Air Industries Group (AIRI) Q4 2025 earnings summary

Executive summary

• Net sales for 2025 were $47.9 million, down 13% year-over-year, with a net loss of $1.3 million, slightly improved from the prior year loss of $1.4 million.

• Gross profit margin increased to 17.1% from 16.2% in 2024, despite lower sales, due to product mix and cost reductions.

• Backlog grew 16% to $136.8 million, and total unfilled contract value reached $270.1 million, providing visibility into future sales.

• The company entered into a merger agreement with Tenax Aerospace Acquisition, LLC, which, if completed, will result in Tenax members owning approximately 95% of the outstanding shares.

Financial highlights

• Net sales: $47.9 million in 2025, down from $55.1 million in 2024.

• Gross profit: $8.2 million in 2025, down from $8.9 million in 2024, but gross margin improved to 17.1%.

• Operating expenses: $8.5 million, up slightly from $8.47 million in 2024.

• Net loss: $1.3 million in 2025, compared to $1.4 million in 2024.

• Cash at year-end: $680,000, with $3.93 million in restricted cash.

• Total assets: $58.3 million; total stockholders’ equity: $19.2 million.

Outlook and guidance

• Backlog and unfilled contract values suggest strong revenue visibility for the next 24 months.

• Extended lead times for raw materials and manufacturing complexity are expected to delay revenue acceleration until late 2026.

• The merger with Tenax, if completed, is expected to materially change the business profile and capital structure.