AirBoss reports higher sales, stronger margins in fourth quarter and full-year 2025

Newmarket, ONT — AirBoss of America Corp. reported higher revenue and improved profitability in the fourth quarter and full year of 2025, driven largely by strong demand in its defense products business and improvements in its manufactured products segment.

The rubber-based products manufacturer said consolidated net sales for the fourth quarter rose 15.3% to $106.0 million compared with the same period a year earlier. The increase was led by higher volumes in the company’s manufactured products division, which includes defense-related products, partially offset by weaker results in its rubber solutions segment.

For the full year, AirBoss reported net sales of $410.2 million, a 6.0% increase from 2024. The company said the gain was mainly driven by significantly higher sales in its defense products business and improved performance in rubber molded product lines.

Fourth-quarter gross profit rose to $19.9 million, up $4.6 million from the same quarter in 2024, reflecting stronger sales in manufactured products. For the full year, gross profit increased to $71.1 million, compared with $54.0 million in 2024.

Gross profit margins also improved, with margins reaching 17.3% in 2025 compared with 14.0% in the previous year. The company attributed the increase primarily to improved margins from newly awarded defense contracts and operational improvements in its rubber molded products operations.

Adjusted EBITDA rose sharply during the year, increasing 55.1% for 2025 and 64.6% in the fourth quarter compared with the same periods in 2024.

Despite the stronger results overall, AirBoss reported continued softness in its Rubber Solutions segment. Fourth-quarter net sales in that segment declined 3.3% to $45.8 million, while full-year sales fell 9.3% as volumes dropped across most sectors amid ongoing economic headwinds.

Meanwhile, the company’s Manufactured Products segment posted significant growth. Fourth-quarter net sales in the segment climbed 50.4% to $72.5 million, and full-year sales increased 35.4% to $239.2 million, supported by higher volumes in the defense products business and stronger rubber molded product sales.

AirBoss, which produces rubber compounds, engineered rubber products and protective equipment for defense and industrial markets, said the results reflect continued momentum in its defense operations while broader industrial markets remain challenging.

The company also generated about $21 million in operating cash flow in the fourth quarter, supporting its quarterly dividend and contributing to a stronger balance sheet.

AirBoss shares trade on the Toronto Stock Exchange under the symbol BOS.