Quality Industrial Corp.

What they do

Through Al Shola Gas, the company provides central gas system design, supply, construction, operation and maintenance, along with LPG supply in cylinder and bulk formats. It serves commercial buildings, residential complexes, shopping centers, food courts, and industrial clients in the UAE, with a core focus on Dubai. The subsidiary also holds ISO 9001 certification and complies with Dubai Civil Defense regulations.

Revenue drivers

• LPG Cylinder Distribution — Distributes over 20,000 LPG cylinders per month through a fleet of delivery trucks and a centralized call center in Dubai.
• Bulk LPG Supply — Approved supplier of bulk LPG sourced from Emirates General Petroleum Corporation, distributing more than 500,000 liters monthly with a fleet of two 18,000-liter and one 25,000-liter trucks.
• Engineering and Installation Projects — One-time revenue from designing and installing LPG systems for property developers, including large multi-tower residential and mixed-use projects.
• Recurring Utility and Maintenance Services — Metered LPG utility services after project handover, bulk LPG deliveries, and operations and maintenance contracts generate recurring revenue.

Recent performance

Revenue for fiscal year 2025 was $16.3 million, up 45.9% from $11.2 million in 2024, driven by a full year of Al Shola Gas consolidation and higher sales volumes. Net loss widened to $5.4 million in 2025 from a $523,017 loss in 2024, impacted by non-cash write-offs of a $2.0 million buyback reserve and $1.5 million related-party receivable. The latest quarter (June 30, 2026) revenue was $3.5 million, down from $5.2 million in the prior quarter (December 31, 2025). As of June 30, 2026, total assets were $17.1 million, liabilities $18.5 million, shareholder equity negative $1.4 million, and cash $150,012. Operating cash flow was negative $2.6 million in 2025.

Strategy

The company plans to allocate resources to Al Shola Gas in 2026, primarily funded by parent Fusion Fuel, to enhance efficiency and boost sales. It intends to invest in new vehicles to expand bulk LPG supply capabilities and increase daily operational capacity from approximately 27 to 35 metric tons. Management also highlights ongoing efforts to strengthen governance, restructure costs, and resolve project pricing inefficiencies.

Risks

• Going concern and liquidity — Negative shareholder equity of $1.4 million and cash of only $150,012 as of June 30, 2026 raise substantial doubt about the company's ability to continue as a going concern without additional financing.
• Geopolitical exposure — Operations in the Middle East are subject to risks from military conflict and regional instability, which could disrupt supply chains and project timelines.
• Customer concentration — A significant portion of revenue depends on a limited number of large property developers and owners' associations, and tender cancellations could impact results.
• Parent company dependence — Planned investments depend on financing from Fusion Fuel, and if that support is delayed or unavailable, expansion initiatives could be curtailed.

Outlook

Management expects revenue and operating expenses to increase in the second half of 2026 following the deployment of new LPG bobtail trucks and resolution of project pricing inefficiencies. The company anticipates daily operational capacity to rise to about 35 metric tons. Continued growth in the northern emirates and recurring utility contracts are expected to support performance.