Fusion Fuel (NASDAQ:HTOO) highlighted a pivotal fiscal 2025 for its majority-owned subsidiary, Quality Industrial Corp (QIND), as the unit successfully cleared legacy financial hurdles while posting double-digit top-line growth.
For the fiscal year ended Dec. 31, 2025, QIND reported revenue of $16.3 million, a 45.9% increase over the $11.2 million recorded in the prior year.
Gross profit climbed 20.8% to $4.8 million.
While the company posted a GAAP net loss of $4.6 million due to significant non-recurring charges and asset write-offs, it achieved a non-GAAP adjusted net income of $564,465—a sharp reversal from the adjusted loss reported in 2024.
The results reflect a comprehensive "balance sheet clean-up" overseen by Fusion Fuel since its acquisition of the majority stake.
During the period, QIND reduced its accounts payable by 45% and wrote off approximately $3.5 million in legacy assets deemed non-recoverable.
Additionally, the company trimmed its convertible note balances by 13% and implemented a cost-restructuring plan that reduced management expenses.
Operational growth was spearheaded by the Al Shola Gas subsidiary, which continued its expansion despite regional volatility in the Middle East.
The unit secured approximately $7 million in new engineering contracts and $2 million in recurring fuel distribution agreements during the year, while successfully entering new markets in the northern emirates of the UAE.
Looking toward fiscal 2026, QIND has set a revenue target of approximately $20 million.
Growth is expected to be driven by further expansion of the Al Shola Gas fleet and the fulfillment of its current engineering project backlog.
Management cautioned, however, that these targets remain subject to market conditions, including potential supply chain disruptions in the Strait of Hormuz and volatility in the liquefied petroleum gas (LPG) markets.
Meanwhile, Fusion Fuel continues to support the subsidiary’s transition, having provided approximately $4.4 million in capital during 2025 to facilitate debt servicing and growth initiatives.
The parent company views QIND as a strategic component of its broader energy infrastructure portfolio as it navigates the global transition to cleaner industrial fuels.