QIND Reports FY 2025 Results: 45.9% Revenue Growth, Core Turnaround Actions Completed

Core Viewpoint - Quality Industrial Corp. ("QIND") has made significant progress in its turnaround efforts during fiscal year 2025, focusing on governance, cost restructuring, and growth investments, although the turnaround is not yet complete [2] Financial Highlights - Revenue increased by 45.9% to $16.31 million in FY 2025 from $11.18 million in FY 2024 [3] - Gross profit rose by 20.8% to $4.79 million, with a gross margin of 29.4%, down from 35.5% [3] - Operating expenses surged by 60.7% to $5.25 million [3] - Reported net loss was $4.60 million, while adjusted net income increased by 452% to $566,853 [3] Turnaround Actions Completed - Governance improved with a transition to a three-member Board, maintaining full SEC compliance and saving approximately $720,000 annually on Board compensation [4] - Legacy compensation issues were resolved, including $1.38 million in unpaid employee compensation and $607,000 in exit payments to former executives [5] - Cost structure reset led to a 73% reduction in professional fees, from $850,000 to $226,000 [5] - Balance sheet cleaned up by writing off $3.5 million in legacy assets and reducing convertible note principal from $2.68 million to $2.07 million [6] Investment and Growth - Fusion Fuel invested $4.4 million in QIND during FY 2025, which was used for legacy items and growth initiatives, including a $1 million payment for the Al Shola Gas acquisition [7] - Al Shola Gas, a subsidiary, reported a revenue growth of 31.6% to $14.3 million and secured approximately $7 million in new engineering contracts during FY 2025 [9] Outlook - The company aims to target $20 million in revenues for 2026, contingent on regional stability [15] - Focus areas include further growth at Al Shola Gas, servicing open debt positions, and repapering agreements with Al Shola Gas sellers [15]