Superior Group of Companies — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total net sales for the third quarter ended September 30, 2026, were $146.0 million, a 5% increase from $138.5 million in the prior year quarter.
• Net income was $2.6 million ($0.17 per diluted share) compared to $2.7 million ($0.18 per diluted share) in the prior year quarter.
• Adjusted EBITDA was $6.7 million for the quarter, down from $7.5 million in the prior year quarter.
• For the nine months ended September 30, 2026, net sales were $434.7 million compared to $419.6 million in the prior year period.
• Net income for the nine months ended September 30, 2026, was $4.6 million compared to $3.5 million in the prior year period.
• Adjusted EBITDA for the nine months ended September 30, 2026, was $19.2 million compared to $17.1 million in the prior year period.
• Adjusted EBITDA margin was 4.6% for the third quarter of 2026, down from 5.4% in the prior year quarter.
• Cash and cash equivalents were $27.9 million as of September 30, 2026, compared to $23.7 million as of December 31, 2025.
• Total debt (current and long-term) was $78.0 million as of September 30, 2026, compared to $93.7 million as of December 31, 2025.
• Net cash provided by operating activities for the nine months ended September 30, 2026, was $30.7 million, compared to $1.3 million in the prior year period.
• Inventory levels decreased to $87.9 million as of September 30, 2026, from $97.5 million as of December 31, 2025.
• Accounts receivable, net, decreased to $96.3 million as of September 30, 2026, from $104.3 million as of December 31, 2025.

Guidance and Future Outlook:

• Full-year 2026 net sales forecast was tightened to a range of $578.0 million to $585.0 million, up from the previous range of $572.0 million to $585.0 million and up from $566.2 million in 2025.
• Full-year 2026 adjusted earnings per diluted share forecast was tightened to a range of $0.60 to $0.66, up from the previous range of $0.54 to $0.66 and up from $0.46 in 2025.
• Management expects to finish the year with growth in both sales and earnings compared to 2025.
• Management anticipates a solid balance sheet providing a foundation for continued strategic investment.

Business Segments and Product Lines:

• Branded Products: Net sales were $92.1 million for the third quarter of 2026, up from $85.1 million in the prior year quarter. Segment Adjusted EBITDA was $9.8 million for the quarter.
• Healthcare Apparel: Net sales were $30.6 million for the third quarter of 2026, down from $31.5 million in the prior year quarter. Segment Adjusted EBITDA was a loss of $0.5 million for the quarter, compared to a profit of $3.2 million in the prior year quarter. A $2.6 million trade name impairment charge was recorded in the nine-month period for this segment.
• Contact Centers: Net sales were $24.2 million for the third quarter of 2026, up from $22.7 million in the prior year quarter. Segment Adjusted EBITDA was $2.9 million for the quarter.
• Management noted continued momentum in Branded Products and Contact Centers segments.
• New leadership in Healthcare Apparel is executing a more focused product strategy to improve margins and reduce working capital requirements.

Market and Competitive Landscape:

• The Company serves large, fragmented, and growing addressable markets across Healthcare Apparel, Branded Products, and Contact Centers.
• The Company cites competitive advantages through service, quality, advanced technology, and omnichannel commerce.

Risks and Challenges:

• Risks include the impact of competition, global conflicts (specifically the Russia-Ukraine War and the joint U.S.-Israeli War with Iran in 2026), oil and natural gas prices, and uncertainties related to tariffs, duties, and trade wars.
• Potential supply disruptions, inflationary environments affecting shipping and raw material costs, and labor shortages are noted risks.
• Challenges include the ability to identify suitable acquisition targets, discover liabilities during diligence, and successfully integrate acquired businesses.
• Risks also include the price and availability of raw materials, attracting and retaining senior management, and maintaining effective internal control over financial reporting.

Management Commentary and Tone:

• Michael Benstock, Chief Executive Officer, stated the Company drove "solid overall top line growth" and held EPS "essentially flat versus the prior year quarter despite incremental charges associated with our strategic shift in Healthcare Apparel."
• Management expressed confidence in finishing the year with growth in sales and earnings compared to 2025.
• The tone indicates a focus on strategic shifts to improve margins and working capital in the quarters ahead.

Other Key Points:

• The Company recently acquired Select VoiceCom.
• The Company declared cash dividends of $0.14 per common share for the third quarter of 2026, consistent with the prior year quarter.
• Total cash dividends paid for the nine months ended September 30, 2026, were $6.6 million.
• Common shares repurchased and retired totaled $1.5 million for the nine months ended September 30, 2026, compared to $7.9 million in the prior year period.
• A $2.6 million trade name impairment charge was recorded in the first nine months of 2026.
• Inventory write-downs for the nine months ended September 30, 2026, were $9.5 million, compared to $1.8 million in the prior year period.
• Credit loss expense for the nine months ended September 30, 2026, was $3.2 million, compared to $2.3 million in the prior year period.
• The Company will host a webcast and conference call on November 9, 2026, at 8:00 am Eastern Time.