Q2 2026 AirBoss of America Corp Earnings Call Transcript
Key Points
- AirBoss of America Corp (ABSSF) achieved a three-year high in quarterly revenue and a year-over-year gross profit improvement of over $2.5 million in Q2 2026.
- AirBoss Rubber Solutions (ARS) saw revenue hit a 12-month high and volume grow for three consecutive quarters, with non-tolling volume up 17.5% year-over-year.
- AirBoss Manufactured Products (AMP) reported a 14% year-over-year revenue increase and nearly 20% gross profit improvement, driven by defense and rubber molded products.
- The company is expanding its product portfolio with a new silicone line and planning further innovations, which are expected to improve margin profiles over time.
- Management remains optimistic about continued growth at ARS, citing new customer onboarding and a potential strong recovery in the U.S. industrial base.
- Adjusted EBITDA in Q2 2026 was lower by $719,000 compared to the prior year, partly due to a one-time $3.7 million legal settlement in Q2 2025.
- AirBoss Rubber Solutions experienced margin contraction, with gross margin % declining to 12.2% from 13% year-over-year, due to market volatility and unfavorable mix.
- The company faces a challenging competitive environment with aggressive pricing from competitors due to open capacity in a slow U.S. industrial market.
- Raw material costs are rising due to Middle East geopolitical tensions, creating pressure on margins and requiring careful price pass-through strategies.
- Management expects continued volume and margin volatility at ARS through most of 2026, with potential softness in AMP's defense products in Q3 as a major contract concludes.
Thank you for standing by. My name is Key and I will be your conference operator today. At this time, I would like to welcome everyone to Q2 2026 conference call for Airballs of America.
(Operator Instructions) I would now like to turn the call over to Gren Schoch, Chairman and Co-CEO. Please go ahead.
Thank you, operator. Good morning, everyone. Thank you for joining us for the AirBoss second quarter results conference call. I'm Gren Schoch, I'm the Chairman and Co-CEO of AirBoss of America. With me here today are Chris Bitsakakis, President and Co-CEO, Frank Ientile, our CFO, Chris Figel, our EVP and General Counsel. Before we begin, I'd like to remind listeners that our remarks today contain forward-looking statements, including our estimates of future developments.
We invite listeners to review risk factors related to our business in our annual information form and our MD&A, both of which are available on SEDAR, plus on our corporate website. We'll discuss
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