Superior Group Sales Rise 5% to $146.0 Million in Third Quarter
Key Facts
Superior Group of Companies reported net sales of $146.0 million for the third quarter ended September 30, 2026, up 5% from $138.5 million in the same period of 2025. In its earnings release, the company said revenue growth came alongside slight declines in net income and earnings per share from a year earlier. Net income was $2.6 million, or $0.17 per diluted share, compared with $2.7 million and $0.18 per share a year earlier. Adjusted EBITDA also fell to $6.7 million from $7.5 million. The chief executive attributed growth to continued momentum in the branded products and call center segments.
Uneven performance across the three segments drove the quarter’s mixed picture. Branded products sales rose to $92.111 million from $85.095 million in the third quarter of 2025, while call center sales increased to $24.224 million from $22.664 million. By contrast, healthcare apparel sales fell to $30.553 million from $31.520 million. The decline in that segment extended beyond revenue: adjusted EBITDA turned to a loss of $501,000, compared with a profit of $3.179 million a year earlier. The chief executive said the new management team in healthcare apparel is working on a more focused product strategy to improve margins and reduce working capital requirements.
The chief executive said the company managed to keep earnings per share nearly stable compared with the prior-year quarter, despite additional costs related to its strategic transformation in healthcare apparel. Results came in at $0.17 per diluted share, compared with $0.18 a year earlier, while net income was $2.6 million versus $2.7 million. Adjusted operating earnings were $6.7 million, down from $7.5 million in the year-earlier period. The chief executive also cited momentum in branded products and call centers as supporting revenue growth. The quarter therefore combined broader sales growth with declines in some profitability measures, with clear pressure concentrated in healthcare apparel.
The company narrowed its fiscal 2026 net sales forecast to $578.0–$585.0 million, compared with its previous range of $572.0–$585.0 million. The low end of the forecast rose, while the high end was unchanged. The new range compares with actual sales of $566.2 million in 2025. The company also narrowed its adjusted diluted earnings per share forecast to $0.60–$0.66, from $0.54–$0.66 previously. That compares with $0.46 in 2025, and the company said the top end of the range represents 43% year-over-year growth.
For the nine months ended September 30, 2026, sales were $434.708 million, compared with $419.609 million in the same period a year earlier. Net cash provided by operating activities rose to $30.679 million from $1.270 million. At the end of September, the company reported cash and cash equivalents of $27.924 million, while long-term debt totaled $74.287 million. Long-term debt was $87.093 million on December 31, 2025. These figures provide context on sales, liquidity and debt during the first nine months, alongside the updated annual outlook.
SGC shares closed at $13.44 on November 6, 2026. The company held an online earnings call on November 9 at 8:00 a.m. Eastern time. It made a telephone replay available through November 23, 2026. Earlier in the year, second-quarter sales were $147.8 million, compared with $144.0 million in the second quarter of 2025, and adjusted EBITDA was $7.7 million versus $6.1 million. The company said at the time that it faced weak market conditions, while growth opportunities remained for all three business segments. On November 2, it also announced that The Office Gurus had acquired Select VoiceCom, saying the deal expands its operating capabilities in the Philippines and supports its expertise-based outsourcing strategy.