AirBoss Reports 4th Quarter and Full Year 2025 Results

Executive Summary

• AirBoss of America Corp. reported Q4 2025 Adjusted EBITDA of $8.4 M (up $3.3 M YoY) and full‑year Adjusted EBITDA of $34.0 M (up $12.1 M YoY).
• Net sales rose 15.3% in Q4 to $106.0 M and 6.0% for the full year to $410.2 M, driven by strong performance in Manufactured Products’ defense and rubber‑molded segments.
• Cash provided by operating activities increased markedly to $21.0 M in Q4 (up from $4.3 M YoY) and $49.1 M for the year; net debt fell to $67.6 M, improving the Net Debt/Adjusted EBITDA ratio to 1.99×.
• The Board declared a quarterly dividend of C$0.035 per common share (payable April 15, 2026).

Key Details

• Financial Highlights – Q4 2025 vs. Q4 2024
• Adjusted EBITDA: $8.4 M vs. $5.1 M (+64.6%).
• Net loss: $(7.6) M vs. $(2.6) M (increase due to restructuring and asset impairments).
• Cash from operations: $21.0 M vs. $4.3 M.
• Full‑Year 2025 vs. 2024
• Adjusted EBITDA: $34.0 M vs. $21.9 M (+55.1%).
• Net loss: $(8.6) M vs. $(20.4) M (loss reduction of $11.8 M).
• Cash from operations: $49.1 M vs. $8.8 M.
• Net debt: $67.6 M vs. $98.9 M; Net Debt/Adj‑EBITDA = 1.99× (down from 4.51×).
• Segment Performance
• Manufactured Products: Q4 net sales $72.5 M (+50.4% YoY); full‑year $239.2 M (+35.4%). Gross profit up to $14.7 M (Q4) and $44.4 M (FY). Growth driven by defense contract deliveries and rubber‑molded product sales.
• Rubber Solutions: Q4 net sales $45.8 M (−3.3% YoY); full‑year $205.2 M (−9.3%). Gross profit fell to $5.3 M (Q4) and $26.6 M (FY) due to market softness, lower volumes, and unfavorable mix.
• Operational Updates
• Completed relocation of Jessup, MD operations to Auburn Hills, MI; incurred $1.7 M impairment on right‑of‑use assets and $1.1 M restructuring costs.
• Recorded $7.0 M impairment on defense operation assets (recoverable amount nil).
• Inventory write‑downs: $249 K in 2025 vs. $6.05 M in 2024 (medical gowns/gloves).
• Balance Sheet
• Total assets: $276.97 M; Debt (incl. lease liabilities): $83.77 M.
• Credit facility: $125 M with $71.5 M available, $24.3 M drawn.
• Dividends
• Quarterly dividend of C$0.035 per share declared; payable April 15, 2026 to shareholders of record March 31, 2026.
• Future Outlook
• Management expects volume recovery in Rubber Solutions mid‑2026, subject to tariff and market conditions.
• Continued focus on cost discipline, footprint optimization, and defense contract execution.

Notable Quotes

“AirBoss delivered strong performance in 2025…significant year‑over‑year growth in adjusted EBITDA, meaningful free cash flow generation and continued balance sheet improvement.” – Chris Bitsakakis, President & Co‑CEO

“Despite ongoing challenges, 2025 represented a marked improvement for AirBoss as we executed against our strategic priorities and strengthened our financial position.” – Gren Schoch, Chairman & Co‑CEO