Air Industries Group (AIRI)

Air Industries Group (AIRI) Industrial Operations Profile

Air Industries Group specializes in manufacturing structural parts and assemblies for the aerospace and defense sectors, serving as a prime contractor to the U.S. Department of Defense and supplying components for both military and commercial aircraft, including the F-35 Joint Strike Fighter and UH-60 Blackhawk.

What Is the Investment Thesis for AIRI?

Air Industries Group presents a focused investment opportunity within the aerospace and defense sector, specializing in essential structural components. With a market capitalization of $11.45M, the company's financial performance includes a gross margin of 18.1% and a negative profit margin of -2.8%. Key to the investment thesis is the company's role as a prime contractor to the U.S. Department of Defense and its involvement in critical programs like the F-35 Joint Strike Fighter and UH-60 Blackhawk. Growth catalysts include potential increases in defense spending and continued demand for aircraft components. However, investors should be aware of the company's small size and negative profit margin, which present ongoing challenges. Monitoring revenue growth and cost management will be crucial for assessing the company's long-term viability.

Based on FMP financials and quantitative analysis

AIRI Key Highlights

• Market capitalization of $11.45M indicates a small-cap company within the aerospace and defense sector.
• Gross margin of 18.1% reflects the profitability of the company's manufacturing operations.
• Profit margin of -2.8% indicates current challenges in achieving overall profitability.
• Beta of 0.04 suggests low volatility compared to the broader market.
• No dividend yield, as the company does not currently offer dividends to shareholders.

Who Are AIRI's Competitors?

AIRI is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are AIRI's Key Strengths?

• Prime contractor to the U.S. Department of Defense.
• Specialized expertise in manufacturing structural parts and assemblies.
• Involvement in critical aerospace and defense programs.
• Two operating segments diversify revenue streams.

What Are AIRI's Weaknesses?

• Small market capitalization.
• Negative profit margin.
• Dependence on government contracts.
• Limited financial resources for research and development.

What Could Drive AIRI Stock Higher?

• Increased defense spending driving demand for aerospace and defense components.
• Expansion of commercial aviation creating opportunities for component suppliers.
• Potential new contracts for aircraft programs.
• Technological advancements leading to new product development.

What Are the Key Risks for AIRI?

• Financial-distress signal — its Altman Z-Score of -0.50 sits in the distress zone (elevated bankruptcy risk).
• Negative return on equity (-7.4%) — the business is not currently generating profit on shareholder capital.
• Weak fundamentals — a Piotroski F-Score of 2/9 flags soft profitability, leverage or efficiency.
• Economic downturns affecting aerospace and defense spending.
• Competition from larger, more diversified companies.
• Delays or cancellations of government contracts.
• Supply chain disruptions impacting manufacturing operations.
• Negative profit margin impacting financial stability.

What Are the Growth Opportunities for AIRI?

• Increased Defense Spending: Ongoing: Rising global geopolitical tensions are expected to drive increased defense spending, particularly in the United States. As a prime contractor to the U.S. Department of Defense, Air Industries Group is well-positioned to benefit from this trend through increased demand for its structural parts and assemblies. Government contracts provide a stable revenue stream and opportunities for long-term growth. The global defense budget is projected to reach over $2 trillion by 2026, offering substantial opportunities for companies like Air Industries Group.
• Expansion of Commercial Aviation: Ongoing: Despite short-term fluctuations, the long-term outlook for commercial aviation remains positive. As air travel increases, demand for new aircraft and replacement parts will also grow. Air Industries Group's Turbine and Engine Component segment, which provides components for aircraft jet engines, is poised to capitalize on this growth. The commercial aviation market is projected to grow at an annual rate of 4-5% over the next decade, presenting significant opportunities for component suppliers.
• New Aircraft Programs: Upcoming: Air Industries Group's involvement in programs like the Lockheed Martin F-35 Joint Strike Fighter provides a pathway for long-term growth. As these programs ramp up production, demand for the company's components will increase. Securing contracts for new aircraft programs is crucial for sustaining growth and maintaining a competitive edge. The F-35 program, for example, is expected to continue production for several decades, providing a steady stream of revenue for participating suppliers.
• Technological Advancements: Ongoing: The aerospace and defense industry is constantly evolving, with new materials, manufacturing processes, and technologies emerging. Air Industries Group can invest in research and development to enhance its capabilities and offer more advanced products. This includes exploring additive manufacturing (3D printing) and advanced materials to improve the performance and reduce the weight of its components. Embracing technological advancements is essential for staying competitive and meeting the evolving needs of customers.
• Strategic Partnerships and Acquisitions: Ongoing: Air Industries Group can pursue strategic partnerships or acquisitions to expand its product offerings, enter new markets, or gain access to new technologies. Collaborating with other companies can provide access to complementary capabilities and resources. Acquisitions can also help to consolidate the market and increase market share. Identifying and pursuing strategic opportunities is crucial for driving long-term growth and creating shareholder value.

What Opportunities Does AIRI Have?

• Increased defense spending.
• Expansion of commercial aviation.
• New aircraft programs.
• Technological advancements in manufacturing.

What Threats Does AIRI Face?

• Economic downturns affecting aerospace and defense spending.
• Competition from larger, more diversified companies.
• Delays or cancellations of government contracts.
• Supply chain disruptions.

What Are AIRI's Competitive Advantages?

• Specialized expertise in manufacturing structural parts and assemblies for aerospace and defense applications.
• Long-standing relationships with key customers, including the U.S. Department of Defense.
• Involvement in critical programs like the F-35 Joint Strike Fighter and UH-60 Blackhawk.
• High barriers to entry due to stringent quality and regulatory requirements in the aerospace and defense industries.

What Does AIRI Do?

Founded in 1979 and headquartered in Bay Shore, New York, Air Industries Group designs, manufactures, and sells structural parts and assemblies for mission-critical aerospace and defense applications. The company operates through two segments: Complex Machining and Turbine and Engine Component. The Complex Machining segment provides aircraft landing and arresting gears, engine mounts, flight controls, and throttle quadrants. These components are utilized in military and commercial aircraft such as the Sikorsky 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 focuses on components and services for aircraft jet engines and ground-power turbines, with its products used on the USAF F-15 and F-16, the Airbus A-330, the Boeing 777, and ground-power turbine applications. Air Industries Group serves original equipment manufacturers in the production of fixed-wing aircraft, helicopters, jet turbine engines, and other complex aerospace and defense products, solidifying its position as a key supplier in the industry.

What Products and Services Does AIRI Offer?

• Designs and manufactures structural parts for aerospace and defense applications.
• Produces assemblies for mission-critical aerospace and defense systems.
• Supplies components for military and commercial aircraft.
• Offers aircraft landing and arresting gears.
• Manufactures engine mounts and flight controls.
• Provides components for aircraft jet engines and ground-power turbines.
• Serves as a prime contractor to the U.S. Department of Defense.

How Does AIRI Make Money?

• Air Industries Group generates revenue through the sale of structural parts and assemblies to original equipment manufacturers (OEMs) in the aerospace and defense industries.
• The company operates through two segments: Complex Machining and Turbine and Engine Component.
• Contracts with the U.S. Department of Defense provide a stable revenue stream.
• The company also generates revenue from providing services for aircraft jet engines and ground-power turbines.

What Industry Does AIRI Operate In?

Air Industries Group operates within the aerospace and defense industry, a sector characterized by high barriers to entry, long product lifecycles, and significant government regulation. The industry is driven by factors such as defense spending, commercial aviation growth, and technological advancements. Air Industries Group's focus on structural components positions it within a specialized segment of the market. The competitive landscape includes both large, diversified aerospace companies and smaller, specialized manufacturers. The company's success depends on its ability to maintain quality, secure contracts, and manage costs effectively.

Who Are AIRI's Key Customers?

• Original equipment manufacturers (OEMs) in the aerospace and defense industries.
• U.S. Department of Defense.
• Manufacturers of fixed-wing aircraft, helicopters, and jet turbine engines.
• Commercial airlines through component suppliers.

Net buyingInsider Activity

Over the past six months, Air Industries Group insiders filed 11 SEC Form 4 transactions — 1 sales and 10 purchases. On net that is roughly 162K shares acquired (about $13K) — insiders putting money in tends to read as conviction.

Quarterly Financial Performance: Air Industries Group

Revenue for Air Industries Group came in at $11.6M during Q1 2026, a 9.4% contraction versus the preceding quarter. The company recorded a net loss of $1.0M, with diluted EPS of $-0.21. Quarter-over-quarter revenue has been mixed, typical for a micro-cap company operating in Industrials. Across the four most recent quarters, AIRI averaged $-0.06 in diluted EPS.

AIRI Valuation & Market Position

With a $11.45M market cap, Air Industries Group sits in the micro-cap segment of the market. Relative to its peer group, AIRI's quantitative score of 23/100 is below the peer average of 63/100.

ROE -7%Key Financial Metrics

Return on equity for Air Industries Group stands at -7.4%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -2.3%, showing how much profit it generates from its asset base. Its free cash flow yield is -57.7%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.25 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is -9.3%, the inverse of the P/E and a quick read on earnings relative to price.

F-Score 2/9Financial Health

Air Industries Group's Piotroski F-Score is 2/9, a 9-point checklist of profitability, leverage and efficiency — flagging fundamental weakness worth scrutiny. Its Altman Z-Score of -0.50 places it in the distress zone, a signal of elevated financial risk.

FY2026 estForward Outlook

Wall Street analysts project Air Industries Group revenue of about $50.0M for fiscal 2026, with EPS near $-0.35.

Company Profile

Air Industries Group operates in the Aerospace & Defense industry within the Industrials sector. It is headquartered in Bay Shore, US. The company is led by CEO Luciano Melluzzo. AIRI has traded publicly since 2000.

AIRI Financials

AIRI Latest News

AIRI Analyst Consensus

AIRI MoonshotScore

Air Industries Group Industrials Stock: Key Questions Answered

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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