By Timothy S. Donahue
Top Takeaways:
- Revenue Growth: Third-quarter sales rose 11.1% to $99.8 million, supported by a recovery in shisha shipments.
- Vaping Expansion: AIR submitted a PMTA for Crown Switch as it prepares to enter the regulated U.S. vaping market.
- Manufacturing Plans: The company said a new Romanian factory is expected to open in Q1 2027.
AIR Global’s shisha business is back on the upswing, and U.S. vaping is next on its agenda.
The Dubai-based company reported third-quarter revenue of $99.8 million, up 11.1% from a year earlier, as shipments recovered after supply-chain disruptions battered operations in the first half of 2026.
Flavored shisha molasses shipment volumes rose 5.8%, while improved pricing and product mix added another 5% to revenue growth. Adjusted EBITDA rose 7.7% to $30.9 million, though margins narrowed slightly to 31% from 31.9%.
“Third-quarter revenue increased 11.1% as volumes grew 5.8% and shipment activity continued to recover from the supply-chain disruptions experienced in the first half of the year,” CEO Stuart Brazier said.
The company reported a quarterly net profit of $7.6 million, compared with $6.7 million a year earlier.
The Americas led regional growth, with revenue up 25.6% to $21.9 million. Sales in the Middle East, Africa and Asia increased 9.4% to $64.1 million, while European revenue rose 4.9% to $13.8 million.
For the first nine months of 2026, revenue increased 6% to $306.7 million, despite a 4.6% decline in shipment volumes due to disruptions earlier in the year. Adjusted EBITDA increased 2.3% to $102.7 million.
However, AIR recorded a net loss of $74.2 million over nine months, compared with a $38.7 million profit a year earlier. The loss reflected substantial costs associated with its public listing and business combination, including $48.2 million in noncash listing expenses and $47.7 million in transaction-related costs.
The company said that disruptions in the Strait of Hormuz forced it to establish alternative shipping routes and to accelerate changes to its manufacturing network. “We remain on track to open our Romania factory during Q1’27, which will further diversify our manufacturing footprint and enhance our operational resilience in an uncertain geopolitical environment,” CFO Bassem Lotfy said.
Beyond shisha, AIR is preparing to enter the regulated U.S. vaping market with Crown Switch, a product developed in partnership with the Canadian vaping technology company Greentank.
AIR confirmed that it submitted a premarket tobacco product application (PMTA) for Crown Switch to the U.S. Food and Drug Administration. “The submission of our PMTA for Crown Switch is an important milestone in AIR’s strategy to build a responsible, science-led presence in the regulated U.S. vaping market,” Brazier said.
According to AIR, the application includes evidence on product quality, manufacturing, consumer behavior, and population-level health impacts. Submission does not constitute FDA marketing authorization.
In July, AIR announced a $20 million strategic investment in Greentank, with an option to increase its ownership stake by 20% within 24 months.
AIR’s New Growth Categories division reported an adjusted EBITDA loss of $2.9 million for the quarter, narrowing from $3.9 million a year earlier. The company reiterated its full-year 2026 forecast, with revenue growth of 4% to 6% and low- to mid-single-digit adjusted EBITDA growth.
AIR also plans to introduce an annual dividend of $0.28 per share starting in 2027 and to repurchase up to $100 million of shares through December 2029, subject to applicable approvals and conditions.
For now, shisha remains AIR’s financial engine. Whether Crown Switch can become another will depend on the FDA’s review and on the company’s ability to turn its vaping investment into a commercial business.
