Fab-Form Industries Ltd. Announces Results for the Quarter Ended 31 December 2025
Executive Summary
- Fab‑Form reported a sharp decline in Q4 2025 revenue (‑16.6%) and earnings (‑70% YoY), with net earnings of $35,162.
- Cash and short‑term investments total $4.27 M, maintaining strong liquidity despite the downturn.
- The company advanced several product initiatives (SPACE‑R, Fast‑Tube 3.0, Flex‑RTM) and secured key IP rights in the sub‑slab insulation market.
Key Details
- Revenue: $859,728 for quarter ended 31 Dec 2025 vs. $1,030,927 YoY (‑16.61%).
- Gross profit: $287,006; gross margin 33%, consistent with lower sales volume.
- Operating expenses: Flat YoY; G&A down 6.71%; marketing up 16.05% due to trade‑show costs.
- Earnings from operations: $26,091, down 68.27% YoY.
- Other income: $1,301 expense (‑101.7%) driven by reduced interest income and adverse FX.
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Net earnings: $35,162, down 70.05% from $117,393 YoY.
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Liquidity: Cash & cash equivalents $2,743,518; short‑term investments $1,530,691 (total $4,274,209).
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Balance sheet: Total assets $6,891,369 (↑ $402,457); total liabilities $717,746 – debt‑light position.
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Product Update – SPACE‑R: Design finalized; polypropylene bobbin molding started for 10″ column; samples expected by end of March 2026.
- Fast‑Tube 3.0 (“Optimized Fabric”): Received three fabric samples from Hagihara (Nov 2025); sample #3 shows 53.5 GPa elasticity, ~½ the stiffness of steel; initial bonding tests positive; potential to produce up to 36″ diameters.
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Flex‑RTM commercialization: Launched sub‑slab panel offering R12 insulation, automatic adaptation to uneven ground (≤½″ per 12″), damp‑proof membrane, double‑sided tape sealing, radon protection, air barrier, and radon gas removal.
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Intellectual Property:
- 27 May 2025 – filed U.S. patent “APPARATUS FOR UNDER‑SLAB INSULATION, RADON CONTROL AND DAMP‑PROOFING.”
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20 Oct 2025 – acquired Canadian Patent 3,029,299 (“VADIR BARRIER”) from Jonathan Kowalchuk; issued 28 Jan 2020.
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Market Context: Sub‑slab insulation and damp‑proofing market in U.S./Canada valued at several hundred million dollars; IP protection deemed essential for growth.
Notable Quotes
- “Securing these patents positions Fab‑Form to capture a significant share of the rapidly expanding sub‑slab insulation market,” – Joseph Fearn, CEO.