Air Industries Group reported its financial results for the first quarter of 2026, revealing a net sales figure of $11.6 million, a decrease of 4.4% from $12.1 million in the same period last year. The decline in revenue was attributed to changes in the product mix requested by customers. Despite the drop in sales, the company achieved a gross profit of $2.6 million, up 27.9% from $2.0 million in the prior year, resulting in a gross profit margin increase from 16.8% to 22.4%. However, the company recorded a net loss of $1.02 million, slightly higher than the $988,000 loss reported in the first quarter of 2025.
In terms of operational metrics, Air Industries' total assets increased to $59.2 million as of March 31, 2026, compared to $58.3 million at the end of 2025. The company's current liabilities rose to $38.6 million, up from $37.6 million, primarily due to increased debt levels. The company’s total debt stood at $26.6 million, an increase from $25.2 million at the end of the previous fiscal year. The company also reported a working capital increase of 8.04%, reaching $5.7 million.
Strategically, Air Industries is in the process of merging with Tenax Aerospace Acquisition, LLC, which is expected to enhance its capabilities in special mission aviation solutions. The merger, announced on February 16, 2026, will result in Tenax becoming a wholly owned subsidiary of Air Industries. The transaction is subject to various conditions, including regulatory approvals and the listing of the merger consideration on the NYSE American. Upon completion, Tenax members are projected to own approximately 96% of the outstanding shares of Air Industries.
The company continues to face challenges related to its financial covenants, particularly a default on its Fixed Charge Coverage Ratio (FCCR), which was 0.93x against a required 1.10x as of March 31, 2026. This situation raises substantial doubt about the company's ability to continue as a going concern. Air Industries is actively engaged in discussions with lenders to address its financial obligations, including the potential refinancing of its current credit facility, which is set to expire on September 30, 2026.
Looking ahead, Air Industries has a backlog of $134.7 million in funded contracts and an additional $134.5 million in potential orders, indicating a positive outlook for future revenue growth. However, the company anticipates that extended lead times for raw material procurement may delay revenue acceleration until late 2026. The management remains focused on securing new contract awards and improving operational efficiencies while navigating the complexities of the merger and financial restructuring.
About AIR INDUSTRIES GROUP
Air Industries Group is a leading manufacturer of precision components and assemblies for the aerospace and defense sectors, specializing in products like landing gears and flight controls. With a focus on U.S. government contracts and partnerships with major prime contractors, the company targets military and commercial aviation markets. Recent investments in capital equipment and a growing backlog of $117.9 million position Air Industries for future growth and profitability.
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