusing on biodegradable polymers and agricultural products [3] - The EMP Division, which focuses on greenhouse, turf, and golf markets, experienced strong revenue in Q3 and is expected to continue in Q4 [9] - The food-grade operations have begun generating revenue, with a five-year contract expected to yield a minimum of $6.5 million per year [4][5] Market Data and Key Metrics Changes - International agriculture sales are expected to return to growth in 2026, although the U.S. market remains under pressure due to low crop prices and rising costs [10] - The current tariff on imports of raw materials from China ranges from 30% to 58.5%, impacting margins and pricing strategies [11] Company Strategy and Development Direction - The company is focusing on expanding its food-grade product line and optimizing production in the U.S. while establishing a new factory in Panama for international sales [12][13] - Future customers will be selected to improve average margins, aiming for a target of 30%-35% in gross margins for new contracts [9][75] Management's Comments on Operating Environment and Future Outlook - Management expressed uncertainty about Q4 due to potential delays in starting production in Panama and revenue recognition from new contracts [14][30] - The company anticipates that profits will revert to past levels in Q1 2026 as food product revenue grows [14] Other Important Information - The company has substantial cash on hand and does not anticipate needing equity financing [7][16] - The new Panama facility is expected to enhance shipping efficiency and reduce exposure to U.S. tariffs [12] Q&A Session Summary Question: Are the margins for the new food contracts gross or net? - Management clarified that the expected margins of 22%-25% are gross margins before tax [18] Question: What is the anticipated net margin after tax? - The estimated net margin is around 14% after accounting for a 31% tax rate [19] Question: When will revenue from the January contract be recognized? - Revenue from the January contract is expected to begin in Q4 2025, with a guarantee for Q1 2026 [29] Question: What is the expected annual revenue run rate from the three contracts? - If all contracts are fully realized, the run rate could be between $50 million and $60 million by 2027 [31] Question: What were the one-time costs impacting Q3? - Management indicated that significant one-time costs related to the new contracts and the Panama facility contributed to the Q3 loss [55] Question: Will the EMP production move to Peru? - EMP production will remain outside of Peru, which will focus solely on food products [51]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 increased by 13% to $10.56 million compared to $9.31 million in Q3 2024 [13] - Q3 2025 recorded a loss of $503,000 or $0.04 per share, compared to a profit of $612,000 or $0.05 per share in Q3 2024 [13][14] - Operating cash flow for the first nine months of 2025 was $4.26 million or $0.34 per share, down from $5.91 million or $0.47 per share in 2024 [15] Business Line Data and Key Metrics Changes - The Nanocam Division (NCS) represents the majority of revenue, focusing on thermopolyaspartic acid (TPA) and nitrogen conservation products [3] - The EMP Division, which focuses on greenhouse, turf, and golf markets, experienced strong revenue in Q3 and is expected to continue in Q4 [9] - The food-grade operations have begun generating revenue, with a five-year contract expected to yield a minimum of $6.5 million per year [4][5] Market Data and Key Metrics Changes - International agriculture sales are expected to return to growth in 2026, although the U.S. market remains under pressure due to low crop prices and rising costs [10] - The current tariff on imports from China ranges from 30% to 58.5%, impacting margins and pricing strategies [11] Company Strategy and Development Direction - The company is focusing on expanding its food-grade product line and optimizing production in the U.S. while establishing a new factory in Panama for international sales [12][13] - Future customers will be selected to improve average margins, aiming for a target of 30-35% gross margins on new contracts [9][76] Management's Comments on Operating Environment and Future Outlook - Management expressed uncertainty about Q4 due to the timing of new contract revenues and ongoing costs associated with new product lines [14][29] - The company anticipates a rebound in profits in Q1 2026 as food product revenue grows [15] Other Important Information - The company has substantial cash on hand and does not anticipate needing equity financing [7] - The new Panama facility is expected to begin production in Q4 2025, which will help reduce costs and improve delivery times for international customers [12] Q&A Session Summary Question: What are the expected margins for the new food-grade contracts? - Management expects gross margins to be in the range of 22-25% before tax [17] Question: When will revenue from the January contract be recognized? - Revenue from the January contract is expected to begin in Q4 2025, with a guarantee for Q1 2026 [28] Question: What is the anticipated annual revenue run rate for the new contracts? - If all contracts are fully realized, the total run rate could be between $50 million and $60 million by 2027 [30] Question: What are the one-time costs impacting Q3? - Significant one-time costs related to the new contracts and the Panama facility contributed to the Q3 loss [57] Question: Is there a pipeline for future deals? - The company is always looking for opportunities but does not currently have a formal pipeline [42]

Financial Data and Key Metrics Changes - Sales for Q3 2025 increased by 13% compared to Q3 2024, reaching $10.56 million versus $9.31 million [12] - Q3 2025 recorded a loss of $503,000 or $0.04 per share, compared to a profit of $612,000 or $0.05 per share in Q3 2024 [12][13] - Operating cash flow for the first nine months of 2025 was $4.26 million or $0.34 per share, down from $5.91 million or $0.47 per share in 2024 [15] Business Line Data and Key Metrics Changes - The Nanocam Division (NCS) represents the majority of revenue, focusing on thermopolyaspartic acid (TPA) and nitrogen conservation products [3] - The EMP Division, which focuses on greenhouse, turf, and golf markets, experienced strong revenue in Q3 and is expected to continue this trend into Q4 [8][9] - The food-grade operations have begun generating revenue, with a five-year contract expected to yield a minimum of $6.5 million per year [4][5] Market Data and Key Metrics Changes - International agriculture sales are expected to return to growth in 2026, although the U.S. market remains under pressure due to low crop prices and rising costs [9] - The current tariff on imports of raw materials from China ranges from 30% to 58.5%, impacting margins and pricing strategies [10] Company Strategy and Development Direction - The company is focusing on expanding food-grade production and optimizing operations in Panama to reduce costs and improve margins [11][12] - Future customers will be selected to increase average margins, aiming for a target of 30-35% [8][44] - The company plans to prioritize existing contracts and customer satisfaction before pursuing additional major projects [7] Management's Comments on Operating Environment and Future Outlook - Management expressed uncertainty about Q4 due to the timing of new contracts and operational readiness of the Panama facility [13][14] - There is an expectation for profits to revert to past levels in Q1 2026 as food product revenue grows [14] - The company anticipates that the transition to Panama will enhance competitiveness and potentially restore historic sales levels in oil and other industrial applications [35] Other Important Information - The company has substantial cash on hand and does not anticipate needing equity financing [6][15] - The new Panama facility is expected to begin production in Q4 2025, which will significantly impact international sales [11][12] Q&A Session Summary Question: Are the margins for the new food contracts gross or net margins? - The expected margins of 22-25% are gross margins before tax [17] Question: When will revenue from the January contract be recognized? - Revenue from the January contract is expected to begin in Q4, but there is a possibility it could slide into Q1 2026 [19][20] Question: What is the anticipated annual revenue run rate for the three contracts? - If all business is secured, the total run rate could be between $50 million and $60 million by 2027 [22] Question: What are the expected margins for future contracts? - The company aims for margins in the 30-35% range for future contracts [44] Question: What products are produced at the leased Mendota facility? - The leased facility produces all EMP products contributing to the EMP revenue [41]

Core Insights - Flexible Solutions International Inc. (FSI) specializes in biodegradable polymers and environmentally safe technologies, expanding its presence in the food and nutrition supplement manufacturing markets [1] - FSI commenced full production for its second food-grade contract, which involved hiring and training new employees [1] Financial Performance - On November 14, 2025, FSI reported an earnings per share (EPS) of -$0.04, missing the estimated EPS of $0.12, marking a significant decline from the $0.05 per share reported in the same quarter last year [2][5] - The earnings surprise for this quarter was a negative 180%, contrasting with the previous quarter's positive surprise of +150% [2] - Despite the earnings miss, FSI generated revenue of approximately $10.56 million, surpassing the estimated revenue of $10.28 million, which exceeded the Zacks Consensus Estimate by 0.92% and showed an improvement from the $9.31 million reported in the same quarter the previous year [3][5] - The company has only surpassed consensus revenue estimates once in the last four quarters [3] Valuation Metrics - FSI's price-to-sales ratio is about 2.65, and the enterprise value to sales ratio is approximately 2.50, reflecting the company's valuation relative to its sales [4] - The enterprise value to operating cash flow ratio is around 31.66, indicating its valuation in relation to cash flow from operations [4] - With a debt-to-equity ratio of about 0.075, FSI maintains a relatively low level of debt compared to its equity [4] - The current ratio is approximately 2.96, suggesting a strong ability to cover short-term liabilities with short-term assets [4]

分组1 - Flexible Solutions International Inc. (FSI) reported a quarterly loss of $0.04 per share, missing the Zacks Consensus Estimate of $0.05, compared to earnings of $0.05 per share a year ago, resulting in an earnings surprise of -180.00% [1] - The company posted revenues of $10.56 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.92%, and showing an increase from year-ago revenues of $9.31 million [2] - Over the last four quarters, FSI has surpassed consensus EPS estimates just once and topped consensus revenue estimates only once [2] 分组2 - FSI shares have increased approximately 122.2% since the beginning of the year, significantly outperforming the S&P 500's gain of 14.6% [3] - The company's earnings outlook, including current consensus earnings expectations for upcoming quarters, will be crucial for investors [4] - The current consensus EPS estimate for the coming quarter is $0.12 on revenues of $12.82 million, and $0.29 on revenues of $42.12 million for the current fiscal year [7] 分组3 - The Zacks Industry Rank indicates that the Chemical - Specialty industry is currently in the bottom 30% of over 250 Zacks industries, which may impact FSI's stock performance [8] - The estimate revisions trend for FSI was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market in the near future [6]

Sales Performance - The Company reported a decrease in sales for EWCP products due to decreased customer orders, while TPA products saw an increase in customer orders [78]. - Three customers accounted for 65% of product sales during the three months ended September 30, 2025, compared to 60% in the same period of 2024 [81]. Financial Performance - Gross profit as a percentage of sales decreased by 20% due to increased costs associated with scaling up new products [78]. - Cash provided by operating activities for the nine months ended September 30, 2025, was $6,757,198, down from $7,787,989 in 2024 [84]. - Working capital as of September 30, 2025, was $21,780,752, a decrease from $22,714,190 as of December 31, 2024 [84]. - Interest income increased due to rising interest rates [79]. Future Outlook - The Company anticipates no significant capital requirements for the twelve months ending September 30, 2026 [85]. - The Company has sufficient cash resources to meet future commitments and cash flow requirements for the coming year [84]. Research and Development - Research and development expenses increased due to successful project completions in 2025 [80]. One-time Events - The Company experienced a one-time loss on the sale of 30.1% of a Florida-based LLC in 2024 [79].

Core Viewpoint - Flexible Solutions International, Inc. reported its financial results for Q3 2025, highlighting a 13% increase in sales compared to the previous year, despite a net loss for the quarter due to increased costs and expenses related to new contracts and production preparations [6][2]. Financial Performance - Q3 2025 sales reached $10,556,291, up from $9,314,937 in Q3 2024, marking a 13% increase [6][8]. - The net loss for Q3 2025 was $503,358, or $0.04 per basic share, compared to a net income of $611,858, or $0.05 per basic share in Q3 2024 [6][8]. - Operating cash flow for the first nine months of 2025 was $4,257,973, or $0.34 per basic share, down from $5,909,621, or $0.47 per basic share in the same period of 2024 [6][8]. Operational Developments - The company has initiated full production for a second food-grade contract, which involved hiring and training four shifts of new employees [2]. - Significant improvements and equipment installations were completed in Panama, with final equipment installation and testing expected to occur before the end of the year [2][3]. - The NanoChem division and ENP subsidiary remain the primary sources of revenue and cash flow, with plans to begin production of existing products in Panama [3]. Future Outlook - The company anticipates substantial revenue generation from the food contract in Q4 2025, following the completion of improvements in Panama [2]. - Opportunities in various sectors, including detergent, water treatment, oil field extraction, and food and nutrition supplement manufacturing, are expected to drive future sales growth [3].

Core Viewpoint - The Zacks Chemicals Specialty industry is currently facing significant challenges due to demand weakness, particularly in Europe and China, alongside elevated costs impacting margins [1][4][5]. Industry Overview - The Zacks Chemicals Specialty industry includes manufacturers of specialty chemical products used across various sectors such as textiles, automotive, electronics, and agriculture [3]. - Specialty chemicals are critical for the performance of end products, influencing manufacturing processes in paints, cosmetics, and plastics [3]. Demand Weakness - Demand is softening in the building, construction, and industrial markets, primarily due to economic slowdowns in Europe and China [4]. - High inflation and borrowing costs are negatively affecting the residential construction sector, while manufacturing activities are declining due to reduced consumer demand [4]. - Geopolitical tensions and low consumer confidence in Europe are further dampening demand, with lingering impacts from customer inventory de-stocking expected to persist [4]. Cost Pressures - Specialty chemical manufacturers are grappling with inflation in raw material and energy costs, alongside supply chain disruptions [5]. - Although raw material costs have recently moderated, they remain elevated compared to pre-pandemic levels, with tariffs contributing to increased production expenses [5]. Self-Help Measures - Companies are implementing various self-help strategies, including cost-cutting, productivity improvements, and expansion into high-growth markets to navigate the challenging environment [6]. - These measures aim to enhance operational efficiency and strengthen balance sheets, which are crucial for sustaining performance amid ongoing headwinds [6]. Industry Performance - The Zacks Chemicals Specialty industry has underperformed compared to the S&P 500 and the broader Zacks Basic Materials sector, declining by 10% over the past year [10]. - The industry's current valuation, based on the trailing 12-month EV/EBITDA ratio, stands at 11.26X, which is below the S&P 500's 18.6X and the sector's 13.35X [13]. Company Highlights - **Perimeter Solutions**: Focused on fire safety and specialty products, expected to benefit from recovering end markets and has a strong balance sheet for growth investments [18][19]. - **Element Solutions**: Positioned for growth in the electronics sector, benefiting from strong organic growth and improved margins due to lower raw material costs [22][23]. - **Flexible Solutions**: Specializes in biodegradable products and has an expected earnings growth rate of 20.8% for 2025, with a focus on expanding its market presence [25][27].