Flexible Solutions International (NYSE:FSI)

Flexible Solutions International, Inc. (NYSE:FSI) ($3.60; $45.5M market cap) announced a special dividend:

• Declared a $0.10 per share special dividend
• Payable on May 28, 2025 to shareholders of record as of May 19, 2025
• Our Quick take: This could be an indication that everything is progressing smoothly towards making sure things are in place to execute on its large contract FSI won in January that could double the size of the company. See more on that in our RFT here.

"We are pleased that our current financial condition and expectations of continued profitability allows us to dividend profits to shareholders at this time. However, this is a special dividend; not a regular dividend,” said Dan O’Brien, CEO of FSI. “The FSI Board and management will continue to monitor retained earnings and capital needs in order to execute the goals of growing the Company and declaring dividends when appropriate.”

Flexible Solutions International, Inc. develops and sells specialty chemicals aimed at conserving water and improving efficiency in agriculture, industry, and consumer products.

Flexible Solutions International, Inc. (NYSE:FSI) ($3.82; $48.25M market cap) pre-announced Q1 2025 revenue:

• Q1 sales of $7.4 million vs. $9.2 million in the prior year, down approximately 20.0% year over year

“Mr. Dan O’Brien, CEO, comments, “Two significant customers adjusted inventory downward in the quarter, temporarily reducing sales. Our ENP division also experienced reduced sales; likely due to early buys in Q4 2024. It is rare for FSI to have several items coincide like this and we do not believe it changes our expectations for growth over FY 2025.”

It’s extremely important to remember that our bullishness on FSI’s story currently revolves around the company’s big contract win we mentioned in our January 21, 2025 note. Until then, we have to deal with some of the lumpiness and gross margin variability associated with the legacy business 

FSI is a developer and manufacturer of biodegradable polymers for oil extraction, detergent ingredients and water treatment as well as crop nutrient availability chemistry