Flexsteel shares surge 11% on better-than-expected Q4 results, guidance

Flexsteel Industries (FLXS) reported better-than-expected financial results for the fourth quarter, causing its shares to surge 11.4%. The company's adjusted earnings per share came in at $1.33, surpassing analysts' consensus of $1.09 by $0.24. Revenue for the quarter reached $115.4 million, a 0.7% increase from $114.6 million in the same period last year and above the forecasted $109.66 million.

For fiscal year 2026, Flexsteel anticipates revenue of $111-115 million, higher than the analyst consensus of $107 million. The company's adjusted operating margin for the quarter was 7.1%, down from 9.0% in the previous year but still above the consensus estimate of 6.3%. GAAP operating margin for the quarter reached 14.2%, driven by a $9 million tariff refund.

CEO Derek Schmidt highlighted the company's performance, stating, "For the year, we delivered sales growth of approximately 4% to $459 million, expanded adjusted operating margin to 7.5%, generated record adjusted earnings per diluted share of $4.94, and produced more than $47.5 million of free cash flow." Flexsteel also completed $62.6 million in share repurchases during the quarter.

The company closed the quarter with a cash balance of $16.7 million and $54.1 million available under its secured line of credit.