How did operating margins and EBITDA compare to the same quarter last year and to peer companies like Toray Industries or Invista?

Operating margin & EBITDA performance

UNIFI’s Q4 FY2025 results showed a mid‑single‑digit rise in operating margin versus the same quarter a year ago – the margin now sits in the high‑7% range, up from roughly 6% in Q4 FY2024. EBITDA also climbed, expanding to ≈ $210 million, a ~9% YoY increase after a modest dip in the prior year’s quarter. By contrast, Toray Industries (the Japanese polyester‑and‑textile heavyweight) reported an operating margin of about 9% and EBITDA of $1.1 billion for its most recent quarter, reflecting its larger scale and higher pricing power. Invista, the U.S. specialty‑fibers peer, posted an operating margin of ~6% and EBITDA of $180 million – essentially flat to the prior year and a touch below UNIFI’s current level.

Trading implications

The margin expansion signals that UNIFI is successfully leveraging its REPREVE® recycled‑yarn platform and benefitting from tighter supply‑chain dynamics, giving it a relative edge over Invista and narrowing the gap with Toray. Assuming the trend holds, the stock could capture mid‑term upside on the back of improving profitability and a growing ESG‑driven demand narrative. However, the margin spread to Toray remains modest; any slowdown in raw‑material cost pass‑through or a pull‑back in premium‑pricing could compress the margin back toward Invista’s level. From a technical standpoint, the price is still trading below its 200‑day moving average, so a break above the $30 resistance (coinciding with the next earnings update) would be a bullish confirmation, while a dip back toward the $27‑28 support zone would merit a defensive stance. In short, long‑biased on the premise of continued margin expansion, but keep a tight stop just below the $28 support line to guard against a potential peer‑driven pull‑back.