Superior Gr of Cos Reports Q2 2026 Results: Full Earnings Call Transcript

Superior Gr of Cos (NASDAQ: SGC ) held its second-quarter earnings conference call on Tuesday.

Below is the complete transcript from the call.

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For comprehensive financial data and transcripts, visit Access the full call at Summary Superior Gr of Cos reported a 3% year-over-year increase in consolidated revenue for Q2 2026, with EBITDA rising 27% to $7.7 million and adjusted diluted EPS doubling from the previous year to $0.21.

Branded Products segment saw a 6% revenue increase due to higher volumes with existing customers, leading to a 25% EBITDA growth and improved gross margins.

Healthcare Apparel segment experienced a 4% revenue decline and a 260 basis point drop in gross margin due to a strategic inventory write-down, but management expects margin improvements in 2027.

Contact Centers reported a 4% revenue decline year-over-year but showed sequential improvement, driven by increased agent numbers and a strong pipeline of new business.

Strategic focus includes investments in technology and sales talent, with a strong pipeline and customer relationships expected to drive future growth.

Full-year guidance remains unchanged with expected net sales of $572 million to $585 million and adjusted EPS of $0.54 to $0.66, indicating a back-half weighted growth.

Management highlighted ongoing efforts to improve SG&A efficiency and leverage technology for operational improvements, particularly in the Contact Centers segment.

The company is actively seeking acquisition opportunities, particularly in areas that complement existing capabilities, but no immediate acquisitions outside of potential Contact Center expansion are anticipated.

Full Transcript OPERATOR (Operator) Good morning and welcome to the Superior Gr of Cos second quarter 2026 conference call.

With us today are Michael Benstock, Chief Executive Officer, and Mike Koempel, President and Chief Financial Officer.

In addition, Jake Himelstein, President of the Company's Branded Products segment, will join today's Q and A session.

As a reminder, this conference call is being recorded.

This call may contain forward-looking statements regarding the Company's plans, initiatives and strategies and the anticipated financial performance of the Company, including but not limited to sales and profitability.

Such statements are based upon management's current expectations, projections, estimates and assumptions.

Words such as expect, believe, anticipate, think, outlook, hope and variations of such words and similar expressions identify such forward-looking statements.

Forward-looking statements involve known and unknown risks and uncertainties that may cause future results to differ materially from those suggested by the forward-looking statements.

Such risks and uncertainties are further disclosed in the Company's periodic filings with the Securities and Exchange Commission, including but not limited to the Company's most recent Annual Report on Form 10-K and the quarterly reports on Form 10-Q.

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 Company does not undertake to update the forward-looking statements except as required by law.

And now I'll turn the call over to Michael Benstock.

Michael Benstock, CEO Thank you, operator, and thanks everyone for joining us.

We are proud to have delivered a strong quarter with consolidated revenue up 3% year over year, a 160 basis point improvement, EBITDA up 27% to $7.7 million and adjusted diluted EPS of $0.21, more than doubling the second quarter of 2025 excluding the non-cash trade name impairment that Mike will discuss, and reflects the progress we're making on mix, margin and earnings power.

Our results highlight the benefit of our diversified business as we continue to navigate a choppy demand environment.

Our outlook remains favorable given our long-standing and solid customer relationships, the strength of their brands and our ability to support them with advanced technology, a flexible supply chain and stellar service.

Turning to our segments, I'll start with Branded Products, our largest business.

Revenue grew 6% year over year driven primarily by higher volumes with existing customers.

We drove gross margin expansion along with SG&A improvement as a percent of sales.

Taken together, this led to a 25% increase in Branded Products EBITDA.

As we look ahead, we believe our growing backlog and ongoing investments in sales, talent, marketing and technology will drive continued long-term growth.

Our Healthcare Apparel revenue declined 4% and gross margin decreased by 260 basis points largely due to a non-cash inventory write-down tied to our recent strategic decision to accelerate the shift to a more focused product offering.

While we were able to reduce SG&A, SG&A as a percent of sales increased slightly on the lower revenue base and segment EBITDA declined by $1 million year over year.

The quarter was undeniably challenging, but we view the shorter-term margin pressure and the transition under new leadership as necessary steps towards stronger, more sustainable margins and a more efficient use of working capital over time.

Finally, in Contact Centers, as expected, revenue was down 4% year over year but improved sequentially for the second consecutive quarter.