Quality Industrial Corp. Reports $3.6 Million Revenue in Q1 2025, Faces Increased Operating Loss

Quality Industrial Corp. reported its financial results for the first quarter of 2025, revealing a revenue of $3.6 million, a significant increase from the previous year when the company did not report any revenue. The gross profit for the quarter stood at $955,386, while the company incurred an operating loss of $947,122. This loss is a notable increase compared to the operating loss of $81,249 reported in the same period last year. The net loss attributable to Quality Industrial stockholders for the quarter was $1.4 million, compared to a net income of $206,690 in the first quarter of 2024.

The company's total assets increased to $18.3 million as of March 31, 2025, up from $18.1 million at the end of 2024. Current assets rose to $7.6 million, primarily driven by an increase in cash and cash equivalents, which reached $360,414, compared to $225,582 at the end of the previous fiscal year. However, total liabilities also increased significantly to $17.3 million, up from $16.1 million, largely due to higher accounts payable and related party payables.

In terms of strategic developments, Quality Industrial Corp. has undergone significant organizational changes, including the consolidation of Al Shola Al Modea Gas LLC (ASG) into its financial statements following its acquisition in March 2024. The company also terminated its agreement with Quality International Co Ltd FZC, which was previously intended to be consolidated. The company’s employee headcount and customer metrics were not disclosed in the filing, but the increase in common stock shares issued, from 126.6 million to 140.4 million, indicates potential growth in shareholder engagement.

The filing also highlighted operational challenges, including increased operating expenses, which surged to $1.9 million from $81,249 year-over-year. This rise was attributed to higher general and administrative costs, reflecting the company's ongoing investments in its operational capabilities. The company reported a cash outflow from operating activities of $334,816, compared to $170,860 in the prior year, indicating a need for improved cash management as it navigates its growth strategy.

Looking ahead, Quality Industrial Corp. has not provided specific forward-looking statements regarding revenue or profitability. However, the company continues to focus on expanding its presence in the industrial, oil and gas, and utility sectors, following its strategic realignment and recent acquisitions. The management's emphasis on operational efficiency and market expansion will be critical as the company seeks to stabilize its financial performance and enhance shareholder value in the coming quarters.