Air Industries Group

Overview

Air Industries Group is a manufacturer of precision components and assemblies for aerospace and defense prime contractors. Its products include landing gears, flight controls, engine mounts and components for aircraft jet engines, ground turbines, and other complex machines. End users are primarily the U.S. Government, international governments, and commercial global airlines.

Business model and market position

• Operates as a Tier One supplier (direct to primes) and as a Tier Two supplier.
• Frequently awards Long-Term Agreements (LTAs) with customers; LTAs may be funded by orders placed against them.
• Focuses on a small number of long-standing relationships with major aerospace and defense customers.

Facilities and subsidiaries

• Two manufacturing centers totaling over 150,000 square feet:
  • Bay Shore, Long Island, New York — approximately 81,000 sq ft; corporate headquarters; lease expires September 2026.
  • Barkhamstead, Connecticut — 74,923 sq ft; owned.
• Three legal subsidiaries:
  • Air Industries Machining (AIM)
  • Nassau Tool Works (NTW)
  • Sterling Engineering Company (STE)

Platforms and programs (key end-markets)

Platforms and programs accounted for about 79.7% of net sales in 2025 (79.3% in 2024). Key programs include:

• Pratt & Whitney Geared Turbofan Engine (GTF) — Thrust Struts for smaller airliners (e.g., Airbus A220, Embraer E2 via Collins Aerostructures)
• UH-60 Black Hawk Helicopter — primary flight control assembly, tail-rotor gearbox
• CH-53K Helicopter — Chaff Pods (2021 LTA; 2024 purchase for Swashplates and Hubs)
• E-2D Hawkeye — main and nose landing gear, arresting gear
• F-35 Lightning II — landing gear components (including for the US Navy variant)
• F-18 Hornet — complete landing gear components
• F-15 Eagle Tactical Fighter — landing gear components

Revenue is concentrated in these programs, with end users that include the U.S. government and international partners.

Customers and concentration

• In 2025, about 58.3% of net sales were from customers using products on military aircraft (69.9% in 2024).
• Four customers (two within the same corporate group) represented about 75.2% of net sales in 2025 (73.4% in 2024).
• Key customers:
  • RTX Corporation (including Collins Aerospace and Pratt & Whitney)
  • Lockheed Martin (Sikorsky)
  • Northrop Grumman
  • General Electric Aerospace (GE Aerospace)
  • GE Verona (ground-based turbines)
  • U.S. Government (Defense Logistics Agency, DLA)

Financial snapshot (2025)

• Net sales: $47.9 million
• Net loss: $1.305 million
• Backlog (funded orders): $136.8 million (up 16.0% vs. 2024)
• Total unfilled contract values (including LTAs and potential orders): $270.1 million
• Bookings: $65.0 million (2025) vs. $71.0 million (2024)
• Book-to-bill: 1.36x (2025) vs. 1.29x (2024)

Employees and labor relations

• Total employees: 160 as of March 7, 2026
• Departmental breakdown: 89 manufacturing/production; 20 quality control; 45 administration; 6 sales and procurement
• Employment arrangements:
  • All employees are covered under a co-employment arrangement with Insperity Services, LLC
  • Air Industries Machining (AIM) has a collective bargaining agreement with the United Service Workers, IUJAT, Local 355 (effective through December 31, 2027)

Debt and liquidity (as of December 31, 2025)

• Total indebtedness: approximately $30.1 million
• Current Credit Facility (Webster Bank) outstanding: about $23.473 million; matures September 30, 2026; secured by a lien on substantially all assets
• Related Party Notes: about $4.871 million; matures October 1, 2026 (held by two directors)
• Solar facility loan (CT Green Bank): about $0.971 million
• Finance leases: about $0.784 million
• Weighted average interest on the Current Credit Facility in 2025: 6.72% (7.66% in 2024)
• Webster Bank has indicated it will not renew the Current Credit Facility; refinancing and timing remain an active issue.

Recent developments — Merger with Tenax

• On February 16–17, 2026, the company entered into a merger agreement with Tenax Aerospace Acquisition, LLC (Tenax), under which Tenax would become a wholly owned subsidiary upon closing.
• Merger consideration contemplates issuing AIR common stock to Tenax members; approximately 112.5 million shares were anticipated at the December 31, 2025 indebtedness level (subject to adjustments).
• Post-merger ownership would place Tenax members at roughly 95% of AIR’s outstanding common stock.
• Closing is subject to customary conditions, including a Hart-Scott-Rodino waiting period, NYSE American listing of the merger consideration, and absence of material adverse effects.
• The company expects to incur transaction and transition costs related to the merger, some of which may be payable even if the merger does not close.

Public company status

• AIR is listed on the NYSE American.
• The company continues to manage public-company compliance, including potential effects on stock price from future financing or corporate actions.