FSI Commences Production Under Second Food Grade Contract

Flexible Solutions International, Inc. FSI, a developer and manufacturer of biodegradable polymers, environmentally safe water and energy conservation technologies, has announced the start of production for its second food-grade contract. This contract for the Illinois plant is expected to earn an estimated revenues between $6.5 million and $13 million per year.

As production begins under the contract announced on Aug. 11, 2025, revenues will start in the fourth quarter and grow throughout 2026 as it scales to the increased levels.

The company said last month that it does not require additional equipment or capital improvements to begin or attain full production. The contract also includes a five-year term with options to grow annual revenues to more than $25 million. It also has provisions for protection against tariffs and inflation.

This second food-grade contract, along with the one announced in January, is predicted to potentially generate new food-grade production of more than $50 million annually by 2027. First-quarter sales for 2026 are expected to reach the contract minimum rate of $6.5 million per year, as the company runs shipping in full truckload quantities and is set to begin invoicing in the fourth quarter of 2025.

FSI’s shares have gained 188% over the past year against the industry’s 5.9% decline.

FSI’s Zacks Rank & Other Key Picks

FSI currently sports a Zacks Rank #1 (Strong Buy).

Other top-ranked stocks in the Basic Materials space are Methanex Corporation MEOH, Carpenter Technology Corporation CRS and The Mosaic Company MOS. MEOH and CRS sport a Zacks Rank #1 each, while MOS carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for MEOH’s current-year earnings is pegged at $3.72 per share. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 83.18%.

The Zacks Consensus Estimate for CRS’ current fiscal-year earnings is pegged at $9.51 per share, indicating a 27.14% year-over-year increase.Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 8.38%. CRS’shares have surged 48.3% in the past year.

The Zacks Consensus Estimate for MOS’ 2025 earnings is pegged at $3.17 per share, indicating a rise of 60.10% from year-ago levels. The company’s earnings beat the consensus estimate in one of the trailing four quarters while missing it in the rest. MOS’ shares have gained 22.3% in the past year.

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This article originally published on Zacks Investment Research (zacks.com).

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