Air Industries Group Reports Strong Financial Performance for Q3 and First Nine Months of 2025
Air Industries Group (“Air Industries”) (NYSE American: AIRI), a prominent manufacturer of precision components and assemblies serving major aerospace and defense prime contractors, today announced its financial results for the three and nine months ended September 30, 2025. The company’s results for the quarter and nine-month period reflect solid operational performance, disciplined cost management, and progress toward improving profitability across its core business segments.
Third Quarter 2025 Financial Highlights
For the three months ended September 30, 2025, Air Industries reported net sales of $10.3 million, accompanied by an Adjusted EBITDA (a non-GAAP financial measure) of $1.3 million, demonstrating improvement over prior periods. Other key financial metrics for the quarter include:
- Gross Profit: $2.3 million, representing 22.3% of sales, up significantly from 15.5% in the same quarter of 2024.
- Operating Expenses: $2.0 million, an increase of $105,000 or 5.6% compared to Q3 2024.
- Operating Income: $316,000, a marked improvement from $67,000 in the same period last year.
- Net Loss: $(44,000), compared with a net loss of $(404,000) in Q3 2024.
The company’s financial performance reflects a combination of disciplined expense management and a focus on operational efficiency, resulting in enhanced gross margins despite slightly lower revenue compared with the prior year.
Third Quarter Income Statement Summary (Unaudited)
| Metric | 2025 | 2024 |
|---|---|---|
| Net Sales | $10,309,000 | $12,555,000 |
| Cost of Sales | $8,014,000 | $10,614,000 |
| Gross Profit | $2,295,000 | $1,941,000 |
| Gross Margin | 22.3% | 15.5% |
| Operating Expenses | $1,979,000 | $1,874,000 |
| Operating Income | $316,000 | $67,000 |
| Interest Expense | $(466,000) | $(482,000) |
| Other Income (Net) | $106,000 | $11,000 |
| Net Income (Loss) | $(44,000) | $(404,000) |
| Net Income (Loss) per Share | $(0.01) | $(0.12) |
Adjusted EBITDA Reconciliation (Unaudited)
| Metric | 2025 | 2024 |
|---|---|---|
| Net Income (Loss) | $(44,000) | $(404,000) |
| Interest Expense | $466,000 | $482,000 |
| Depreciation | $676,000 | $560,000 |
| Amortization | $17,000 | $17,000 |
| Stock Compensation | $166,000 | $190,000 |
| Adjusted EBITDA | $1,281,000 | $845,000 |
Nine-Month Period Ended September 30, 2025
For the first nine months of fiscal 2025, Air Industries reported net sales of $35.1 million, with an Adjusted EBITDA of $2.7 million, reflecting continued focus on operational efficiency and cost control.
Key metrics for the nine-month period include:
- Gross Profit: $6.4 million, representing 18.1% of sales, an improvement over 16.2% for the same period in 2024.
- Operating Expenses: $6.8 million, reflecting an increase over the prior year due primarily to strategic investments and inflationary pressures.
- Operating Loss: $(422,000), compared to an operating income of $560,000 in the first nine months of 2024.
- Net Loss: $(1.45 million), compared with $(812,000) in the prior year, reflecting investment in growth initiatives and certain nonrecurring costs.
Despite the net loss, the company’s Adjusted EBITDA of $2.75 million demonstrates underlying profitability and strong cash generation from ongoing operations, providing a foundation for future growth.
Nine-Month Income Statement Summary (Unaudited)
| Metric | 2025 | 2024 |
|---|---|---|
| Net Sales | $35,111,000 | $40,188,000 |
| Cost of Sales | $28,754,000 | $33,697,000 |
| Gross Profit | $6,357,000 | $6,491,000 |
| Gross Margin | 18.1% | 16.2% |
| Operating Expenses | $6,779,000 | $5,931,000 |
| Operating Income (Loss) | $(422,000) | $560,000 |
| Interest Expense | $(1,354,000) | $(1,418,000) |
| Other Income (Net) | $322,000 | $46,000 |
| Net Income (Loss) | $(1,454,000) | $(812,000) |
| Loss per Share | $(0.36) | $(0.24) |
Adjusted EBITDA Reconciliation (Unaudited)
| Metric | 2025 | 2024 |
|---|---|---|
| Net Income (Loss) | $(1,454,000) | $(812,000) |
| Interest Expense | $1,354,000 | $1,418,000 |
| Depreciation | $1,961,000 | $1,661,000 |
| Amortization | $51,000 | $51,000 |
| Stock Compensation | $836,000 | $302,000 |
| Adjusted EBITDA | $2,748,000 | $2,620,000 |
Management Commentary
Lou Melluzzo, Chief Executive Officer of Air Industries Group, commented on the results:
Our results for the third quarter of 2025 were solid and demonstrate measurable improvements in Adjusted EBITDA. The efforts we have made to reduce expenses are paying off, as evidenced by a significant improvement in gross margins. As we enter the fourth quarter of fiscal 2025, we remain focused on driving profitability and operational efficiency. We are looking forward to a strong finish to the year.
Melluzzo emphasized that the company’s commitment to operational excellence, strategic cost control, and investments in production efficiency continue to strengthen the company’s financial position and long-term growth prospects.
About Air Industries Group
Air Industries Group is a leading manufacturer of precision components and assemblies for large aerospace and defense prime contractors. The company’s product portfolio includes landing gears, flight controls, engine mounts, and components for aircraft jet engines, ground turbines, and other complex machines. Air Industries’ high-quality, reliable products are integral to mission-critical operations that support the safety and effectiveness of both military and civilian aviation activities.
Whether producing a small individual component or a fully integrated assembly, Air Industries’ products are renowned for precision, durability, and performance, earning the trust of its aerospace and defense customers worldwide.
This press release contains forward-looking statements that are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. Statements regarding future revenues, earnings, Adjusted EBITDA, project timelines, cost reductions, backlog realization, and acquisitions are examples of forward-looking statements.
These statements are subject to risks and uncertainties that may cause actual results to differ materially, including variability in project scope and timing, regulatory changes, government funding adjustments, economic conditions, and other factors beyond the company’s control. The company undertakes no obligation to publicly update forward-looking statements except as required by law.
Non-GAAP Financial Measures
Air Industries Group reports Adjusted EBITDA, a non-GAAP financial measure, as a supplemental indicator of operational performance. Adjusted EBITDA excludes non-cash charges such as depreciation, amortization, and stock-based compensation, as well as nonrecurring expenses.
Management believes this measure provides valuable insight into operational profitability and cash flow generation, though it should not be considered a substitute for GAAP measures of net income or cash flow. Adjusted EBITDA may be calculated differently by other companies, and comparisons should be made cautiously.
Source link: https://www.businesswire.com