RVP sales drop 12% in Q1 2026 on tariff, mix pressures
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Retractable Technologies (RVP) reported a 12% year-over-year decline in first-quarter 2026 sales, to $18.2 million, as product mix shifts and U.S. tariffs on imported components pressured pricing. The company posted a net loss of $1.1 million, compared with a $0.5 million profit a year earlier. RVP shares fell 4.3% in after-hours trading following the earnings release.
Sales Decline Drivers
Revenue fell to $18.2 million from $20.7 million a year earlier, missing the consensus estimate of $19.5 million. The company attributed the drop to a shift toward lower-margin products and the impact of U.S. tariffs on imported raw materials, which compressed average selling prices. Domestic sales accounted for 68% of total revenue, down from 72% in Q1 2025.
Cost-Cutting Response
RVP announced a restructuring plan targeting $3 million in annual savings, including a 10% reduction in its 1,200-person workforce. The company also said it would accelerate efforts to expand U.S. production capacity at its Texas facility to reduce reliance on imports. Capital expenditures for 2026 are expected to rise to $8 million, up from $5.2 million in 2025.
What's Next
RVP management will hold an investor call on May 26 to discuss the quarterly results and restructuring details. It remains unclear whether the cost cuts will be sufficient to offset continued tariff and mix headwinds in the second half of 2026.
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RVP sales drop 12% in Q1 2026 on tariff, mix pressures
