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1. Company Snapshot

1.a. Company Description

Air Industries Group, an aerospace and defense company, designs, manufactures, and sells structural parts and assemblies for mission-critical aerospace and defense applications, and a prime contractor to the U.S. Department of Defense in the United States.The company operates through two segments, Complex Machining and Turbine and Engine Component.The Complex Machining segment offers aircraft landing and arresting gears, engine mounts, flight controls, throttle quadrants, and other components.


Its products are deployed on a range of military and commercial aircraft, including Sikorsky's UH-60 Blackhawk, Lockheed Martin F-35 Joint Strike Fighter, Northrop Grumman E2D Hawkeye, the US Navy F-18, and USAF F-16 and F-15 fighter aircraft.The Turbine and Engine Component segment makes components and provides services for aircraft jet engines and ground-power turbines.Its jet engine components are used on the USAF F-15 and F-16, the Airbus A-330, the Boeing 777, and others, as well as ground-power turbine applications.


The company's products are used by original equipment manufacturers in the manufacture of fixed wing aircraft, helicopters jet turbine engines, and other complex aerospace and defense products.Air Industries Group was founded in 1979 and is headquartered in Bay Shore, New York.

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1.b. Last Insights on AIRI

Air Industries Group's recent performance was negatively driven by a lack of significant growth initiatives and a decline in defense spending. The company's recent contract win worth $2.6 million for aftermarket landing gear assemblies for the US Navy E-2D Advanced Hawkeye aircraft (January 2025) failed to generate significant momentum, while the announcement of an advertising campaign (February 2025) may not have been enough to offset the company's sluggish performance. The absence of any recent earnings release suggests that the company's underlying business conditions remain a concern.

1.c. Company Highlights

2. Air Industries Group's Q3 2025 Earnings: A Step in the Right Direction

Air Industries Group reported net sales of $10.3 million for Q3 2025, with a gross profit of $2.3 million, representing a gross margin of 22.3%. The company recorded an operating income of $316,000 and a net loss of $44,000, or $0.01 per share, a significant improvement from the loss of $404,000 in Q3 2024. The actual EPS of -$0.01 beat estimates of -$0.22, indicating better-than-expected performance. Adjusted EBITDA for the nine months ended September 30, 2025, was $2.7 million, up nearly 5% from the prior year, demonstrating the company's focus on operational discipline.

Publication Date: Nov -21

📋 Highlights
  • Net Sales & Gross Profit:: Q3 2025 net sales were $10.3 million with a gross profit of $2.3 million (22.3% margin).
  • Operating Income & Net Loss:: Operating income reached $316,000, with a net loss of $44,000 ($0.01/share), down from $404,000 in Q3 2024.
  • Adjusted EBITDA Growth:: 9-month Adjusted EBITDA was $2.7 million, a 5% increase compared to the prior year.
  • Debt & Inventory Changes:: Total debt rose by $2.4 million, while inventories increased by $5.6 million to support future deliveries.
  • Lender Discussions:: Ongoing talks with lenders to refinance/extend credit facility (due Dec 2025) and subordinated notes (due July 2026).

Operational Highlights and Debt Position

The company's total debt increased by approximately $2.4 million, largely due to a $5.6 million rise in inventories to support future deliveries. According to CEO Lou Melluzzo, the third quarter performance showed "measurable improvements in profitability and operational discipline." The strong backlog and healthy demand from customers position the company for future growth, with analysts estimating revenue growth of 3.5% next year.

Valuation and Future Prospects

With an EV/EBITDA ratio of 2.55 and a Net Debt / EBITDA ratio of 2.51, the company's valuation appears reasonable, considering its debt position and earnings. The company's efforts to refinance or extend its credit facility, which matures at the end of December 2025, and subordinated notes, due July 1, 2026, are ongoing. As the company continues to focus on execution, cost control, and driving shareholder value, its current valuation metrics suggest that the market has tempered expectations, potentially setting the stage for future upside.

3. NewsRoom

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Air Industries Group (AIRI) Q3 2025 Earnings Call Transcript

Nov -17

Source: seekingalpha.com

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Air Industries (AIRI) Reports Q3 Loss, Tops Revenue Estimates

Nov -14

Source: zacks.com

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Air Industries Group (AIRI) Is a Trending Stock: Facts to Know Before Betting on It

Nov -06

Source: zacks.com

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Air Industries (AIRI) Stock Slides as Market Rises: Facts to Know Before You Trade

Oct -27

Source: zacks.com

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Why Air Industries (AIRI) Dipped More Than Broader Market Today

Oct -22

Source: zacks.com

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Air Industries (AIRI) Stock Drops Despite Market Gains: Important Facts to Note

Oct -02

Source: zacks.com

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Air Industries (AIRI) Increases Despite Market Slip: Here's What You Need to Know

Sep -25

Source: zacks.com

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Air Industries (AIRI) Stock Drops Despite Market Gains: Important Facts to Note

Sep -19

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.21%)

6. Segments

Military

Expected Growth: 4.5%

Growing demand for advanced defense electronics, increasing military aircraft modernization, and rising security concerns drive the Military from Air Industries Group segment growth.

Commercial

Expected Growth: 8.5%

Growing demand for complex aircraft components and assemblies, driven by increasing aircraft production rates and the need for lightweight, fuel-efficient designs, will fuel Air Industries Group's commercial segment growth.

7. Detailed Products

Structural Components

Air Industries Group provides structural components for aircraft, including wings, fuselages, and control surfaces.

Engine Components

The company manufactures engine components, including turbine blades, vanes, and other engine parts.

Fasteners and Assembly Components

Air Industries Group produces fasteners and assembly components, including bolts, nuts, and rivets.

Aircraft Interiors

The company designs and manufactures aircraft interior components, including seats, cabin linings, and galley equipment.

Electromechanical Components

Air Industries Group produces electromechanical components, including switches, sensors, and actuators.

Aerostructures

The company designs and manufactures aerostructures, including aircraft doors, windows, and other structural components.

8. Air Industries Group's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes in the air industry is moderate due to the presence of alternative modes of transportation such as trains and buses, but air travel remains the fastest way to cover long distances.

Bargaining Power Of Customers

The bargaining power of customers in the air industry is low due to the lack of switching options and the complexity of air travel bookings.

Bargaining Power Of Suppliers

The bargaining power of suppliers in the air industry is high due to the limited number of aircraft manufacturers and the high demand for their products.

Threat Of New Entrants

The threat of new entrants in the air industry is low due to the high barriers to entry, including the need for significant capital investment and regulatory approvals.

Intensity Of Rivalry

The intensity of rivalry in the air industry is high due to the presence of many competitors and the need to differentiate through price, service, and product offerings.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 62.92%
Debt Cost 6.09%
Equity Weight 37.08%
Equity Cost 6.09%
WACC 6.09%
Leverage 169.66%

11. Quality Control: Air Industries Group passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Intevac

A-Score: 4.7/10

Value: 7.6

Growth: 4.3

Quality: 3.1

Yield: 3.0

Momentum: 6.5

Volatility: 3.7

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Ducommun

A-Score: 4.4/10

Value: 2.9

Growth: 3.0

Quality: 4.9

Yield: 0.0

Momentum: 8.5

Volatility: 7.0

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Air Industries

A-Score: 3.5/10

Value: 8.3

Growth: 2.9

Quality: 1.5

Yield: 0.0

Momentum: 5.0

Volatility: 3.0

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A-Score: 3.3/10

Value: 5.1

Growth: 1.1

Quality: 2.3

Yield: 0.0

Momentum: 9.0

Volatility: 2.0

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Astrotech

A-Score: 3.2/10

Value: 8.0

Growth: 3.3

Quality: 4.4

Yield: 0.0

Momentum: 0.5

Volatility: 3.0

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CPI Aerostructures

A-Score: 3.0/10

Value: 5.2

Growth: 5.2

Quality: 2.4

Yield: 0.0

Momentum: 2.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.97$

Current Price

2.98$

Potential

-0.00%

Expected Cash-Flows