Air Industries Group (AIRI) AI Stock Analysis

Air Industries Group

(NYSE MKT:AIRI)

Select Model

Rating:44Neutral

Price Target:$2.50▼(-4.94% Downside)

Action:reiterated

Date:08/26/26

The score is held down primarily by weak financial performance (sustained losses and renewed operating/free cash flow negativity) alongside elevated leverage. Technicals are mixed with the stock still below key longer-term moving averages, and valuation is constrained by losses (negative P/E). A modest positive offset comes from the merger-term amendment that may reduce transaction-related uncertainty.

Positive Factors

Flight-critical aerospace manufacturing positionSupplying flight-critical aerospace components creates customer qualification and quality barriers that can support recurring program revenue and deepen relationships across military and commercial supply chains.

Negative Factors

Sustained losses and negative operating profitabilitySeveral years of losses show that stronger gross margins have not translated into sustainable earnings. Persistent negative operating profitability can weaken reinvestment capacity and increase reliance on external funding.

Air Industries Group (AIRI) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $12.76M
Dividend Yield: ―
Average Volume (3M): 16.21K
Price to Earnings (P/E): -7.1
Beta (1Y): 0.68
Revenue Growth: -10.62%
EPS Growth: 44.56%
Country: US
Employees: 150
Sector: Industrials
Sector Strength: 63
Industry: Aerospace & Defense

Air Industries Group Business Overview & Revenue Model

Company Description

Air Industries Group operates as an aerospace and defense enterprise, concentrating on the development, fabrication, and sale of crucial structural components and assemblies for essential aerospace and defense uses. The company also serves as a prime...

How the Company Makes Money

AIRI primarily makes money by selling manufactured aerospace components and assemblies to customers in the aerospace and defense supply chain. Revenue is generated through (1) production/manufacturing sales: recurring sales tied to customer productio...

Air Industries Group Earnings Call Summary

Earnings Call Date:Nov 13, 2025(Q3-2025)|% Change Since:-9.93%|Next Earnings Date:Aug 07, 2023

Earnings Call SentimentNeutral

The earnings call highlighted significant improvements in profitability and operational efficiency, while also noting increased debt and inventory levels. The company's strong backlog and demand from customers were positive signals, though the increased financial liabilities present some challenges.

Positive Updates

Improved Financial Performance

Net sales for Q3 2025 were $10.3 million with a gross profit of $2.3 million or 22.3% of sales, showing a significant improvement in profitability.

Negative Updates

Increased Debt

Total debt increased by approximately $2.4 million.

Company Guidance

During the Air Industries Group's third-quarter 2025 earnings call, the company reported substantial improvements in its financial performance. Net sales reached $10.3 million, with a gross profit of $2.3 million, representing 22.3% of sales, a result of effective cost reduction initiatives. Operating income was $316,000, and the net loss narrowed significantly to $44,000 or $0.01 per share, compared to a loss of $404,000 in the same quarter of 2024. Adjusted EBITDA for the nine months ended September 30, 2025, rose nearly 5% to $2.7 million. Despite an increase in total debt by $2.4 million and inventories by $5.6 million, accounts receivable decreased by $2.1 million, while accounts payable rose by $2 million. The company remains focused on finalizing lender discussions and optimizing its capital structure, while maintaining strong backlog levels and healthy demand from both existing and new customers.

Air Industries Group Financial Statement Overview

Summary

Weak profitability and cash generation drive a low score: the company shifted from profitability in 2021 to sustained net losses from 2022–2025 and a large TTM loss, with negative EBIT/EBITDA margins. Cash flow has also deteriorated, with negative operating cash flow and negative free cash flow in 2025 and TTM. The balance sheet remains intact with positive equity, but leverage is high (~1.7 debt-to-equity) for the current earnings/cash-flow profile.

Income Statement

28Negative

Balance Sheet

46Neutral

Cash Flow

30Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Dec 2022	Dec 2021
Income Statement
Total Revenue	46.72M	47.92M	55.11M	51.52M	53.24M	58.94M
Gross Profit	9.04M	8.19M	8.93M	7.43M	7.45M	10.25M
EBITDA	3.67M	3.78M	3.45M	2.75M	3.33M	6.19M
Net Income	-1.76M	-1.30M	-1.37M	-2.13M	-1.08M	1.63M
Balance Sheet
Total Assets	59.22M	58.33M	51.01M	50.72M	53.81M	53.42M
Cash, Cash Equivalents and Short-Term Investments	694.00K	680.00K	753.00K	346.00K	281.00K	627.00K
Total Debt	25.88M	30.81M	27.87M	25.77M	28.51M	27.29M
Total Liabilities	41.11M	39.13M	36.06M	35.52M	36.98M	36.04M
Stockholders Equity	18.10M	19.20M	14.95M	15.19M	16.84M	17.39M
Cash Flow
Free Cash Flow	-4.69M	-4.67M	-1.98M	2.74M	-1.91M	2.70M
Operating Cash Flow	-3.00M	-1.35M	324.00K	4.86M	448.00K	4.06M
Investing Cash Flow	-1.49M	-3.12M	-2.29M	-2.11M	-2.36M	-1.36M
Financing Cash Flow	8.61M	8.33M	2.37M	-2.69M	1.57M	-4.58M

Air Industries Group Technical Analysis

Technical Analysis SentimentPositive

Last Price2.63

Price Trends

50DMA2.59Positive

100DMA2.69Negative

200DMA2.94Negative

Market Momentum

MACD-0.00Negative

RSI54.87Neutral

STOCH50.00Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AIRI, the sentiment is Positive. The current price of 2.63 is above the 20-day moving average (MA) of 2.56, above the 50-day MA of 2.59, and below the 200-day MA of 2.94, indicating a neutral trend. The MACD of -0.00 indicates Negative momentum. The RSI at 54.87 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AIRI.

Air Industries Group Risk Analysis

Air Industries Group disclosed 53 risk factors in its most recent earnings report. Air Industries Group reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

Air Industries Group Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

AIRI against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HEI	76Outperform	$37.93B	52.85	18.30%	0.04%	20.69%	31.56%
AIR	71Outperform	$4.03B	20.34	11.63%	―	21.97%	515.59%
SARO	68Neutral	$7.74B	23.62	12.12%	―	12.56%	144.85%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DCO	62Neutral	$2.42B	-88.55	-3.72%	―	8.57%	-162.23%
CVU	52Neutral	$63.73M	16.57	14.04%	―	2.59%	―
AIRI	44Neutral	$12.76M	-7.12	-9.36%	―	-10.62%	44.56%

* Industrials Sector Average

Performance Comparison

AIRI and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
AIRI	Air Industries Group Inc	2.63	-0.59	-18.32%
AIR	AAR Corp.	100.26	14.53	16.95%
CVU	Cpi Aerostructures	4.81	2.51	109.13%
DCO	Ducommun Incorporated	160.28	66.89	71.62%
HEI	HEICO Corporation	321.36	6.77	2.15%
SARO	StandardAero, Inc.	23.38	-5.08	-17.85%

Air Industries Group Corporate Events

Business Operations and StrategyM&A TransactionsRegulatory Filings and ComplianceShareholder Meetings

Air Industries Extends Tenax Merger Deadline Amid SEC Review

Neutral

Aug 3, 2026

On July 31, 2026, Air Industries Group amended its July 2, 2026 Amended and Restated Agreement and Plan of Merger with Tenax Aerospace Acquisition, LLC, extending the merger’s contractual outside date from September 30, 2026 to November 30, 202...

Business Operations and StrategyDelistings and Listing ChangesM&A TransactionsRegulatory Filings and ComplianceStock Split

Air Industries Amends Tenax Merger, Plans Reverse Split

Neutral

Jul 9, 2026

On July 2, 2026, Air Industries Group and Tenax Aerospace Acquisition entered into an amended and restated merger agreement that replaces their February 2026 deal and fixes key economic terms, including issuance of 126.9 million Air Industries shares...

Business Operations and StrategyM&A Transactions

Air Industries Amends Tenax Merger Terms After Customer Advance

Positive

Jun 12, 2026

On June 8, 2026, Air Industries Group amended its February 16, 2026 merger agreement with Tenax Aerospace Acquisition, LLC and Transitory Air Sub LLC to revise the definition of AIR Net Indebtedness, aiming to reduce the impact of a recent customer a...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 26, 2026

Air Industries Group AI Stock Analysis