Unlock stock picks and a broker-level newsfeed that powers Wall Street.

AirBoss of America Corp (ABSSF) Q4 2024 Earnings Call Highlights: Navigating Challenges with ...

In This Article:

  • Consolidated Net Sales: $92 million in Q4 2024, a decrease of 0.8% from Q4 2023.

  • Consolidated Gross Profit: Increased by $10.2 million to $15.3 million in Q4 2024 compared to Q4 2023.

  • ARS Net Sales: $47.3 million in Q4 2024, a decrease of 13.1% from Q4 2023.

  • ARS Volume Decrease: 22.5% overall, with tolling volume down 39% and non-tolling volume down 21.7%.

  • ARS Gross Profit: $5.9 million in Q4 2024, down from $7.8 million in Q4 2023.

  • A&P Net Sales: $48.2 million in Q4 2024, an increase of 9.4% from Q4 2023.

  • A&P Gross Profit: $9.4 million in Q4 2024, compared to a loss of $2.7 million in Q4 2023.

  • Net Cash Provided by Operating Activities: $8.8 million for the year ended December 2024, down from $40.9 million in 2023.

  • Free Cash Flow: Negative $1.8 million for the year ended December 2024, compared to $32.5 million in 2023.

  • Capital Investments: $4.4 million by ARS and $5.5 million by A&P for the year ended December 2024.

  • Net Debt Balance: $98.9 million as of December 31, 2024, compared to $88.2 million at the end of 2023.

  • Available Credit Facility: $79.4 million available under the asset-based revolving credit facility as of December 30, 2024, with $52.7 million drawn.

Release Date: March 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • AirBoss of America Corp (ABSSF) secured over $200 million in government contracts for its defense division, indicating strong future revenue potential.

  • The company's defense business saw improvements in both revenue and gross profit, driven by new business awards.

  • AirBoss launched a new silicone production line, which has been well-received by customers and is already in full production.

  • The company has contingency plans in place to mitigate potential impacts from tariffs, including shifting production between the US and Canada.

  • AirBoss reported an increase in consolidated gross profit for Q4 2024, primarily due to improvements in the defense products business and operational cost improvements.

Negative Points

  • AirBoss of America Corp (ABSSF) experienced a decrease in consolidated net sales for Q4 2024, primarily due to lower volumes at AirBoss Rubber Solutions.

  • The company faces significant geopolitical and tariff risks, which could impact its cross-border operations and sales.

  • AirBoss Rubber Solutions saw a 13.1% decrease in net sales and a 22.5% decrease in volume for Q4 2024 compared to the previous year.

  • The rubber-molded products business continued to experience volume softness due to OEMs reducing production to rebalance inventory levels.

  • Free cash flow for the year ended December 2024 was negative $1.8 million, a significant decline from $32.5 million in 2023.