US' Unifi posts FY25 sales of $571.3 mn, gross profit at $8.4 mn

Meanwhile in the fourth quarter (Q4) of FY25, the company posted net sales of $138.5 million, marking a decline of 12 per cent year-over-year (YoY). This was primarily driven by trade-related uncertainty and short-term demand volatility across each business segment. Repreve fibre products generated revenues of $42.1 million, accounting for 30 per cent of net sales. The company reported a gross loss of $1.1 million with a gross margin of (0.8) per cent.

The net income in Q4 was $15.5 million, or $0.82 per diluted share, supported by a $35.8 million gain from the sale of a manufacturing facility, partly offset by $10.6 million in transition costs. On an adjusted basis, Unifi posted a net loss of $10.6 million, excluding the facility sale gain, transition costs, and a $0.9 million recovery of income taxes in Brazil, Unifi said in a press release.

The adjusted EBITDA in Q4 stood at $(4.1) million. During the quarter, the company finalised the $45 million sale of its Madison, North Carolina facility, allocating $25 million towards reducing its term loan and $18.3 million towards lowering revolving loans.

Additionally, Unifi introduced Fortisyn, an abrasion-resistant yarn developed for military and tactical applications.

Region-wise, the Americas segment recorded a $5.3 million decline in gross profit in Q4, driven by inflationary pressures and transition-related costs. The Asia segment posted a $2.3 million drop, impacted by weaker sales volumes and pricing pressures. Meanwhile, the Brazil segment saw a $4.3 million decline, largely attributable to unfavourable foreign currency effects.

“Our results for the fourth quarter came in below our expectations due to softer ordering patterns, driven by recent tariff and trade uncertainties across our customer base. This included delayed ordering patterns by major customers that wanted to wait and better assess how tariffs would impact global trading patterns. As a result, we believe that these are temporary impacts on our business, as we continue to see strong pent-up customer demand pending clarity on trade policies,” said Eddie Ingle, chief executive officer (CEO) at Unifi, Inc.

For Q1 FY26, Unifi expects sequential improvement in net sales and adjusted EBITDA from Q4 levels. Continued restructuring and transition costs of $1–2 million and projects improved cost efficiency and stronger cash generation as it heads into FY26.

“As we look towards fiscal 2026, we recognise that our business performance is not yet where we want it to be and has been temporarily impacted by a volatile trade environment. We have made significant changes to strengthen our business, including lowering our costs and creating a leaner manufacturing footprint in the US, which will drive higher utilisations as we move forward,” added Ingle. “We also believe that our proactive decisions have enhanced our competitive position, improved cash generation capabilities, and strengthened our profitability profile, all of which will contribute to better performance for Unifi in the future.”

ALCHEMPro News Desk (SG)