AirBoss Reports 3rd Quarter 2025 Results

Executive Summary

• AirBoss of America Corp. reported Q3 2025 Adjusted EBITDA of $7.3 M, up $0.9 M YoY, and a net cash flow from operations of $8.7 M, marking a material improvement over the prior year.
• The Board declared a quarterly dividend of C$0.035 per common share (payable Jan 15 2026).
• Segment performance diverged: Manufactured Products (AMP) sales rose 27.7% YoY driven by defense contracts, while Rubber Solutions (ARS) sales fell 5.5% YoY amid market softness.

Key Details

• Financial Highlights (Q3 2025 vs Q3 2024)
• Net sales: $100.4 M (+4.4%).
• Adjusted EBITDA: $7.3 M (+13.9%).
• Cash provided by operating activities: $8.7 M (vs a $(1.1) M outflow in Q3 2024).
• Net debt reduced to $82.9 M from $98.9 M at year‑end 2024; net‑debt/Adj EBITDA ratio improved to 2.70× (from 4.51×).
• Year‑to‑Date (nine months) Highlights
• Net sales: $304.2 M (+3.1%).
• Adjusted EBITDA: $25.6 M (+52.2%).
• Dividend per share increased from C$0.035 to C$0.105 for the prior quarter; current quarterly dividend set at C$0.035.
• Segment Results
• AirBoss Manufactured Products (AMP) – Q3 sales $58.1 M (+27.7% YoY); defense product deliveries resumed late‑quarter under the Bandolier program; relocation of Jessup, MD facility to Auburn Hills, MI scheduled for Q4 2025.
• AirBoss Rubber Solutions (ARS) – Q3 sales $51.5 M (‑5.5% YoY); tolling volume down 43.8% quarter‑over‑quarter; ongoing softness across customer sectors and tariff‑related headwinds.
• Operating Expenses & Restructuring
• Restructuring costs: $762 K (staff reductions) + $1.7 M impairment of leased building for AMP; $399 K restructuring for ARS.
• Inventory write‑down of $6.0 M recorded in Q2 2024 (gowns & gloves).
• Capital Structure
• $125 M revolving credit facility with a $25 M accordion feature remains in place.
• Dividend Details
• Quarterly dividend of C$0.035 per common share, payable Jan 15 2026 to shareholders of record Dec 31 2025.
• Conference Call – Scheduled for Nov 6 2025 at 9:00 a.m. ET; webcast link and dial‑in numbers provided.

Notable Quotes

“AirBoss delivered year‑over‑year gains in adjusted EBITDA and cash flow, while maintaining a disciplined approach to debt reduction amid persistent economic and geopolitical challenges…” – Chris Bitsakakis, President & Co‑CEO.

“We remain optimistic that our businesses are strategically located and well‑positioned to respond to opportunities….” – Gren Schoch, Chairman & Co‑CEO.