- Flexsteel Industries (FLXS, Financial) reports a 6.3% increase in net sales for Q3 2025, achieving $114.0 million.
- Despite a GAAP operating loss due to a $14.1 million impairment, adjusted operating income reached $8.3 million.
- Flexsteel projects Q4 2025 sales growth between -2.0% to 5.0% with operating margins from 6.0% to 7.3%.
Flexsteel Industries, Inc. (FLXS) has announced its financial results for the third quarter of fiscal 2025, detailing a 6.3% increase in net sales to $114.0 million, marking the sixth consecutive quarter of growth for the company. Despite economic challenges, the company continues to demonstrate strong operational performance.
Though the company reported a GAAP operating loss of $5.1 million, this was largely due to a one-time pre-tax impairment charge of $14.1 million related to its Mexicali facility. Excluding this charge, Flexsteel achieved an adjusted operating income of $8.3 million, constituting 7.3% of net sales. This result underscores Flexsteel's effective cost management strategies amid fluctuating industry conditions.
Key performance metrics included an adjusted net income per diluted share of $1.13, compared to $0.67 in the same quarter of the previous year. The company also generated $12.3 million in operating cash flow, finishing the quarter with $22.6 million in cash and no debt.
For the upcoming fourth quarter of 2025, Flexsteel anticipates sales growth ranging from -2.0% to 5.0%, with expected operating margins between 6.0% and 7.3%. Management has expressed caution due to potential impacts from proposed U.S. reciprocal tariffs and decelerating retail traffic, which could affect economic stability and consumer confidence.
Looking forward, Flexsteel aims to strengthen its supply chain agility and remain adaptive to changing market conditions, focusing on sustaining growth strategies and minimizing the risks associated with tariffs.
