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Flexible Solutions International (FSI) - 2025 Q2 - Earnings Call Transcript
2025-08-15 16:00
Financial Data and Key Metrics Changes - Sales for Q2 2025 increased by 8% compared to Q2 2024, reaching $11,370,000 compared to $10,530,000 [21] - Q2 2025 recorded a profit of $2,030,000 or $0.16 per share, compared to a profit of $1,290,000 or $0.10 per share in Q2 2024 [22] - The company recorded unusual R&D revenue of $2,500,000 in Q2 2025, which significantly contributed to the profit [22][34] Business Line Data and Key Metrics Changes - The NanoChem division (NCS) represents approximately 70% of the company's revenue, focusing on biodegradable polymers and nitrogen conservation products [4] - The E&P division is expected to continue growth in 2025, with early signs of improvement in Q3 [14] - The food division is anticipated to have lower margins initially due to tariff and inflation protection clauses in new contracts [13] Market Data and Key Metrics Changes - Agricultural products in the U.S. are under pressure, with crop prices not increasing at the rate of inflation, leading to uncertainty for growers [15] - Tariffs on imports of raw materials from China range from 30% to 68%, impacting costs and pricing strategies [16] - The company is transitioning production to Panama to mitigate tariff impacts and improve shipping efficiency [19] Company Strategy and Development Direction - The company is focusing on expanding its food grade operations and has secured a five-year contract with a minimum revenue of $6,500,000 per year [10] - Plans to develop a new facility in Panama to produce products for international customers, reducing exposure to U.S. tariffs [19] - The company aims to optimize food grade production in the U.S. while expanding its international sales capabilities [20] Management Comments on Operating Environment and Future Outlook - Management expects continued weakness in agriculture sales due to external pressures, but anticipates a return to growth in the second half of 2025 [15] - The company is confident in executing its plans without the need for equity financing, relying on existing capital and cash flow [26] - Management believes that the recent contracts and operational improvements will lead to increased revenue and profitability in the coming quarters [12] Other Important Information - The company has substantial cash on hand and access to unused lines of credit, ensuring adequate working capital for operations [8][26] - The transition to the Panama facility is expected to begin production in Q3 2025, with all equipment already on site [18] Q&A Session Summary Question: What is the business magic behind getting new food contracts? - The company emphasizes its role as a solution provider, focusing on R&D to meet customer needs [28][29] Question: How was the R&D contract treated in financials? - The R&D revenue was classified as a second line in revenue, indicating its significance to the quarter's performance [33][34] Question: What are the expected margins for the food contracts? - The company anticipates net margins before tax in the range of 22% to 25%, with a 31% income tax rate applicable [35] Question: How is the E&P division performing? - The E&P division is showing steady growth, while agriculture remains uncertain due to external factors [46][47] Question: Will the wine product move to Panama? - The wine product will remain in Illinois for now, as the Panama facility is not yet food grade certified [50]
Flexible Solutions International Inc. (FSI) Q2 Earnings Surpass Estimates
ZACKS· 2025-08-14 23:35
Flexible Solutions International Inc. (FSI) came out with quarterly earnings of $0.15 per share, beating the Zacks Consensus Estimate of $0.06 per share. This compares to earnings of $0.1 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +150.00%. A quarter ago, it was expected that this company would post earnings of $0.05 per share when it actually produced a loss of $0.02, delivering a surprise of -140%.Over the last four qua ...
FSI ANNOUNCES SECOND QUARTER, 2025 FINANCIAL RESULTS
Globenewswire· 2025-08-14 21:00
A CONFERENCE CALL IS SCHEDULED FOR FRIDAY, AUGUST 15, 2025, 11:00AM EASTERN TIME SEE DIAL IN NUMBER BELOW TABER, ALBERTA, Aug. 14, 2025 (GLOBE NEWSWIRE) -- FLEXIBLE SOLUTIONS INTERNATIONAL, INC. (NYSE Amex: 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. FSI is a ...
Flexible Solutions International (FSI) - 2025 Q2 - Quarterly Report
2025-08-14 20:01
For the quarterly period ended June 30, 2025 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ TRANSITION REPORT PURSUANT TO 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission File Number: 001-31540 FLEXIBLE SOLUTIONS INTERNATIONAL INC. (Exact Name of registrant as Specified in Its Charter) | Alberta | 71-1630889 | | --- | ...
FSI ANNOUNCES A SECOND SIGNIFICANT FOOD GRADE CONTRACT
GlobeNewswire News Room· 2025-08-11 21:00
TABER, ALBERTA, Aug. 11, 2025 (GLOBE NEWSWIRE) -- FLEXIBLE SOLUTIONS INTERNATIONAL, INC. (NYSE Amex: 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. FSI is also increasing its presense in the food and nutrition supplement manufacturing markets. Today the Company ...
Strength Seen in Flexible Solutions International (FSI): Can Its 13.0% Jump Turn into More Strength?
ZACKS· 2025-07-29 09:01
Company Overview - Flexible Solutions International Inc. (FSI) shares increased by 13% to close at $5.4, following a notable trading volume that exceeded typical levels, contrasting with a 3.4% loss over the past four weeks [1] - The company reported second-quarter revenues of $11.212 million, reflecting a year-over-year increase of approximately 6.5%, primarily driven by a $2.5 million payment for food grade product development [2] Earnings Expectations - FSI is projected to report quarterly earnings of $0.06 per share, indicating a year-over-year decline of 40%, while revenues are expected to reach $11.61 million, representing a 10.3% increase from the previous year [3] - The consensus EPS estimate for FSI has remained unchanged over the last 30 days, suggesting that stock price movements may not sustain without trends in earnings estimate revisions [4] Industry Context - FSI operates within the Zacks Chemical - Specialty industry, which includes other companies such as Mativ Holdings (MATV), whose shares closed at $7.56, down 0.1% in the last trading session, but have returned 8.5% over the past month [5] - Mativ Holdings has a consensus EPS estimate of $0.18 for its upcoming report, reflecting a 47.1% decrease from the previous year, and also holds a Zacks Rank of 3 (Hold) [6]
FSI ANNOUNCES SECOND QUARTER, 2025 REVENUE
Globenewswire· 2025-07-16 21:00
TABER, ALBERTA, July 16, 2025 (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 ...
FSI Secures $2.5 Million for New Food-Grade Product Development
ZACKS· 2025-07-02 15:00
Core Insights - Flexible Solutions International Inc. (FSI) specializes in biodegradable polymers for various applications including oil extraction, detergents, water treatment, and agriculture, and is expanding into food and nutritional supplement manufacturing [1] - FSI received a payment of $2.5 million on July 1, 2025, to support the development of a new food-grade product, with potential for additional payments in the coming quarters [2][8] - The company is optimistic about securing long-term production partnerships for its completed food-grade product [3] Financial Performance - FSI's shares have increased by 165.4% over the past year, significantly outperforming its industry, which saw a rise of only 4.2% [5] Market Position - FSI currently holds a Zacks Rank of 5 (Strong Sell), indicating a less favorable market position compared to better-ranked stocks in the basic materials sector [6] - Competitors such as Carpenter Technology Corporation, Centrus Energy Corp., and Avino Silver & Gold Mines Ltd. have higher Zacks Ranks, with notable share price increases over the past year [7][9]
FSI ANNOUNCES RECEIPT OF A $2.5 MILLION PAYMENT FOR ASSISTING IN THE DEVELOPMENT A NEW FOOD GRADE PRODUCT
Globenewswire· 2025-07-01 21:00
Core Insights - Flexible Solutions International, Inc. (FSI) has received a payment of US$2.5 million for its assistance in developing a new food-grade product, indicating successful R&D efforts [1][2][3] - The company is expanding its presence in the food and nutrition supplement manufacturing markets, having obtained FDA food grade approval for its Peru IL plant in 2022 [3] Financial Highlights - The payment of US$2.5 million was received on July 1, 2025, with potential for additional payments in the future related to the product development assistance [2] - Future business opportunities may arise for FSI's NCS division in manufacturing the new food-grade product, although any announcements regarding this will occur at a later date [2] Company Overview - FSI specializes in biodegradable polymers for various applications, including oil extraction, detergents, water treatment, and crop nutrient availability [1] - The company's NanoChem Solutions Inc. subsidiary focuses on biodegradable, water-soluble products made from thermal polyaspartate (TPA) biopolymers, which have diverse applications [3] - FSI also manufactures energy and water conservation products for multiple markets, including drinking water, agriculture, and industrial sectors [3]
Flexible Solutions Earnings and Revenues Miss Estimates in Q1
ZACKS· 2025-05-20 11:16
Core Viewpoint - Flexible Solutions International, Inc. (FSI) reported a loss of 2 cents per share for Q1 2025, a decline from earnings of 4 cents per share in the same quarter last year, missing the Zacks Consensus Estimate of 5 cents [1] - Revenues for the quarter were approximately $7.5 million, down about 19% year over year, also falling short of the Zacks Consensus Estimate of $10.2 million [1] Segment Highlights - Sales from FSI's Energy and Water Conservation products decreased roughly 3% year over year to around $0.04 million, impacted by lower customer orders [2] - Sales of Biodegradable Polymers fell approximately 19% year over year to around $7.4 million due to reduced customer orders [2] Financials - FSI ended the quarter with cash of approximately $9.6 million, an increase of around 26% from the prior quarter [3] - Long-term debt was roughly $6.5 million, down about 2% sequentially [3] Outlook - FSI indicated that customers who adjusted inventory in Q1 returned to normal order patterns in April [4] - The company noted new opportunities in various applications, including detergent, oil field extraction, and water treatment, which are expected to boost sales in the NanoChem division and the ENP subsidiary [4] - FSI expects its cash resources to be sufficient to meet cash flow requirements and future commitments [4] Stock Performance - Shares of Flexible Solutions have increased by 102.4% over the past year, contrasting with a 0.6% decline in the Zacks Chemicals Specialty industry [5]