Superior Group Of Companies, Inc.NASDAQ: SGC

Superior Group of Companies Reports Fourth Quarter 2025 Results

· Issued by Superior Group Of Companies, Inc. via GlobeNewswire

– Total net sales of $146.6 million versus $145.4 million in prior year fourth quarter –

– Net income of $3.5 million versus $2.1 million in prior year fourth quarter –

– EBITDA of $8.6 million versus $7.3 million in prior year fourth quarter –

– Provides full-year outlook –

ST. PETERSBURG, Fla., March 03, 2026 (GLOBE NEWSWIRE) -- Superior Group of Companies, Inc. (NASDAQ: SGC) (the “Company”), today announced its fourth quarter 2025 results.

“We finished the year with a solid fourth quarter, growing our consolidated revenues while simultaneously reducing expenses which resulted in 19% year-over-year EBITDA growth and earnings per share that nearly doubled,” said Michael Benstock, Chief Executive Officer.  “In addition, our quarterly results again demonstrated the back-end weighted nature of our business, with 6% sequential top line growth and earnings per share up 28%.  We’re pleased with our recent progress driving efficiencies and containing costs which will allow us to emerge from these uncertain times even stronger, and have today introduced our 2026 Outlook reflecting further growth anticipated for both revenue and EPS.  This year we plan to expand our growing new business pipelines by capturing market share across our three attractive end markets with quality, innovative solutions, while leveraging our efficiencies and diverse supply base to further expand margins.  Enabled by our strong balance sheet, returning capital to shareholders through our attractive dividend even while investing for future growth remains a pillar of our strategy in our quest to further enhance long-term shareholder value.”

Fourth Quarter Results

For the fourth quarter ended December 31, 2025, net sales increased to $146.6 million compared to fourth quarter 2024 net sales of $145.4 million. Pretax income increased to $4.1 million compared to $2.5 million in the fourth quarter of 2024. Net income increased to $3.5 million or $0.23 per diluted share compared to $2.1 million or $0.13 per diluted share for the fourth quarter of 2024.

2026 Full-Year Outlook

The Company forecasts full-year 2026 net sales in the range of $572 million to $585 million, up from 2025 net sales of $566.2 million, and forecasts full-year earnings per diluted share in the range of $0.54 to $0.66, up from $0.46 in 2025.

Webcast and Conference Call

The Company will host a webcast and conference call at 5:00 pm Eastern Time today. The live webcast and archived replay can be accessed in the investor relations section of the Company's website at https://ir.superiorgroupofcompanies.com/Presentations. Interested individuals may also join the teleconference by dialing 1-844-861-5505 for U.S. dialers and 1-412-317-6586 for International dialers. The Canadian Toll-Free number is 1-866-605-3852. Please ask to be joined to the Superior Group of Companies call. A telephone replay of the teleconference will be available through March 17, 2026. To access the replay, dial 1-855-669-9658 in the United States and Canada or 1-412-317-0088 from international locations. Please reference conference number 6514610 for replay access.

Disclosure Regarding Forward Looking Statements

Certain matters discussed in this press release are “forward-looking statements” intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified by use of the words “may,” “will,” “should,” “could,” “expect,” “anticipate,” “estimate,” “believe,” “intend,” “project,” “potential,” or “plan” or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements in this press release may include, without limitation: (1) projections of revenue, income, and other items relating to our financial position and results of operations, including short-term and long-term plans for cash (2) statements of our plans, objectives, strategies, goals and intentions, (3) statements regarding the capabilities, capacities, market position and expected development of our business operations and (4) statements of expected industry and general economic trends.

Such forward-looking statements are subject to certain risks and uncertainties that may materially adversely affect the anticipated results. Such risks and uncertainties include, but are not limited to, the following: the impact of competition; uncertainties related to tariffs, duties, trade wars and related matters, supply disruptions, inflationary environments (including with respect to shipping costs and the cost of finished goods and raw materials and shipping costs), employment levels (including labor shortages), and general economic and political conditions in the areas of the world in which the Company operates or from which it sources its supplies or the areas of the United States of America (“U.S.” or “United States”) in which the Company’s customers are located; changes in the healthcare, retail chain, food service, transportation and other industries where uniforms and service apparel are worn; our ability to identify suitable acquisition targets, discover liabilities associated with such businesses during the diligence process, successfully integrate any acquired businesses, or successfully manage our expanding operations; the price and availability of raw materials; attracting and retaining senior management and key personnel; the Company's ability to maintain effective internal control over financial reporting; and other factors described in the Company’s filings with the Securities and Exchange Commission, including those described in the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 entitled "Risk Factors". Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements made herein and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are only made as of the date of this press release and we disclaim any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances, except as may be required by law.

About Superior Group of Companies, Inc. (SGC):

Established in 1920, Superior Group of Companies is comprised of three attractive business segments each serving large, fragmented and growing addressable markets. Across Branded Products, Healthcare Apparel and Contact Centers, each segment enables businesses to create extraordinary brand engagement experiences for their customers and employees. SGC’s commitment to service, quality, advanced technology, and omnichannel commerce provides unparalleled competitive advantages. We are committed to enhancing shareholder value by continuing to pursue a combination of organic growth and strategic acquisitions. For more information, visit www.superiorgroupofcompanies.com.

Investor Relations Contact:

Investors@SuperiorGroupOfCompanies.com

Comparative figures are as follows:

SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except shares and per share data)

Three Months Ended December 31,

Years Ended December 31,

2025

2024

2025

2024

Net sales

$

146,575

$

145,408

$

566,184

$

565,676

Costs and expenses:

Cost of goods sold

92,556

91,448

353,320

345,098

Selling and administrative expenses

48,620

50,020

199,475

199,926

Interest expense

1,270

1,461

5,143

6,358

142,446

142,929

557,938

551,382

Income before income tax expense

4,129

2,479

8,246

14,294

Income tax expense, net

666

390

1,246

2,290

Net income

$

3,463

$

2,089

$

7,000

$

12,004

Net income per share:

Basic

$

0.24

$

0.13

$

0.47

$

0.75

Diluted

$

0.23

$

0.13

$

0.46

$

0.73

Weighted average shares outstanding during the period:

Basic

14,712,054

15,675,402

14,966,139

16,008,015

Diluted

15,021,942

16,250,792

15,322,094

16,504,384

Cash dividends per common share

$

0.14

$

0.14

$

0.56

$

0.56

SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share and par value data)

December 31,

2025

2024

ASSETS

Current assets:

Cash and cash equivalents

$

23,691

$

18,766

Accounts receivable

104,336

95,092

Inventories

97,474

96,675

Contract assets

48,903

51,688

Prepaid expenses and other current assets

13,259

10,831

Total current assets

287,663

273,052

Property, plant and equipment, net

37,352

41,879

Operating lease right-of-use assets

12,620

15,567

Deferred tax asset

15,003

13,835

Intangible assets, net

47,254

51,137

Goodwill

2,583

2,304

Other assets

19,369

17,360

Total assets

$

421,844

$

415,134

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$

48,343

$

50,942

Other current liabilities

53,041

44,367

Current portion of long-term debt

6,563

5,625

Current portion of acquisition-related contingent liabilities

-

814

Total current liabilities

107,947

101,748

Long-term debt

87,093

80,410

Long-term pension liability

15,010

13,315

Long-term acquisition-related contingent liabilities

826

935

Long-term operating lease liabilities

7,939

10,486

Other long-term liabilities

10,211

9,384

Total liabilities

229,026

216,278

Commitments and contingencies

Shareholders’ equity:

Preferred stock, $.001 par value - authorized 300,000 shares (none issued)

-

-

Common stock, $.001 par value - authorized 50,000,000 shares, issued and outstanding - 15,730,615 and 16,484,921 shares, respectively

16

16

Additional paid-in capital

84,628

84,060

Retained earnings

112,871

120,139

Accumulated other comprehensive loss, net of tax

(4,697

)

(5,359

)

Total shareholders’ equity

192,818

198,856

Total liabilities and shareholders’ equity

$

421,844

$

415,134

SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)

Years Ended December 31,

2025

2024

CASH FLOWS FROM OPERATING ACTIVITIES

Net income

$

7,000

$

12,004

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

12,355

13,185

Inventory write-downs

2,252

2,423

Credit loss expense

2,291

232

Share-based compensation expense

5,263

4,270

Deferred income tax benefit

(846

)

(1,581

)

Change in fair value of acquisition-related contingent liabilities

95

437

Non-cash operating lease expense

2,948

2,337

Change in fair value of written put options

-

653

Other, net

299

507

Changes in assets and liabilities, net of acquisition of businesses:

Accounts receivable

(10,757

)

7,977

Contract assets

3,045

(3,434

)

Inventories

(2,804

)

(1,031

)

Prepaid expenses and other current assets

(2,167

)

(2,375

)

Other assets

(2,076

)

(2,953

)

Accounts payable and other current liabilities

1,723

(403

)

Payment of acquisition-related contingent liabilities

(791

)

(686

)

Long-term pension liability

407

433

Other long-term liabilities

1,472

1,433

Net cash provided by operating activities

19,709

33,428

CASH FLOWS FROM INVESTING ACTIVITIES

Additions to property, plant and equipment

(3,947

)

(4,435

)

Acquisition of business

-

(4,000

)

Net cash used in investing activities

(3,947

)

(8,435

)

CASH FLOWS FROM FINANCING ACTIVITIES

Borrowings under revolving lines of credit

95,000

47,000

Payments under revolving lines of credit

(82,000

)

(50,000

)

Payment of term loan

(5,625

)

(4,687

)

Payment of cash dividends

(8,905

)

(9,284

)

Payment of acquisition-related contingent liabilities

(226

)

(897

)

Proceeds received on exercise of stock options

240

1,128

Shares withheld for taxes

(162

)

(317

)

Common shares repurchased and retired

(10,136

)

(7,417

)

Net cash used in financing activities

(11,814

)

(24,474

)

Effect of currency exchange rates on cash

977

(1,649

)

Net increase (decrease) in cash and cash equivalents

4,925

(1,130

)

Cash and cash equivalents balance, beginning of year

18,766

19,896

Cash and cash equivalents balance, end of year

$

23,691

$

18,766

Supplemental disclosure of cash flow information:

Income taxes paid (refunded), net

$

1,623

$

2,303

Interest paid

$

5,663

$

5,917

SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
(Unaudited)
(In thousands, except shares and per share data)

Three Months Ended December 31,

Years Ended December 31,

2025

2024

2025

2024

Net income

$

3,463

$

2,089

$

7,000

$

12,004

Interest expense

1,270

1,461

5,143

6,358

Income tax expense, net

666

390

1,246

2,290

Depreciation and amortization

3,198

3,313

12,355

13,185

Intangible assets impairment charge

-

-

-

260

EBITDA(2)

$

8,597

$

7,253

$

25,744

$

34,097

EBITDA margin(2)

5.9

%

5.0

%

4.5

%

6.0

%


(2) EBITDA, which is a non-GAAP financial measure, is defined as net income excluding interest expense, income tax expense, depreciation and amortization expense and impairment charges. EBITDA margin is defined as EBITDA divided by net sales. The Company believes EBITDA is an important measure of operating performance because it allows management, investors and others to evaluate and compare the Company’s core operating results from period to period by removing (i) the impact of the Company’s capital structure (interest expense from outstanding debt), (ii) tax consequences and (iii) asset base (depreciation and amortization and impairment charges). The Company uses EBITDA internally to monitor operating results and to evaluate the performance of its business. In addition, the compensation committee has used EBITDA in evaluating certain components of executive compensation, including performance-based annual incentive programs. EBITDA is not a measure of financial performance under GAAP.  EBITDA should not be considered in isolation or as an alternative to net income, cash flows from operating activities or any other measure determined in accordance with GAAP. The items excluded to calculate EBITDA are significant components in understanding and assessing the Company’s results of operations. The presentation of the Company’s EBITDA may change from time to time, including as a result of changed business conditions, new accounting pronouncements or otherwise. If the presentation changes, the Company undertakes to disclose any change between periods and the reasons underlying that change. The Company’s EBITDA may not be comparable to a similarly titled measure of another company because other entities may not calculate EBITDA in the same manner.

SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION - REPORTABLE SEGMENTS
(Unaudited)
(In thousands)

Branded Products

Healthcare Apparel

Contact Centers

Intersegment Eliminations

Other

Total

For the Three Months Ended December 31, 2025:

Net sales

$

96,918

$

28,830

$

21,654

$

(827

)

$

-

$

146,575

Cost of goods sold

63,538

19,143

10,263

(388

)

-

92,556

Gross margin

33,380

9,687

11,391

(439

)

-

54,019

Selling and administrative expenses

23,714

10,167

9,569

(439

)

5,609

48,620

Add: Depreciation and amortization

1,366

1,120

628

-

84

3,198

Segment EBITDA(3)

$

11,032

$

640

$

2,450

$

-

$

(5,525

)

$

8,597

Branded Products

Healthcare Apparel

Contact Centers

Intersegment Eliminations

Other

Total

For the Three Months Ended December 31, 2024:

Net sales

$

92,403

$

30,337

$

23,527

$

(859

)

$

-

$

145,408

Cost of goods sold

61,057

20,110

10,667

(386

)

-

91,448

Gross margin

31,346

10,227

12,860

(473

)

-

53,960

Selling and administrative expenses

23,898

10,218

10,563

(473

)

5,814

50,020

Add: Depreciation and amortization

1,435

1,055

722

-

101

3,313

Intangible assets impairment charge

-

-

-

-

-

-

Segment EBITDA(3)

$

8,883

$

1,064

$

3,019

$

-

$

(5,713

)

$

7,253


(3) Segment EBITDA is our primary measure of segment profitability under U.S. GAAP ASC 280 “Segment Reporting”. Amounts included in income before income tax expense and excluded from Segment Adjusted EBITDA include: interest expense, depreciation and amortization expense, impairment charges and any other items not tied to the operational performance of the segment. Total Segment EBITDA is a non-GAAP financial measure. Please see reconciliation of Adjusted EBITDA included in the Non-GAAP Financial Measures table above.

SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION - REPORTABLE SEGMENTS
(Unaudited)
(In thousands)

Branded Products

Healthcare Apparel

Contact Centers

Intersegment Eliminations

Other

Total

For the Year Ended December 31, 2025:

Net sales

$

361,134

$

115,866

$

92,520

$

(3,336

)

$

-

$

566,184

Cost of goods sold

237,422

73,904

43,540

(1,546

)

-

353,320

Gross margin

123,712

41,962

48,980

(1,790

)

-

212,864

Selling and administrative expenses

96,067

39,550

42,385

(1,790

)

23,263

199,475

Add: Depreciation and amortization

5,637

3,718

2,650

-

350

12,355

Segment EBITDA(3)

$

33,282

$

6,130

$

9,245

$

-

$

(22,913

)

$

25,744

Branded Products

Healthcare Apparel

Contact Centers

Intersegment Eliminations

Other

Total

For the Year Ended December 31, 2024:

Net sales

$

353,314

$

119,191

$

96,949

$

(3,778

)

$

-

$

565,676

Cost of goods sold

228,591

73,445

44,742

(1,680

)

-

345,098

Gross margin

124,723

45,746

52,207

(2,098

)

-

220,578

Selling and administrative expenses

94,384

41,149

42,999

(2,098

)

23,492

199,926

Add: Depreciation and amortization

5,948

3,892

2,968

-

377

13,185

Intangible assets impairment charge

-

260

-

-

-

260

Segment EBITDA(3)

$

36,287

$

8,749

$

12,176

$

-

$

(23,115

)

$

34,097


(3) Segment EBITDA is our primary measure of segment profitability under U.S. GAAP ASC 280 “Segment Reporting”. Amounts included in income before income tax expense and excluded from Segment Adjusted EBITDA include: interest expense, depreciation and amortization expense, impairment charges and any other items not tied to the operational performance of the segment. Total Segment EBITDA is a non-GAAP financial measure. Please see reconciliation of Adjusted EBITDA included in the Non-GAAP Financial Measures table above.

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