AirBoss Reports 2nd Quarter 2026 Results

NEWMARKET, Ontario, Aug. 05, 2026 (GLOBE NEWSWIRE) — AirBoss of America Corp. (TSX: BOS) (OTCQX: ABSSF) (the “Company” or “AirBoss”) today announced its second quarter 2026 results. The Company will host a conference call and webcast to discuss the results on August 6^th at 9:00 am (ET), the details of which are outlined below. All dollar amounts are shown in thousands of United States dollars (“US$” or “$”), except share data, unless otherwise noted.

Recent Highlights

• Basic profit per share increased to $0.09 in the second quarter of 2026 (“Q2 2026”) compared to $0.08 per share in the second quarter of 2025 (“Q2 2025”);
• Adjusted EBITDA increased for the third consecutive quarter to $9,523 in Q2 2026. Profitability over this period improved from a loss of $2,092 in the third quarter of 2025 to a profit of $2,512 in Q2 2026;
• Appointed Ryan Voegeli, the Head of Investment Banking, Canada, at Barclays, to its Board of Directors, effective August 5, 2026; and
• Declared a quarterly dividend of CAD$0.035 per common share.

“AirBoss continued to build momentum during the second quarter of 2026, delivering improved profitability and strong operating performance despite an environment that remains characterized by economic and geopolitical uncertainty,” said Chris Bitsakakis, President and Co-CEO of AirBoss. “AirBoss Manufactured Products continued to perform well, driven by ongoing deliveries under previously awarded defense contracts and continued improvement in the rubber molded products business. We were also encouraged by improved demand at AirBoss Rubber Solutions, where volumes improved across several customer sectors. Across the organization, we remained focused on disciplined cost management, operational execution and continuous improvement initiatives while continuing to navigate tariffs, inflationary pressures and ongoing market volatility. We remain committed to growing our core Rubber Solutions segment, expanding our advanced rubber molded products business and positioning our defense business to capitalize on opportunities with NATO and other partner nations. We believe our continued focus on disciplined execution and strategic investment will position the Company to capitalize on opportunities as market conditions continue to evolve.”

“While the external environment remains uncertain, AirBoss continues to execute against its long-term strategic priorities with a disciplined focus on operational execution and long-term growth,” added Gren Schoch, Chairman and Co-CEO. In addition, we are pleased to welcome Ryan Voegeli to AirBoss’ Board of Directors and extend our sincere thanks to Robert McLeish for his many years of dedicated service,” added Mr. Schoch. “Mr. Voegeli brings more than two decades of investment banking experience, including senior leadership roles advising on complex transactions across a range of industries. His deep capital markets expertise, strategic perspective and background as a corporate and securities lawyer will further strengthen the Board as we continue to advance our strategic priorities and focus on long-term value creation.”

After 27 years of service, Robert McLeish has retired from the Board of Directors of AirBoss. The Company thanks Robert for his many contributions to AirBoss and his longstanding commitment and dedicated service to the Board.

Ryan Voegeli is Head of Investment Banking, Canada at Barclays. Before joining Barclays, he was Global Head of the Consumer, Industrial & Telecommunications Investment Banking Group at CIBC Capital Markets. Prior to CIBC, he worked at Bank of America Merrill Lynch from 2004 to 2011, where he was the Head of Canadian Telecommunications, Media and Technology. Ryan began his career as a corporate and securities lawyer at Davies Ward Phillips & Vineberg LLP, becoming a partner in 2004. Ryan holds a Bachelor of Commerce (Honours) from the University of British Columbia and an LL.B. from the University of Victoria. He is also a CFA charterholder.

    _{¹ See Non-IFRS and Other Financial Measures.
    ² Debt as at June 30, 2026 and December 31, 2025 included lease liabilities of $7,183 and $8,200, respectively.}

Financial Results

Consolidated net sales for Q2 2026 increased by 9.4% to $107,906 compared with Q2 2025 and for 2026 year-to-date increased by 4.9% to $213,673, compared with 2025 year-to-date. For the quarter, the increase was primarily due to higher sales at Manufactured Products’ defense products business and increases in the rubber molded products business in addition to increased sales at Rubber Solutions across several customer sectors. Year-to-date, the increases were due to higher volumes at both AMP and Rubber Solutions.

Consolidated gross profit for Q2 2026 increased by $2,620 to $18,787, compared with Q2 2025 and for 2026 year-to-date increased by $3,306 to $37,957 compared with 2025 year-to-date. Gross profit as a percentage of net sales increased to 17.4% for Q2 2026 compared with 16.4% for Q2 2025. For the quarter, the increase in margin percentage was driven primarily by the continued delivery of previously awarded contracts at AMP’s defense products business, margin improvement at AMP’s rubber molded products business, managing controllable overhead costs and continuous improvement initiatives. Despite higher volumes across several ARS customer sectors, the segment experienced margin contraction due to continued market volatility, economic uncertainty and unfavorable mix. Year-to-date, the increase in margin percentage was primarily driven by AMP in particular the rubber molded products operations partially offset by reduced margins due to mix at ARS despite improved volumes.

Adjusted EBITDA for Q2 2026 decreased by $719, compared to the same period in 2025, since adjusted EBITDA in Q2 2025 was bolstered by a $3.7M legal settlement.

Financial Position

The Company retains a $125 million credit facility. At June 30, 2026, the borrowing capacity under this facility was $78,261 with $31,422 drawn and the net debt to TTM Adjusted EBITDA ratio was 2.12x (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 October 15, 2026 to shareholders of record at September 29, 2026.

Segment Results

In the Rubber Solutions segment, net sales for Q2 2026 increased by 10.7% to $56,404, from $50,930 in Q2 2025 and for 2026 year-to-date increased by 2.1%, to $110,213 compared with 2025 year-to-date. For the quarter, volume was up 16.4% with increases across certain sectors. Year-to-date, volume was up 6.1% with increases across several sectors and modest signs of improvement with several customers’ operations. For the quarter, tolling volume was down 38.1% while non-tolling volume was up 17.5%. Year-to-date, tolling volume was down 20.9% while non-tolling volume was up 6.6%. Gross profit at Rubber Solutions for Q2 2026 increased by 4.1% to $6,882 from $6,613 in Q2 2025 and for 2026 year-to-date decreased by 8.5% to $13,807. For the quarter, the increase was primarily a result of higher non-tolling volumes compared to the same period in 2025 partially offset by unfavorable mix and margin pressure. Year-to-date, the decrease was primarily due to unfavorable product mix partially offset by higher volumes in several sectors with modest signs of recovery with certain customers’ operations.

At Manufactured Products, net sales for Q2 2026 increased by 13.9% to $62,659, from $54,995 in Q2 2025 and for 2026 year-to-date increased by 15.2% to 125,121 compared to 2025 year-to-date. For the quarter, this increase was primarily due to higher sales in the defense products business driven by deliveries under previously announced contract awards, and improved sales in the molded rubber products business. Year-to-date, this increase was primarily due to improved volumes in both the defense product lines, and the rubber molded products business, specifically in the SUV and light truck platforms. Gross profit at Manufactured Products for Q2 2026 increased to $11,905 from $9,554 in Q2 2025 and for 2026 year-to-date increased to $24,150 from $19,567 in 2025 year-to-date. For the quarter, the increase was primarily a result of volume and mix improvements in the defense products business driven by the ongoing deliveries under previously announced contracts in addition to improvements in the rubber molded products business. Year-to-date, the increase was primarily due to favorable volume and product mix in the defense product lines in addition to improvements in the rubber molded products operations as the OEMs continue to manage automobile inventory levels and a focus on controllable operational cost containment and continuous improvement initiatives.

Overview

AirBoss continued to build momentum in the second quarter of 2026 compared to the first quarter of 2026 (“Q1 2026”), while maintaining focus on executing its long-term strategic plan. While the Company continues to navigate ongoing uncertainty related to economic conditions, geopolitical developments, tariffs, inflationary pressures, and supply-chain disruption that affected each segment to varying degrees, there has been a consistent focus on growth and operational excellence. AirBoss Rubber Solutions (“ARS”) continued to see modest improvements compared to Q1 2026, while AirBoss Manufactured Products (“AMP”) saw positive traction across both its defense and rubber-molded products businesses, supported by deliveries under previously announced contracts. Management in both segments remained focused on risk-mitigation initiatives in response to these challenges, including cost management and continuous improvement efforts. 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 continued volume volatility at ARS for the foreseeable future and through most of 2026, 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 Q2 2026 compared to Q1 2026 and Q2 2025, with improved volume offset by a reduced margin percentage primarily driven by mix. This was primarily attributable to tariff-related market conditions and other economic headwinds including higher input costs, as well as customers continuing to manage potential tariff exposure and inventories closely. As a segment, ARS remained focused on investing in research and development to support enhanced collaboration with customers and 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 Q2 2026 compared to Q2 2025, 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 previously announced contracts. 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) periodically shuttering production to rebalance vehicle inventory levels. The business continued its focus on cost management, operational efficiencies, automation and diversification into adjacent product sectors. Management also continued its focus on 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 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
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, August 6, 2026. Please go to https://www.gowebcasting.com/14764 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: 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 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 to EBITDA and Adjusted EBITDA is below.

In 2026, the Manufactured Products segment 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 in the third and fourth quarters of 2025, and $212 during the first quarter of 2026.

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 to these measures 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.

The Company has a Net Debt to trailing twelve-month Adjusted EBITDA ratio of 2.12x (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.

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 www.sedarplus.com.

Investor Contact: investor.relations@airboss.com

Media Contact: media@airboss.com

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AirBoss of America