AirBoss Secures New Contracts Worth Up to $15.6 Million
AirBoss of America Corp. Strengthens Defense Portfolio
Recently, AirBoss of America Corp. (TSX: BOS) (OTCQX: ABSSF) has made significant strides in its defense sector. The company announced the acquisition of new contracts with an estimated value of up to USD 15.6 million. These contracts, awarded to the AirBoss Defense Group, were received in support of the Swiss Defense Forces and a partner nation, marking a notable expansion in their defense business operations.
Details of the Contracts
The larger contract involves the procurement of ADG Molded AirBoss Lightweight Overboots (MALO). This two-year contract is projected to be valued at USD 9.2 million. Designed meticulously, the MALO not only aims to protect against chemical and biological threats but also ensures optimal fit and comfort for the wearer. Already, AirBoss's overboots have been acquired by over sixty nations, with an impressive record of 6.1 million pairs sold globally. Deliveries for this contract are anticipated to commence by the third quarter of the year.
Enhancing Respiratory Protection
Moreover, the contract also encompasses ADG Low Burden Masks (LBM), filters, and ancillary accessories, with a projected value of USD 6.4 million. The LBM is specifically engineered to promote excellent weight distribution and minimal breathing resistance, making it a vital piece of equipment for military personnel. Since its inception in 2017, these masks have been sold to various partner nations, showcasing their reliability and effectiveness. Similar to the MALO, deliveries for the LBM contract are expected to start in the third quarter of the year, with completion targeted for early next year.
Addressing Supply Chain Challenges
While these new contracts exhibit growth potential, AirBoss is also addressing supply chain challenges that have impacted existing contracts. The company is currently evaluating delays related to the delivery schedule for the previously announced Bandolier lightweight multipurpose energetic systems contract, which has a total value of up to USD 45 million. Issues with supply chain constraints on critical components have posed challenges, requiring the company to collaborate closely with suppliers and governmental partners. Thus far, AirBoss has successfully delivered units worth USD 17 million under this contract, with an additional USD 2.5 million worth in transit.
Leadership Insights
Chris Bitsakakis, President and co-CEO of AirBoss, mentioned, “These two new contracts showcase our ongoing success in the defense arena.” He highlighted the company's responsiveness to the challenges of the current geopolitical climate, which includes tariff uncertainties and global supply chain constraints impacting delivery timelines. The defense business aims to continuously deliver protective solutions that respond to the safety needs of warfighters operating under challenging conditions.
About AirBoss of America
Founded in 1989, AirBoss of America is a diversified company known for its innovative solutions in survivability and advanced rubber compounds. With operations divided into two main divisions, the company excels in custom rubber compounding and offers anti-vibration as well as rubber-molded solutions. Additionally, through its AirBoss Defense sector, it supplies personal protective gear and respiratory equipment to various markets, including defense and healthcare. Trade under the stock ticker BOS in Canada and ABSSF in the U.S. reflects the company's robust visibility in the markets. For more details, visit their website.
Frequently Asked Questions
What are the new contracts announced by AirBoss?
AirBoss has secured contracts for ADG Molded AirBoss Lightweight Overboots and ADG Low Burden Masks, valued at approximately USD 15.6 million.
When will deliveries for these contracts start?
Deliveries for both contracts are expected to commence in the third quarter of the year.
What challenges is AirBoss facing with existing contracts?
AirBoss is currently assessing potential delays related to supply chain constraints impacting the Bandolier contract.
How has AirBoss fared in the defense market?
The company has achieved positive momentum in the defense sector, with its products being sold to over sixty countries.
What is the history of AirBoss of America?
Founded in 1989, AirBoss has developed a strong reputation as a manufacturer and supplier of survivability solutions and rubber products.
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