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AirBoss Reports 1st Quarter 2026 Results
NEWMARKET, Ontario, May 06, 2026 (GLOBE NEWSWIRE) -- AirBoss of America Corp. (TSX: BOS) (OTCQX: ABSSF) (the “Company” or “AirBoss”) today announced its first quarter 2026 results. The Company's annual general meeting will be held on Thursday, May 7th at 11:00 am (EDT). Along with the formal portion of the meeting, management will provide a presentation including a discussion of Q1 2026 results. The meeting will be accessible in person, via live webcast or by dialing into the number provided later in this release. All dollar amounts are shown in thousands of United States dollars ("US$" or "$"), except share data, unless otherwise noted.
Recent Highlights
- Adjusted EBITDA1 in the first quarter of 2026 (“Q1 2026”) increased by $1.1 million to $9.1 million compared to $8.0 million in the first quarter of 2025 (“Q1 2025”) and profit increased by $2.5 million to $2.1 million;
- Net Debt to trailing twelve-month Adjusted EBITDA ratio1 reduced to 1.97x (1.99x at December 31, 2025) due to higher Adjusted EBITDA against higher borrowings to support working capital;
- Sales by AirBoss Manufactured Products' defense products business increased by 10.0% in Q1 2026 compared to Q1 2025; and
- Declared a quarterly dividend of CAD$0.035 per common share.
“AirBoss delivered a solid start to 2026, with improved profitability and continued growth in adjusted EBITDA compared to the same period in 2025,” said Chris Bitsakakis, President and Co-CEO of AirBoss. “Performance at AirBoss Manufactured Products was strong, driven by ongoing deliveries under previously awarded defense contracts and improved results in the rubber molded products business, while AirBoss Rubber Solutions experienced a modest recovery compared to the prior quarter but continued to face market softness across most sectors. Across the organization, we remained focused on disciplined cost management, operational execution and continuous improvement initiatives, while continuing to navigate economic and geopolitical uncertainty, including tariffs, inflationary pressures and ongoing volatility across certain customer sectors."
“AirBoss continued to execute against our strategic priorities in the first quarter of 2026 despite ongoing challenges,” added Gren Schoch, Chairman and Co-CEO. “Our focus remains on advancing our long-term strategy, including growing the core Rubber Solutions segment, sharpening our focus on core competencies within Manufactured Products and expanding our technical capabilities, product offerings and geographic reach. While the external environment remains uncertain, we continue to prioritize operational discipline and the successful conversion of key opportunities to support sustainable long-term growth."
After six years, Anita Antenucci has decided not to stand for re-election at our upcoming AGM. We would like to thank Anita for her many contributions to AirBoss and for her dedicated service on the Board. We wish her all the best in her future endeavors.
| Unaudited | Three months ended March 31, | |||||
| In thousands of US dollars, except share data | 2026 | 2025 | ||||
| Financial results: | ||||||
| Net sales | 105,767 | 105,109 | ||||
| Profit (loss) | 2,099 | (408 | ) | |||
| Adjusted Profit1 | 2,311 | (408 | ) | |||
| Profit (loss) per share (US$) | ||||||
| – Basic | 0.08 | (0.02 | ) | |||
| – Diluted | 0.08 | (0.02 | ) | |||
| Adjusted profit (loss) per share1 (US$) | ||||||
| – Basic | 0.09 | (0.02 | ) | |||
| – Diluted | 0.08 | (0.02 | ) | |||
| EBITDA1 | 8,911 | 8,032 | ||||
| Adjusted EBITDA1 | 9,123 | 8,032 | ||||
| Net cash from operating activities | 1,184 | 6,449 | ||||
| Free cash flow1 | (189 | ) | 4,384 | |||
| Dividends declared per share (CAD$) | 0.035 | 0.035 | ||||
| Capital expenditures | 1,374 | 2,065 | ||||
| Financial position: | March 31, 2026 | December 31, 2025 | ||||
| Total assets | 279,620 | 276,969 | ||||
| Debt2 | 83,505 | 83,766 | ||||
| Net Debt1 | 69,185 | 67,573 | ||||
| Shareholders’ equity | 117,349 | 115,735 | ||||
| Outstanding shares* | 27,166,619 | 27,149,224 | ||||
| *27,166,619 at May 6, 2026 | ||||||
1 See Non-IFRS and Other Financial Measures.
2 Debt as at March 31, 2026 and December 31, 2025 included lease liabilities of $7,700 and $8,200, respectively.
Financial Results
Consolidated net sales for Q1 2026 increased by 0.6% to $105,767 compared with Q1 2025, primarily due to higher sales at Manufactured Products’ defense products business and increases in the rubber molded products business partially offset by decreased sales at Rubber Solutions across most sectors.
Consolidated gross profit for Q1 2026 increased by $686 to $19,170, compared with Q1 2025. Gross profit as a percentage of net sales increased to 18.1% for Q1 2026 compared with 17.6% for Q1 2025. The increase in margin percentage was driven primarily by the continued delivery of previously awarded business at AMP's defense products business, margin improvement at AMP's rubber molded products business, and managing controllable overhead costs and continuous improvement initiatives, partially offset by margin contraction in the Rubber Solutions segment due to unfavorable mix and lower volume across most customer sectors driven by market softness and economic uncertainty.
Adjusted EBITDA for Q1 2026 increased by 13.6%, compared to the same period in 2025.
Financial Position
The Company retains a $125 million credit facility. At March 31, 2026, the borrowing capacity under this facility was $73,842 with $25,407 drawn and the net debt to TTM Adjusted EBITDA ratio was 1.97x (from 1.99x at December 31, 2025).
Dividend
The Board of Directors of the Company has approved a quarterly dividend of C$0.035 per common share, to be paid on July 15, 2026 to shareholders of record at June 30, 2026.
Segment Results
In the Rubber Solutions segment, net sales for Q1 2026 decreased by 5.7% to $53,809, from $57,037 in Q1 2025. This was due to softness across certain sectors driven by pronounced and continued economic headwinds. Volume was down 3.0% with decreases across certain sectors. Tolling volume was down 0.9% while non-tolling volume was down 3.0%. In tolling applications, the Company only realizes net sales on the provision of compounding services for customer supplied material, versus non-tolling where AirBoss also supplies the raw material inputs that are reflected in net sales. Gross profit at Rubber Solutions for Q1 2026 decreased by 18.3% to $6,925 from $8,471 in Q1 2025. The decrease was primarily a result of unfavorable mix and margin pressure in addition to decreased tolling and non-tolling volumes compared to the same period in 2025.
At Manufactured Products, net sales for Q1 2026 increased by 16.5% to $62,462, from $53,623 in Q1 2025. This was primarily due to higher sales in the defense products business driven by deliveries under previously announced contract awards, and improved sales in the molded rubber products business. Gross profit at Manufactured Products for Q1 2026 increased to $12,245 from $10,013 in Q1 2025. The increase was primarily a result of volume and mix improvements in the defense products business driven by the ongoing delivery of new business awards in addition to improvements in the rubber molded products business.
Overview
AirBoss continued to build momentum from the fourth quarter of 2025 ("Q4 2025"), while maintaining focus on executing its long-term strategic plan. The Company continues to navigate ongoing uncertainty related to economic conditions, geopolitical developments, tariffs, inflationary pressures, and supply-chain disruption that affected each segment to varying degrees. AirBoss Rubber Solutions (“ARS”) experienced a modest recovery compared to Q4 2025, while AirBoss Manufactured Products (“AMP”) saw positive traction across both its defense and rubber-molded products businesses, supported by deliveries under previously announced contracts. Management in both segments remained focused on risk-mitigation initiatives in response to these challenges, including cost management and continuous improvement efforts. Given the cross-border nature of its operations, a significant portion of products manufactured in Canada are sold into the United States and may be subject to existing or future tariffs. While most products qualify under USMCA/CUSMA, the Company continues to evaluate and implement contingency plans to mitigate potential impacts, particularly in advance of any future trade negotiations or agreement renegotiations. Despite this environment of continued economic uncertainty, management remains focused on converting key opportunities to support sustainable long-term growth. The Company currently expects continued volume volatility at ARS through 2026, with the timing and magnitude of further recovery subject to general market conditions, geopolitical developments and the potential for additional tariffs, duties, or evolving trade restrictions.
ARS experienced a modest recovery in Q1 2026 compared to Q4 2025, however volume was still below Q1 2025, with revenue contraction and reduced margins driven by overall softness in most customer sectors. This was primarily attributable to tariff-related market conditions and other economic headwinds including higher input costs, as well as customers continuing to manage potential tariff exposure and inventories closely. As a segment, ARS remained focused on investing in research and development to support enhanced collaboration with customers and executing its strategy focused on specialized products, expanded production of a broader array of specialty compounds, and enhanced flexibility in attracting and fulfilling new business opportunities.
AMP experienced overall volume improvement in Q1 2026 compared to Q1 2025, primarily driven by its defense products business and improvements in the rubber molded products business. The defense business had improvements in both revenue and gross profit, mainly driven by deliveries under previously announced awards. The rubber molded products business had improved volumes in both auto and non-auto sectors, despite continued volatility related to the original equipment manufacturers (OEMs) periodically shuttering production to rebalance vehicle inventory levels. The business continued its focus on cost management, operational efficiencies, automation and diversification into adjacent product sectors. Management also continued its focus on working with key customers to leverage opportunities aligned with its growth initiatives.
The Company’s long-term priorities consist of the following:
- Growing the core Rubber Solutions segment by targeting rubber compounding as the core driver for sustainable growth and productivity, focusing on innovation in custom rubber compounding while aiming to expand market share through organic and inorganic means, while striving to achieve enhanced diversification by a broadening of product breadth through technological advancements and investments in specialty compound niches; and
- Manufactured Products' growth strategy is focused on diversifying and expanding its range of advanced rubber-molded products while positioning current and future core defense products to take advantage of new growth opportunities within NATO and other partner customers around the world.
AirBoss continues to focus on these long-term priorities while investing in core areas of the business to expand a solid foundation that will support long-term growth.
Annual General Meeting and Q1 2026 Results Earnings Webcast
The Company's Annual General Meeting will occur on May 7, 2026 at 11:00 am (EDT). In addition to the formal shareholders' meeting, management will discuss Q1 2026 results.
For webcast access, please go online at https://airboss.com/annualgeneralmeeting/. If watching the meeting online, it is important to remain connected to the internet at all times during the meeting. It is each person’s responsibility to ensure connectivity for the duration of the meeting. The live webcast will include a facility for shareholders to enter questions for management.
For telephone access, please dial in at 1-800-715-9871. Callers should dial-in five (5) to ten (10) minutes before the meeting starts and ask to join the AirBoss of America call.
AirBoss of America Corp.
AirBoss of America is a diversified developer, manufacturer and provider of survivability solutions, advanced custom rubber compounds and finished rubber products that are designed to outperform in the most challenging environments. Founded in 1989, the company operates through two divisions. AirBoss Rubber Solutions is a North American custom rubber compounder with 500 million turn pounds of annual capacity. AirBoss Manufactured Products is a supplier of anti-vibration and rubber molded solutions to the North American automotive market and other sectors, and also a global supplier of personal and respiratory protective equipment and technology for the defense, healthcare, medical and first responder communities, through AirBoss Defense Group. The Company’s shares trade on the TSX under the symbol BOS and on the OTCQX under the symbol ABSSF. Visit www.airboss.com for more information.
Non–IFRS and Other Financial Measures: This earnings release is based on consolidated financial statements prepared in accordance with IFRS Accounting Standards and uses Non-IFRS Financial Measures. Management believes that these measures provide useful information to investors in measuring the financial performance of the Company. These measures do not have a standardized meaning prescribed by IFRS and therefore they may not be comparable to similarly titled measures presented by other companies and should not be construed as an alternative to other financial measures determined in accordance with IFRS. These terms are not a measure of performance under IFRS and should not be considered in isolation or as a substitute for net income under IFRS.
EBITDA and Adjusted EBITDA are non-IFRS measures used to measure the Company's ability to generate cash from operations for debt service, to finance working capital and capital expenditures, potential acquisitions and to pay dividends. EBITDA is defined as earnings before income taxes, finance costs, depreciation and amortization. Adjusted EBITDA is defined as EBITDA excluding impairment costs, acquisition costs, and non-recurring costs. A reconciliation of profit (loss) to EBITDA and Adjusted EBITDA is below.
| Unaudited | Three months ended March 31, | |||||
| In thousands of US dollars | 2026 | 2025 | ||||
| EBITDA: | ||||||
| Profit (loss) | 2,099 | (408 | ) | |||
| Finance costs | 1,880 | 2,767 | ||||
| Depreciation and amortization | 4,026 | 5,100 | ||||
| Income tax expense (recovery) | 906 | 573 | ||||
| EBITDA | 8,911 | 8,032 | ||||
| Restructuring costs | 212 | — | ||||
| Adjusted EBITDA | 9,123 | 8,032 | ||||
In 2026, the Manufactured Products segment completed the relocation of its operations in Jessup, Maryland to Auburn Hills, Michigan. In connection with this move, the Company recorded restructuring costs of $1,147 in the third and fourth quarters of 2025, and $212 during the first quarter of 2026.
Adjusted profit (loss) is a non-IFRS measure defined as profit (loss) before impairment costs, acquisition costs and non-recurring costs. This measure and Adjusted profit (loss) per share are used to evaluate operating results of the Company. A reconciliation of Profit (loss) to these measures is below.
| Unaudited | Three months ended March 31, | |||||
| In thousands of US dollars | 2026 | 2025 | ||||
| Adjusted Profit (Loss): | ||||||
| Profit (loss) | 2,099 | (408 | ) | |||
| Restructuring costs (after tax) | 212 | — | ||||
| Adjusted profit (loss) | 2,311 | (408 | ) | |||
| Basic weighted average number of shares outstanding | 27,150 | 27,131 | ||||
| Diluted weighted average number of shares outstanding | 27,864 | 27,131 | ||||
| Adjusted profit (loss) per share (in US dollars): | ||||||
| Basic | 0.09 | (0.02 | ) | |||
| Diluted | 0.08 | (0.02 | ) | |||
Net Debt measures the financial indebtedness of the Company assuming that all cash on hand is used to repay a portion of the outstanding debt. A reconciliation of loans and borrowings to Net Debt is below.
| March 31, 2026 | December 31, 2025 | |||||
| In thousands of US dollars | (unaudited) | |||||
| Net Debt: | ||||||
| Loans and borrowings – current | 5,818 | 5,494 | ||||
| Loans and borrowings – non-current | 77,687 | 78,272 | ||||
| Leases included in loans and borrowings | (7,700 | ) | (8,200 | ) | ||
| Cash | (6,620 | ) | (7,993 | ) | ||
| Net Debt | 69,185 | 67,573 |
Free cash flow is a non-IFRS measure used to evaluate cash flow after investing in the maintenance or expansion of the Company's business. It is defined as cash provided by operating activities, less cash expenditures on long-term assets. A reconciliation of net cash from operating activities to free cash flow is below.
| Unaudited | Three months ended March 31, | |||||
| In thousands of US dollars | 2026 | 2025 | ||||
| Free cash flow: | ||||||
| Net cash from operating activities | 1,184 | 6,449 | ||||
| Acquisition of property, plant and equipment | (1,181 | ) | (1,876 | ) | ||
| Acquisition of intangible assets | (193 | ) | (189 | ) | ||
| Proceeds from disposition | 1 | — | ||||
| Free cash flow | (189 | ) | 4,384 | |||
| Basic weighted average number of shares outstanding | 27,150 | 27,131 | ||||
| Diluted weighted average number of shares outstanding | 27,150 | 27,347 | ||||
| Free cash flow per share (in US dollars): | ||||||
| Basic | (0.01 | ) | 0.16 | |||
| Diluted | (0.01 | ) | 0.16 | |||
AIRBOSS FORWARD-LOOKING INFORMATION DISCLAIMER
Certain statements contained or incorporated by reference herein, including those that express management’s expectations or estimates of future developments or AirBoss’ future performance, constitute “forward-looking information” or “forward-looking statements” within the meaning of applicable securities laws, and can generally be identified by words such as “will”, “may”, “could”, “expects”, “believes”, “anticipates”, “forecasts”, “plans”, “intends”, “should” or similar expressions. These statements are not historical facts but instead represent management’s expectations, estimates and projections regarding future events and performance.
Statements containing forward-looking information are necessarily based upon a number of opinions, estimates and assumptions that, while considered reasonable by management at the time the statements are made, are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies. AirBoss cautions that such forward-looking information involves known and unknown contingencies, uncertainties and other risks that may cause AirBoss’ actual financial results, performance or achievements to be materially different from its estimated future results, performance or achievements expressed or implied by the forward-looking information. Numerous factors could cause actual results to differ materially from those in the forward-looking information, including without limitation: impact of general economic conditions, notably including its impact on demand for rubber solutions and products; dependence on key customers; global defense budgets, notably in the Company’s target markets, and success of the Company in obtaining new or extended defense contracts; contract-related risks; cyclical trends in the tire and automotive, construction, mining and retail industries; sufficient availability of raw materials at economical costs; weather conditions affecting raw materials, production and sales; global political uncertainty and policy change; AirBoss’ ability to maintain existing customers or develop new customers in light of increased competition; AirBoss’ ability to successfully integrate acquisitions of other businesses and/or companies or to realize on the anticipated benefits thereof; AirBoss’ ability to successfully develop and execute effective business strategies including, without limitation, the recently announced strategic transition; changes in accounting policies and methods, including uncertainties associated with critical accounting assumptions and estimates; changes in the value of the Canadian dollar relative to the US dollar; changes in tax laws; changes in trade policies or the imposition of new tariffs, duties or other similar restrictions which could influence the cost and flow of goods and services across borders; current and future litigation; ability to obtain financing on acceptable terms and ability to satisfy the covenants set forth in such financing arrangements; environmental damage and non-compliance with environmental laws and regulations; impact of global health situations; IT/cybersecurity risk; potential product liability and warranty claims and equipment malfunction. There is increased uncertainty associated with future operating assumptions and expectations as compared to prior periods. This list is not exhaustive of the factors that may affect any of AirBoss’ forward-looking information.
All of the forward-looking information in this press release is expressly qualified by these cautionary statements. Investors are cautioned not to put undue reliance on forward-looking information. All subsequent written and oral forward-looking information attributable to AirBoss or persons acting on its behalf are expressly qualified in their entirety by this notice. Forward-looking information contained herein is made as of the date of this press release and, whether as a result of new information, future events or otherwise, AirBoss disclaims any intent or obligation to update publicly the forward-looking information except as required by applicable laws. Risks and uncertainties about AirBoss’ business are more fully discussed under the heading “Risk Factors” in our most recent Annual Information Form and are otherwise disclosed in our filings with securities regulatory authorities which are available on SEDAR+ at www.sedarplus.com.
Investor Contact: investor.relations@airboss.com Media Contact: media@airboss.com
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