AirBoss Reports 3rd Quarter 2025 Results

Core Insights - AirBoss of America Corp. reported its third quarter 2025 results, highlighting a strong performance in its defense products business while facing challenges in the rubber solutions segment due to market softness and economic uncertainties [1][3][15]. Financial Performance - Consolidated net sales for Q3 2025 increased by 4.4% to $100,420 compared to Q3 2024, driven by higher volumes in the AirBoss Manufactured Products segment [7]. - Adjusted EBITDA for Q3 2025 rose by 13.9% to $7.3 million from $6.4 million in Q3 2024, with year-to-date adjusted EBITDA increasing by 52.2% to $25.6 million compared to $16.8 million in 2024 [4][9]. - The company reported a net loss of $2,902 thousand for Q3 2025, an improvement from a loss of $3,279 thousand in Q3 2024 [4][28]. Segment Performance - The AirBoss Manufactured Products (AMP) segment saw net sales increase by 27.7% to $58,134 thousand in Q3 2025, primarily due to improved sales in the defense products business [14]. - In contrast, the AirBoss Rubber Solutions (ARS) segment experienced a 5.5% decrease in net sales to $51,513 thousand in Q3 2025, attributed to volume declines across most customer sectors [12][16]. Operational Highlights - The company maintained a disciplined approach to debt reduction, reducing borrowings under its revolving credit facility by $11.4 million since the beginning of the year, resulting in a net debt to adjusted EBITDA ratio of 2.70x [4][10]. - AirBoss declared a quarterly dividend of CAD$0.035 per common share, reflecting a commitment to returning value to shareholders [11]. Strategic Focus - The company is focused on operational execution and cost management to navigate economic and geopolitical challenges, including tariffs and inflationary pressures [3][15]. - AirBoss is committed to expanding its AirBoss Rubber Solutions segment and enhancing its technical capabilities and geographic reach [3][19].