Unifi Reports Q4 2025 Results with 12% Net Sales Decline

Unifi reported Q4 2025 results with a 12% decline in net sales to $138.5 million due to trade-related uncertainties and demand volatility. Despite challenging conditions, the company made strategic moves, including selling a manufacturing facility, which helped reduce debt and is expected to save $20 million annually. Unifi remains optimistic about leveraging its leaner manufacturing footprint and strong demand for sustainable solutions to enhance future performance.

Unifi, Inc. (NYSE: UFI), a leading innovator in recycled and synthetic yarns, released its fourth-quarter and fiscal-year 2025 results on August 20, 2025. The company reported a 12% decline in net sales to $138.5 million, driven primarily by trade-related uncertainties and demand volatility across its business segments [1].

The company's revenue from REPREVE Fiber products decreased to $42.1 million, representing 30% of total net sales, compared to $53.6 million or 34% in the fourth quarter of fiscal 2024. Gross loss was $1.1 million, with a gross margin of 0.8%, compared to a gross profit of $10.8 million and a 6.9% margin in the previous quarter [1].

Despite the challenging conditions, Unifi made strategic moves to bolster its financial position. The company completed the sale of its Madison, North Carolina manufacturing facility for $45.0 million, using $25.0 million of net proceeds to reduce an existing term loan and $18.3 million to reduce outstanding revolving loans. This sale is expected to create over $20 million in annualized operating cost savings [1].

Unifi also launched Fortisyn™, an abrasion-resistant yarn engineered for military and tactical gear. The company's CEO, Eddie Ingle, stated, "Our results for the fourth quarter came in below our expectations due to softer ordering patterns, driven by recent tariff and trade uncertainties across our customer base. Despite the challenging operating environment, we continued to make meaningful progress in optimizing our business and streamlining operations during the period" [1].

Looking ahead, Unifi expects net sales and Adjusted EBITDA to improve sequentially in the first quarter of fiscal 2026, primarily driven by cost savings for the Americas Segment. The company anticipates continued restructuring and transition expenses of between $1.0 million and $2.0 million during this period [1].

References:
[1] https://www.nasdaq.com/press-release/unifir-makers-reprever-announces-fourth-quarter-and-fiscal-2025-results-2025-08-20