Air Industries and Tenax Announce Strategic Aerospace Merger

Air Industries Group ( (AIRI) ) just unveiled an update.

On February 16 and 17, 2026, Air Industries Group and Tenax Aerospace agreed to a strategic merger that will combine Air’s precision aerospace manufacturing with Tenax’s special mission aviation services into a single, diversified aerospace and defense platform expected to remain listed on NYSE American under the ticker AIRI. Based on preliminary 2025 figures, the combined entity would have generated about $183.3 million in revenue and $65 million in adjusted EBITDA, with pro forma 2026 revenues projected above $210 million and adjusted EBITDA above $75 million, supported by a workforce of around 430 employees and a net debt position expected to decline by up to $30 million by closing.

Under the merger terms, Air will issue roughly 94.4 million to 112.5 million shares, depending on its net indebtedness, with Tenax members owning approximately 95% of the post-merger equity and existing Air shareholders holding about 5%, effectively handing control of the public company to Tenax. The deal includes governance reshaping of the Air board in Tenax’s favor, refinancing of Air’s existing debt, and a suite of shareholder protections for legacy Air investors, including a potential tender offer for up to 1 million shares if the pre-closing stock price falls below a calculated debt-adjusted share price and a non-transferable, one-year redemption right at 107.3% of that price.

The transaction is subject to Air shareholder approval, antitrust and other U.S. government clearances, and customary closing conditions, but is not contingent on new financing for Tenax, with both parties targeting close by June 30, 2026. Support agreements with key Air shareholders and Tenax members, as well as lock-up and registration rights for Tenax insiders, underscore a transaction designed to give Tenax a public listing, permanent capital and manufacturing capacity while offering Air shareholders participation in a larger, more leveraged but higher-earnings aerospace and defense platform.

The most recent analyst rating on (AIRI) stock is a Hold with a $3.50 price target. To see the full list of analyst forecasts on Air Industries Group stock, see the AIRI Stock Forecast page.

Spark’s Take on AIRI Stock

According to Spark, TipRanks’ AI Analyst, AIRI is a Neutral.

The score is held down primarily by weak financial quality (profitability, leverage, and cash flow). Technicals are only modestly constructive, and valuation is constrained by losses (negative P/E). The earnings call provides a meaningful positive offset due to improving margins and reduced losses, but balance-sheet pressures persist.

To see Spark’s full report on AIRI stock, click here.

More about Air Industries Group

Air Industries Group is a U.S. aerospace and defense manufacturer specializing in precision components and assemblies for major prime contractors, including landing gear, flight controls, engine mounts and jet engine components used in mission-critical military and civilian operations. The company runs two main plants in Bayshore, New York, and Barkhamsted, Connecticut, and employs about 175 people serving government and commercial aerospace markets.

Tenax Aerospace is a U.S.-based provider of special mission aircraft and related services to the U.S. and Canadian governments and other customers, focusing on long-term aviation programs such as aerial fire suppression, airborne ISR, engagement simulation and sensor testing. Founded in 2001 and headquartered in Ridgeland, Mississippi, Tenax is privately owned and employs roughly 255 people, with a portfolio geared to national security and public-interest missions.

Average Trading Volume: 153,817

Technical Sentiment Signal: Sell

Current Market Cap: $15.23M

For detailed information about AIRI stock, go to TipRanks’ Stock Analysis page.