The company’s focus on cost reduction, operational optimisation, and portfolio management has lowered its revenue break-even point and positioned it for further financial strengthening in the coming year.
Unifi’s Q4 sales rose 4.1 per cent YoY to $144.2 million, with margin at 9.9 per cent and adjusted EBITDA at $8.2 million.
Full-year sales fell to $531.3 million on Americas and Asia softness, but gross profit, adjusted EBITDA and operating cash flow improved.
FY27 guidance sees Brazil gains, Americas margin growth and Asia pressure; a $60 million real estate sale is expected to aid debt cuts.
For the quarter ended June 28, 2026, Unifi reported net sales of $144.2 million, an increase of 4.1 per cent year on year (YoY), driven by higher sales in the Brazil segment and stable performance in the Americas and Asia.
The gross profit reached $14.3 million, reversing a gross loss of $1.1 million in the prior-year quarter, while gross margin improved to 9.9 per cent from negative 0.8 per cent.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) rose to $8.2 million, compared with a loss of $4.1 million a year earlier. Net loss for the quarter was $1.2 million, compared to net income of $15.5 million in Q4 FY25, which had included a significant one-off gain from asset sales. Cash provided by operating activities was $2.1 million, and debt principal was reduced to $92.4 million, with net debt at $67.4 million at period end, according to the company’s quarterly results.
“We closed fiscal 2026 with clear momentum, highlighted by meaningful improvement in profitability and cash generation. These results reflect disciplined execution of our cost reduction, operational optimisation, and portfolio management initiatives, each of which have driven lower our revenue break-even point. As we enter fiscal 2027, UNIFI is operating from a healthier financial position, with a more focused cost structure and a balance sheet that we expect to further strengthen through the planned sale of non-strategic real estate assets,” said Eddie Ingle, chief executive officer, Unifi, Inc.
FY26 performance
For the full fiscal year ended June 28, 2026, Unifi posted net sales of $531.3 million, down from $571.3 million in the previous year, reflecting ongoing customer order softness in the Americas and Asia segments. Gross profit improved sharply to $30.5 million from $8.4 million, with gross margin expanding by 420 basis points to 5.7 per cent.
Operating loss for the year was $14.6 million, compared to a loss of $9.5 million in FY25. Net loss widened to $24.6 million from a loss of $20.3 million, while adjusted EBITDA improved to $8.9 million from a loss of $11.6 million. Cash provided by operating activities swung to a positive $26.5 million, compared with a cash outflow of $21.3 million in the prior year. Capital expenditures were reduced to $5.0 million from $10.5 million.
Segment and regional performance
In Q4 FY26, the Americas segment generated sales of $84.4 million, Brazil contributed $33.9 million, and Asia delivered $25.8 million. Gross profit improved across all regions: Americas gross profit increased by $8.6 million, Brazil by $6.4 million, and Asia by $0.5 million, driven by cost reductions and favourable pricing in Brazil. REPREVE fibre products accounted for $40.2 million, or 28 per cent of total Q4 net sales.
Margins and balance sheet
Gross margin for the quarter reached 9.9 per cent, up from a negative 0.8 per cent a year earlier, while full-year gross margin improved to 5.7 per cent from 1.5 per cent. Selling, general and administrative (SG&A) expenses fell 1.0 per cent in Q4 and by $4.3 million for the year to $44.7 million.
Debt principal declined by $15.6 million over the year, and the company ended the fiscal year with $25.1 million in cash and cash equivalents. Following Q4, Unifi entered an agreement to sell certain non-strategic real estate assets in the Americas for $60 million, which is expected to further enhance financial flexibility and support debt reduction.
Outlook for FY27
Looking ahead, Unifi expects sales and profitability to improve in fiscal 2027 as the company benefits from its lower cost base and the full impact of portfolio management actions.
The company anticipates improved sales and profitability in the Brazil segment, continued margin-accretive growth in the Americas, and ongoing pressure in Asia due to regional volatility. Unifi remains focused on innovation, disciplined capital allocation, and strengthening its balance sheet to support long-term growth.
Fibre2Fashion News Desk (MS)
