AirBoss of America (BOS) Q4 2025 earnings summary

Executive summary

• 2025 saw marked improvement over 2024, with consolidated revenue up $23M, adjusted EBITDA up $12M, and free cash flow of $37M, reducing net debt to $67.6M from $98.9M.

• Adjusted EBITDA for Q4 2025 rose to $8.4M, up $3.3M year-over-year, and full-year Adjusted EBITDA increased by $12.1M to $34.0M, reflecting strong operational execution and cost management.

• AMP/Manufactured Products delivered strong results, especially in defense and rubber molded products, while ARS/Rubber Solutions faced significant market softness due to tariffs and supply chain shifts.

• Strategic review completed, with focus shifting to core growth in defense and rubber solutions, leveraging NATO defense spending and expanding into non-automotive sectors.

• Net loss for 2025 narrowed to $8.6M from $20.4M in 2024, primarily due to restructuring and non-cash asset impairment charges.

Financial highlights

• Q4 2025 consolidated net sales were $106M, up 15.3% from $92M in Q4 2024; gross profit rose 30.4% to $19.9M.

• Full-year 2025 net sales reached $410.2M, up 6% from $387M in 2024; gross profit improved to $71.1M (17.3% of sales) from $54M (14%).

• Adjusted EBITDA for 2025 was $33.99M, up 55% year-over-year; basic adjusted EPS was $0.07, compared to a loss of $0.46 in 2024.

• Net cash from operating activities was $49.1M vs $8.8M in 2024; free cash flow was $37.3M vs -$1.8M.

• Q4 2025 profit impacted by $7.5M in non-cash asset impairment and restructuring, reducing EPS by $0.28.

Outlook and guidance

• Volume recovery at ARS/Rubber Solutions expected to begin mid-2026, driven by new customer launches and returning demand, though timing and magnitude remain uncertain.

• 2026 will see moderate CapEx increase and working capital investment, with some cash burn anticipated.

• Management remains focused on long-term growth, risk mitigation, and leveraging defense sector opportunities, with ongoing expansion into new markets.