Unifi Reports Improved Q3 FY26 Performance Despite Lower Sales
Unifi Inc., the maker of Repreve recycled fibres, reported improved profitability and cash flow for the third quarter of fiscal 2026, despite continued pressure on sales due to global trade and market uncertainty.
For the quarter ended March 29, 2026, net sales declined 11.3% year-on-year to US$ 130 million from US$ 146.6 million, primarily due to softer customer ordering patterns linked to geopolitical tensions, trade disruptions and tariff-related uncertainty. However, sales increased 7.1% sequentially compared to the previous quarter.
The company posted gross profit of US$ 9.1 million, compared to a gross loss of US$ 0.4 million in the same period last year, while gross margin improved to 7.0% from negative 0.3%. Operating loss also narrowed significantly to US$ 0.1 million from US$ 13.9 million a year earlier.
Net loss for the quarter improved to US$ 2.3 million or US$ 0.12 per share, compared to a net loss of US$ 16.8 million or US$ 0.92 per share, in the third quarter of fiscal 2025. Adjusted EBITDA rose to US$ 4 million from a negative US$ 4.9 million in the prior-year period.
The company generated US$ 8 million in cash from operating activities during the quarter and reduced debt principal to US$ 94.9 million, with net debt standing at US$ 68.4 million as of March 29, 2026.
Sales of Repreve fibre products reached US$ 38.2 million and accounted for 29% of total net sales, up from US$ 34.3 million in the previous quarter.
Selling, general and administrative (SG&A) expenses declined 9% year-on-year to US$ 11.2 million, supported by ongoing cost reduction initiatives.
Eddie Ingle said the company’s operational restructuring and cost optimization efforts over recent quarters were beginning to translate into stronger financial performance.
“We are pleased to report that the impact of our team’s hard work is beginning to translate into improved financial performance, highlighted by improved gross profit and debt reduction,” Ingle said.
During the quarter, Unifi also released its Sustainability Snapshot outlining progress in textile-to-textile recycling and introduced Luxel, a new linen-inspired performance yarn designed for easy-care applications.
Looking ahead, the company said it will continue focusing on operational efficiency, innovation and balance sheet management while preparing for higher working capital requirements linked to demand recovery and petrochemical-related inflation.
Unifi expects fourth-quarter fiscal 2026 results to include responsive pricing adjustments tied to rising petrochemical costs and remains optimistic about momentum across its business segments, particularly in non-apparel applications.
