Q2 2026 Company Update
- RAE Corporation
- 1 day ago
- 2 min read
As we reach the halfway point of 2026, our executive team is sharing some updates on company performance, growth opportunities, operational priorities, and the investments being made to support RAE's future.
While the quarter presented challenges in production execution and delivery performance, strong sales activity, expanding market opportunities, facility investments, and workforce growth continue to position RAE for a strong second half of the year.
The purpose of these quarterly updates remains the same: keeping our company informed, aligned, and connected to where we are headed as an organization.
2026 – Our 3 Company Objectives
1. Deliver an Exceptional Partner Experience
Providing outstanding service and support to our customers, vendors, contractors, representatives, and business partners.
2. Drive Profitable Growth and Create Opportunities
Creating opportunities through growth, innovation, and investment in our people, facilities, and products.
3. Become the Most Desirable Place to Work
Building a workplace where employees feel valued, engaged, and empowered to succeed.
COMPANY SNAPSHOT
Damon Swank — VP of Operations
Q2 provided both opportunities and challenges across the organization.
Key areas identified for improvement included:
On-time delivery performance
Communication regarding customer delays
Production constraints
Full-kit availability
Product mix profitability
SALES UPDATE
Jeremy Colvard – VP of Sales
Century Refrigeration
Strong performance throughout Q1 and Q2
Weekend shift being added to support demand
Major opportunities for both chiller and COâ‚‚ unit cooler projects
RAE Coils
Continued growth driven by data centers and AI infrastructure demand
Potential $15 million AWS-related opportunity
RSI
Potential international opportunity that could positively impact Q4
RAE Retail
New projects entering the pipeline
Confidence in achieving annual sales goals
Service & Marketing
Expanding startup support and customer training
Launching the new RAE Retail website
WORKFORCE GROWTH
RAE plans to expand operations through a North Bay weekend shift focused on final assembly work.
Leadership also committed to reviewing production compensation and incentive programs.
FINANCIAL UPDATE
Dan Crofford – Chief Financial Officer
Key Highlights:
Bookings increased approximately 50% year-over-year
Sales, profitability, and margins improved year-over-year
$2.5 million invested in facilities and infrastructure improvements
Additional $5–7 million planned during 2026
SAFETY UPDATE
Employees were encouraged to:
Utilize Stop Work Authority
Report unsafe conditions immediately
Report unsafe behaviors
Document near misses
ORGANIZATIONAL UPDATES
Manufacturing Leadership
Tyler Martin named Interim Director of Manufacturing
Supply Chain Alignment
Supply Chain now reports directly to Kyle Bowling
QUALITY & CONTINUOUS IMPROVEMENT
Jay Kindle – VP of Engineering
ISO Certification Update
• ISO audit successfully completed
• Certification approval received
Production Performance
Focus areas:
On-time delivery
Throughput
Quality performance
IFS Progress
Enhanced KPI reporting
Better labor tracking
Improved work reporting
FACILITIES UPDATE
Current Projects:
East Warehouse expansion
New shipping offices
New maintenance facility
Additional employee parking
COMMUNITY IMPACT
RAE has contributed more than $100,000 to local schools, athletic programs, and community organizations.
A new literacy-focused educational outreach program is also being developed.
LOOKING AHEAD
Strong bookings, expanding market demand, facility investments, workforce growth, and continued focus on safety, quality, and employee engagement position RAE for a strong second half of 2026.
Thank you to every employee for your continued dedication, hard work, and commitment to RAE's success.