Unifi's Q3 Revenue Drops 6.2% to $316.8M; Net Income Jumps 45%
Unifi's Q3 revenue fell 6.2% to $316.8 million while net income climbed 45% to $23.1 million, driven by higher margins and cost controls. Adjusted EBITDA rose 20% to $38.4 million as operational efficiencies offset lower sales volumes.
1. Q3 Financial Results
Unifi reported Q3 revenue of $316.8 million, down 6.2% from $337.6 million a year earlier, while net income rose to $23.1 million, compared to $15.9 million. The company recorded adjusted EBITDA of $38.4 million, up from $32.1 million in the prior year period.
2. Margin Improvement and Cost Controls
Higher profit margins were driven by reduced production costs and streamlined operations, with gross margin expanding by 180 basis points to 17.5%. Selling, general and administrative expenses were trimmed by 8%, bolstering overall profitability.
3. Segment Volume Trends
Volume declines were seen in polyester staple fiber and nylon yarn due to softening demand, with total shipment volumes down 5%. Recycled-content products gained traction, accounting for 35% of sales versus 30% a year ago.
4. Outlook and Guidance
Management reaffirmed full-year guidance of revenue between $1.35 billion and $1.38 billion and adjusted EBITDA of $160 million to $165 million. The company expects demand to stabilize in Q4, supported by new long-term customer contracts.