Quality Industrial Corp. Reports 21% Revenue Growth in Q2 2025, Faces Net Loss

Quality Industrial Corp. reported its financial results for the second quarter of 2025, revealing a revenue of $4.01 million for the three months ending June 30, 2025, a 21% increase from $3.32 million in the same period of the previous year. For the first half of 2025, the company generated $7.63 million in revenue, significantly up from $3.32 million in the first half of 2024. The gross profit for the second quarter was $1.32 million, compared to $1.25 million in the prior year, while the net loss attributable to Quality Industrial stockholders was $195,881, a decline from a net income of $97,567 in the second quarter of 2024.

The company’s balance sheet as of June 30, 2025, showed total assets of $18.77 million, an increase from $18.11 million at the end of 2024. Current assets rose to $7.91 million, driven by an increase in accounts receivable, which grew to $3.83 million from $3.21 million. However, inventory decreased to $941,425 from $1.22 million, indicating a potential shift in inventory management or sales strategy. Total liabilities also increased to $17.49 million, up from $16.11 million, primarily due to higher accounts payable and other current liabilities.

Strategically, Quality Industrial Corp. has undergone significant organizational changes, including the acquisition of Al Shola Al Modea Gas LLC (ASG) in March 2024, which has been consolidated into the company’s financial statements. The company also experienced a change in control in May 2022 when ILUS acquired a majority stake, leading to a rebranding and a shift in focus towards the industrial, oil and gas, and utility sectors. The company’s employee headcount has not been disclosed in the filing, but the organizational restructuring suggests a potential realignment of resources.

Operationally, the company has seen fluctuations in its financial metrics, with a notable increase in customer engagement reflected in the revenue growth. However, the net loss for the first half of 2025 was $1.16 million, compared to a profit of $534,881 in the same period of 2024, indicating challenges in managing expenses alongside revenue growth. The filing also noted increased interest expenses related to convertible notes, which contributed to the overall loss.

Looking ahead, Quality Industrial Corp. aims to leverage its recent acquisitions and strategic partnerships to enhance its market position. The company is focused on improving operational efficiencies and expanding its product offerings within the industrial sector. Management has indicated that they are optimistic about future growth opportunities, although they acknowledge the need to navigate ongoing market conditions and financial challenges.