Airboss Reports 3Rd Quarter 2026 Results
| Unaudited | Three months ended September 30 | Nine months ended September 30 | ||||||
| In thousands of US dollars, except share data | 2026 | 2025 | 2026 | 2025 | ||||
| Financial results: | ||||||||
| Net sales | 98,692 | 100,420 | 312,365 | 304,166 | ||||
| Profit (loss) | 1,533 | (2,902 | ) | 6,144 | (1,045 | ) | ||
| Adjusted Profit (loss)1 | 1,533 | (89 | ) | 6,356 | 1,768 | |||
| Profit (loss) per share (US$) | ||||||||
| – Basic | 0.06 | (0.11 | ) | 0.23 | (0.04 | ) | ||
| – Diluted | 0.05 | (0.11 | ) | 0.22 | (0.04 | ) | ||
| Adjusted Profit (loss) per share1 (US$) | ||||||||
| – Basic | 0.06 | 0.00 | 0.23 | 0.07 | ||||
| – Diluted | 0.05 | 0.00 | 0.23 | 0.06 | ||||
| EBITDA1 | 8,082 | 4,441 | 26,516 | 22,715 | ||||
| Adjusted EBITDA1 | 8,082 | 7,313 | 26,728 | 25,587 | ||||
| Net cash from operating activities | (1,650 | ) | 8,708 | 1,382 | 28,082 | |||
| Free Cash Flow1 | (3,491 | ) | 4,914 | (5,879 | ) | 20,452 | ||
| Dividends declared per share (CAD$) | 0.035 | 0.035 | 0.105 | 0.105 | ||||
| Capital expenditures | 1,841 | 3,794 | 7,262 | 7,630 | ||||
| Financial position: | September 30, 2026 | December 31, 2025 | ||||||
| Total assets | 285,175 | 276,969 | ||||||
| Debt2 | 90,448 | 83,766 | ||||||
| Net Debt1 | 77,830 | 67,573 | ||||||
| Shareholders' equity | 120,463 | 115,735 | ||||||
| Outstanding shares* | 27,181,635 | 27,149,224 | ||||||
| *27,181,635 at November 4, 2026 |
1 See Non-IFRS and Other Financial Measures.
2Debt as at September 30, 2026 and December 31, 2025 included lease liabilities of $6,875 and $8,200, respectively.
Financial Results
Consolidated net sales for Q3 2026 decreased by 1.7% to $98,692 compared with Q3 2025 and for 2026 year-to-date increased by 2.7% to $312,365, compared with 2025 year-to-date. For the quarter, the decrease was primarily due to lower sales at Manufactured Products partially offset by higher sales at Rubber Solutions across several customer sectors. Year-to-date, the increase was due to higher volumes at both AirBoss Manufactured Products ("AMP") and AirBoss Rubber Solutions ("ARS").
Consolidated gross profit for Q3 2026 increased by $559 to $17,036, compared with Q3 2025 and for 2026 year-to-date increased by $3,865 to $54,993 compared with 2025 year-to-date. For the quarter, gross profit as a percentage of net sales increased to 17.3% for Q3 2026 compared with 16.4% for Q3 2025. Year-to-date, gross profit as a percentage of net sales increased to 17.6% from 16.8%. For the quarter, the increase in margin percentage was driven primarily by higher volumes and favorable mix across several customer sectors at ARS together with improved margins at AMP in both the defense products business and in the rubber molded products business. This was further supported by managing controllable overhead costs and continuous improvement initiatives. Despite higher margins across the segments, market volatility and economic uncertainty continue to challenge the businesses. Year-to-date, the increase in margin percentage was primarily driven by AMP's rubber molded products business and the defense products business partially offset by reduced margins due to mix at ARS despite improved volumes. Adjusted EBITDA for Q3 2026 increased by $769, compared to the same period in 2025.
Financial Position
The Company retains a $125 million revolving credit facility. At September 30, 2026, the borrowing capacity under this facility was $72,822 with $35,704 drawn and the net debt to TTM Adjusted EBITDA ratio was 2.22x (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 January 15, 2027 to shareholders of record at December 31, 2026.
Segment Results
In the Rubber Solutions segment, net sales for Q3 2026 increased by 6.2% to $54,732, from $51,513 in Q3 2025 and for 2026 year-to-date increased by 3.4%, to $164,945 compared with 2025 year-to-date. For the quarter, volume was up 9.3% with increases across certain sectors. Year-to-date, volume was up 7.1% with increases across several sectors and modest signs of improvement with several customers' operations. For the quarter, tolling volume was down 34.0% while non-tolling volume was up 10.1%. Year-to-date, tolling volume was down 25.4% while non-tolling volume was up 7.7%. Gross profit at Rubber Solutions for Q3 2026 increased by 13.0% to $7,102 from $6,285 in Q3 2025 and for 2026 year-to-date decreased by 2.2% to $20,909. For the quarter, the increase was primarily a result of higher non-tolling volumes compared to the same period in 2025 in addition to favorable mix despite margin pressure. Year-to-date, the decrease was primarily due to unfavorable product mix and margin pressure despite higher volumes in several sectors with modest signs of recovery with certain customers' operations.
At Manufactured Products, net sales for Q3 2026 decreased by 4.7% to $55,396, from $58,134 in Q3 2025 and for 2026 year-to-date increased by 8.3% to $180,517 compared to 2025 year-to-date. For the quarter, this decrease was primarily due to lower sales in the defense products business driven by the completion, in the prior quarter, of deliveries under a previously announced contract, partially offset by improved sales in the rubber molded products business. Year-to-date, this increase was primarily due to improved volumes in both the defense products business and the rubber molded products business, across certain OEM vehicle platforms. Gross profit at Manufactured Products for Q3 2026 decreased to $9,934 from $10,192 in Q3 2025 and for 2026 year-to-date increased to $34,084 from $29,759 in 2025 year-to-date. For the quarter, the decrease was primarily a result of lower volume in the defense products business which completed delivery of a large defense contract in the prior quarter, partially offset by favorable volume and mix in the rubber molded products business. Year-to-date, the increase primarily reflected favorable volume and product mix in the defense product lines, improvements in the rubber molded products operations as OEMs continue to manage automobile inventory levels, and a focus on cost containment and continuous improvement initiatives.
Overview
AirBoss continued to execute its long-term strategic plan in the third quarter of 2026 while navigating uncertainty in economic conditions and tariffs, geopolitical developments, inflationary pressures and supply-chain challenges across its businesses. AirBoss Rubber Solutions (“ARS”) saw improvements compared to Q3 2025, while AirBoss Manufactured Products (“AMP”) sales and gross profit were lower compared to Q3 2025, although AMP gross margin percentage improved in both the defense and rubber-molded products businesses. Management in both segments remained focused on risk-mitigation initiatives in response to ongoing economic headwinds, including cost management, continuous-improvement efforts, and customer collaboration. 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 subject to customer requirements, funding and program schedules. The Company expects some continued volume volatility across its segments for the foreseeable future, 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 Q3 2026 compared to Q3 2025, with improved volume and margins, although conditions continued to vary across customer sectors. Customers managed production schedules and inventories amid uneven industrial demand, trade-policy uncertainty, input-cost pressures and supply-chain considerations. As a segment, ARS remained focused on investing in research and development, specialty compounds, customer collaboration, product breadth and operating flexibility to support its long-term growth strategy while fulfilling new business opportunities.
AMP experienced an overall volume decrease in Q3 2026 compared to Q3 2025, primarily driven by its defense products business as deliveries under certain previously announced contracts were concluded, partially offset by volume improvements in the rubber molded products business for the quarter. Both the defense products business and the rubber molded products business improved gross profit percentage for the quarter and year-to-date. 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) production schedules and inventory rebalancing contributing to demand variability. The business remained focused on cost management, operational efficiencies, automation and diversification into adjacent product sectors. Customer procurement, funding and program schedules continued to influence the timing of defense awards and deliveries, while management continued 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.
Conference Call Details and Investor Presentation
A conference call to discuss the quarterly results is scheduled for 9:00 a.m. ET on Thursday, November 5, 2026. Please go to or dial in to the following numbers: 1-800-715-9871 or 1-647-932-3411 and ask to join the AirBoss of America call or provide ID no. 5769750. Please connect approximately 10 minutes prior to the call to ensure participation. A replay of the conference call as well as the Company's updated investor presentation will also be made available at: .
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 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 profit or loss 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 September 30 | Nine months ended September 30 | ||||||||||
| In thousands of US dollars | 2026 | 2025 | 2026 | 2025 | ||||||||
| EBITDA: | ||||||||||||
| Profit (loss) | 1,533 | (2,902 | ) | 6,144 | (1,045 | ) | ||||||
| Finance costs | 2,027 | 2,445 | 5,815 | 7,890 | ||||||||
| Depreciation and amortization | 3,995 | 4,692 | 12,181 | 14,843 | ||||||||
| Income tax expense | 527 | 206 | 2,376 | 1,027 | ||||||||
| EBITDA | 8,082 | 4,441 | 26,516 | 22,715 | ||||||||
| Restructuring costs | - | 1,161 | 212 | 1,161 | ||||||||
| Impairment of assets | - | 1,711 | - | 1,711 | ||||||||
| Adjusted EBITDA | 8,082 | 7,313 | 26,728 | 25,587 |
In 2026, the Manufactured Products segment completed the relocation of its operations from Jessup, Maryland, to Auburn Hills, Michigan. In connection with the relocation, the Company recorded restructuring costs related to staff reductions of $762 in the third quarter of 2025, $385 in the fourth quarter of 2025, and $212 in the first quarter of 2026, as well as $1,711 in impairment charges related to a right-of-use asset and leasehold improvements. In addition, the Rubber Solutions segment incurred restructuring costs of $399 related to staff reductions.
Adjusted Profit is a non-IFRS measure defined as profit before impairment costs, acquisition costs and non-recurring costs. This measure and Adjusted Profit 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 September 30 | Nine months ended September 30 | ||||||||||
| In thousands of US dollars | 2026 | 2025 | 2026 | 2025 | ||||||||
| Adjusted Profit: | ||||||||||||
| Profit (loss) | 1,533 | (2,902 | ) | 6,144 | (1,045 | ) | ||||||
| Restructuring costs, after tax | - | 1,102 | 212 | 1,102 | ||||||||
| Impairment of assets, after tax | - | 1,711 | - | 1,711 | ||||||||
| Adjusted profit | 1,533 | (89 | ) | 6,356 | 1,768 | |||||||
| Weighted average number of shares outstanding: | ||||||||||||
| Basic | 27,171 | 27,149 | 27,164 | 27,143 | ||||||||
| Diluted | 28,127 | 27,149 | 28,054 | 28,544 | ||||||||
| Adjusted profit per share (in US dollars): | ||||||||||||
| Basic | 0.06 | 0.00 | 0.23 | 0.07 | ||||||||
| Diluted | 0.05 | 0.00 | 0.23 | 0.06 |
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.
| September 30, 2026 | December 31, 2025 | |||||||
| In thousands of US dollars | (unaudited) | |||||||
| Net Debt: | ||||||||
| Loans and borrowings - current | 7,396 | 5,494 | ||||||
| Loans and borrowings - non-current | 83,052 | 78,272 | ||||||
| Leases included in loans and borrowings | (6,875 | ) | (8,200 | ) | ||||
| Cash | (5,743 | ) | (7,993 | ) | ||||
| Net Debt | 77,830 | 67,573 |
The Company has a Net Debt to trailing twelve-month Adjusted EBITDA ratio of 2.22x (December 31, 2025: 1.99x)
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 September 30 | Nine months ended September 30 | ||||||||||
| In thousands of US dollars | 2026 | 2025 | 2026 | 2025 | ||||||||
| Free Cash Flow: | ||||||||||||
| Net cash from operating activities | (1,650 | ) | 8,708 | 1,382 | 28,082 | |||||||
| Acquisition of property, plant and equipment | (1,651 | ) | (3,601 | ) | (6,726 | ) | (6,911 | ) | ||||
| Acquisition of intangible assets | (190 | ) | (193 | ) | (536 | ) | (719 | ) | ||||
| Proceeds from disposition | - | - | 1 | - | ||||||||
| Free Cash Flow | (3,491 | ) | 4,914 | (5,879 | ) | 20,452 | ||||||
| Weighted average number of shares outstanding: | ||||||||||||
| Basic | 27,171 | 27,149 | 27,164 | 27,143 | ||||||||
| Diluted | 27,171 | 27,738 | 27,164 | 28,544 | ||||||||
| Free Cash Flow per share (in US dollars): | ||||||||||||
| Basic | (0.13 | ) | 0.18 | (0.22 | ) | 0.75 | ||||||
| Diluted | (0.13 | ) | 0.18 | (0.22 | ) | 0.72 |
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 and regulatory actions; 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 .
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