Culp reports FY2025 results and completes restructuring to support future growth

Fiscal 2025 Summary

+ Consolidated net sales for the year totaled $213.2 million, down 5.4% year-over-year.

+ GAAP operating loss was $(18.4) million, including $9.4 million in restructuring costs.

+ Non-GAAP operating loss improved to $(9.0) million from $(10.6) million in FY2024.

+ Mattress fabrics segment posted a full-year sales decline of 2.1%, with significant improvement in operating performance over the course of the year.

+ Upholstery fabrics segment remained profitable despite an 8.8% drop in annual sales, supported by stronger margins in the hospitality/contract market.

+ Restructuring Completed

The company finalized its restructuring plan initiated in May 2024, which included facility closures and a transition to an asset-light sourcing model. The sale of its Canadian manufacturing facility in April 2025 marked the completion of the program, which is expected to yield annualized savings of $10–11 million.

Culp has also announced the integration of its mattress and upholstery divisions into a unified CULP-branded business, aimed at improving scale efficiency and responsiveness to market trends.

Q4 Financial Highlights

+ Net sales were $48.8 million, flat year-over-year.

+ Non-GAAP operating loss narrowed to $(704) thousand, compared to $(4.0) million in the prior-year quarter.

+ Adjusted EBITDA turned positive at $559 thousand, up from $(2.2) million.

+ Mattress fabrics sales grew by 5.3%, while upholstery sales declined by 8.9%.

+ Strengthened Financial Flexibility

The company ended fiscal 2025 with $5.6 million in cash and $12.7 million in outstanding debt, and recently extended its credit facility with Wells Fargo by three years. Total liquidity as of year-end stood at approximately $27 million.

Outlook

Culp expects continued pressure in the residential upholstery market but anticipates year-over-year growth in mattress fabric sales. Operating performance is expected to benefit from ongoing restructuring efficiencies, division integration, and selective price increases related to tariffs. The company will continue to focus on liquidity, cost discipline, and free cash flow.

CEO Iv Culp stated: "We enter fiscal 2026 with a more agile and resilient platform. Our completed restructuring, integrated business structure, and continued focus on customer service position us well to navigate market volatility and seize new opportunities."