What is the revenue and EPS growth rate for Air Industries Group year over year?

What guidance did Air Industries Group's management provide for the next earnings period?

What is the market's earnings forecast for Air Industries Group next quarter?

What is Air Industries Group's latest dividend and current dividend yield?

Did Air Industries Group beat or miss consensus estimates last quarter?

What is Air Industries Group's gross profit margin?

What were the key takeaways from Air Industries Group's earnings call?

What were the key takeaways from Air Industries Group’s earnings call?

- **Q2 Results**: Net loss due to delays, but adjusted EBITDA positive at $1.469M. $4M ATM offering boosts liquidity.
- **Backlog Growth**: Record $270M backlog, with $120M+ firm funded for 18-24 months. $5M contract delivers in 2026-2027.
- **Cost Management**: $1M annual payroll savings and controlled operating expenses (-99% YoY operating income).
- **Industry Momentum**: Secured $10M in new aftermarket orders and largest long-term agreement with Northrop Grumman.
- **Risks**: Near-term sales timing delays, but confident in long-term backlog conversion.

**【Management Opening Remarks】**
- Q2 2025 results were disappointing due to delays in customer approvals and subcontractor lead times, resulting in a net loss. Adjusted EBITDA remained positive at $1.469 million for the first half, supported by cost-cutting measures including a $1 million annual payroll reduction.
- Outlook adjusted for the second half, with Q4 expected to be the strongest quarter. A $5 million contract for B-52 components will not deliver until 2026-2027, highlighting the 1.5-2 year backlog-to-sales lag.
- Completed an ATM offering in July, raising $4 million to strengthen liquidity and reduce net debt by $4 million.

**【CFO Financial Commentary】**
- Q2 net sales: $12.7 million (-6.7% YoY). Gross profit: $2 million (16% of sales). Operating income: $8,000 (-99% YoY). Net loss: $422,000.
- First half adjusted EBITDA: $1.469 million (-17% YoY). Balance sheet changes: debt down $1M, inventory up $1.3M, AR down $2M, AP up $1.2M.

**【CEO Industry Outlook】**
- Excited about government funding for F-47, E-2D, and F/A-XX programs. Secured largest long-term agreement in history with Northrop Grumman and $10M in new aftermarket orders.
- Despite challenges, confident in converting record backlog of $270 million (firm funded: $120M+ for 18-24 months).

**【Q&A Highlights】**
- **Credit Facility**: Lender discussions ongoing; no immediate liquidity concerns with $4M ATM proceeds.
- **Sales Decline**: Timing issues with customer approvals and first article testing delays, not structural weakness.
- **Tariffs**: Only one product with foreign material has 5%+ cost pass-through protection; others protected via OEM contracts.
- **European Sales**: Limited direct exposure, but spares sales via OEMs may benefit from increased defense spending.
- **Company Sale**: Public company open to strategic options, but management focused on executing current growth strategy.

Air Industries (AIRI)-14 Aug 25-2025 Q2 Earnings call transcript

- **Gross margin rebound**: 16.8% in Q1 vs. 13.6% last year, driven by operational efficiency.
- **Record backlog growth**: $250M total backlog (+80% YoY), with 1.34x book-to-bill ratio.
- **Customer confidence strong**: No program delays despite macroeconomic concerns.
- **Supply chain challenges**: 9-15 month lead times, but on-time deliveries maintained.

**【CEO Opening Remarks】**
- Q1 2025 net sales of $12.1M (-14.1% YoY), but gross profit increased due to operational efficiency improvements.
- Book-to-bill ratio reached 1.34x (vs. 1.12x prior year), with a 12-month trailing backlog of $120M (funded) and $250M (total), both records.
- Raw material lead times remain challenging (9-15 months), but customer delivery cadences are maintained.

**【CFO Financial Highlights】**
- Gross margin improved to 16.8% (vs. 13.6% in Q1 2024), with adjusted EBITDA up 59.7% to $576K.
- Operating expenses rose 28.4% to $2.8M, driven by $412K in non-cash stock compensation.
- Net loss narrowed to $0.27/share (-25.4% YoY), with $1.6M debt reduction and stable inventory levels.

**【Q&A Key Takeaways】**
- Q1 sales decline attributed to 12-18-month-old material orders amid industry-wide supply chain delays.
- Customer demand remains robust, with no hesitation on key programs (CH-53K, E-2D).
- Paris Air Show targeting EV-related aerospace opportunities and expanding F-35 content.
- Stock compensation expense expected to decrease in future quarters.

Air Industries Group (AIRI) Q1 2025 Earnings Call Transcript

- **Revenue Recovery**: 7% YoY growth to $55.1M, with net loss halved to $1.366M.
- **Backlog Boom**: $60M Q4 contracts push total backlog above $250M.
- **Margin Expansion**: Gross margin up 1.7pp to 16.2%, with further gains expected.
- **Operational Excellence**: $5M invested in new machinery; facilities running at peak efficiency.
- **Defense Alignment**: Major contracts (E-2D Hawkeye, CH-53K) aligned with U.S. Pacific strategy.

**【CEO Opening Remarks】**
- **Revenue Growth**: 2024 revenue reached $55.1 million, a 7% YoY increase, with operating profit improving by $750,000 (from loss to profit). Net loss reduced by 36% to $1.366 million.
- **Backlog Expansion**: Full-funded backlog rose 36.7% to $118 million, total backlog exceeded $250 million, driven by 6 major contracts ($60 million) in Q4 2024.
- **Book-to-Bill Ratio**: Improved from 0.75:1 in 2023 to 1.29:1 in 2024, surpassing industry standard of 1.2:1.

**【CFO Financial Details】**
- **Gross Margin**: 16.2% (up 1.7pp YoY), with plans for further improvement.
- **Operating Expenses**: $8.5 million (+9.7%), but 42% of increase attributed to non-cash stock compensation. Excluding this, expenses rose 5.6%.
- **Liquidity**: Debt up $3 million (due to credit facility and solar installation), inventory reduced by $1 million, AR up $1 million.
- **Compliance**: Remain in compliance with lender covenants.

**【CEO Risk & Outlook】**
- **Tariff Impact**: Minimal exposure to Chinese-sourced rare earth elements; one commercial product has 5% price protection clause.
- **Defense Budget**: Programs like E-2D Hawkeye and CH-53K helicopter (new $33M contract) align with Pacific counter-tension spending.
- **Operations Efficiency**: $5M invested in new machinery; facilities (NY, CT) operational at peak efficiency with no bottlenecks.

**【Q&A Highlights】**
- **CapEx 2025**: ~$2M (down from 2024 levels), with flexibility to invest in growth opportunities.
- **Project Maturity**: Established programs (e.g., E-2D Hawkeye) driving margin improvements as engineering costs decline.
- **2025 Outlook**: Expect continued improvement, though not linear. Q1 2025 gross margin in line with expectations.

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