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Airboss of America (TSE:BOS)
TSX:BOS
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Airboss of America (BOS) AI Stock Analysis

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TSE:BOS

Airboss of America

(TSX:BOS)

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Neutral 53 (OpenAI - 4o)
Rating:53Neutral
Price Target:
C$5.50
▲(5.36% Upside)
Airboss of America's stock score reflects a challenging financial environment with some positive technical indicators. The company's financial performance is mixed, with improvements in cash flow but ongoing profitability issues. The technical analysis shows a positive trend, but valuation concerns persist due to negative earnings. The earnings call provided a cautiously optimistic outlook, focusing on strategic initiatives amidst economic uncertainties.
Positive Factors
Revenue Growth
The increase in consolidated sales indicates a positive trend in revenue growth, suggesting that the company is expanding its market reach and product adoption, which is crucial for long-term sustainability.
Debt Reduction
Reduction in net debt enhances financial flexibility and reduces interest expenses, allowing the company to allocate more resources towards growth initiatives and strategic investments.
Cash Flow Improvement
Improved free cash flow indicates better cash generation ability, providing the company with more liquidity to invest in growth opportunities and manage financial obligations effectively.
Negative Factors
Profitability Challenges
Negative net profit margin highlights ongoing profitability issues, which can hinder the company's ability to reinvest in the business and provide returns to shareholders, impacting long-term growth.
Market Softness
Market softness and external economic pressures can affect demand and pricing power, leading to reduced revenue and profitability, posing a risk to the company's financial health.
Supply Chain Challenges
Supply chain disruptions can lead to delays in product delivery and increased costs, affecting operational efficiency and customer satisfaction, which are critical for maintaining competitive advantage.

Airboss of America (BOS) vs. iShares MSCI Canada ETF (EWC)

Airboss of America Business Overview & Revenue Model

Company DescriptionAirBoss of America Corp., together with its subsidiaries, develops, manufactures, and markets rubber-based products for automotive, heavy commercial, construction and infrastructure, oil and gas, and defense industries in Canada, the United States, and internationally. It operates through three segments: AirBoss Defense Group, Rubber Solutions, and Engineered Products. The AirBoss Defense Group segment develops, manufactures, and sells healthcare protective equipment, personal respiratory protective products, rapid deployment negative pressure isolation shelters, and cold weather combat footwear, as well as chemical, biological, radioactive, nuclear, and explosive protective equipment for military, law enforcement, healthcare and industrial providers, and first responders. The Rubber Solutions segment is involved in the development and manufacture of custom rubber formulations and compounds, calendered and extruded materials, and molded products for use in various applications and industries, including automotive, heavy industry, rollers, conveyor belting, defense, construction and infrastructure, mining, transportation, and oil and gas. The Engineered Products segment designs, engineers, manufactures, and sells rubber, synthetic rubber, and rubber-to-metal bonded products that are used to eliminate or control undesired vibration and noise for use in automotive, electric vehicle, heavy truck and off-highway, industrial, and defense industries. The company was formerly known as IATCO Industries Inc. and changed its name to AirBoss of America Corp. in April 1994. AirBoss of America Corp. is headquartered in Newmarket, Canada.
How the Company Makes MoneyAirBoss of America generates revenue through the manufacturing and sale of its specialized rubber and protective products. Key revenue streams include the sale of custom rubber compounds, engineered defense products like chemical, biological, radiological, and nuclear (CBRN) protective gear, and automotive components that reduce noise and vibration. The company benefits from significant partnerships and contracts with government agencies, automotive manufacturers, and industrial clients, ensuring a steady demand for its products. Additionally, AirBoss capitalizes on its expertise in producing high-performance materials to enter new markets and secure long-term contracts, contributing to its financial growth.

Airboss of America Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with notable achievements in the Manufactured Products segment, improved cash flow, and debt reduction. However, these positives were balanced by significant challenges, including decreased sales and margins in Rubber Solutions, ongoing economic and geopolitical uncertainties, and supply chain disruptions affecting key programs.
Q2-2025 Updates
Positive Updates
Increase in Consolidated Sales
Consolidated sales increased by 3.4% compared to Q2 2024, with net sales amounting to $98.6 million in Q2 2025.
Growth in Manufactured Products
Net sales at Manufactured Products increased by 35.2% to $55 million, with a gross profit increase from negative $1.8 million to $9.6 million, driven by improvements in the Defense Products business.
Gross Profit and EBITDA Improvement
Gross profit increased by $7.7 million to $16.2 million, and adjusted EBITDA improved to $10.2 million from $6.1 million in the previous year.
Free Cash Flow Increase
Free cash flow for Q2 2025 was $11.2 million, up from $7.3 million in Q2 2024.
Debt Reduction
Net debt balance decreased to $86.3 million from $98.9 million at the end of 2024.
Negative Updates
Decrease in Rubber Solutions Sales
Net sales at AirBoss Rubber Solutions decreased by 13.7% to $50.9 million, with a volume decrease of 15.9%.
Market Softness and Economic Uncertainty
Challenges include market softness, tariffs, inflationary pressures, and geopolitical uncertainties, affecting industrial output and compounding market.
Supply Chain Challenges
Delays in the Bandolier program due to supply chain issues, affecting revenue timing and causing operational inefficiencies.
Tariff Impact on Rubber Molded Products
Challenges in the rubber molded products segment due to evolving tariffs, affecting production schedules and operational costs.
Gross Margin Decline at Rubber Solutions
Gross margin percentage decreased to 13% from 17.4% due to unfavorable mix and lower volumes.
Company Guidance
During the AirBoss of America Second Quarter 2025 Conference Call, the company provided detailed guidance on its financial performance and strategic outlook. The consolidated net sales for Q2 2025 increased by 3.4% to $98.6 million compared to the previous year. The gross profit rose by $7.7 million to $16.2 million, and the adjusted EBITDA improved by just over $4 million, reaching $10.2 million. The Manufactured Products segment saw a net sales increase of 35.2% to $55 million, driven by the Defense Products business, while AirBoss Rubber Solutions experienced a 13.7% decline in net sales to $50.9 million due to market softness and economic uncertainty. The company's free cash flow increased to $11.2 million, and net debt decreased to $86.3 million by the end of Q2 2025. Despite economic and geopolitical challenges, AirBoss is executing contingency plans, focusing on cost management, and leveraging U.S. capacity to capitalize on reshoring opportunities, while continuing to invest in specialized products and core competencies to drive long-term growth.

Airboss of America Financial Statement Overview

Summary
Airboss of America is facing profitability challenges with negative net income and return on equity. Despite improvements in cash flow and gross profit margins, the company struggles with consistent revenue growth and operational efficiency.
Income Statement
45
Neutral
Airboss of America has faced declining revenue and profitability over recent years. The TTM data shows a slight improvement in gross profit margin to 15.00%, but net profit margin remains negative at -4.08%. The company has struggled with consistent revenue growth, showing an 84.1% increase in the latest TTM period, but this follows a period of significant revenue decline. EBIT and EBITDA margins have improved but remain low, indicating ongoing operational challenges.
Balance Sheet
50
Neutral
The balance sheet shows a moderate debt-to-equity ratio of 0.95 in the TTM period, indicating manageable leverage. However, the return on equity is negative, reflecting ongoing losses. The equity ratio stands at 40.73%, suggesting a stable capital structure, but the company needs to improve profitability to enhance shareholder value.
Cash Flow
55
Neutral
Cash flow performance has shown some improvement, with a positive free cash flow growth rate of 39.19% in the TTM period. The operating cash flow to net income ratio is 0.25, indicating some ability to convert earnings into cash. However, the free cash flow to net income ratio is below 1, suggesting room for improvement in cash generation relative to earnings.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue391.91M387.02M426.02M477.15M586.86M501.57M
Gross Profit66.01M54.00M58.41M24.13M136.30M135.92M
EBITDA28.41M13.68M-11.18M-12.77M79.59M100.38M
Net Income-4.04M-20.39M-41.75M-31.89M46.70M56.26M
Balance Sheet
Total Assets311.79M309.53M356.66M440.77M443.26M367.37M
Cash, Cash Equivalents and Short-Term Investments5.62M6.49M28.99M18.55M7.13M86.97M
Total Debt102.70M117.43M131.34M143.69M80.61M90.73M
Total Liabilities184.81M183.52M207.80M243.77M208.12M172.78M
Stockholders Equity126.97M126.01M148.86M197.00M235.15M194.59M
Cash Flow
Free Cash Flow13.80M-1.85M32.41M-40.97M-15.97M89.47M
Operating Cash Flow22.60M8.78M40.92M-30.77M2.02M104.40M
Investing Cash Flow-8.78M-10.61M-8.46M-10.19M-64.56M-8.54M
Financing Cash Flow-25.37M-20.79M-22.20M52.20M-17.53M-9.59M

Airboss of America Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5.22
Price Trends
50DMA
5.14
Positive
100DMA
4.80
Positive
200DMA
4.30
Positive
Market Momentum
MACD
0.01
Positive
RSI
51.26
Neutral
STOCH
42.18
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BOS, the sentiment is Positive. The current price of 5.22 is above the 20-day moving average (MA) of 5.21, above the 50-day MA of 5.14, and above the 200-day MA of 4.30, indicating a bullish trend. The MACD of 0.01 indicates Positive momentum. The RSI at 51.26 is Neutral, neither overbought nor oversold. The STOCH value of 42.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:BOS.

Airboss of America Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
C$1.45B32.2218.69%28.47%196.88%
59
Neutral
C$844.04M-58.10-2.57%1.97%0.44%-434.16%
53
Neutral
C$137.92M-3.15%2.76%2.58%92.55%
52
Neutral
C$780.22M-82.94-114.11%331.08%15.77%
48
Neutral
C$249.28M-307.97-1.45%39.78%72.34%
45
Neutral
C$132.68M-12.1168.75%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:BOS
Airboss of America
5.22
0.24
4.82%
TSE:ECO
EcoSynthetix
4.25
-0.20
-4.49%
TSE:NANO
Nano One Materials
1.30
0.15
13.04%
TSE:VNP
5N Plus
16.46
9.90
150.91%
TSE:NEO
Neo Performance Materials Inc
20.22
12.42
159.23%
TSE:HG
Hydrograph Clean Power
2.36
2.26
2260.00%

Airboss of America Corporate Events

Business Operations and StrategyFinancial Disclosures
AirBoss of America Reports Strong Q2 2025 Results Amid New Production Awards
Positive
Aug 7, 2025

AirBoss of America Corp. reported a significant improvement in its financial performance for the second quarter of 2025, with adjusted EBITDA increasing to $10.2 million and net profit rising to $2.3 million. The company secured new production awards in its rubber molded products business, expected to generate substantial sales over the next five years, and is optimistic about opportunities arising from increased defense spending by NATO countries. Despite economic and geopolitical challenges, AirBoss remains focused on operational execution and cost management to mitigate adverse effects.

The most recent analyst rating on (TSE:BOS) stock is a Hold with a C$5.00 price target. To see the full list of analyst forecasts on Airboss of America stock, see the TSE:BOS Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 30, 2025