Air Industries Group Reports Decline in Revenue and Profitability for Q2 2025

Air Industries Group reported its financial results for the second quarter of 2025, revealing a decline in both revenue and profitability compared to the same period in 2024. For the three months ended June 30, 2025, the company generated net sales of $12.7 million, a decrease of 6.7% from $13.6 million in the prior year. The gross profit also fell to $2.0 million, down 23.3% from $2.6 million, resulting in a gross profit margin of 16.0%, compared to 19.5% in the previous year. The company recorded a net loss of $422,000 for the quarter, a significant decline from a net income of $298,000 in the same quarter of 2024.

For the first half of 2025, Air Industries reported net sales of $24.8 million, down 10.2% from $27.6 million in the first half of 2024. The gross profit for this period was $4.1 million, a decrease of 10.7% year-over-year. The company’s operating expenses increased to $4.8 million, up 18.3% from the previous year, primarily due to higher stock compensation expenses and costs associated with IT improvements. The net loss for the six months ended June 30, 2025, was $1.4 million, compared to a loss of $408,000 in the same period last year.

In terms of operational developments, Air Industries reported a funded backlog of $128.5 million as of June 30, 2025, which is expected to support future revenue growth. The company has been focusing on expanding its customer base and enhancing its production capabilities through investments in new equipment. However, the company is currently facing challenges related to the long lead times for raw materials and manufacturing processes, which may delay revenue recognition from its backlog until early 2026.

The company’s financial position showed a slight decrease in total assets, which amounted to $50.4 million as of June 30, 2025, down from $51.0 million at the end of 2024. Cash reserves also declined to $507,000 from $753,000. Air Industries is currently in default of its Fixed Charge Coverage Ratio under its Current Credit Facility, which could lead to increased interest rates or restrictions on borrowing. Management is actively negotiating with lenders to extend the maturity dates of its debts and has raised $1.2 million through stock sales in the first half of 2025.

Looking ahead, Air Industries anticipates that sales and profitability will begin to improve in early 2026, driven by its substantial backlog and expected new orders. The company is committed to reducing costs and enhancing operational efficiency to navigate the current financial challenges. However, the ongoing negotiations with lenders and the need for additional capital raise concerns about the company's ability to continue as a going concern in the near future.