Episode Details

Flexsteel Industries (FLXS) Q4 FY2026 — FLXS released Q4 and full-year FY2026 AFTER THE CLOSE on Monday August 17 (Form 8-K 0001193125-26-354160 accepted 20:31 ET; call 8:00 a.m. CT on Tuesday Aug 18). The reaction session is Tuesday Aug 18: the shares GAPPED to USD81.00, ran to USD88.49 - a 12-month intraday high - and CLOSED USD77.16, +8.89 pct against Monday's USD70.86 close, on 275,200 shares (5.63x the 30-session average), handing back 64 pct of the peak gain. NOTE the vendor EOD changePercent for that session reads -4.74 because it is measured from the OPEN, not the prior close - it carries the WRONG SIGN. Aug 19 closed USD78.17 (+1.31 pct), a 12-month closing high. Flexsteel Industries is a 130-year-old US residential furniture manufacturer and importer based in Dubuque, Iowa - one reportable segment, plants in Juarez, Mexico and finished goods sourced from Vietnam. It is a US domestic filer reporting US GAAP. Q4 FY2026 net sales were USD115.4M against USD114.6M, up 0.7 pct. GAAP diluted EPS was USD2.58 and ADJUSTED diluted EPS USD1.33, against USD1.40 a year ago and a published bar of USD1.09. Full-year sales were USD459.2M (+4.1 pct) with record adjusted EPS of USD4.94. THE CALL: HOLD (3/5, MEDIUM - THE BUYBACK MATH IS REAL, BUT THE TAPE HAS ALREADY PAID FOR IT) — base-case value ~$70.48 vs ~$78.17 today. KEY METRICS: - PRINT: Q4 sales USD115.4M (+0.7 pct), the 11th straight quarter of growth and the slowest. Adjusted EPS USD1.33 vs a USD1.09 bar - but DOWN from USD1.40. Adjusted operating income FELL 19.8 pct to USD8.2M, margin 9.0 to 7.1 pct. - ANGLE: on 26 April Flexsteel bought 1,279,870 shares - 23.9 pct of the company - from a DIRECTOR and his family at USD47.00, for USD60.2M. Shares outstanding went 5,352,000 to 4,107,000 in one quarter. The stock is now USD78.17. - CALL: HOLD 3/5. Fair value USD70.48 vs USD78.17 (-9.8 pct). The FY2026 adjusted profit of USD27.0M on the 4,091,741 shares that exist is USD6.59 a share, not the reported USD4.94 - and the vendor market cap of USD418.6M is 30.9 pct too high. What to watch: UP: a Q1 FY2027 print at the top of BOTH the USD111-115M sales range and the 6.5-7.0 pct operating-margin range; spending the remaining USD28.6M repurchase authorisation at pace (8.9 pct of the market value); evidence the January Section 232 step-up is being passed through in price. DOWN: the Section 232 duty on seating rising from 25 to 30 pct on 1 January 2027 and being absorbed; adjusted operating margin tracking below the 6.5 pct guide floor; receivables continuing to grow faster than sales. Also on YouTube: @ChargedAlpha DISCLAIMER: For informational and educational purposes only. Not financial advice. Do your own research before any investment decision.