Higher sales and improved margins strengthen third quarter results
LANCASTER, Pa., Oct. 22, 2026 /PRNewswire/ -- Burnham Holdings, Inc. (OTC-Pink: BURCA) ("BHI", the "Company", "we" or "our") today reported strong financial results for the third quarter of 2026, reflecting higher sales, improved margins and significantly stronger profitability as the Company continues to benefit from its strategic focus on its core boiler business.
As with previous 2026 filings, the financial statement presentation has been adjusted to reflect the previously completed divestiture of its subsidiaries Thermo Products, LLC (TP) and Norwood Manufacturing, Inc. (NMI) as discontinued operations.
Key Financial Highlights:
- Strong Top-Line Revenue Growth: Net sales for the third quarter of 2026 reached $74.6 million, up 27.9% ($16.3 million) compared to net sales of $58.3 million in the third quarter of 2025. Year-to-date net sales for the first nine months of 2026 climbed to $197.4 million, compared to $167.0 million for the first nine months of 2025.
- Improved Gross Profit Margins: Gross profit margin for the third quarter of 2026 was 21.5%, compared to 19.6% in the third quarter of 2025. For the first nine months of 2026, year-to-date gross profit margin reached 23.7%, compared to 21.9% in the prior-year period.
- Adjusted Net Income from Continuing Operations: Adjusted net income from continuing operations for the third quarter of 2026 was $2.1 million, or $0.44 per diluted share, compared with adjusted net income from continuing operations of $1.0 million, or $0.21 per diluted share, in the third quarter of 2025. For the first nine months of 2026, adjusted net income from continuing operations was $7.8 million ($1.62 per diluted share), compared with $4.4 million ($0.92 per diluted share) for the first nine months of 2025.
- Enhanced Profitability Metrics: Adjusted EBITDA from continuing operations for the third quarter of 2026 was $6.8 million (9.2% of net sales), compared to $5.2 million (8.9% of net sales) in the third quarter of 2025. For the first nine months, year-to-date adjusted EBITDA from continuing operations reached $16.6 million (8.4% of net sales), compared to $9.9 million (5.9% of net sales) for the first nine months of 2025.
- Balance Sheet and Revolving Credit Facility: Total outstanding debt was $21.5 million as of September 27, 2026, compared to $14.7 million as of September 28, 2025. Prior year debt levels were impacted by the sale of TP and NMI as cash received was applied to outstanding debt; adjusted debt at September 28, 2025, would have been $38.4 million. Total borrowing remains in line with typical seasonal working capital needs and planned inventory investments to support upcoming peak heating season demand. The Company previously announced a new $130.0 million revolving credit facility on August 6, 2026. In conjunction with the new facility, the Company capitalized approximately $1.0 million of costs incurred with the new facility and will amortize them over the life of the five-year facility. U.S. Boiler Company, LLC and Thermal Solutions Products, LLC, wholly owned subsidiaries, completed approximately $2.7 million of below-market financing through the Pennsylvania Industrial Development Authority (PIDA) to support investments in real estate improvements and machinery and equipment associated with the Condensing Center of Excellence in Lancaster County, Pennsylvania as further detailed in the Company's October 22, 2025 press release.
During the third quarter of 2026, BHI expanded its product offerings to include chilled water buffer tanks for data center cooling systems, applying its manufacturing expertise to a new application within the broader thermal solutions market.
"Our third-quarter sales growth, margin improvement and strong profitability demonstrate the strength of our go to market strategy," said Chris Drew, President and CEO of Burnham Holdings. "Looking ahead, our product development investments are focused on expanding our core portfolio, with a focus on developing new high efficiency and condensing products for residential and commercial customers that we plan to launch in 2027. In addition, at the request of our current customer base, we are adding chilled water buffer tanks for data center cooling systems to our offerings. Together, these initiatives build on our boiler and thermal solutions expertise and create additional opportunities for growth."
Crown Boiler: As previously disclosed, Burnham Holdings continues to monitor Crown Boiler
Company's voluntary Chapter 11 proceedings. While there have been no material developments in terms of a confirmed bankruptcy plan, the Company incurred approximately $1.5 million in related expenses during the quarter. The Company will provide updates as appropriate.
Subsidiary Litigation Update: As previously disclosed, on October 21, 2025, the New York Court of Appeals denied Burnham LLC's, at that time a wholly owned subsidiary of BHI, petition for leave to appeal the verdict that was entered against the company in Maffei v. A.O. Smith Water Prods. Co. (In re N.Y.C. Asbestos Litigation) matter. On November 6, 2025, the insurer paid the full amount of the award, including punitive damages totaling $7.9 million after accounting for pre- and post-judgment interest. The Company continues to proactively engage in good faith negotiations with the insurers, and the parties will participate in a settlement conference with a United States Magistrate Judge on November 24, 2026 (Utica Mutual Insurance Company v. Burnham, LLC, Civil Action No. 2:25-cv-06301-PD). During the third quarter of 2026, the reserve for this matter remained at $5.8 million. As previously disclosed, in the normal course of business, certain subsidiaries of BHI have been named, and may in the future be named, as defendants in various legal actions, including claims for damages alleging exposure to asbestos from products of the Company's subsidiaries (former and current) or their predecessors.
Dividend: At its meeting on October 22, 2026, the Board of Directors declared a quarterly dividend of $0.23 per share on Class A and Class B Common Stock, and a semi-annual preferred stock dividend of $1.50 per share, payable on December 10, 2026, to shareholders of record on December 3, 2026.
About Burnham Holdings, Inc.:
BHI is the parent company of multiple subsidiaries that are leading domestic manufacturers of boilers for residential applications. Additionally, through its various subsidiaries, it serves the commercial/industrial boiler markets with a variety of boiler products, rental trailers, and boiler room services. BHI is listed on the OTC Exchange under the ticker symbol "BURCA". For more information, please visit www.burnhamholdings.com.
Safe Harbor Statement:
This Press Release contains forward-looking statements. Other reports, letters, press releases, and investor presentations distributed or made available by the Company may also contain forward-looking statements. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates, and projections, and you should therefore not place undue reliance on them. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Such factors include, but are not limited to, variations in weather, changes in the regulatory environment, litigation, customer preferences, general economic conditions, technology, product performance, raw material costs, and increased competition.
Non-GAAP Financial Information:
This press release may contain certain non-GAAP financial measures, including, but not limited to, adjusted SG&A, EBITDA, Adjusted EBITDA, Adjusted Net Income, and adjusted diluted earnings per share. These non-GAAP financial measures do not provide investors with an accurate measure of, and should not be used as a substitute for, the comparable financial measures as determined in accordance with accounting principles generally accepted in the United States ("GAAP"). The Company believes these non-GAAP financial measures, when read in conjunction with the comparable GAAP financial measures, give investors a useful tool to assess and understand the Company's overall financial performance, because they exclude items of income or expense that the Company believes are not reflective of its ongoing operating performance, allowing for a better period-to-period comparison of operations of the Company. The Company acknowledges that there are many items that impact a company's reported results, and the adjustments reflected in these non-GAAP measures are not intended to present all items that may have impacted these results. In addition, these non-GAAP measures are not necessarily comparable to similarly titled measures used by other companies.
Burnham Holdings, Inc. | ||||||||
Consolidated Statements of Operations | ||||||||
(In thousands, except per share amounts) | ||||||||
(Unaudited)
| ||||||||
Three Months Ended | Nine Months Ended | |||||||
September 27, | September 28, | September 27, | September 28, | |||||
2026 | 2025 | 2026 | 2025 | |||||
Net sales | $ 74,583 | $ 58,327 | $ 197,361 | $ 167,035 | ||||
Cost of goods sold | 58,571 | 46,901 | 150,622 | 130,523 | ||||
Gross profit | 16,012 | 11,426 | 46,739 | 36,512 | ||||
Selling, general and administrative expenses | 12,771 | 10,472 | 36,242 | 31,380 | ||||
Impairment loss | - | 181 | - | 3,318 | ||||
Operating income | 3,241 | 773 | 10,497 | 1,814 | ||||
Other (expense) / income: | ||||||||
Non-service related pension credit | 12 | 50 | 37 | 150 | ||||
Gain on derivative mark to market | 25 | - | - | - | ||||
Interest and investment (loss) gain | (358) | 372 | 520 | 864 | ||||
Interest expense | (179) | (121) | (843) | (465) | ||||
Other (expense) / income | (500) | 301 | (286) | 549 | ||||
Income from continuing operations before income tax | 2,741 | 1,074 | 10,211 | 2,363 | ||||
Income tax expense | 657 | 247 | 2,450 | 542 | ||||
Income from continuing operations | 2,084 | 827 | 7,761 | 1,821 | ||||
Income from discontinued operations, net of tax | - | - | - | 1,066 | ||||
Gain (loss) on sale of discontinued operations, net of tax | - | 801 | (307) | 7,028 | ||||
Income (loss) from discontinued operations, net of tax | - | 801 | (307) | 8,094 | ||||
Net income | $ 2,084 | $ 1,628 | $ 7,454 | $ 9,915 | ||||
Earnings per share: | ||||||||
Basic | ||||||||
Income from continuing operations | $ 0.44 | $ 0.18 | $ 1.64 | $ 0.39 | ||||
Income (loss) from discontinued operations | - | 0.17 | (0.06) | 1.73 | ||||
Basic earnings per share | $ 0.44 | $ 0.35 | $ 1.58 | $ 2.12 | ||||
Diluted | ||||||||
Income from continuing operations | $ 0.44 | $ 0.17 | $ 1.62 | $ 0.38 | ||||
Income (loss) from discontinued operations | - | 0.17 | (0.06) | 1.72 | ||||
Diluted earnings per share | $ 0.44 | $ 0.34 | $ 1.56 | $ 2.10 | ||||
Cash dividends per share | $ 0.23 | $ 0.23 | $ 0.69 | $ 0.69 | ||||
Burnham Holdings, Inc. | |||||||||
Consolidated Balance Sheets | |||||||||
(In thousands)
| |||||||||
(Unaudited) | (Unaudited) | ||||||||
September 27, | December 31, | September 28, | |||||||
ASSETS | 2026 | 2025 | 2025 | ||||||
Current Assets | |||||||||
Cash and cash equivalents | $ 9,118 | $ 7,657 | $ 7,154 | ||||||
Trade accounts receivable, net | 28,223 | 29,065 | 22,839 | ||||||
Inventories, net | 46,035 | 37,442 | 54,768 | ||||||
Costs in excess of billings | 69 | 507 | 563 | ||||||
Prepaid expenses and other current assets | 2,254 | 6,556 | 3,539 | ||||||
Total Current Assets | 85,699 | 81,227 | 88,863 | ||||||
Property, plant and equipment, net | 69,007 | 69,306 | 70,183 | ||||||
Lease assets | 5,729 | 6,014 | 5,559 | ||||||
Other long-term assets | 18,931 | 18,772 | 20,497 | ||||||
Total Assets | $ 179,366 | $ 175,319 | $ 185,102 | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||
Current Liabilities | |||||||||
Accounts payable & accrued expenses | $ 30,709 | $ 41,243 | $ 29,631 | ||||||
Billings in excess of costs | 606 | 261 | 602 | ||||||
Current portion of: | |||||||||
Long-term liabilities | 87 | 87 | 72 | ||||||
Lease liabilities | 1,743 | 1,571 | 1,426 | ||||||
Long-term debt | - | 184 | 184 | ||||||
Total Current Liabilities | 33,145 | 43,346 | 31,915 | ||||||
Long-term debt | 21,509 | 11,373 | 14,540 | ||||||
Lease liabilities | 3,986 | 4,443 | 4,133 | ||||||
Other long-term liabilities | 4,744 | 4,860 | 5,051 | ||||||
Deferred income taxes | 7,731 | 7,710 | 9,659 | ||||||
Shareholders' Equity | |||||||||
Preferred Stock | 530 | 530 | 530 | ||||||
Class A Common Stock | 3,695 | 3,654 | 3,654 | ||||||
Class B Convertible Common Stock | 1,254 | 1,293 | 1,293 | ||||||
Additional paid-in capital | 9,238 | 10,055 | 9,929 | ||||||
Retained earnings | 107,147 | 103,031 | 135,491 | ||||||
Accumulated other comprehensive loss | (5,229) | (5,280) | (21,320) | ||||||
Treasury stock, at cost | (8,384) | (9,696) | (9,773) | ||||||
Total Shareholders' Equity | 108,251 | 103,587 | 119,804 | ||||||
Total Liabilities and Shareholders' Equity | $ 179,366 | $ 175,319 | $ 185,102 | ||||||
Burnham Holdings, Inc. | ||||
Consolidated Statements of Cash Flows | ||||
(In thousands) | ||||
(Unaudited) | ||||
Nine Months Ended | ||||
September 27, | September 28, | |||
2026 | 2025 | |||
Cash flows from operating activities: | ||||
Net income | $ 7,454 | $ 9,915 | ||
(Loss) income from discontinued operations, net of tax | (307) | 8,094 | ||
Income from continuing operations | $ 7,761 | $ 1,821 | ||
Adjustments to reconcile income from continuing operations | ||||
to net cash provided by operating activities: | ||||
Depreciation | 5,587 | 3,790 | ||
Amortization of debt issuance costs | 104 | - | ||
Impairment loss | - | 3,318 | ||
Deferred income taxes | 8 | 44 | ||
Provision for long-term employee benefits | (323) | (171) | ||
Share-based compensation expense | 593 | 474 | ||
Other reserves and allowances | 366 | (1,995) | ||
Changes in current assets and liabilities: | ||||
(Increase) decrease in accounts receivable, net | (507) | 979 | ||
Increase in inventories, net | (8,593) | (9,255) | ||
Decrease (increase) in other current assets | 2,379 | (172) | ||
Decrease in accounts payable and accrued expenses | (7,248) | (2,217) | ||
Net cash provided (used) by operating activities of continuing operations | 127 | (3,384) | ||
Net cash used by operating activities of discontinued operations | - | (30) | ||
Net cash provided (used) by operating activities | 127 | (3,414) | ||
Cash flows from investing activities: | ||||
Capital expenditures | (5,183) | (8,358) | ||
Net cash used by investing activities of continuing operations | (5,183) | (8,358) | ||
Net cash provided by investing activities of discontinued operations | - | 7 | ||
Proceeds from sale of discontinued operations | - | 23,687 | ||
Net cash (used) provided by investing activities | (5,183) | 15,336 | ||
Cash flows from financing activities: | ||||
Net activity from revolving credit facility | 14,192 | (7,641) | ||
Cash paid for debt issuance costs | (968) | - | ||
Repayment of term loan | (3,273) | (92) | ||
Share-based compensation activity | (96) | (56) | ||
Dividends paid | (3,338) | (3,308) | ||
Net cash provided (used) by financing activities | 6,517 | (11,097) | ||
Net increase in cash and cash equivalents | $ 1,461 | $ 825 | ||
Cash and cash equivalents, beginning of period | $ 7,657 | $ 6,329 | ||
Net increase in cash and cash equivalents | 1,461 | 825 | ||
Cash and cash equivalents, end of period | $ 9,118 | $ 7,154 | ||
Burnham Holdings, Inc. | ||||||||||||||||
Consolidated Statements of Shareholders' Equity | ||||||||||||||||
(In thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Class B | Accumulated | |||||||||||||||
Class A | Convertible | Additional | Other | Treasury | ||||||||||||
Preferred | Common | Common | Paid-in | Retained | Comprehensive | Stock, | Shareholders' | |||||||||
Stock | Stock | Stock | Capital | Earnings | Loss | at Cost | Equity | |||||||||
Balance at December 31, 2024 | $ 530 | $ 3,633 | $ 1,311 | $ 10,799 | $ 128,884 | $ (20,820) | $ (11,058) | $ 113,279 | ||||||||
Net income | - | - | - | - | 3,371 | - | - | 3,371 | ||||||||
Other comprehensive loss, | ||||||||||||||||
net of tax | - | - | - | - | - | (208) | - | (208) | ||||||||
Cash dividends declared: | ||||||||||||||||
Common stock - ($0.23 per share) | - | - | - | - | (1,072) | - | - | (1,072) | ||||||||
Share-based compensation: | ||||||||||||||||
Expense recognition | - | - | - | 119 | - | - | - | 119 | ||||||||
Conversion of common stock | - | 9 | (9) | - | - | - | - | - | ||||||||
Balance at March 30, 2025 | $ 530 | $ 3,642 | $ 1,302 | $ 10,918 | $ 131,183 | $ (21,028) | $ (11,058) | $ 115,489 | ||||||||
Net income | - | - | - | - | 4,916 | - | - | 4,916 | ||||||||
Other comprehensive loss, | ||||||||||||||||
net of tax | - | - | - | - | - | (209) | - | (209) | ||||||||
Cash dividends declared: | ||||||||||||||||
Preferred stock - 6% | - | - | - | - | (9) | - | - | (9) | ||||||||
Common stock - ($0.23 per share) | - | - | - | - | (1,147) | - | - | (1,147) | ||||||||
Share-based compensation: | ||||||||||||||||
Expense recognition | - | - | - | 160 | - | - | - | 160 | ||||||||
Issuance of vested shares | - | - | - | (1,393) | - | - | 1,285 | (108) | ||||||||
Balance at June 29, 2025 | $ 530 | $ 3,642 | $ 1,302 | $ 9,685 | $ 134,943 | $ (21,237) | $ (9,773) | $ 119,092 | ||||||||
Net income | - | - | - | - | 1,628 | - | - | 1,628 | ||||||||
Other comprehensive loss, | ||||||||||||||||
net of tax | - | - | - | - | - | (83) | - | (83) | ||||||||
Cash dividends declared: | ||||||||||||||||
Common stock - ($0.23 per share) | - | - | - | - | (1,080) | - | - | (1,080) | ||||||||
Share-based compensation: | ||||||||||||||||
Expense recognition | - | - | - | 195 | - | - | - | 195 | ||||||||
Issuance of vested shares | - | 3 | - | 49 | - | - | - | 52 | ||||||||
Conversion of common stock | - | 9 | (9) | - | - | - | - | - | ||||||||
Balance at September 28, 2025 | $ 530 | $ 3,654 | $ 1,293 | $ 9,929 | $ 135,491 | $ (21,320) | $ (9,773) | $ 119,804 | ||||||||
Class B | Accumulated | |||||||||||||||
Class A | Convertible | Additional | Other | Treasury | ||||||||||||
Preferred | Common | Common | Paid-in | Retained | Comprehensive | Stock, | Shareholders' | |||||||||
Stock | Stock | Stock | Capital | Earnings | Loss | at Cost | Equity | |||||||||
Balance at December 31, 2025 | $ 530 | $ 3,654 | $ 1,293 | $ 10,055 | $ 103,031 | $ (5,280) | $ (9,696) | $ 103,587 | ||||||||
Net income | - | - | - | - | 3,438 | - | - | 3,438 | ||||||||
Other comprehensive income, | ||||||||||||||||
net of tax | - | - | - | - | - | 72 | - | 72 | ||||||||
Cash dividends declared: | ||||||||||||||||
Common stock - ($0.23 per share) | - | - | - | - | (1,080) | - | - | (1,080) | ||||||||
Share-based compensation: | ||||||||||||||||
Expense recognition | - | - | - | 195 | - | - | - | 195 | ||||||||
Balance at March 29, 2026 | $ 530 | $ 3,654 | $ 1,293 | $ 10,250 | $ 105,389 | $ (5,208) | $ (9,696) | $ 106,212 | ||||||||
Net income | - | - | - | - | 1,932 | - | - | 1,932 | ||||||||
Other comprehensive loss, | ||||||||||||||||
net of tax | - | - | - | - | - | (29) | - | (29) | ||||||||
Cash dividends declared: | ||||||||||||||||
Preferred stock - 6% | - | - | - | - | (9) | - | - | (9) | ||||||||
Common stock - ($0.23 per share) | - | - | - | - | (1,160) | - | - | (1,160) | ||||||||
Share-based compensation: | ||||||||||||||||
Expense recognition | - | - | - | 200 | - | - | - | 200 | ||||||||
Issuance of vested shares | - | 2 | - | (1,410) | - | - | 1,312 | (96) | ||||||||
Conversion of common stock | - | 1 | (1) | - | - | - | - | - | ||||||||
Balance at June 28, 2026 | $ 530 | $ 3,657 | $ 1,292 | $ 9,040 | $ 106,152 | $ (5,237) | $ (8,384) | $ 107,050 | ||||||||
Net income | - | - | - | - | 2,084 | - | - | 2,084 | ||||||||
Other comprehensive income, | ||||||||||||||||
net of tax | - | - | - | - | - | 8 | - | 8 | ||||||||
Cash dividends declared: | ||||||||||||||||
Common stock - ($0.23 per share) | - | - | - | - | (1,089) | - | - | (1,089) | ||||||||
Share-based compensation: | ||||||||||||||||
Expense recognition | - | - | - | 198 | - | - | - | 198 | ||||||||
Conversion of common stock | - | 38 | (38) | - | - | - | - | - | ||||||||
Balance at September 27, 2026 | $ 530 | $ 3,695 | $ 1,254 | $ 9,238 | $ 107,147 | $ (5,229) | $ (8,384) | $ 108,251 | ||||||||
Burnham Holdings, Inc. | |||||||||
Non-GAAP Reconciliation | |||||||||
(In thousands, except per share amounts) | |||||||||
(Unaudited) | |||||||||
Three Months Ended | Nine Months Ended | ||||||||
September 27, | September 28, | September 27, | September 28, | ||||||
2026 | 2025 | 2026 | 2025 | ||||||
Net sales of continuing operations | $ 74,583 | $ 58,327 | $ 197,361 | $ 167,035 | |||||
Income from continuing operations, net of tax | $ 2,084 | $ 827 | $ 7,761 | $ 1,821 | |||||
Exclude: | |||||||||
Income tax expense | 657 | 247 | 2,450 | 542 | |||||
Interest expense | 179 | 121 | 843 | 465 | |||||
Depreciation and amortization | 3,945 | 3,790 | 5,587 | 3,790 | |||||
EBITDA | $ 6,865 | $ 4,985 | $ 16,641 | $ 6,618 | |||||
EBITDA as a percent of net sales | 9.2 % | 8.5 % | 8.4 % | 4.0 % | |||||
EBITDA | $ 6,865 | $ 4,985 | $ 16,641 | $ 6,618 | |||||
Adjustments: | |||||||||
Gain on derivative mark to market | (25) | - | - | - | |||||
Impairment loss | - | 181 | - | 3,318 | |||||
Adjusted EBITDA | $ 6,840 | $ 5,166 | $ 16,641 | $ 9,936 | |||||
Adjusted EBITDA as a percent of net sales | 9.2 % | 8.9 % | 8.4 % | 5.9 % | |||||
Three Months Ended | Nine Months Ended | ||||||||
September 27, | September 28, | September 27, | September 28, | ||||||
2026 | 2025 | 2026 | 2025 | ||||||
Income from continuing operations | $ 2,084 | $ 827 | $ 7,761 | $ 1,821 | |||||
Adjustments, net of tax | (19) | 140 | - | 2,555 | |||||
Adjusted income from continuing operations | $ 2,065 | $ 967 | $ 7,761 | $ 4,376 | |||||
Diluted weighted-average shares outstanding | 4,781 | 4,731 | 4,777 | 4,722 | |||||
Diluted earnings per share from continuing operations | $ 0.44 | $ 0.17 | $ 1.62 | $ 0.38 | |||||
Adjusted diluted earnings per share from continuing operations | $ 0.44 | $ 0.21 | $ 1.62 | $ 0.92 | |||||
September 27 | September 28, | ||||||||
2026 | 2025 | ||||||||
Total debt | $ 21,509 | $ 14,724 | |||||||
Proceeds from sale of discontinued operations | - | 23,687 | |||||||
Adjusted total debt | $ 21,509 | $ 38,411 | |||||||
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SOURCE Burnham Holdings, Inc.
