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 visitwww.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.
