Key Highlights

  • The quarterly Dividend was raised 25% to $0.25 per share, payable October 12, 2026, the 339th consecutive quarterly dividend.
  • Fourth-quarter Net Income was $12.7 million, or $2.58 per diluted share, compared with $10.7 million, or $1.89, a year earlier.
  • Fiscal 2026 net income was $33.1 million, or $6.07 per diluted share, compared with $20.2 million, or $3.55.
  • Fourth-quarter gross Margin was 30.0%, compared with 23.9% a year earlier, an increase of 610 basis points.

Overview

Flexsteel Industries, Inc. (NASDAQ:FLXS) raised its quarterly dividend 25% to $0.25 per share, payable October 12, 2026 to holders of record on September 30. The dividend yields 1.12%. The company states it is the 339th consecutive quarterly cash dividend, and that it has paid cash dividends each year since 1938. Fiscal 2026 net income was $33.1 million.

Dividend Program and Shareholder Returns

The company announced the 25% increase with fiscal fourth-quarter results on August 17, 2026, and the dividend was declared September 15, 2026. The $0.25 dividend is payable October 12, 2026, to shareholders of record on September 30, and it trades ex-dividend on September 30.

The company states that it has paid cash dividends on its common stock each year since 1938 and that this is its 339th consecutive quarterly cash dividend. Each dividend remains subject to board approval.

About the Company

Flexsteel Industries, Inc. designs, manufactures and sources residential and commercial furniture. Its fiscal year ends June 30. The company reports GAAP results alongside adjusted Operating Income and adjusted earnings per share. It maintains a line of credit, of which $54.1 million was available at quarter-end.

Fourth-Quarter and Fiscal 2026 Results

Fourth-quarter net sales were $115.4 million, up 0.7% from $114.6 million. Net income was $12.7 million, or $2.58 per diluted share, compared with $10.7 million, or $1.89.

Fiscal 2026 net sales were $459.2 million, up 4.1% from $441.1 million. Net income was $33.1 million, or $6.07 per diluted share, compared with $20.2 million, or $3.55. Gross margin was 30.0% in the fourth quarter, compared with 23.9%, and 24.7% for the fiscal year, compared with 22.2%. Cash was $16.7 million at quarter-end.

GAAP and Adjusted Operating Results, Capital Returns and Guidance

GAAP operating income for the quarter was $16.3 million, compared with $14.0 million in the prior year quarter. Adjusted operating income was $8.2 million, compared with $10.3 million. Adjusted measures are non-GAAP.

For the fiscal year, the company reported an adjusted Operating Margin of 7.5% and record adjusted earnings per diluted share of $4.94. It produced more than $47.5 million of free cash flow, and it stated that it repurchased stock during the year and recently increased its dividend by 25%.

Management noted a 70 basis point unfavorable cost impact related to the decision to exit the ready-to-assemble product category sold under the homestyles brand. For the first quarter of fiscal 2027, the company stated sales growth of 1% to 4% compared with the prior year quarter and an operating margin of 6.5% to 7%.

Outlook

Gross margin, net sales trends, adjusted operating income, cash and line-of-credit availability, and the board's quarterly declarations are the relevant considerations. The fiscal fourth quarter ended June 30, 2026 is the most recent reported period.