AirBoss Reports 4th Quarter and Full Year 2025 Results

NEWMARKET, Ontario, March 04, 2026 (GLOBE NEWSWIRE) -- AirBoss of America Corp. (TSX: BOS) (OTCQX: ABSSF) (the “Company” or “AirBoss”) today announced its fourth quarter and unaudited annual 2025 results. The Company will host a conference call and webcast to discuss the results on March 5, 2026 at 9:00 a.m. (ET), the details of which are outlined below. This earnings press release should be read in conjunction with our Management Discussion & Analysis and Audited Consolidated Financial Statements for the year ended December 31, 2025, which will be filed with the securities regulators in Canada on or about March 23, 2026. These documents will be made available at https://airboss.com/investor-center/ and www.sedarplus.ca. All dollar amounts are shown in thousands of United States dollars ( "US$ " or "$ "), except share data, unless otherwise noted.

Recent Highlights

• Adjusted EBITDA¹ in the fourth quarter of 2025 (“Q4 2025”) increased by $3.3 million to $8.4 million compared to $5.1 million in the fourth quarter of 2024 (“Q4 2024”) and losses increased by $5.0 million to $7.6 million, with the loss primarily attributable to restructuring initiatives and non-cash asset impairment charges;
• Adjusted EBITDA¹ for the year increased by $12.1 million to $34.0 million compared to $21.9 million for full-year 2024 and losses decreased by $11.8 million to $8.6 million, with the loss primarily attributable to restructuring initiatives and non-cash asset impairment charges; 
• Cash provided by operating activities increased by $16.7 million to $21.0 million in Q4 2025 compared to $4.3 million in Q4 2024;
• Cash provided by operating activities increased by $40.3 million to $49.1 million for full-year 2025 compared to $8.8 million for full-year 2024;
• Reduced borrowings under our revolving credit facility by $28.4 million since the beginning of the year for a Net Debt to Adjusted EBITDA ratio¹ of 1.99x (4.51x at December 31, 2024); and
• Declared a quarterly dividend of CAD$0.035 per common share.
  
  

“AirBoss delivered strong performance in 2025, highlighted by significant year-over-year growth in adjusted EBITDA, meaningful free cash flow generation and continued balance sheet improvement,” said Chris Bitsakakis, President and Co-CEO of AirBoss. “Performance at AirBoss Manufactured Products was particularly strong, driven by ongoing deliveries under previously awarded defense contracts and improved results in the rubber molded products business, while AirBoss Rubber Solutions continued to face market softness across most sectors. As an organization, we remained focused on disciplined cost management, manufacturing footprint optimization and operational execution, while continuing to navigate economic and geopolitical uncertainty, including tariffs, inflationary pressures and ongoing volatility across certain customer sectors. "

“Despite ongoing challenges, 2025 represented a marked improvement for AirBoss as we executed against our strategic priorities and strengthened our financial position,” added Gren Schoch, Chairman and Co-CEO. "While the external economic environment remains uncertain, we continue to prioritize operational discipline and the successful conversion of key opportunities to support sustainable long-term growth. "

¹ See Non-IFRS and Other Financial Measures.
²Debt as at December 31, 2025 and December 31, 2024 included lease liabilities of $8,200 and $12,011, respectively.

Financial Results

Consolidated net sales for Q4 2025 increased by 15.3% to $106,037 compared with Q4 2024, with increases at Manufactured Products partially offset by Rubber Solutions. For 2025, consolidated net sales increased by 6.0% to $410,203 compared with 2024, primarily due to significant increased sales at Manufactured Products’ defense products business and increases in the rubber molded products business partially offset by decreased sales at Rubber Solutions across most sectors.

Consolidated gross profit for Q4 2025 increased by $4,644 to $19,941, compared with Q4 2024, primarily as a result of increased sales at Manufactured Products. Consolidated gross profit for 2025 increased by $17,073 to $71,069 compared with 2024. Gross profit as a percentage of net sales increased to 17.3% for 2025 compared with 14.0% for 2024. The increase in margin percentage was driven primarily by margin improvements resulting from the new business awards at AMP 's defense products business, by margin improvement at AMP 's rubber molded products business, and a $6,049 inventory write-down in 2024 compared to a $249 write-down in 2025, partially offset by margin contraction in the Rubber Solutions segment 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.

Adjusted EBITDA for Q4 2025 increased by 64.6%, compared to the same period in 2024 and increased by 55.1% for full-year 2025, compared with full-year 2024.

Financial Position

The Company retains a $125 million credit facility. At December 31, 2025, the borrowing capacity under this facility was $71,532 with $24,315 drawn and the net debt to TTM Adjusted EBITDA ratio was 1.99x (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 April 15, 2026 to shareholders of record at March 31, 2026.

Segment Results

In the Rubber Solutions segment, net sales for Q4 2025 decreased by 3.3% to $45,767, from $47,349 in Q4 2024 and decreased by 9.3% to $205,247 for 2025, from $226,351 for 2024. For the quarter, the decrease in net sales was primarily due to softness across most sectors. For the year, the decrease was due to softness across most sectors driven by pronounced and continued economic headwinds. Volume was down 3.5% for the quarter with decreases across the majority of sectors. For the year, volume was down 13.0% with decreases across the majority of sectors. For the quarter, tolling volume was down 65.0%, while non-tolling volume was down 1.2% driven by decreases in most sectors. For the year, tolling volume decreased by 59.7% compared with 2024 and non-tolling volumes decreased by 11.3% compared with 2024. Gross profit at Rubber Solutions for Q4 2025 decreased by 11.5% to $5,256 from $5,938 in Q4 2024 and for 2025 decreased by 25.0% to $26,625 from $35,500 for 2024. For the quarter, the decrease in gross profit was principally due to lower volumes across most customer sectors and product mix partially offset by managing controllable overhead costs and continuous improvement initiatives. For the year, the decrease was primarily a result of unfavorable mix and margin pressure in addition to decreased tolling and non-tolling volumes compared to the same period in 2024.

At Manufactured Products, net sales for Q4 2025 increased by 50.4% to $72,451, from $48,168 in Q4 2024 and increased by 35.4% to $239,203 for 2025, from $176,696 for 2024. For the quarter, the increase was a result of higher volumes in the defense product business and increases across the rubber molded product lines, despite continued volume softness and volatility related to the original equipment manufacturers (OEMs) shuttering production to rebalance vehicle inventory levels. For the year, the increase was primarily due to higher sales in the defense products business driven by deliveries under new contract awards, and improved sales in the molded rubber products business. Gross profit at Manufactured Products for Q4 2025 increased to $14,685 from $9,359 in Q4 2024 and increased to $44,444 for 2025 from $18,496 for 2024. For the quarter, the increase was primarily a result of new business awards at AMP 's defense products business, margin improvement at AMP 's rubber molded products business further supported by operational cost improvements in the segment, managing controllable overhead costs and continuous improvement initiatives. For the year, the increase was primarily a result of significant volume and mix improvements in the defense products business driven by the ongoing delivery of new business awards in addition to improvements in the rubber molded products business and a $6,049 inventory write-down in 2024 compared to a $249 write-down in 2025.

Overview

Overall, 2025 represented a marked improvement for AirBoss compared to 2024, despite pronounced economic and geopolitical headwinds that affected each segment to varying degrees. AirBoss Rubber Solutions (“ARS”), in particular, experienced significant market softness, partially offset by strong performance at AirBoss Manufactured Products (“AMP”) across both its defense and rubber-molded products businesses, supported by deliveries under previously announced contracts and footprint optimization initiatives. Management continued implementing risk-mitigation strategies in response to these challenges, including cost controls and continuous improvement initiatives.

The Company navigated ongoing uncertainty related to economic conditions, geopolitical developments, tariffs, inflationary pressures, and supply-chain disruption, while maintaining focus on executing its long-term strategic plan. 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. The Company currently expects volume recovery at ARS to commence midway through 2026, although the timing and magnitude of recovery could be affected by additional tariffs, duties, or evolving trade restrictions as well as general market conditions and continued geopolitical uncertainties.

ARS experienced continued and pronounced softness in Q4 2025 compared to Q4 2024, with revenue contraction and reduced margins driven by overall softness in most customer sectors. This was primarily attributable to tariff-related market conditions, as customers continued to manage potential exposure through the sale of pre-existing inventories.  As a segment, ARS continued to invest in research and development to support enhanced collaboration with customers and remains committed to executing its strategy focused on specialized products, expanded production of a broader array of specialty compounds, and enhanced flexibility in attracting and fulfilling new business opportunities.

AMP experienced overall volume improvement in Q4 2025 compared to Q4 2024, primarily driven by its defense products business and improvements in the rubber molded products business. The defense business had improvements in both revenue and gross profit, mainly driven by deliveries under recently announced awards. The rubber molded products had improved volumes in both auto and non-auto sectors, despite continued volatility related to the original equipment manufacturers (OEMs) periodically shuttering production to rebalance vehicle inventory levels throughout 2025. During the quarter, the Company substantially completed the relocation of its operations in Jessup, Maryland to Auburn Hills, Michigan in an effort to optimize its manufacturing footprint. The business continued its focus on cost management, operational efficiencies, automation and diversification into adjacent product sectors. Management also continued its focus on operational improvements and working with key customers to leverage opportunities aligned with its growth initiatives.

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; and
2. 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, March 5, 2026. Please go to https://www.gowebcasting.com/14600 or dial in to the following numbers: 1-800-715-9871 or 1-647-932-3411 and ask to be joined to the AirBoss of America call or provide conference code 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.

Annual Shareholder Meeting

The Company 's annual shareholder meeting will occur May 7, 2026. Further details will be provided in the near future.

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 www.airboss.com 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 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.

In 2025, the Manufactured Products segment substantially completed the relocation of its operations in Jessup, Maryland to Auburn Hills, Michigan. In connection with this move, the Company recorded restructuring costs of $1,147 related to staff reductions and $1,711 of impairment charges against a right of use asset and leasehold improvements. In addition, the Rubber Solutions segment incurred restructuring costs of $480 related to staff reductions. In 2024, the Company completed a series of staff reductions.

At December 31, 2025, the Company recognized an impairment related to the defense operation 's assets. The carrying amount of these assets was determined to be higher than its recoverable amount of nil and an impairment loss of $7,022 was recognized.

In 2025 and 2024, the Company recorded write-downs of $249 and $6,049, respectively, related to its inventory of medical gowns and/or nitrile gloves due to downward shifts in pricing.

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

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.

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 (used in) operating activities to free cash flow is below.

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 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+ atwww.sedarplus.com.

CONTACT: Investor Contact: investor.relations@airboss.comMedia Contact: media@airboss.com

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