Air Industries Group Q3 2025 Earnings Report

Air Industries Group EPS Results

• Actual EPS: -$0.01
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Air Industries Group Revenue Results

• Actual Revenue: $10.31 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Air Industries Group Announcement Details

• Quarter: Q3 2025
• Date: 11/14/2025
• Time: Before Market Opens
• Conference Call Date: Monday, November 17, 2025
• Conference Call Time: 8:00AM ET

Air Industries Group (NYSEAMERICAN:AIRI) is an aerospace and defense manufacturing company that supplies components, assemblies and systems for military and commercial aircraft. Its products include landing-gear components, flight-control and actuation systems, engine and structural parts, and other precision-machined and fabricated components.

The company serves aerospace and defense prime contractors, original equipment manufacturers and government customers, primarily through its manufacturing and engineering operations in the United States. Its capabilities include precision machining, sheet-metal fabrication, welding, assembly, engineering and testing for aircraft and other defense applications.

Air Industries Group traces its history to Air Industries Company, an aerospace manufacturer established in 1951, and has expanded through a group of operating subsidiaries and acquisitions. The company is headquartered in Garden City, New York, and focuses on supporting aircraft production, maintenance and modernization programs.

Air Industries Group Q3 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Results improved — Q3 net sales $10.3M, gross profit 22.3%, operating income $316K and net loss narrowed to $44K versus a $404K loss a year ago, with 9‑month adjusted EBITDA up ~5%.
• Negative Sentiment: Management classified its credit facility and subordinated debt as current; the credit facility matures December 2025 (related party notes July 1, 2026) and the company is actively negotiating refinancing/extensions with lenders.
• Neutral Sentiment: Working capital shifted as inventory increased ~$5.6M to support future deliveries while accounts receivable fell ~$2.1M and accounts payable rose ~$2M, showing operational buildup that also ties up cash.
• Positive Sentiment: Management reports a strong backlog and healthy customer demand, and says earlier cost‑reduction initiatives are improving margins with a focus on execution and driving shareholder value.

Presentation

[Operator]

Hello, and welcome to the Air Industries Group third uarter 2025 earnings conference call. At this time, all participants are on a listen-only mode. A brief question-and-answer session will follow the formal presentation. If you would like to ask a question during that time, please press star one on your telephone keypad. If you require operator assistance during the conference, please press star zero. This call may contain forward-looking statements as defined in Section 27A of the Securities Act of 1933, as amended, including statements regarding, among other things, the company's business strategy and growth strategy. Expressions which identify forward-looking statements speak only as of the date the statement is made. These forward-looking statements are based largely on our company's expectations and are subject to a number of risks and uncertainties, some of which are beyond our control and cannot be predicted or quantified.

[Operator]

Future developments and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. In light of these risks and uncertainties, there can be no assurance that the forward-looking information will prove to be accurate. This call does not constitute an offer to purchase any securities nor a solicitation of a proxy, consent, authorization, or agent designation with respect to a meeting of the company's shareholders. At this time, I would like to turn the call over to Lou Melluzzo, President and CEO. Please go ahead, sir.

[Lou Melluzzo, President and CEO at Air Industries Group]

Thank you, Donna. Good morning. Before we begin, I'd like to note that given the level of detail in our press release and Form 10Q, we'll keep our prepared remarks brief. We will, of course, take a few questions at the end if anybody has them. Now, on to the numbers. Before I turn the call over to Scott, I do want to let you know that on our consolidated balance sheet, we are reflecting all of our credit facility and subordinated debt as current. Our credit facility matures at the end of December 2025, and our related party subordinate notes mature on July 1st, 2026. At this time, I can't comment further other than to say that the company is actively engaged in a constructive discussion with all lenders regarding potential refinancing or extension of these obligations.

[Lou Melluzzo, President and CEO at Air Industries Group]

I encourage you to refer to our Form 10-Q for more details on the status of these notes and related disclosures. With that, I'll turn the call over to Scott for the numbers. Scott.

[Scott Glassman, CFO at Air Industries Group]

Thank you, Lou, and good morning, everyone. Results for the third quarter of 2025 showed a meaningful improvement compared to both the first two quarters of this year and the third quarter of 2024. Net sales for the three months ended September 30th, 2025, were $10.3 million. Gross profit was $2.3 million, or 22.3% of sales. This is a strong improvement reflecting the benefits of our cost reductions initiatives earlier this year. Our operating income, excuse me, came in at $316,000. Our net loss for the quarter was just $44,000, or $0.01 per share, compared to a loss of $404,000 in Q3 of 2024. Adjusted EBITDA for the nine months ended September 30th was $2.7 million, up nearly 5% from the prior year. Let me touch briefly on the balance sheet. Our total debt has increased by approximately $2.4 million.

[Scott Glassman, CFO at Air Industries Group]

Inventory has increased by $5.6 million, reflecting our investment in work in process inventory and materials to support future deliveries. Accounts receivable has decreased by $2.1 million, and accounts payable has increased by approximately $2 million. With that, I will turn the call back over to Lou.

[Lou Melluzzo, President and CEO at Air Industries Group]

Thanks, Scott. As you heard, our third quarter performance showed measurable improvements in profitability and operational discipline. While we remain focused on completing our ongoing lender discussions and finalizing the right capital structure for the future, we are confident in the strength of our core business. We continue to benefit from strong backlog levels and a healthy demand from both existing and new customers. Our focus remains squarely on execution, cost control, and driving shareholder value. We look forward to a strong finish to fiscal 2025 and continued momentum into 2026. Thank you for your time and support. Donna, with that, I would like to open the line to questions and answers, if you may.

[Operator]

Thank you. The floor is now open for questions. If you would like to ask a question, please press star one on your telephone keypad at this time. A confirmation tone will indicate that your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys. Again, that's star one to register a question at this time. One moment, please, while we poll for questions. Again, that's star one to register a question at this time. Mr. Melluzzo, we're showing no questions in queue at this time. I would like to turn the floor back over to you for closing comments.

[Lou Melluzzo, President and CEO at Air Industries Group]

Thank you, Donna. Thank you all for taking the time to be on the call today and for your continued interest in Air Industries Group. We look forward to updating you on the progress of our ongoing operations on the next call. Thank you all for joining. Donna, you may end the call.

[Operator]

Thank you. Ladies and gentlemen, this concludes today's event. You may disconnect your lines at this time and enjoy the rest of your day.

Participants

Executives

• Scott Glassman, CFO
• Lou Melluzzo, President and CEO