Airboss reports higher first quarter profit

Newmarket, ONT — AirBoss of America Corp. reported higher first-quarter profit and adjusted EBITDA Tuesday as growth in its defense products business and improved performance in rubber molded products offset continued softness in industrial markets.

The company reported profit of $2.1 million for the quarter ended March 31, compared with a loss of $408,000 in the same period a year earlier. Adjusted profit rose to $2.3 million from a loss of $408,000 a year earlier.

Adjusted EBITDA increased 13.6% to $9.1 million from $8 million in the prior-year quarter.

Net sales rose 0.6% to $105.8 million, driven primarily by stronger sales in the AirBoss Manufactured Products segment, including a 10% increase in defense products sales tied to deliveries under previously awarded contracts.

Co-CEO Chris Bitsakakis said the company delivered a solid start to 2026 despite continued economic and geopolitical uncertainty, including tariffs, inflationary pressures and market volatility across several customer sectors.

The Rubber Solutions segment reported a 5.7% decline in sales to $53.8 million as weakness across several industrial sectors and ongoing economic headwinds reduced demand. Gross profit in the segment fell 18.3% to $6.9 million because of unfavorable product mix, margin pressure and lower volumes.

At AirBoss Manufactured Products, sales increased 16.5% to $62.5 million, supported by growth in both the defense products and rubber molded products businesses. Gross profit for the segment rose to $12.2 million from $10 million a year earlier.

The company said the defense business benefited from ongoing deliveries tied to previously announced contract awards, while the rubber molded products operation saw improved volumes in both automotive and non-automotive markets.

AirBoss said it continues to manage uncertainty related to tariffs, inflation and supply-chain disruptions while pursuing long-term growth initiatives focused on specialty rubber compounds, operational efficiencies and expansion into adjacent markets.

The company’s net debt-to-adjusted EBITDA ratio improved slightly to 1.97 times from 1.99 times at the end of 2025.

AirBoss also declared a quarterly dividend of 3.5 Canadian cents per common share, payable July 15 to shareholders of record as of June 30.