Canada's Flexible Solutions Q2 posts net loss on training and development costs at Panama plant

Flexible Solutions International

14/08/2026 22:13

Overview
Canada biodegradable polymers maker's Q2 revenue fell 14% yr/yr
Company posted Q2 net loss, reversing net profit from prior yr period
Quarterly results impacted by scaling costs, Panama plant training, and absence of prior R&D payment

Outlook
Company hopes Panama division will contribute $3 mln in Q3 revenue
Company hopes ENP division revenue will exceed $5 mln in Q3
Company hopes NanoChem division revenue will exceed $4 mln in Q3

Result Drivers
SCALING COSTS - Co said costs from scaling food grade contracts impacted Q2 results, while revenue from scaling has not yet fully materialized
PANAMA PLANT TRAINING - Training and development costs at Panama plant affected results, with revenue lagging costs
ENP DIVISION SEASONALITY - Q2 is the weakest quarter for ENP division, per CEO Daniel B. O’Brien
ABSENCE OF R&D PAYMENT - Prior year period included $2.5 mln R&D payment not repeated in current quarter

Company press release: ID:nGNX7808QV

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Loss Per Basic Share
 
$0.15
 

Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the specialty chemicals peer group is "buy."
Wall Street's median 12-month price target for Flexible Solutions International Inc is $10.25, about 105% above its August 13 closing price of $5.00
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 14 three months ago

Reuters Recommended Reads
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Aug 12 - Germany's K+S beats Q2 revenue expectations, raises forecast

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)