Board reporting package
Q1 FY2026 (Dec–Feb)
Kinetiflo Group Board of Directors
Draft — management reviewCertified measures only
TTM Revenue
$26.6M
vs Plan-1.8%
vs Prior Year+14.6%
TTM Adj. EBITDA
$7.1M
vs Plan+1.4%
vs Prior Year+19.8%
TTM EBITDA Margin
26.6%
vs Plan+0.8%
vs Prior Year+1.2%
Net Debt / EBITDA
2.37x
vs Plan-0.14
vs Prior Year-0.42
FCCR
2.54x
vs Plan0.22
vs Prior Year0.61
Backlog
$10.4M
vs Plan-3.4%
vs Prior Year+8.9%
Five quarters
Revenue, Adjusted EBITDA and margin
Quarterly
Q1 FY26
Budget vs actual
Consolidated
| Line | Actual | Budget | Var |
|---|---|---|---|
| Net Sales | $6.2M | $6.5M | ($266.0K) |
| Gross Margin | $3.1M | $3.2M | ($86.0K) |
| SG&A | $1.7M | $1.8M | ($64.0K) |
| Operating Income | $1.4M | $1.4M | ($22.0K) |
| Adjusted EBITDA | $1.7M | $1.7M | $24.0K |
| Capital Expenditures | $184.9K | $240.0K | ($55.1K) |
Execution
Strategic initiatives
5 tracked
- NetSuite consolidation & close automationCFOOn track72%
Close cycle down from 14 to 9 business days.
- Inventory reduction program (DIO 285 → 210)COOAt risk34%
Excess/obsolete band still $986K; disposition plan due March.
- Texas capacity expansionGM — KinetifloOn track58%
Start-up costs complete; backlog coverage 1.9x.
- Integrity workforce stabilizationCHROBehind21%
TTM turnover 30.8% vs 18% target; overtime 1,327 hrs.
- Tariff mitigation & re-sourcingVP Supply ChainOn track64%
Exposure reduced to 6.8% of COGS.
Governance
Risk register
Management view
| Risk | L | I | Trend |
|---|---|---|---|
| Inventory carrying cost & obsolescence | High | High | Flat |
| Skilled labor turnover at Integrity | High | Medium | Worsening |
| Component lead times (castings, motors) | Medium | High | Improving |
| Customer concentration (top 10 = 38%) | Medium | Medium | Flat |
| Tariff / trade policy exposure | Medium | Medium | Improving |
Management discussion
Quarter narrative
CFO
- Q1 FY26 revenue of $6.25M finished 4.1% below budget on Pumps shipment timing at Integrity, with three February shipments invoiced in early March.
- Profitability outperformed: Adjusted EBITDA of $1.69M is 1.4% ahead of budget and a 27.0% margin — the highest quarterly margin in the reported history of the group.
- Covenant headroom is comfortable at 2.54x FCCR against a 1.20x minimum and 2.37x total leverage against a 3.50x maximum.
- The board's attention is requested on two items: inventory days at 285 and turnover of 30.8% at Integrity. Management proposes a disposition plan and a compensation review in March.
Cadence
Reporting calendar
Next 90 days
- Mar 12, 2026February close package distributedController
- Mar 24, 2026Q1 board meeting — inventory disposition planCFO / COO
- Apr 09, 2026FY26 reforecast, mid-yearFP&A
- May 20, 2026Lender compliance certificate — Q1CFO