Superior Group of Companies (SGC) Q2 2026 earnings summary

Executive summary

• Net sales for Q2 2026 increased 2.6% year-over-year to $147.8 million, driven by growth in Branded Products, while Healthcare Apparel and Contact Centers declined.

• Adjusted EBITDA rose 26.6% to $7.7 million, with adjusted EPS more than doubling to $0.21, reflecting strength in Branded Products and Contact Centers.

• Net income for Q2 2026 was $1.2 million ($0.08 per diluted share), down from $1.6 million ($0.10 per share) last year, primarily due to a $2.6 million non-cash tradename impairment charge in Healthcare Apparel.

• Results reflect benefits from a diversified business model, ongoing margin improvement initiatives, and continued investments in sales talent, marketing, and technology.

• A quarterly dividend of $0.14 per share was declared.

Financial highlights

• Gross margin for Q2 2026 was 38.0% (down 40 basis points year-over-year), with gross profit of $56.1 million.

• Adjusted net income, excluding impairment, was $3.2 million ($0.21 per diluted share), up from $1.6 million ($0.10 per share) year-over-year.

• SG&A as a percent of sales improved to 34.7%.

• Net interest expense declined to $981,000 from $1.25 million year-over-year.

• Operating cash flow for the first half was $17.7 million, up from $2.9 million in the prior year period.

Outlook and guidance

• Full-year 2026 net sales expected at $572–$585 million, with adjusted diluted EPS of $0.54–$0.66, above last year’s $0.46.

• Guidance remains unchanged, reflecting a back half weighted cadence and ongoing margin pressure in Healthcare Apparel.

• Management expects stronger results in the second half of the year due to seasonal factors and continued growth in Branded Products.

• Ongoing monitoring of global trade agreements and tariffs, with potential cost impacts if agreements are not renewed beyond December 2026.

• Uncertainty remains regarding inflation, interest rates, and global geopolitical risks.