Mission Statement, Vision, & Core Values of Flexible Solutions International, Inc. (FSI)

Flexible Solutions International, Inc.'s commitment to biodegradable polymers and sustainable solutions is more than just marketing; it's the bedroc of their strategy, even as they navigate short-term financial headwinds.

For instance, while Q3 2025 revenue grew a solid 13% to $10,556,291, the company posted a net loss of $503,358, a direct result of heavy capital expenditure (CAPEX) for new food-grade production in Illinois and Panama.

This aggressive investment, driven by their Vision to be a global leader in environmentally friendly solutions, raises a critical question: How do their Mission and Core Values-like innovation and sustainability-justifys a temporary loss for long-term market dominance?

Flexible Solutions International, Inc. (FSI) Overview

If you're looking for a specialty chemical company that is defintely aligning its growth with global sustainability trends, Flexible Solutions International, Inc. (FSI) is a name you need to know. This company, which was incorporated in 1991 and established in 1994, is an environmental technology firm focused on making industrial processes and resource use more efficient and safer for the planet.

The core of their business is split into two segments: Energy and Water Conservation Products, and Biodegradable Polymers. The Biodegradable Polymers segment, run primarily through its NanoChem Solutions Inc. subsidiary, develops and manufactures water-soluble chemicals, most notably thermal polyaspartate (TPA) biopolymers. TPA is a powerhouse ingredient used in everything from oil extraction to water treatment and crop enhancement.

Their conservation products, like WATERSAVR™ and HEATSAVR™, are designed to slow water evaporation in large bodies of water, such as reservoirs and swimming pools, which is a huge deal for water-stressed regions. As of the trailing twelve months ending Q3 2025, FSI's total revenue stood at approximately $38.56 million, showing their existing business is a steady, reliable engine.

Here's the quick math: their long-term focus on environmentally safe products is paying off in a market that increasingly demands them.

The company's key product applications include:

• Oilfield scale and corrosion reduction using TPA.
• Crop nutrient availability chemistry for agriculture.
• Water and energy conservation for pools and reservoirs.
• A rapidly expanding food and nutrition supplement market presence.

Q3 2025 Financial Performance and Strategic Investments

Flexible Solutions International's financial results for the third quarter of 2025 (Q3 2025) show a company investing heavily in future growth, even if it pinched short-term earnings. The direct takeaway is that revenue is up significantly, but profits took a temporary hit due to strategic CapEx (Capital Expenditure).

The company reported Q3 2025 revenue of $10,556,291, which is a strong increase of approximately 13% compared to the same period a year ago. This growth was driven by their existing business, particularly the NanoChem division and the ENP subsidiary.

But here's the reality check: FSI reported a net loss of $503,358, or $0.04 per basic share, for the quarter. What this estimate hides is that the loss stems from significant, one-time expenses. Management cited higher costs of goods, including tariffs, plus substantial preproduction and installation costs related to new food-grade contracts and a new factory in Panama.

The most important growth driver is the new food-grade business. The company secured a second major 5-year food-grade contract in August 2025, which has a guaranteed minimum annual revenue of $6.5 million, with a maximum potential of over $25 million per year if the customer ramps up orders. This is a clear, actionable path to higher revenue in 2026 as the Panama factory nears completion and new production lines in Illinois start full operation.

Flexible Solutions International: A Key Player in Environmental Technology

Flexible Solutions International is positioned as a key innovator in the specialty chemicals industry, which is a sector increasingly valued for its role in global resource management. Their focus on sustainable chemistry-like TPA biopolymers that are biodegradable-makes them a critical partner for companies seeking to meet stricter environmental, social, and governance (ESG) standards.

The strategic move into the food and nutrition supplement manufacturing markets, backed by new long-term contracts, is a smart diversification play that leverages their core chemical expertise. This expansion, coupled with the investments in the Panama facility to reduce tariff impacts and boost international sales, shows a management team executing a clear, long-term growth strategy.

The company is not just selling chemicals; it's selling solutions for water conservation, energy efficiency, and sustainable agriculture-all high-growth areas. To truly understand the strength of their balance sheet and the potential return on these new capital investments, you need to look past the short-term net loss. You can find out more about the underlying metrics and valuation models in Breaking Down Flexible Solutions International, Inc. (FSI) Financial Health: Key Insights for Investors.

Flexible Solutions International, Inc. (FSI) Mission Statement

You want to know what truly drives a company like Flexible Solutions International, Inc. (FSI), especially when they are navigating a tricky market with both growth and short-term losses. The mission statement is your compass, the clear guide for every capital expenditure (CAPEX) decision and product pivot. For Flexible Solutions International, Inc., their mission is simple and powerful: to increase crop yield and reduce environmental impact through the development, manufacturing, and marketing of innovative, biodegradable products.

This mission isn't just a feel-good statement; it's a financial and operational blueprint. It forces management to prioritize investments in sustainable technology, like their NanoChem division, over short-term fixes. For instance, the company's nine-month 2025 revenue reached $29.4 million, with a net income of $1.25 million, showing that this focus on environmental technology is a viable business model, even while absorbing higher costs. That's the real-world value of a clear mission.

You can see the full context of their journey, including their history and how they make money, right here: Flexible Solutions International, Inc. (FSI): History, Ownership, Mission, How It Works & Makes Money.

Core Component 1: Enhancing Agricultural Productivity and Crop Yield

The first core component of the mission is a direct promise to the agriculture sector: enhance productivity. This means developing specialty chemicals that help farmers get more from their land with less waste. The company's products, like the thermal polyaspartate (TPA) biopolymers from the NanoChem Solutions Inc. subsidiary, are designed to improve crop nutrient availability.

This focus is a smart business move because it addresses a global need for food security. The NanoChem division remains a key revenue and cash flow contributor for the company, providing a stable base of income. You can see this commitment in their recent strategic moves, like the expansion into the food and nutrition supplement manufacturing markets, which is a natural extension of their core chemistry expertise.

• Improve nutrient uptake for better harvests.
• Provide value through effective, eco-conscious solutions.
• Diversify revenue beyond traditional agriculture.

To be fair, this expansion comes with upfront costs. The Q3 2025 net loss of $503,358 was partly due to preproduction expenses for a new food-grade contract and CAPEX installation costs in Illinois and Panama. But that short-term loss is a long-term investment in a higher-margin, higher-quality market.

Core Component 2: Reducing Environmental Impact and Promoting Sustainability

The second pillar is the commitment to reducing environmental impact. This is where the company's identity as an environmental technology company shines. They specialize in biodegradable polymers and environmentally safe water and energy conservation technologies.

This commitment translates into tangible products like WaterSavr™ and HeatSavr™, which are used to slow water evaporation in swimming pools and reservoirs, directly conserving a precious resource. The Biodegradable Polymers segment, which includes TPA, is a core part of their business, used in everything from oil extraction to water treatment. This isn't just greenwashing; it's an engineered solution to a real problem.

Here's the quick math: in Q2 2025, Flexible Solutions International, Inc.'s top-line revenue increased to $11.212 million, up approximately 6.5% year over year. A significant part of this growth is tied to the increasing global demand for these sustainable and efficient solutions. The market defintely rewards true sustainability.

Core Component 3: The Development and Marketing of Innovative, High-Quality Products

The final component is the engine of the entire operation: innovation and high-quality product delivery. The company is a developer and manufacturer, meaning they own the intellectual property and the production process, giving them tight control over quality.

A concrete example of their commitment to the highest standard of quality is the strategic shift to food-grade operations. They obtained FDA food grade approval for their Peru, IL plant in 2022, which is a massive hurdle to clear, signaling a dedication to quality that goes far beyond industrial standards. This move required significant investment in human capital, including hiring and training four shifts of new employees for the full-scale production launch of a second food-grade contract.

This focus on quality and innovation is what allowed Q3 2025 sales to reach $10,556,291, a 13% increase over the prior year, even while facing headwinds like higher costs and tariffs. They are strategically positioning themselves for future growth, with the Panama factory nearing completion, which is expected to boost international sales and efficiency.

Flexible Solutions International, Inc. (FSI) Vision Statement

You're looking for the guiding star of Flexible Solutions International, Inc. (FSI), and the vision statement is it. It's not just corporate fluff; it's a clear map for capital allocation and operational focus. The core takeaway is simple: FSI aims to be a global leader in providing environmentally friendly solutions, which directly informs their expansion strategy into high-margin areas like food-grade polymers, even if it means near-term volatility.

The company's strategy is built on three pillars that define this vision, and right now, the investment in new production is causing a temporary profit dip. For the nine months ended September 30, 2025, FSI reported a net income of $1.25 million, which is a drop from the prior year, but this is a deliberate trade-off. They are spending money now to capture future growth, a classic investment cycle.

Global Leadership Through International Expansion

The first component of the vision is to be a global leader, which FSI is executing by aggressively expanding the reach of its products to international markets. This isn't just a sales goal; it's a manufacturing and logistics commitment. The company is actively working on a new facility in Panama, which is a strategic move to better serve international agriculture sales and optimize its supply chain. This focus is critical because FSI generates a majority of its revenues from the export of its products.

This expansion, however, comes with a cost. In the third quarter of 2025, FSI reported a net loss of $503,358, largely due to expenses related to installing equipment and leasehold improvements for the Panama factory, plus the startup costs for the new food-grade contract. That's a tough quarter, but it's the price of global scale. The goal is to move production of existing products to Panama so the Illinois plant can focus on higher-value food-grade products, ultimately driving a return to past profit levels in the first half of 2026.

• Move existing production to Panama.
• Increase international agriculture sales.
• Focus Illinois plant on food-grade products.

Recognized Name in Sustainable Technologies

The second pillar is becoming a recognized name in sustainable technologies. This is where FSI's NanoChem division, which makes thermal polyaspartic acid (TPA)-a biodegradable polymer-shines. TPA is the core technology, and it's used in everything from agriculture to oilfield water treatment. This is a defintely a high-growth, high-margin area, especially as environmental, social, and governance (ESG) investing gains traction.

The most concrete example of this is the push into food-grade operations. In 2025, FSI announced its second major food-grade contract, a five-year deal with a minimum annual revenue of $6.5 million and a maximum of over $25 million. This contract, which reached full 24-hour production in Q4 2025, validates their technology's sustainability and market value. It's a smart pivot that diversifies their revenue away from the more volatile traditional agriculture and oilfield segments. You can find more details on this strategic shift and the company's history at Flexible Solutions International, Inc. (FSI): History, Ownership, Mission, How It Works & Makes Money.

Driving Innovation in Water and Energy Conservation

The final component is driving innovation in water and energy conservation, which is the mission of their Energy and Water Conservation Products segment. This segment sells products like WATERSAVR and HEATSAVR, which are liquid pool blankets that inhibit water evaporation and save energy. This isn't just a niche product; it's a proven technology.

Here's the quick math on impact: their products have been shown to save between 30% to 35% of water loss from open water systems in trials across the US, Australia, and other countries. Furthermore, pool products can save up to 45% of a pool's energy use. This clearly links their innovation to tangible environmental and financial benefits for the end-user. The NanoChem division also contributes here with nitrogen conservation products like SUN 27 and N Savr 30, which reduce fertilizer loss and increase crop yield. This dual focus-direct conservation and resource-efficiency-is what makes their vision a powerful investment thesis.

Flexible Solutions International, Inc. (FSI) Core Values

You're looking for the bedrock of Flexible Solutions International, Inc.'s (FSI) strategy, and you should. A company's values tell you where their capital is going and what risks they are willing to take. FSI's core values, inferred from their mission and recent actions, are not just posters on a wall; they are the engine driving their expansion into new markets and their commitment to resource efficiency.

This is a specialty chemicals company dedicated to increasing crop yield and reducing environmental impact through innovative, biodegradable products, and their recent financial moves defintely reflect that focus. For a deeper dive into their business model, you can check out Flexible Solutions International, Inc. (FSI): History, Ownership, Mission, How It Works & Makes Money.

Environmental Stewardship

This value is central to FSI's entire operation. The company is fundamentally committed to minimizing the ecological footprint of industrial and agricultural practices. Their flagship products, like WaterSavr™ and Heatsavr™, are direct manifestations of this value, focusing on water and energy conservation for pools and large bodies of water. In the 2025 fiscal year, this commitment is evident in the continued focus of their NanoChem Solutions Inc. subsidiary, which specializes in thermal polyaspartate (TPA) biopolymers-a biodegradable, water-soluble product used in agriculture and water treatment. They don't just sell chemicals; they sell resource efficiency.

• Reduce ecological footprint.
• Develop biodegradable solutions.
• Conserve water and energy.

Innovation and Product Diversification

Innovation at FSI is about finding new, high-margin applications for their core biodegradable polymer technology. Their strategic push into the food and nutrition supplement manufacturing markets this year proves they are not standing still. The most significant example is the 5-year food-grade contract secured in August 2025, which has a minimum annual revenue of $6.5 million and a potential maximum greater than $25 million per year, showcasing a major new revenue stream. This required significant capital expenditure (CapEx), with an estimated $4 million planned for equipment and plant improvements to scale production, which they are funding without resorting to equity actions.

Here's the quick math: that August contract alone represents a minimum of over 17% of the company's trailing 12-month revenue of $37.3 million as of June 30, 2025, demonstrating the scale of this diversification effort.

Operational Efficiency and Fiscal Responsibility

The management team understands that growth must be funded by smart financial decisions, not just top-line revenue. While Q3 2025 saw a net loss of $503,000 due to expensing startup and pre-production costs for the new food-grade contracts and the Panama factory, these are investments in long-term efficiency. Critically, FSI has been aggressively paying down debt. The loan used to purchase the ENP division was paid in full in June 2025, and the 3-year equipment note is scheduled for full payment by December 2025, which will free up over $2 million in annual cash flow.

This debt reduction is a clear, immediate action that strengthens their balance sheet for 2026. The new factory in Panama, expected to start production in Q4 2025, is another efficiency play, designed to reduce shipping times and eliminate U.S. tariffs, directly impacting the cost of goods sold for international markets.

Customer Focus and Market Adaptability

FSI's ability to secure and service large, long-term contracts, even in challenging market conditions, highlights their focus on customer needs. The CEO noted that after a period of inventory adjustment by customers in Q1 2025, order patterns returned to normal by April, showing the stickiness of their products even when the agricultural sector is under pressure. The move to build the duplicate agriculture and polymer factory in Panama is a proactive step to adapt to global trade dynamics, ensuring they can deliver products more reliably and cost-effectively to their international customer base. Their willingness to invest CapEx to meet the specific demands of the new food-grade contracts-which could push annual revenue from that single client to over $25 million-is a testament to prioritizing customer growth.

Next step: Portfolio Managers should model the Q4 2025 impact of the Panama factory launch on gross margin, specifically factoring in the elimination of U.S. tariffs.