Canada's AirBoss Q1 revenue rises 0.6% on defense growth

Airboss of America

06/05/2026 22:17

Overview

Canada rubber products and defense supplier's Q1 revenue rose 0.6% yr/yr

Adjusted EBITDA for Q1 increased 13.6% yr/yr, driven by defense and molded rubber businesses

Rubber Solutions segment saw revenue and margin contraction due to market softness and economic headwinds

Outlook

Company expects continued volume volatility at Rubber Solutions through 2026

AirBoss says economic uncertainty, tariffs and inflation may impact results

Company remains focused on operational discipline and converting key opportunities for growth

Result Drivers

DEFENSE CONTRACTS - Higher sales and improved margins at Manufactured Products were driven by ongoing deliveries under previously awarded defense contracts

MARKET SOFTNESS - Rubber Solutions segment saw revenue and margin contraction due to softness across most sectors, unfavorable mix, lower volumes, and economic headwinds including tariffs and higher input costs

COST MANAGEMENT - Company said it remained focused on disciplined cost management, operational execution and continuous improvement initiatives amid economic and geopolitical uncertainty

Company press release: ID:nGNX7y4TN

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Miss
$105.77 mln
$115.64 mln (2 Analysts)
Q1 Adjusted EBITDA
Slight Beat*
$9.12 mln
$9.10 mln (2 Analysts)
Q1 EBITDA
$8.91 mln
Q1 Free Cash Flow
-$189,000
Q1 Net Debt
$69.19 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the tires & rubber products peer group is "buy"

Wall Street's median 12-month price target for AirBoss of America Corp is C$7.50, about 10.9% above its May 5 closing price of C$6.76

The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 15 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)