Earnings release
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Exhibit 99.1 CONTACT: Allen Danzey Chief Financial Officer 706-876-5865 allen.danzey@dixiegroup.com THE DIXIE GROUP REPORTS NET LOSS FOR THE THIRD QUARTER OF 2025 DALTON, GEORGIA (November 12, 2025) -- The Dixie Group, Inc. (OTCQB: DXYN) today reported financial results for the quarter ended September 27, 2025. For the third quarter of 2025, the Company had net sales of $62,379,000 as compared to $64,877,000 in the same quarter of2024. The Company had an operating loss of $2,025,000 compared to an operating loss of $2,107,000 in the third quarter of2024. The net loss from continuing operations in the third quarter of 2025 was $3,998,000 or $0.28 per diluted share. In 2024, the net loss from continuing operations for the third quarter was $3,729,000 or $0.26 per diluted share. For the nine months ended September 27, 2025, net sales were $193,942,000 or 3.3% below the net sales for the nine-monthperiod ended September 28, 2024 at $200,638,000. The operating income for the first nine months of 2025 was $1,175,000compared to an operating loss of $669,000 in the same period of the prior year. The Company had a net loss from continuing operations of $4,325,000 or $0.30 per diluted share for the nine months ended September 27, 2025 compared to a net lossfrom continuing operations of $5,473,000 or $0.37 per diluted share in the nine month period ending September 28, 2024. Commenting on the results, Daniel K. Frierson, Chairman and Chief Executive Officer, said, “Third quarter sales got off to a slow start as a result of headwinds in the housing markets tied to high interest rates and high housing prices. Despite a slow start to the quarter, we saw a strong rebound in sales for September giving us momentum as we entered the fourth quarter. The average weekly order entry rate for the first month of the fourth quarter was 12% above the average weekly order entry rate in the third quarter and close to last year’s level for the same period. Looking ahead to the 2026 fiscal year, we are focused on a profit improvement plan consisting of year over year costreductions and operational efficiencies in excess of $10 million. The vast majority of these profit improvement initiatives havealready been implemented. This includes price increases announced during the third quarter to offset the costs of tariffs, freight and other production-related cost increases we have experienced. For the third quarter and for the first nine months of 2025 our year over year soft surface net sales were down less than 1%, outperforming the industry which we believe was down closer to 4% on the quarter and 6% for the first nine months. A key growth segment has been our DuraSilk™SD collection which has shown strong growth and gained share of the polyester market. Our high-end carpet segment also had positive growth in the quarter for both nylon and decorative. Buildingon this momentum, in the third quarter we introduced two new DuraSilk™ polyester carpet styles and six new decorative carpet styles. In our hard surface segment, our Fabrica wood program is a highlight, with net sales increasing 7.4% year over year for the first nine months. While our TRUCOR® segment declined for the quarter, our TRUCOR PRIME WPC collection showed positive signs as the market is shifting toward WPC. -MORE-
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The Dixie Group Reports Second Quarter 2025 Results Page 2 November 12, 2025 While market headwinds persist, especially within residential housing and consumer confidence, our team remains committed to high end customer service, design focused product introductions and operational excellence. Our continued focus on cost reductions and operational efficiencies will be instrumental in navigating industry challenges and driving improved profitability in future periods.” Frierson concluded. Net sales in the third quarter of 2025, $62.4 million, decreased by 3.9% from the net sales in the third quarter of 2024 at $64.9 million. Despite the lower year over year sales volume, the gross profit in the third quarter of 2025, at 24.8% of net sales, compared closely to the prior year at 24.6% of net sales for the same period. This was attributable to additional costreductions and improved efficiencies in the manufacturing plants in 2025. Selling and administrative expenses in the third quarter of 2025 were $16.4 million as compared to $17.6 million in the third quarter of the previous year. This was a 6.8% year over year decrease and represented 26.2% of the net sales in 2025 as opposed to 27.1% of the higher net sales in 2024. This decrease in expense is primarily driven by lower samples and marketing expenses partially offset by higher legal expenses. On our September fiscal month end balance sheet, receivables increased $3.0 million from the balance at fiscal year end 2024 due to higher sales in the last month of the third quarter 2025 as compared to the seasonally lower sales volume in the last month of the fiscal year 2024. Inventory was $68.5 million, slightly above the 2024 year end balance of $66.9 million and 10.8% below the inventory balance of $76.8 million in September of 2024. Combined accounts payable and accrued expenses were $14.2 million higher at the end of the third quarter of 2025 as compared to the December 2024 seasonally low balance. In the third quarter of 2025, capital expenditures were $0.3 million. Capital expenditures for the full fiscal year 2025 are planned to be at a low level focused primarily on maintenance needs. Interest expense was $2.0 million in the third quarter of 2025 compared to $1.6 million in the third quarter of 2024. The higher interest expense in 2025 was the result ofhigher interest rates for the Company in the quarter. At the end of the third quarter, our unused borrowing availability under our line of credit with our senior lending facility was $10.9 million which is subject to a $6 million minimum excess availability requirement. Subsequent to quarter end, the Company entered into a memorandum of understanding to settle two of its PFAS related lawsuits and the Company has obtained an agreement in principle to be dismissed without prejudice from a third PFAS related lawsuit. An estimated liability for the proposed settlement was recorded within the third quarter results. The proposed agreements are subject to certain conditions and final negotiations with the plaintiffs in the matters. This press release contains forward-looking statements. Forward-looking statements are based on estimates, projections, beliefs and assumptions of management and the Company at the time of such statements and are not guarantees of performance. Forward-looking statements are subject to risk factors and uncertainties that could cause actual results to differ materially from those indicated in such forward-looking statements. Such factors include the levels of demand for the products produced by the Company. Other factors that could affect the Company's results include, but are not limited to, availability of raw material and transportation costs related to petroleum prices, the cost and availability of capital, integration of acquisitions, ability to attract, develop and retain qualified personnel and general economic and competitive conditions related to the Company's business. Issues related to the availability and price of energy may adversely affect the Company's operations. Additional information regarding these and other risk factors and uncertainties may be found in the Company's filings with the Securities and Exchange Commission. The Company disclaims any obligation to update or revise any forward-looking statements based on the occurrence of future events, the receipt of new information, or otherwise. -MORE-
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The Dixie Group Reports Second Quarter 2025 Results Page 3 November 12, 2025 THE DIXIE GROUP, INC. Consolidated Condensed Statements of Operations (unaudited; in thousands, except earnings (loss) per share) Three Months Ended Nine Months Ended September 27,2025 September 28,2024 September 27,2025 September 28,2024 NET SALES $ 62,379 $ 64,877 $ 193,942 $ 200,638 Cost of sales 46,900 48,947 141,545 149,085 GROSS PROFIT 15,479 15,930 52,397 51,553 Selling and administrative expenses 16,365 17,561 50,016 51,309 Other operating expense, net 1,022 193 857 141 Facility consolidation and severance expenses, net 117 283 349 772 OPERATING INCOME (LOSS) (2,025) (2,107) 1,175 (669) Interest expense 2,012 1,628 5,377 4,780 Other (income) expense, net (16) (2) 67 8 LOSS FROM CONTINUING OPERATIONS BEFORE TAXES (4,021) (3,733) (4,269) (5,457) Income tax provision (benefit) (23) (4) 56 16 LOSS FROM CONTINUING OPERATIONS (3,998) (3,729) (4,325) (5,473) Loss from discontinued operations, net of tax (79) (182) (289) (329) NET LOSS $ (4,077) $ (3,911) $ (4,614)$ (5,802) BASIC EARNINGS (LOSS) PER SHARE: Continuing operations $ (0.28) $ (0.26)$ (0.30)$ (0.37) Discontinued operations (0.01) (0.01) (0.02) (0.02) Net loss $ (0.29) $ (0.27)$ (0.32)$ (0.39) DILUTED EARNINGS (LOSS) PER SHARE: Continuing operations $ (0.28) $ (0.26)$ (0.30)$ (0.37) Discontinued operations (0.01) (0.01) (0.02) (0.02) Net loss $ (0.29) $ (0.27)$ (0.32)$ (0.39) Weighted-average shares outstanding: Basic 14,528 14,455 14,464 14,733 Diluted 14,528 1 14,455 14,464 14,733 -MORE-
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The Dixie Group Reports Second Quarter 2025 Results Page 4 November 12, 2025 THE DIXIE GROUP, INC. Consolidated Condensed Balance Sheets (in thousands) September 27,2025 December 28,2024 ASSETS (Unaudited) CURRENT ASSETS Cash and cash equivalents $ 3,438 $ 19 Receivables, net of allowances for expected credit losses of $492 and $454 26,286 23,325 Inventories, net 68,491 66,852 Prepaid and other current assets 6,607 5,643 TOTAL CURRENT ASSETS 104,822 95,839 PROPERTY, PLANT AND EQUIPMENT, NET 30,284 33,747 OPERATING LEASE RIGHT-OF-USE ASSETS 24,739 25,368 RESTRICTED CASH 3,886 — OTHER ASSETS 19,087 19,854 LONG-TERM ASSETS OF DISCONTINUING OPERATIONS 1,099 1,064 TOTAL ASSETS $ 183,917 $ 175,872 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 26,763 $ 14,884 Accrued expenses 17,383 15,057 Current portion of long-term debt 55,893 53,818 Current portion of operating lease liabilities 4,451 3,804 Current liabilities of discontinued operations 1,133 1,156 TOTAL CURRENT LIABILITIES 105,623 88,719 LONG-TERM DEBT, NET 25,539 28,530 OPERATING LEASE LIABILITIES 21,412 22,295 OTHER LONG-TERM LIABILITIES 16,143 16,712 Long-Term Liabilities of Discontinued Operations 3,443 3,398 Stockholders' Equity 11,757 16,218 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 183,917 $ 175,872 -END-