Burnham Holdings, Inc. Reports Third Quarter 2026 Financial Results

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.

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