MARKET WIRE NEWS

Superior Group of Companies Reports Fourth Quarter 2025 Results

MWN-AI** Summary

Superior Group of Companies, Inc. (NASDAQ: SGC) reported its fourth-quarter results for 2025, showing a modest increase in total net sales to $146.6 million, compared to $145.4 million in the same quarter of the previous year. The company achieved a net income of $3.5 million, more than doubling from $2.1 million a year earlier, translating to earnings per share of $0.23 versus $0.13 last year. EBITDA also witnessed an increase, rising to $8.6 million from $7.3 million, marking a notable 19% year-over-year growth.

CEO Michael Benstock highlighted the success of the quarter, emphasizing cost containment and operational efficiencies as key drivers of improved financial performance. Sequentially, revenues grew by 6%, with earnings per share up by 28%. The company's strong financial position enables it to return capital to shareholders while still investing in future growth opportunities.

For 2026, Superior Group projects net sales between $572 million and $585 million, representing an increase from the $566.2 million reported in 2025. Additionally, the company forecasts earnings per diluted share of $0.54 to $0.66, up from $0.46 the previous year.

Overall, the company’s strategic focus lies in expanding its portfolio across three key market segments—Branded Products, Healthcare Apparel, and Contact Centers—through innovative solutions aimed at increasing market share, enhancing efficiencies, and improving profit margins. A webcast for further discussions will be available on their investor relations website.

As Superior Group navigates uncertain economic conditions, the leadership's commitment to driving growth and generating shareholder value remains a central theme in their outlook.

MWN-AI** Analysis

Superior Group of Companies, Inc. (NASDAQ: SGC) has reported solid fourth-quarter results for 2025, showcasing a year-over-year growth in total net sales and a significant increase in both net income and EBITDA. Notably, the company achieved net sales of $146.6 million, improving from $145.4 million in the prior year’s quarter. Additionally, net income surged by 66% to $3.5 million, translating to $0.23 per diluted share versus $0.13 previously. This performance is indicative of effective cost management, reflected in a 19% growth in EBITDA, which was reported at $8.6 million.

The company has also outlined an optimistic outlook for 2026, forecasting net sales to range between $572 million and $585 million, representing potential growth from $566.2 million in 2025. Earnings per diluted share are expected to increase to between $0.54 and $0.66, showing confidence in ongoing operational efficiency and market capture strategies across its three business segments: Branded Products, Healthcare Apparel, and Contact Centers.

Investors should consider the following as they evaluate their positions in SGC:

1. **Growth Potential**: With a clear strategy to capture market share and improve margins, the company’s growth outlook aligns with expanding needs in its target markets, providing a favorable long-term investment thesis.

2. **Financial Metrics**: Strong quarterly metrics demonstrate improved profitability and robust cash flow management, boding well for future operating performance.

3. **Cost Management**: The company's ability to contain costs while achieving growth accentuates operational efficiency, an attractive factor amid uncertain market conditions.

4. **Dividends**: The commitment to returning capital to shareholders through dividends while maintaining investments in growth is favorable for income-focused investors.

However, potential investors should also be cognizant of risks related to competition, economic fluctuations, and the challenges posed by supply chain disruptions. As always, careful analysis of market conditions and ongoing monitoring of company performance will be critical in making informed investment decisions regarding SGC.

**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.

Source: 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.


FAQ**

What strategies does Superior Group of Companies Inc. SGC plan to implement in 2026 to achieve the projected net sales increase to the range of $572 million to $585 million compared to the $566.2 million reported in 2025?

Superior Group of Companies Inc. plans to enhance its product offerings, expand market reach, leverage technology for efficiency, and focus on strategic partnerships to achieve the projected net sales increase to between $572 million and $585 million in 2026.

How does Superior Group of Companies Inc. SGC plan to leverage its diverse supply base and efficiencies to expand margins, as mentioned in the fourth quarter results?

Superior Group of Companies Inc. plans to leverage its diverse supply base and operational efficiencies by optimizing production processes, enhancing cost management, and fostering strategic partnerships to drive growth and expand profit margins.

In light of the 19% year-over-year EBITDA growth reported by Superior Group of Companies Inc. SGC, what specific measures were taken to reduce expenses during the fourth quarter of 2025?

Superior Group of Companies Inc. implemented cost-cutting initiatives, streamlined operations, and optimized supply chain efficiencies in the fourth quarter of 2025 to achieve a 19% year-over-year EBITDA growth.

How does Superior Group of Companies Inc. SGC intend to manage risks related to competition and supply chain disruptions, as highlighted in their forward-looking statements for 2026?

Superior Group of Companies Inc. SGC plans to manage risks related to competition and supply chain disruptions by diversifying its supplier base, investing in technology for operational efficiency, and enhancing customer relationships to adapt to market changes effectively.

**MWN-AI FAQ is based on asking OpenAI questions about Superior Group of Companies Inc. (NASDAQ: SGC).

Superior Group of Companies Inc.

NASDAQ: SGC

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$171,824,202
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Apparel & Luxury
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