AirBoss Reports 3rd Quarter 2025 Results

Rhea-AI Summary

AirBoss (OTCQX: ABSSF) reported Q3 2025 results on Nov 5, 2025 showing mixed segment performance and stronger cash flow.

• Q3 net sales: $100.42M (up 4.4% YoY); 9M sales: $304.17M (up 3.1% YoY).
• Q3 Adjusted EBITDA: $7.31M (up 13.9% YoY); 9M Adjusted EBITDA: $25.59M (up 52.2% YoY).
• Q3 profit (loss): ($2.90M); 9M profit (loss): ($1.05M).
• Operating cash flow Q3: $8.71M vs ($1.07M) prior year; Free cash flow Q3: $4.91M.
• Net debt reduced to $82.9M, Net Debt/TTM Adjusted EBITDA 2.70x.
• Declared quarterly dividend C$0.035 per share.

Positive

• Adjusted EBITDA +13.9% in Q3 2025
• Adjusted EBITDA +52.2% year-to-date 2025
• Operating cash flow improved to $8.7M in Q3 2025
• Net Debt reduced to $82.9M; Net Debt/EBITDA 2.70x
• AMP Q3 sales +27.7% driven by defense products
• Declared quarterly dividend C$0.035 per share

Negative

• ARS Q3 sales -5.5% and 9M sales -10.9% vs 2024
• ARS gross profit Q3 -23.9% due to unfavorable mix
• Consolidated profit still negative: ($2.9M) Q3 2025
• Tariff uncertainty and market softness weighing on volumes

NEWMARKET, Ontario, Nov. 05, 2025 (GLOBE NEWSWIRE) -- AirBoss of America Corp. (TSX: BOS) (OTCQX: ABSSF) (the “Company” or “AirBoss”) today announced its third quarter 2025 results. The Company will host a conference call and webcast to discuss the results on November 6^th at 9:00 a.m. (ET), the details of which are outlined below. All dollar amounts are shown in thousands of United States dollars ("US $" or "$"), except per share amounts, unless otherwise noted.

Recent Highlights

• Adjusted EBITDA¹ in the third quarter of 2025 (“Q3 2025”) increased by $0.9 million to $7.3 million compared to $6.4 million in the third quarter of 2024 (“Q3 2024”) and losses decreased by $0.4 million to $2.9 million;
• Adjusted EBITDA¹ for 2025 year-to-date increased by $8.8 million to $25.6 million compared to $16.8 million for 2024 year-to-date and losses decreased by $16.7 million to $1.0 million;
• Cash provided by operating activities increased by $9.8 million to $8.7 million in Q3 2025 compared to ($1.1) million in Q3 2024;
• Reduced borrowings under our revolving credit facility by $11.4 million since the beginning of the year for a Net Debt to Adjusted EBITDA ratio¹ of 2.70x (4.51x at December 31, 2024); and
• Declared a quarterly dividend of CAD$0.035 per common share.
  
  

"AirBoss Manufactured Products' defense products business continued to perform strongly during Q3 2025, delivering on previously awarded contracts, including a late-quarter resumption of deliveries under its Bandolier program. Within AirBoss Rubber Solutions, we took steps to strengthen the segment in anticipation of volume recovery once market conditions stabilize. The focus was on controllable costs, mix optimization and continued investment in specialized compounding and research and development to enhance our long-term competitiveness, even as tariff-related uncertainty continues to weigh on customer sectors," said Chris Bitsakakis, President and Co-CEO of AirBoss. "As an organization, 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, including market softness and volatility, tariffs, inflationary pressure and the potential for further escalating and retaliatory tariffs."

"Although the global economic situation remains uncertain, AirBoss remains focused on operational execution and cost management to mitigate potential headwinds," added Gren Schoch, Chairman and Co-CEO. "The Company remains committed to our strategy to broaden and grow our AirBoss Rubber Solutions segment with a focus on adding new compounds and products, technical capabilities and geographic reach and a renewed emphasis on core competencies in our AirBoss Manufactured Products segment. We remain optimistic that our businesses are strategically located and well-positioned to respond to opportunities and address challenges which may present themselves and we remain committed to our goal of growing AirBoss as a global market leader in the custom rubber compounding market and the industries which we serve."

In thousands of US dollars, except share data	Three-months ended September 30						Nine-months ended September 30
(unaudited)	2025			2024			2025			2024
Financial results:
Net sales	100,420			96,204			304,166			295,061
Profit (loss)	(2,902	)		(3,279	)		(1,045	)		(17,774	)
Adjusted Profit1	(89	)		(3,279	)		1,768			(10,923	)
Earnings (loss) per share (US$)
– Basic	(0.11	)		(0.12	)		(0.04	)		(0.66	)
– Diluted	(0.11	)		(0.12	)		(0.04	)		(0.66	)
Adjusted earnings per share1(US$)
– Basic	0.00			(0.12	)		0.07			(0.40	)
– Diluted	0.00			(0.12	)		0.06			(0.40	)
EBITDA1	4,441			6,420			22,715			9,958
Adjusted EBITDA1	7,313			6,420			25,587			16,809
Net cash provided by operating activities	8,708			(1,071	)		28,082			4,485
Free cash flow1	4,914			(2,897	)		20,452			(3,001	)
Dividends declared per share (CAD$)	0.035			0.035			0.105			0.140
Capital expenditures	3,794			1,831			7,630			7,500
Financial position:	September 30, 2025									December 31, 2024
Total assets	310,631									309,528
Debt2	103,575									117,390
Net Debt1	82,898									98,888
Shareholders' equity	123,663									126,010
Outstanding shares*	27,149,224									27,130,556
*27,149,224 at November 5, 2025

¹ See Non-IFRS and Other Financial Measures.
² Debt as at September 30, 2025 and December 31, 2024 included lease liabilities of $10,505 and $12,011, respectively.

Financial Results

Consolidated net sales for Q3 2025 increased by 4.4% to $100,420 compared with Q3 2024, and for 2025 year-to-date increased by 3.1% to $304,166 compared with 2024 year-to-date. The increases were primarily due to higher volumes at AirBoss Manufactured Products ("AMP") partially offset by lower sales at AirBoss Rubber Solutions ("ARS").

Consolidated gross profit for Q3 2025 increased by $414 to $16,477, compared with Q3 2024, driven by improved volume and mix at AMP, specifically in the defense products business, as well as improvements in the rubber molded products operations partially offset by softness across most ARS customer sectors. Gross profit as a percentage of net sales decreased to 16.4% in Q3 2025 compared with 16.7% for Q3 2024, primarily due to softness and unfavorable product mix at ARS partially offset by improved volume and mix at AMP. Consolidated gross profit for 2025 year-to-date increased by $12,429 to $51,128 compared with 2024 year-to-date, driven primarily by volume improvements at AMP along with a $6,049 inventory write-down from gowns and gloves in the comparative period, partially offset by volume softness and unfavorable mix and ARS. Gross profit as a percentage of net sales increased to 16.8% for 2025 year-to-date compared with 13.1% for 2024 year-to-date. This increase was primarily driven by volume improvements at AMP’s defense products business and rubber molded products business partially offset by volume reductions and reduced margins due to mix at ARS.

Adjusted EBITDA for Q3 2025 increased by 13.9%, compared to the same period in 2024 and increased by 52.2% for 2025 year-to-date, compared with 2024 year-to-date.

Financial Position

The Company has a $125 million credit facility with a $25 million accordion and a net debt to TTM Adjusted EBITDA ratio of 2.70x (from 4.51x at December 31, 2024).

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, 2026 to shareholders of record at December 31, 2025.

Segment Results

In the ARS segment, net sales for Q3 2025 decreased by 5.5% to $51,513, from $54,532 in Q3 2024 and decreased by 10.9% to $159,480 for 2025 year-to-date, from $179,002 for 2024 year-to-date. For the quarter, volume decreased by 7.9% with decreases in most sectors. Year-to-date, volume was down 15.2% with decreases across the majority of sectors and continued signs of softness with many customer's operations. For the quarter, tolling volume was down 43.8% while non-tolling volume was down 6.7%. Year-to-date, tolling volume was down 58.4% while non-tolling was down 13.6%. Gross profit at ARS for Q3 2025 decreased by 23.9% to $6,285, from $8,260 in Q3 2024 and for 2025 year-to-date decreased by 27.7% to $21,369 from $29,562 for 2024 year-to-date. For the quarter, the decrease was due to unfavorable mix and lower volume across most customer sectors driven by market softness and economic uncertainty partially offset by managing controllable overhead costs and continuous improvement initiatives. Year-to-date, the decrease was primarily as a result of lower volumes and unfavorable product mix due to overall softness in the industry partially offset by managing controllable overhead costs.

In the AMP segment, net sales for Q3 2025 increased by 27.7% to $58,134, from $45,507 in Q3 2024 and by 29.7% to $166,752 for 2025 year to date, from $128,528 for 2024 year-to-date. For the quarter, the increase was mainly due to improved sales in the defense products business in addition to improved sales in the rubber molded products business. Within the rubber molded products business there were improvements in both the non-automotive products and the automotive business driven by higher volumes in light truck and SUV platforms. Year-to-date, the increase was due to improved volumes in the defense products business, partially offset by weaker volumes in the rubber molded products business, specifically in the SUV and light truck platforms. Gross profit at AMP for Q3 2025 increased to $10,192 from $7,803 in Q3 2024 and increased to $29,759 for 2025 year-to-date from $9,137 for 2024 year-to-date. For the quarter, the increase was primarily the result of improvements in the defense products business, operational cost improvements and reduced overhead costs executed in the quarter, in addition to favorable volume and product mix in the rubber molded products business. The year-to-date increase was primarily a result of favorable volume and product mix in the defense product lines in addition to a $6,049 inventory write-down from gowns and gloves in the comparative period. In addition, there was pronounced softness in the rubber molded products operations in the first half of the year as the OEMs continue to manage automobile inventory levels resulting in lower vehicle production, partially offset by a continued focus on controllable operational cost containment and cost optimization.

Overview

AirBoss experienced positive traction in Q3 2025 compared to Q3 2024, mainly driven by significant increases in AirBoss Manufactured Products’ (“AMP”) defense products business partially offset by reduced volumes at AirBoss Rubber Solutions (“ARS”). However, pronounced economic headwinds continued to impact each segment to varying degrees and the Company experienced softness in Q3 2025 compared to Q2 2025. AirBoss navigated obstacles related to economic and geopolitical challenges, including market softness, the US government shutdown, tariffs, inflationary pressure and the potential for further escalating and retaliatory tariffs, while maintaining focus on risk mitigation plans, including further cost reductions and targeting continuous improvements to build momentum at both ARS and AMP. The Company took steps in the quarter to optimize its footprint at AMP as it began the relocation of its facility in Jessup, Maryland to Auburn Hills, Michigan. Further uncertainty is expected to persist in coming quarters with volume recovery difficult to anticipate, as any recovery could be impacted by further tariffs, duties, other restrictions on trade or geopolitical and economic challenges. Given the cross-border nature of the Company's operations, a significant portion of the products manufactured by the Company in Canada are sold into the United States and may be subject to current or pending tariffs, as well as additional tariffs which could be enacted. Despite the fact that the majority of AirBoss products are covered under the USMCA/CUSMA, the Company continues to evaluate and execute on contingency plans to deal with any future potential challenges that may present themselves as USMCA/CUSMA gets renegotiated. While economic uncertainty, disruption of trade flows and increased costs and strains on supply chains persist, management remains focused on the successful conversion of key opportunities to support future growth.

ARS had continued and pronounced softness in Q3 2025 compared to Q3 2024. The segment experienced both revenue contraction and reduced margins driven by overall softness in most customer sectors primarily caused by the shifting tariff situation, as customers managed the potential exposure created by tariff headwinds by continuing to sell pre-existing inventories. ARS remains committed to executing on its strategy to deliver strong results by focusing on specialized products, expanded production of a broader array of compounds (white and color), and enhanced flexibility in attracting and fulfilling new business. As a segment, ARS continued to invest in research and development to support enhanced collaboration with customers.

AMP experienced notable improvement in Q3 2025 compared to Q3 2024, primarily due to the defense products business continuing deliveries on previously announced contracts and a focus on its footprint optimization to help support profitable growth. Despite disruptions associated with market challenges, management at AMP maintained its focus on operational improvements during Q3 2025 with further initiatives focused on cost reductions and continued to work with key customers to leverage opportunities aligned with its growth initiatives. The defense products business continues to work closely with its suppliers and government partners to mitigate the previously announced delays to its Bandolier program, with deliveries resuming in the final weeks of Q3 2025 and into Q4 2025, with completion expected in early 2026. The rubber molded products operations were impacted by continued volume softness related to the original equipment manufacturers ("OEMs") shuttering production due to the evolving impact of tariffs in the automotive sector. This business continued its focus on managing costs and a commitment to drive efficiencies and best-in-class automation, as well as diversification of its product lines into adjacent sectors.

The Company’s long-term priorities consist of the following:

1. Growing the core Rubber Solutions segment by emphasizing 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;
2. Manufactured Products' growth strategy will be focused on diversifying and expanding its range of rubber molded products while simultaneously narrowing the range of defense products through a renewed focus on core competencies; and
3. Executing the strategic review of all product lines currently manufactured and sold by the Company in its Manufactured Products segment while targeting additional acquisition opportunities with a focus on adding new compounds and products, technical capabilities, and geographic reach into selected North American and international markets.
   
   

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 6^th, 2025. Please go to https://www.gowebcasting.com/14363 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 (conference ID: 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: https://airboss.com/investor-media-center.

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 segments. AirBoss Rubber Solutions (ARS) is a North American custom rubber compounder with 500 million turn pounds of annual capacity and over 2,000 proprietary compounds. AirBoss Manufactured Products (AMP) 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 in Canada on the TSX under the symbol BOS and in the United States 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 financial statements prepared in accordance with International Financial Reporting Standards (“IFRS”) 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 measures 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.

	Three-months ended September 30				Nine-months ended September 30
	(unaudited)				(unaudited)
In thousands of US dollars	2025		2024		2025		2024
EBITDA:
Profit (loss)	(2,902	)	(3,279	)	(1,045	)	(17,774	)
Finance costs	2,445		3,767		7,890		9,619
Depreciation and amortization	4,692		5,180		14,843		15,824
Income tax expense	206		752		1,027		2,289
EBITDA	4,441		6,420		22,715		9,958
Write-down of inventory	—		—		—		6,049
Restructuring costs	1,161		—		1,161		802
Impairment of assets	1,711		—		1,711		—
Adjusted EBITDA	7,313		6,420		25,587		16,809

In the third quarter of 2025, the Manufactured Products segment began relocating its Jessup, Maryland operations to Auburn Hills, Michigan. The Company expects to relaunch its operations in its Auburn Hills facility during the fourth quarter of 2025. In connection with this move, the Company recorded restructuring costs of $762 related to staff reductions and $1,711 of impairment charges against a leased building and leasehold improvements. In addition, the Rubber Solutions segment incurred restructuring costs of $399 related to staff reductions. These costs are included in Other expenses on the Statement of Loss.

In the second quarter of 2024, the Company recorded a $6,049 inventory provision related to its inventory of nitrile gloves and medical gowns due to significant downward shifts in pricing. Costs related to this transaction are included in Cost of Sales on the Statement of Loss.

In the second quarter of 2024, the Company completed a series of staff reductions. Costs related to this restructuring activity for $802 are included in Other expenses on the Statement of Loss.

Adjusted profit is a non-IFRS measure defined as profit before impairment costs, acquisition costs and non-recurring costs. This measure and Adjusted earnings per share are used to evaluate the operating results of the Company. A reconciliation of Profit to Adjusted profit and Adjusted earnings per share is below.

	Three-months ended September 30				Nine-months ended September 30
	(unaudited)				(unaudited)
In thousands of US dollars	2025		2024		2025		2024
Adjusted profit:
Profit (loss)	(2,902	)	(3,279	)	(1,045	)	(17,774	)
Write-down of inventory (after tax)	—		—		—		6,049
Restructuring costs (after tax)	1,102		—		1,102		802
Impairment of assets (after tax)	1,711		—		1,711		—
Adjusted profit	(89	)	(3,279	)	1,768		(10,923	)
Basic weighted average number of shares outstanding	27,149		27,131		27,143		27,131
Diluted weighted average number of shares outstanding	27,149		27,131		28,544		27,131
Adjusted earnings per share (in US dollars):
Basic	0.00		(0.12	)	0.07		(0.40	)
Diluted	0.00		(0.12	)	0.06		(0.40	)

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, 2025		December 31, 2024
In thousands of US dollars	(unaudited)
Net debt:
Loans and borrowings - current	5,878		5,002
Loans and borrowings - non-current	97,697		112,388
Leases included in loans and borrowings	(10,505	)	(12,011	)
Cash and cash equivalents	(10,172	)	(6,491	)
Net debt	82,898		98,888

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 cash from operating activities to free cash flow is below.

	Three-months ended September 30				Nine-months ended September 30
	(unaudited)				(unaudited)
In thousands of US dollars	2025		2024		2025		2024
Free cash flow:
Net cash provided by operating activities	8,708		(1,071	)	28,082		4,485
Acquisition of property, plant and equipment	(3,601	)	(1,565	)	(6,911	)	(6,825	)
Acquisition of intangible assets	(193	)	(266	)	(719	)	(675	)
Proceeds from disposition	—		5		—		14
Free cash flow	4,914		(2,897	)	20,452		(3,001	)
Basic weighted average number of shares outstanding	27,149		27,131		27,143		27,131
Diluted weighted average number of shares outstanding	27,738		27,131		28,544		27,131
Free cash flow per share (in US dollars):
Basic	0.18		(0.11	)	0.75		(0.11	)
Diluted	0.18		(0.11	)	0.72		(0.11	)

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 risks; 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

FAQ

What were AirBoss (ABSSF) Q3 2025 sales and Adjusted EBITDA?

Q3 2025 net sales were $100.42M and Adjusted EBITDA was $7.31M.

How did AirBoss' cash flow and leverage change in Q3 2025?

Operating cash flow was $8.71M in Q3 and Net Debt fell to $82.9M with Net Debt/TTM Adjusted EBITDA at 2.70x.

What drove AirBoss Manufactured Products (AMP) performance in Q3 2025?

AMP Q3 sales rose 27.7%, driven mainly by improved defense products deliveries and rubber molded products volume.

Why did AirBoss Rubber Solutions (ARS) decline in Q3 2025?

ARS sales fell due to volume softness, unfavorable mix and tariff-related customer inventory management.

Did AirBoss declare a dividend with the Q3 2025 results?

Yes; the board declared a quarterly dividend of C$0.035 per common share payable Jan 15, 2026 to holders of record Dec 31, 2025.

When is AirBoss' Q3 2025 conference call and where to access it?

The call is Nov 6, 2025 at 9:00 a.m. ET; webcast and replay are available via the company investor media center and the provided webcast link.