Timothy Clarkson's questions to FLEXIBLE SOLUTIONS INTERNATIONAL (FSI) leadership • Q1 2025
Question
The analyst asked for confirmation of better Q2 results, the primary risks for the new contract beyond equipment, the rationale for moving manufacturing to Panama, and an opinion on U.S. tariff policies.
Answer
The executive confirmed Q2 results will be better than Q1. The main risks for the new contract are timing and execution at high volume, though the probability of failure is low. The move to Panama was driven by the impact of U.S. tariffs on international sales since 2017 and the difficulty in getting tariff rebates. The executive believes a better tariff policy would differentiate between raw materials for remanufacturing and finished goods.