AirBoss of America (BOS) Q2 2026 earnings summary

Executive summary

• Achieved a three-year high in quarterly revenue, with net sales up 9.4% year-over-year to $107.9 million, driven by defense and rubber molded products, and increased sales at Rubber Solutions.

• Gross profit and diluted EPS improved due to higher gross profits, lower G&A, and reduced finance costs, with basic adjusted profit per share rising to $0.09 in Q2 2026.

• Focused on servicing existing customers, developing new markets, and building flexible supply chains, with strategic emphasis on innovation, efficiency, and sector diversification.

• Aggressive efficiency improvements, plant consolidation, and board changes supported profitability and governance.

• Returned to normalized growth post-pandemic, supported by specialty product initiatives and ongoing dividend payments.

Financial highlights

• Q2 2026 consolidated net sales were $107.9 million, up from $98.6 million in Q2 2025; gross profit increased by $2.6 million to $18.8 million, with gross margin rising to 17.4% from 16.4% year-over-year.

• Adjusted EBITDA for Q2 2026 was $8.4 million to $9.5 million, down $719,000 year-over-year due to a prior-year $3.7 million legal settlement.

• Profit for Q2 2026 was $2.5 million, with EPS (FD) of $0.09, compared to a loss in Q2 2025.

• Net cash from operating activities was $1.8 million, down from $12.9 million in Q2 2025; free cash flow was negative at $(2.2) million.

• Capital expenditures rose to $4 million in Q2 2026, up from $1.8 million in Q2 2025.

Outlook and guidance

• Management expects continued volume and margin volatility at Rubber Solutions through most of 2026, with recovery dependent on market and geopolitical factors.

• Optimism for continued growth in defense and non-automotive sectors, leveraging new contracts, cross-selling, and specialty elastomers.

• Margin profile in Manufactured Products may soften in Q3 as large defense contracts wind down, but automotive and non-automotive volumes remain robust.

• Focus remains on disciplined cost management, operational execution, and strategic investment to support long-term growth.

• Strategic acquisitions and innovation are expected to drive future growth.