Air Industries Group

What they do

Air Industries manufactures precision components and assemblies for large aerospace and defense prime contractors, including landing gears, flight controls, engine mounts, and components for jet engines and ground turbines. It operates two manufacturing centers in Long Island, New York and Barkhamsted, Connecticut, spanning over 150,000 square feet, through three legal subsidiaries: Air Industries Machining, Nassau Tool Works, and Sterling Engineering Company. The company sells as a Tier One supplier directly to prime contractors, as a Tier Two supplier providing larger complex components to other suppliers, and in some cases directly to the U.S. Government.

Revenue drivers

• Precision components and assemblies for aerospace and defense — The company's core business manufactures landing gears, flight controls, engine mounts, and jet engine components sold to aerospace and defense prime contractors, with the U.S. Government, international governments, and commercial airlines as ultimate end-users.
• Tier One direct prime contractor sales — Air Industries delivers products directly to prime contractors as a Tier One supplier, and in some cases ships directly to the U.S. Government, often as exclusive or primary supplier for certain high precision parts under Long-Term Agreements.
• Tier Two complex component supply — The company provides larger complex components to other suppliers as a Tier Two supplier within the aerospace supply chain hierarchy.
• Proposed Tenax Aerospace combination — A pending merger with Tenax Aerospace Acquisition, LLC would add special mission aviation solutions including aircraft sourcing, financing, modification, and aviation services such as pilots and maintenance; Tenax is not yet part of reported results.

Recent performance

Revenue for the second quarter of 2026 (quarter ended June 30, 2026) was $12.0 million, following $11.6 million in the first quarter of 2026, $12.8 million in the fourth quarter of 2025, and $10.3 million in the third quarter of 2025. Fiscal year 2025 net sales were $47.9 million, compared to $55.1 million in 2024, and the company reported a net loss of $1.3 million for 2025. As of June 30, 2026, total assets were $59.2 million, total liabilities were $41.1 million, shareholder equity was $18.1 million, and cash and equivalents were $4.6 million. Operating cash flow was negative $1.4 million in 2025, following $324,000 in 2024.

Strategy

Management states its strategy is to compete for and win contracts that produce sustainable, profitable growth while delivering high quality products, supported by a workforce of 160 individuals. The company has invested substantially in new capital equipment, tooling, and processes and expanded sales and marketing to grow customer relationships. As of December 31, 2025, total unfilled contract value was $270.1 million, comprising $136.8 million in funded backlog and potential orders under previously awarded Long-Term Agreements. On February 16, 2026, the company entered a Merger Agreement with Tenax Aerospace Acquisition, LLC under which Tenax would become a wholly owned subsidiary of Air Industries. Management also stated it has initiated steps to satisfy or refinance debt maturities, including share sales and the Tenax merger.

Risks

• Going concern and history of net losses — The company incurred net losses of $1,305,000 in 2025 and $1,366,000 in 2024, and its auditor's opinion contains an explanatory paragraph as to its ability to continue as a going concern.
• Debt refinancing risk — The Current Credit Facility with Webster Bank (approximately $23,473,000 outstanding as of December 31, 2025) matures September 30, 2026, and Webster has indicated it does not want to renew; $4,871,000 of related-party subordinated notes held by directors Michael N. Taglich and Robert F. Taglich mature October 1, 2026.
• Merger execution risk — The February 16, 2026 Merger Agreement with Tenax Aerospace Acquisition, LLC would make Tenax a wholly owned subsidiary of Air Industries, and the company's go-forward business may materially change if consummated.
• Customer concentration in aerospace and defense — The company operates as a Tier One/Tier Two supplier to aerospace and defense prime contractors, with most products ultimately end-used by the U.S. Government, international governments, and commercial airlines, exposing it to that supply chain's ordering and budget cycles.

Outlook

Management stated that as it enters fiscal 2026, it believes the future is looking brighter. It points to a funded backlog of $136.8 million at December 31, 2025, up 16.0% from December 31, 2024, and total unfilled contract value of $270.1 million including potential Long-Term Agreement orders. The February 16, 2026 Merger Agreement with Tenax Aerospace Acquisition, LLC is expected to materially change the go-forward business if completed.