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Air Industries Group (AIRI)
:AIRI

Air Industries Group (AIRI) AI Stock Analysis

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Air Industries Group

(NYSE MKT:AIRI)

Rating:44Neutral
Price Target:
$3.50
▲(7.03%Upside)
AIRI's overall score reflects significant financial challenges, with high leverage and negative profitability being the main concerns. While some technical stability is noted, poor valuation and mixed earnings call results highlight the need for strategic improvements to enhance financial health and market perception.

Air Industries Group (AIRI) vs. SPDR S&P 500 ETF (SPY)

Air Industries Group Business Overview & Revenue Model

Company DescriptionAir 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.
How the Company Makes MoneyAir Industries Group generates revenue through the manufacturing and sale of precision components and assemblies used in aerospace and defense applications. The company's key revenue streams include contracts with major aerospace and defense contractors, providing critical parts such as landing gear and flight control systems. These contracts often span multiple years and involve rigorous quality standards and specifications. Additionally, Air Industries may engage in long-term partnerships or agreements with original equipment manufacturers (OEMs) in the aerospace sector, ensuring a steady stream of income through ongoing production and supply agreements. The company's earnings are significantly influenced by defense budgets, aerospace industry demand, and the ability to innovate and maintain competitive manufacturing processes.

Air Industries Group Earnings Call Summary

Earnings Call Date:May 15, 2025
(Q1-2025)
|
% Change Since: -6.57%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call highlights several positive developments, including increased gross profit, a record book-to-bill ratio, and significant backlog, suggesting potential for future growth. However, these are tempered by decreased revenue and increased losses, both operating and net, due to stock compensation expenses. The sentiment is balanced, with optimism for future growth countered by current financial challenges.
Q1-2025 Updates
Positive Updates
Improved Gross Profit Despite Lower Sales
The company's gross profit increased in Q1 2025 despite a decrease in sales from $14.1 million in 2024 to $12.1 million in 2025, demonstrating improved operational efficiency.
Record Book-to-Bill Ratio
The book-to-bill ratio was 1.34 to 1, a 20% improvement from the prior year and an 80% increase since Q1 2023, indicating strong business development efforts and future sales growth.
Record Funded Backlog
The company's funded backlog reached a record $120 million, with the total backlog, including forecast orders, exceeding $0.25 billion.
Adjusted EBITDA Growth
Adjusted EBITDA for Q1 2025 increased by $214,000 or nearly 60% compared to Q1 2024, reaching $576,000.
Debt Reduction
Total debt was reduced by approximately $1.6 million compared to December 31, 2024.
Negative Updates
Decreased Revenue
Consolidated net sales for Q1 2025 were $12.1 million, down from $14.1 million in Q1 2024.
Increased Operating Loss
Operating loss increased to $746,000 in Q1 2025 compared to a loss of $259,000 in the same period in 2024, largely due to an increase in non-cash expense for stock compensation.
Net Loss Increase
Net loss for Q1 2025 was $988,000 or $0.27 per share, compared to a loss of $706,000 or $0.21 per share in Q1 2024.
Company Guidance
During the first quarter of 2025, Air Industries Group reported a decrease in consolidated net sales to $12.1 million from $14.1 million in the same period of 2024. However, the gross margin improved by over $100,000, reaching approximately $2 million, with a gross margin percentage increase of 320 basis points to 16.8%. Operating expenses rose by 28.4% to $2.8 million, largely due to a $412,000 increase in stock compensation expense. Despite a net loss of $988,000 or $0.27 per share, compared to a loss of $706,000 or $0.21 per share in the first quarter of 2024, the adjusted EBITDA increased by nearly 60% to $576,000. The company's book-to-bill ratio stood at 1.34 to 1, reflecting a 20% improvement from the previous year, and its funded backlog reached a record $120 million, while the total backlog exceeded $0.25 billion. Additionally, Air Industries Group reaffirmed its belief that the full year of 2025 will surpass the results of 2024, despite variations in quarterly outcomes.

Air Industries Group Financial Statement Overview

Summary
AIRI faces significant financial challenges with a negative net profit margin and high leverage (debt-to-equity ratio of 8.79), indicating financial risk. While cash generation from operations is positive, free cash flow remains negative, impacting future investments and debt servicing.
Income Statement
45
Neutral
The income statement shows a challenging financial performance. The gross profit margin for TTM is 17.04%, indicating decent cost management, but the company struggles with profitability as evidenced by a negative net profit margin of -3.10%. Revenue has been volatile, with a recent decline from 2024 to TTM, indicating potential issues in revenue generation. EBIT and EBITDA margins are weak, reflecting operational inefficiencies and high fixed costs.
Balance Sheet
30
Negative
The balance sheet reflects high leverage and a weak equity position. The debt-to-equity ratio stands at an alarming 8.79 for TTM, highlighting significant financial risk. Return on equity is negative, indicating losses relative to shareholders' equity. The equity ratio of 31.59% shows a limited equity buffer to absorb financial fluctuations, presenting a concerning picture of financial stability.
Cash Flow
40
Negative
The cash flow statement indicates some challenges in cash generation. The operating cash flow to net income ratio is 1.26, showing the company generates cash from operations despite net losses. However, free cash flow is negative, and its growth rate is concerning, indicating difficulties in generating sufficient cash after capital expenditures. This could impact future investments and debt servicing capabilities.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue53.18M55.11M51.52M53.24M58.94M50.10M
Gross Profit9.06M8.93M7.43M7.45M10.25M6.51M
EBITDA3.23M3.45M2.75M3.33M6.19M4.46M
Net Income-1.65M-1.37M-2.13M-1.08M1.63M1.10M
Balance Sheet
Total Assets48.39M51.01M50.72M53.81M53.42M57.78M
Cash, Cash Equivalents and Short-Term Investments285.00M753.00K346.00K281.00K627.00K2.50M
Total Debt1.34B27.87M25.77M28.51M27.29M31.90M
Total Liabilities33.10M36.06M35.52M36.98M36.04M42.67M
Stockholders Equity15.29M14.95M15.19M16.84M17.39M15.11M
Cash Flow
Free Cash Flow-1.33M-1.98M2.74M-1.91M2.70M-5.32M
Operating Cash Flow2.08M324.00K4.86M448.00K4.06M-1.52M
Investing Cash Flow-3.39M-2.29M-2.11M-2.36M-1.36M-3.80M
Financing Cash Flow1.37M2.37M-2.69M1.57M-4.58M6.53M

Air Industries Group Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3.27
Price Trends
50DMA
3.45
Negative
100DMA
3.58
Negative
200DMA
4.28
Negative
Market Momentum
MACD
-0.05
Positive
RSI
39.29
Neutral
STOCH
4.60
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AIRI, the sentiment is Negative. The current price of 3.27 is below the 20-day moving average (MA) of 3.41, below the 50-day MA of 3.45, and below the 200-day MA of 4.28, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 39.29 is Neutral, neither overbought nor oversold. The STOCH value of 4.60 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AIRI.

Air Industries Group Risk Analysis

Air Industries Group disclosed 36 risk factors in its most recent earnings report. Air Industries Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Air Industries Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$130.58M31.672.77%1.65%11.49%-66.66%
65
Neutral
$10.75B15.695.29%1.89%3.09%-27.41%
63
Neutral
$59.03M-790.22%1.75%5.85%
CVCVU
62
Neutral
$43.03M23.317.62%-7.34%-88.84%
SISIF
53
Neutral
$24.45M-17.90%-3.45%54.42%
44
Neutral
$12.23M-11.05%0.29%31.48%
43
Neutral
$83.80M-9999.00%-1.00%26.86%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AIRI
Air Industries Group
3.27
-0.08
-2.39%
AIRT
Air T
22.50
-2.25
-9.09%
CVU
CPI Aerostructures
3.29
1.04
46.22%
SIF
SIFCO Industries
4.21
1.08
34.50%
TISI
Team
18.58
10.33
125.21%
TWIN
Twin Disc
9.56
-2.34
-19.66%

Air Industries Group Corporate Events

Executive/Board ChangesShareholder Meetings
Air Industries Group Holds Annual Stockholders Meeting
Neutral
Jun 27, 2025

On June 26, 2025, Air Industries Group held its Annual Meeting of Stockholders where several key proposals were voted upon. The stockholders elected directors for the upcoming year, approved amendments to increase the number of authorized shares and shares available under the 2022 Equity Incentive Plan, approved executive compensation, and ratified the appointment of CBIZ CPAs P.C. as the independent accounting firm for 2025.

Financial Disclosures
Air Industries Group to Announce Q1 2025 Results
Neutral
May 13, 2025

On May 13, 2025, Air Industries Group announced that it will release its financial results for the first quarter of 2025 on May 15, before the market opens. The company will also host a conference call on the same day to discuss the results. This announcement is part of the company’s ongoing communication with stakeholders and provides insights into its financial performance and future outlook.

Financial Disclosures
Air Industries Group Schedules Financial Results Call
Neutral
Apr 15, 2025

On April 15, 2025, Air Industries Group announced it will host a conference call on April 16, 2025, to discuss its financial results for the year ended December 31, 2024. The call will provide insights into the company’s financial performance and may impact its stakeholders by offering a clearer picture of its market positioning and operational outcomes.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 21, 2025