Consolidated Revenue Growth
Consolidated net sales for Q4 2025 were $106.0M, up 15.3% from $92.0M in Q4 2024, and full-year sales were $410.2M, up 6% from $387.0M in 2024. Management cited a $23M increase in consolidated revenue year-over-year.
Improved Profitability and Gross Margin Expansion
Consolidated gross profit for Q4 2025 increased 30.4% to $19.9M. Full-year gross profit rose to $71.1M (17.3% of sales) from $54.0M (14% of sales) in 2024, reflecting improved margins driven largely by AMP performance and cost controls.
Strong AMP Performance
AirBoss Manufactured Products (AMP) net sales for Q4 2025 were $72.5M, up 50.4% year-over-year. AMP gross profit increased to $14.7M from $9.4M in Q4 2024, driven by defense contract deliveries (including the high-volume MALO overboot program), margin improvements in rubber molded products, and operational cost improvements.
Significant Cash Generation and Free Cash Flow Turnaround
Net cash provided by operating activities for the year was $49.1M versus $8.8M in 2024. Free cash flow for 2025 was $37.3M compared with negative $1.8M in 2024, a material improvement in cash generation.
Deleveraging and Stronger Balance Sheet
Net debt fell to $67.6M at December 31, 2025 from $98.9M at the end of 2024. Net debt to trailing 12-month adjusted EBITDA improved to 1.99x versus 4.51x at the end of Q4 2024. Adjusted EBITDA increased by $12M year-over-year.
Liquidity and Financing Capacity
The asset-based revolving credit facility provides up to $125M (with $25M accordion). As of Dec 31, 2025, $71.5M was available and $24.3M was drawn, supporting 2026 operating needs and capital plans.
Operational Improvements and Strategic Wins
Completed relocation of Jessup, MD operations to Auburn Hills, MI to optimize footprint. Company completed contingency work moving compounded products from Canada to a southern location to mitigate tariff risk and secured new defense awards contributing to near-term revenue and margin gains.