Quality Industrial Corp. Reports FY 2025 Results:
Major Turnaround Actions, Strong Revenue Growth, and Al Shola Gas Expansion

Key Highlights for Investors

• Revenue Soars 45.9%: FY 2025 revenue reached \$16.3 million, up from \$11.2 million in FY 2024.
• Turnaround Actions Completed: Board and management executed a comprehensive turnaround, including strengthening governance, restructuring costs, and cleaning up the balance sheet.
• Adjusted Net Income Surges 452%: Adjusted net income rose to \$566,853, compared to \$160,774 in the prior year.
• Al Shola Gas Drives Growth: The company’s majority-owned subsidiary, Al Shola Gas, delivered robust operational results and geographic expansion, despite regional instability.
• Balance Sheet Strengthened: Significant reduction in legacy liabilities, professional fees, and management costs; large write-offs of unrecoverable assets; and infusion of \$4.4 million in capital from Fusion Fuel.
• Future Guidance: Company targets \$20 million in revenue for FY 2026, contingent on regional stability, with continued emphasis on growth and further reduction of legacy costs.
• Potential Shareholder Dilution: Board acknowledges significant dilution and the risk of further dilution from outstanding convertible notes and future capital needs.

Detailed Financial Performance

Important Shareholder Information & Potential Price-Sensitive Developments

• Non-Recurring & Legacy Adjustments: The company incurred significant one-off costs totaling \$5.17 million in FY 2025, including:
  • \$1.38 million for resolving historic management compensation
  • \$607,000 in exit payments to former officers
  • \$2.0 million write-off for Buyback Reserve and other assets
  • \$1.5 million write-off for a related-party receivable

  These costs depressed reported net income but are not expected to recur, meaning future profitability could significantly improve.

• Governance and Cost Restructuring: The Board transitioned from a sole director to a three-member board, with all board compensation now absorbed by Fusion Fuel, saving approximately \$720,000 annually. Professional fees were cut by 73%, and executive compensation is now fully covered by Fusion Fuel and Al Shola Gas, essentially eliminating recurring QIND-level management costs.
• Balance Sheet Cleanup: \$3.5 million in legacy assets were written off. Convertible note principal was reduced by \$610,000 (from \$2.68 million to \$2.07 million), and accounts payable were cut by 45% (from \$2.12 million to \$1.16 million). The company warns that while these assets are written off, they reserve the right to pursue recovery actions.
• Fusion Fuel Investment: Fusion Fuel provided \$4.4 million in capital during FY 2025, covering legacy costs, contributing \$1 million to the Al Shola Gas acquisition, and investing in fleet expansion. Fusion Fuel has committed to a total investment of \$5 million, which will become a forgivable note upon transaction closing.
• Al Shola Gas Performance: Al Shola Gas grew revenue by 31.6% (from \$10.8 million in FY 2023 to \$14.3 million in FY 2024) and generated \$2.1 million net income despite the introduction of a 9% UAE corporate tax. The subsidiary secured \$7 million in new engineering contracts and \$2 million in annual recurring fuel distribution contracts, expanding into the northern emirates. Notably, the team maintained uninterrupted operations during regional conflict, though management warns that escalation, especially involving Iran and disruptions to the Strait of Hormuz, could impact future revenues and supply chains.
• 2026 Outlook:
  • Further growth at Al Shola Gas, supported by new trucks, contracted engineering projects, and geographic expansion
  • Ongoing work to service and restructure open debt positions, including the Al Shola Gas seller agreement
  • Targeting \$20 million in revenue for FY 2026, subject to regional stability
• Shareholder Dilution Risk: The Board acknowledges that substantial dilution has already occurred to execute the turnaround and that remaining convertible notes, future capital requirements, and obligations to Al Shola Gas sellers may result in further dilution. Management is actively working to mitigate this by reducing costs, restructuring obligations, and pursuing the completion of the Fusion Fuel transaction.

Management Commentary

John-Paul Backwell, CEO, stated: “2025 was a year of decisive action. We restructured the Board, settled legacy obligations, wrote off unrecoverable assets, reduced debt, and eliminated virtually all recurring management costs at the QIND level — while Al Shola Gas continued to grow revenue and expand into new markets. We are now past the most intensive phase of the turnaround and are focused on translating operational strength into long-term shareholder value.”

Company Overview

Quality Industrial Corp. is an industrial energy company specializing in LPG infrastructure and distribution. Through its majority-owned subsidiary, Al Shola Gas, the company provides consulting, engineering, installation, maintenance, and LPG supply services to residential, commercial, and industrial customers across the UAE.

Risks & Forward-Looking Statements

The company highlights substantial risks and uncertainties, especially related to regional conflicts, fluctuating demand, regulatory and compliance requirements, volatility in energy markets, commodity prices, and the need for sufficient financing. Additionally, risks associated with international operations, particularly in the UAE, may impact future performance. Full risk disclosures are available in the company’s latest SEC filings.

Contact

Quality Industrial Corp.
505 Montgomery Street, San Francisco, CA 94104
Phone: +1-800-706-0806
Email: [email protected]
Websites: qualityindustrialcorp.com | alsholagas.ae | fusion-fuel.eu

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should consult the company’s official SEC filings and their financial advisors before making any investment decisions. Forward-looking statements involve known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially from those projected.

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