Air Industries Group Reports Decline in Revenue and Increased Net Loss for Q2 2026

Air Industries Group reported its financial results for the second quarter of 2026, revealing a decline in both revenue and profitability compared to the same period in 2025. For the three months ended June 30, 2026, the company generated net sales of $11.995 million, a decrease of 5.25% from $12.659 million in the prior year. The gross profit for the quarter increased to $2.483 million, up 22.44% from $2.028 million, resulting in a gross profit margin of 20.7%. However, the company recorded a net loss of $846,000, significantly higher than the $422,000 loss reported in the same quarter last year.

For the first half of 2026, Air Industries reported net sales of $23.601 million, down 4.84% from $24.802 million in the first half of 2025. The gross profit for this period was $5.085 million, reflecting a 25.18% increase from $4.062 million, with a gross profit margin of 21.5%. Operating expenses rose to $6.016 million, up 25.33% from $4.800 million, primarily due to professional fees related to a pending merger and increased stock compensation expenses. The net loss for the six months ended June 30, 2026, was $1.866 million, compared to a loss of $1.410 million in the prior year.

The company’s balance sheet as of June 30, 2026, showed total assets of $59.216 million, a slight increase from $58.329 million at the end of 2025. However, total stockholders' equity decreased to $18.102 million from $19.201 million, reflecting a decline in retained earnings due to ongoing losses. Current liabilities increased to $39.693 million, driven by higher debt levels, including a current credit facility that is set to expire on September 30, 2026.

Strategically, Air Industries is in the process of merging with Tenax Aerospace Acquisition, LLC, which is expected to enhance its market position and operational capabilities. The merger agreement includes provisions for issuing 126.9 million shares of common stock to Tenax members, subject to a reverse stock split. The company is also actively engaged in discussions with lenders to extend the maturity dates of its current debt obligations, which are classified as current liabilities due to their impending expiration.

Looking ahead, Air Industries has a backlog of $139.7 million in funded contracts and an additional $139.3 million in potential orders, indicating a positive outlook for future revenue generation. However, the company faces significant challenges, including the need to refinance its debt and the uncertainty surrounding the merger with Tenax. The management has expressed confidence in its ability to navigate these challenges, but acknowledges the substantial doubt regarding its ability to continue as a going concern if the merger and refinancing efforts do not materialize successfully.