UNIFI Q4 FY2026: Gross Margin Swings to 9.9%, Adjusted EBITDA $8.2M, FY27 Outlook Positive
UFI has more than doubled off its 52-week low of $2.96 on elevated volume (2.9× avg).
Summary
UNIFI reported Q4 FY2026 revenue of $144.2M (+4.1% YoY) with gross margin swinging to 9.9% from -0.8%, adjusted EBITDA of $8.2M, and positive FY27 guidance. Full financials and segment detail included.
Key Events · Earnings and Guidance · UFI
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Gross Margin Swings to 9.9%
Q4 FY2026 gross profit was $14.3M on revenue of $144.2M, a 1,070 bps improvement from -0.8% a year ago. Americas segment gross profit improved by $8.6M, Brazil by $6.4M, and Asia by $0.5M.
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Adjusted EBITDA Turns Positive
Adjusted EBITDA was $8.2M in Q4 FY2026 versus -$4.1M in Q4 FY2025. Full-year adjusted EBITDA was $8.9M versus -$11.6M, driven by cost reductions and improved pricing.
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Cash Flow and Debt Reduction
Operating cash flow was $26.5M for fiscal 2026 versus -$21.3M in fiscal 2025. Net debt declined $17.9M to $67.4M, and the pending $60M real estate sale will further reduce debt.
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Fiscal 2027 Guidance Positive
Management expects fiscal 2027 sales and profitability to improve year-over-year. Q1 FY2027 outlook: Brazil sales and profitability to improve, Asia to remain pressured, and Americas to benefit from cost savings and stable demand.
Analysis · UFI · Manufacturing
A sharp operational turnaround marks UNIFI's fourth-quarter results: gross margin swung from -0.8% to 9.9%, adjusted EBITDA turned positive at $8.2 million versus a $4.1 million loss a year ago, and operating cash flow for the year reached $26.5 million. The company also guided for fiscal 2027 sales and profitability improvement, with Brazil expected to lead growth while Asia remains pressured. This follows the $60 million real estate sale announced two days ago, which will further reduce debt and strengthen the balance sheet.
At the time of this filing, UFI was trading at $8.00 on NYSE in the Manufacturing sector, with a market capitalization of approximately $145.5M. The 52-week trading range was $2.96 to $8.47. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.