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Airboss of America (TSE:BOS)
:BOS

Airboss of America (BOS) AI Stock Analysis

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Airboss of America

(TSX:BOS)

42Neutral
AirBoss of America's overall stock score is primarily pressured by poor financial performance, characterized by declining revenues and negative cash flows. While recent technical trends and corporate events show some positive developments, financial instability and valuation challenges remain significant hurdles. The earnings call presents both opportunities and risks, keeping the score moderate. The company needs to address these challenges to achieve a meaningful recovery.
Positive Factors
Earnings Performance
Strong results in Q4/24 indicate margin recovery is progressing.
Investor Interest
Pending index inclusion suggests increased visibility and potential investor interest.
Market Opportunities
Winning market share and new growth opportunities are highlighted as key strengths.
Negative Factors
Growth Challenges
A search for growth is highlighted, indicating some challenges in achieving desired expansion.
Industrial Challenges
Industrial weakness and tariffs are expected to limit performance.
Tariff and ARS Headwinds
Tariff uncertainty and ARS headwinds are offsetting positive developments.

Airboss of America (BOS) vs. S&P 500 (SPY)

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 sale of its diverse range of rubber-based products and solutions. The Rubber Solutions segment provides custom rubber compounds to various industries, including automotive and industrial, generating revenue through contract manufacturing and bulk sales. The Engineered Products segment focuses on the production and sale of molded and extruded products, such as anti-vibration components for automotive applications. The AirBoss Defense Group contributes significantly to revenue by supplying protective equipment and materials for defense and first responder markets. Key revenue streams include direct sales to OEMs, government contracts, and long-term supply agreements with various industries. Strategic partnerships and a focus on innovation and quality contribute to the company's earnings by enhancing its market position and expanding its product offerings.

Airboss of America Financial Statement Overview

Summary
Airboss of America faces significant financial challenges with declining revenues, negative profitability, and strained cash flows. While the balance sheet shows moderate leverage, continued losses raise concerns about long-term financial stability. Strategic improvements in operational efficiency and cash flow management are crucial for recovery.
Income Statement
35
Negative
The company shows a declining revenue trend with a TTM decrease to $387M from $426M in the previous year. Gross profit margin remains moderate at 13.9% for TTM, but net profit margin is negative due to continued net losses, indicating profitability challenges. Negative EBIT and EBITDA margins further highlight operational inefficiencies.
Balance Sheet
40
Negative
The balance sheet indicates moderate leverage with a debt-to-equity ratio of 0.93 in TTM, slightly improving from 0.88 in the prior year. Stockholders' equity continues to decline, suggesting potential financial instability. The equity ratio is at 40.7%, indicating moderate reliance on equity to finance assets.
Cash Flow
30
Negative
Free cash flow turned negative in TTM, driven by a decline in operating cash flow and increased capital expenditures. The operating cash flow to net income ratio is unfavorable due to negative net income. Cash flow management remains a concern, impacting financial flexibility.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
387.02M426.02M477.15M586.86M501.57M
Gross Profit
54.00M58.41M24.13M136.30M135.92M
EBIT
-5.95M-33.52M-34.67M58.71M82.20M
EBITDA
13.68M-11.18M-12.77M79.59M100.38M
Net Income Common Stockholders
-20.39M-41.75M-31.89M46.70M56.26M
Balance SheetCash, Cash Equivalents and Short-Term Investments
6.49M28.99M18.55M7.13M86.97M
Total Assets
309.53M356.66M440.77M443.26M367.37M
Total Debt
117.43M131.34M143.69M80.61M90.73M
Net Debt
110.94M102.36M125.14M73.48M3.76M
Total Liabilities
183.52M207.80M243.77M208.12M172.78M
Stockholders Equity
126.01M148.86M197.00M235.15M194.59M
Cash FlowFree Cash Flow
-1.85M32.41M-40.97M-15.97M89.47M
Operating Cash Flow
8.78M40.92M-30.77M2.02M104.40M
Investing Cash Flow
-10.61M-8.46M-10.19M-64.56M-8.54M
Financing Cash Flow
-20.79M-22.20M52.20M-17.53M-9.59M

Airboss of America Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4.16
Price Trends
50DMA
3.79
Positive
100DMA
3.85
Positive
200DMA
4.15
Negative
Market Momentum
MACD
0.06
Negative
RSI
54.88
Neutral
STOCH
82.06
Negative
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 4.16 is above the 20-day moving average (MA) of 3.87, above the 50-day MA of 3.79, and above the 200-day MA of 4.15, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 54.88 is Neutral, neither overbought nor oversold. The STOCH value of 82.06 is Negative, 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 (49)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSNEO
68
Neutral
C$464.67M-3.70%3.60%-12.01%-698.83%
TSVNP
65
Neutral
C$688.30M22.6415.41%28.27%36.49%
TSECO
56
Neutral
C$234.12M-3.46%29.27%42.35%
49
Neutral
$1.97B-1.18-21.24%3.71%1.29%-31.16%
45
Neutral
C$78.01M-84.80%13.34%
TSHG
44
Neutral
C$64.38M-92.35%-55.51%11.84%
TSBOS
42
Neutral
C$108.25M-11.69%3.36%-2.69%66.63%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:BOS
Airboss of America
3.99
-1.90
-32.26%
TSE:NEO
Neo Performance Materials Inc
11.02
5.22
90.00%
TSE:VNP
5N Plus
8.19
3.01
58.11%
TSE:ECO
EcoSynthetix
4.00
-0.70
-14.89%
TSE:NANO
Nano One Materials
0.68
-1.24
-64.58%
TSE:HG
Hydrograph Clean Power
0.25
0.09
56.25%

Airboss of America Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q4-2024)
|
% Change Since: 6.39%|
Next Earnings Date:Aug 19, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed sentiment. While there were significant achievements in the defense sector and an increase in gross profit, the company faced challenges with reduced volumes and potential tariff impacts. The introduction of the silicone line and improvements in defense contracts are positive, but these are offset by volume reductions and cash flow issues.
Q4-2024 Updates
Positive Updates
Strong Performance in Defense Segment
The defense business saw improvements in both revenue and gross profit, driven by new business awards and a strong order backlog, expected to continue into 2025 with over $200 million in government contracts.
Increased Gross Profit
Consolidated gross profit for Q4 of 2024 increased by $10.2 million to $15.3 million compared to Q4 of 2023, primarily due to an $8 million non-cash write-down in 2023 and improvements in defense products.
Successful Launch of Silicone Line
The launch of a new silicone line has been successful, with internal products converted to the new silicone and trials underway with external customers, positioning the company for expanded margins.
Increase in AMP Sales
Net sales for AirBoss Manufactured Products (AMP) in Q4 2024 increased by 9.4% compared to Q4 of 2023 due to higher volumes in the defense products business.
Negative Updates
Overall Volume Reduction
AirBoss experienced an overall volume reduction in Q4 2024, primarily driven by reductions in the rubber molded products business and lower volumes at AirBoss Rubber Solutions (ARS).
Decreased Net Sales in ARS
Net sales at AirBoss Rubber Solutions (ARS) for Q4 2024 decreased by 13.1% compared to Q4 2023, with a volume decrease of 22.5% across most customer sectors.
Negative Free Cash Flow
For the year ended December 2024, free cash flow was negative $1.8 million, a significant decline from $32.5 million in 2023.
Potential Impact of Tariffs
The company faces potential challenges due to the threat of tariffs and geopolitical uncertainties, which could affect cross-border operations and customer demand.
Company Guidance
In the AirBoss of America Fourth Quarter 2024 conference call, management provided guidance reflecting both challenges and opportunities for the upcoming year. The company is entering 2025 with over $200 million in government contracts, primarily in its defense business, despite facing economic headwinds and market softness in 2024. AirBoss is focused on executing these contracts and converting key opportunities aligned with its strategic plan. The company's ARS segment experienced a 13.1% decrease in net sales to $47.3 million, while AMP saw a 9.4% increase to $48.2 million in Q4 2024. The firm is also navigating potential impacts from tariffs, particularly concerning products manufactured in Canada and sold into the U.S., and is actively evaluating contingency plans. The launch of a new silicone production line is expected to support margin expansion. Looking ahead, management aims to sustain growth by diversifying its product range, enhancing operational efficiencies, and exploring acquisition opportunities while being mindful of geopolitical risks and trade restrictions that could affect its cross-border operations.

Airboss of America Corporate Events

Executive/Board ChangesShareholder Meetings
AirBoss of America Announces Board Election Results
Positive
May 8, 2025

AirBoss of America Corp. announced the election of its board of directors at the Annual General Meeting in Waterloo, Ontario. The meeting saw high approval rates for the nominated directors and the appointment of KPMG LLP as auditors, indicating strong shareholder support. This outcome is expected to reinforce the company’s strategic direction and stability, benefiting its stakeholders and maintaining its competitive positioning in the industry.

Spark’s Take on TSE:BOS Stock

According to Spark, TipRanks’ AI Analyst, TSE:BOS is a Neutral.

AirBoss of America’s stock faces significant challenges primarily due to poor financial performance with declining revenues and negative cash flows. Despite some positive developments in the defense segment and technical indicators, the stock is weighed down by financial instability and valuation issues. Earnings call and corporate events provide some optimism, but risks from geopolitical factors and operational inefficiencies need addressing for a meaningful recovery.

To see Spark’s full report on TSE:BOS stock, click here.

Business Operations and StrategyFinancial Disclosures
AirBoss of America Sees Financial Uplift in Q1 2025 Amid Defense Contract Wins
Positive
May 7, 2025

AirBoss of America Corp. reported a significant improvement in its financial results for the first quarter of 2025, with EBITDA increasing to $8.0 million and a reduction in losses to $0.4 million. The company commenced shipments under a substantial defense contract and secured additional orders, reflecting a recovery in its defense business. Despite these positive developments, AirBoss remains cautious due to geopolitical uncertainties and economic challenges, which could impact its operations and sales. The company is focused on expanding its core Rubber Solutions segment and enhancing its product offerings and market reach.

Spark’s Take on TSE:BOS Stock

According to Spark, TipRanks’ AI Analyst, TSE:BOS is a Neutral.

AirBoss of America’s stock is heavily impacted by its poor financial performance, with declining revenues and negative cash flows. While the defense segment shows potential and technical indicators are slightly positive, these are overshadowed by the company’s financial instability and valuation challenges. The earnings call highlights both opportunities and risks, keeping the score moderate. Overall, the stock faces significant challenges that need addressing for a meaningful recovery.

To see Spark’s full report on TSE:BOS stock, click here.

Shareholder MeetingsFinancial Disclosures
AirBoss of America Announces AGM Details and Q1 2025 Earnings Release
Positive
Apr 17, 2025

AirBoss of America has announced the details for its upcoming Annual General Meeting of Shareholders, which will now start at 9:30 a.m. EDT on May 8, 2025, to better accommodate shareholder participation. The company will release its first quarter 2025 earnings results on May 7, 2025, ahead of the meeting. The meeting will be accessible via live webcast and telephone, allowing shareholders to participate and ask questions. This announcement is significant for stakeholders as it highlights AirBoss’s commitment to transparency and engagement with its shareholders, which could positively impact its market positioning.

Spark’s Take on TSE:BOS Stock

According to Spark, TipRanks’ AI Analyst, TSE:BOS is a Neutral.

Airboss of America faces serious financial challenges with declining revenues and strained cash flows, significantly impacting its overall stock score. While there are positive developments in the defense segment, including a new contract and successful product launches, these are offset by volume reductions and potential tariff impacts. The negative P/E ratio and bearish technical indicators further weigh on the stock’s score.

To see Spark’s full report on TSE:BOS stock, click here.

Product-Related AnnouncementsBusiness Operations and Strategy
AirBoss Secures New Defense Contracts Amid Supply Chain Challenges
Neutral
Apr 7, 2025

AirBoss of America Corp. announced new contracts valued at up to US$15.6 million for its defense business, including orders for Molded AirBoss Lightweight Overboots and Low Burden Masks, with deliveries expected to start in the third quarter of 2025. The company is also addressing potential delays in a previously announced US$45 million contract for Bandolier systems due to supply chain constraints, while working to mitigate impacts from geopolitical challenges and tariff uncertainties.

Spark’s Take on TSE:BOS Stock

According to Spark, TipRanks’ AI Analyst, TSE:BOS is a Neutral.

Airboss of America faces serious financial challenges with declining revenues and strained cash flows, significantly impacting its overall stock score. While there are positive developments in the defense segment, including a new contract and successful product launches, these are offset by volume reductions and potential tariff impacts. The negative P/E ratio and bearish technical indicators further weigh on the stock’s score.

To see Spark’s full report on TSE:BOS stock, click here.

Business Operations and StrategyFinancial Disclosures
AirBoss of America Reports 2024 Results Amid Strategic Growth and Challenges
Neutral
Mar 5, 2025

AirBoss of America Corp. reported its unaudited fourth quarter and full-year 2024 results, highlighting significant developments in its defense and rubber solutions segments. Despite a challenging year with a net loss of $20.4 million, the company secured a substantial $82.3 million contract from the U.S. Government for its defense division, contributing to over $200 million in government contracts. The company also launched its first silicone production line in Michigan to enhance its specialty compounding capabilities. However, AirBoss faces potential challenges from geopolitical tensions and tariffs, which could impact its operations and sales. The company remains focused on expanding its core segments and technical capabilities to mitigate these risks.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.