Air Industries Group Reports Preliminary 2024 Results – Record Backlog and Automatic Extension to File Form 10-K

Rhea-AI Summary

Air Industries Group (NYSE American: AIRI) reported preliminary unaudited financial results for 2024, showing improvements across key metrics. Net sales increased 7% to $55.1 million, with gross profit rising to $8.9 million (16.2% margin). The company achieved operating income of $459,000, compared to a loss in 2023, while reducing net loss by 35.9% to $1.4 million.

Q4 2024 showed mixed results with sales up 11.9% to $14.9 million, but recorded an operating loss of $111,000 and net loss of $554,000, primarily due to higher non-cash stock compensation expenses. Adjusted EBITDA for 2024 improved by 35.3% to $3.6 million.

The company reported record bookings and backlog, with new bookings up 15% and a book-to-bill ratio of 1.30x. Total backlog now exceeds $250 million, marking a company record. Air Industries also received the Northrop Grumman Supplier Excellence award in February 2025.

Positive

• Net sales increased 7% to $55.1M in 2024
• Gross profit margin improved 180 basis points to 16.2%
• Turned $295K operating loss into $459K operating profit
• Reduced net loss by 35.9% to $1.4M
• Record backlog exceeding $250M
• Book-to-bill ratio of 1.30x, above industry benchmark
• Adjusted EBITDA increased 35.3% to $3.6M

Negative

• Q4 2024 operating loss of $111K vs $587K profit in Q4 2023
• Q4 2024 net loss of $554K vs $181K profit in Q4 2023
• Company still operating at a net loss ($1.4M in 2024)
• Delayed 10-K filing, using 15-day extension

Insights

Financial Analyst

Air Industries Group's 2024 results demonstrate notable operational improvements despite continued bottom-line challenges. The 7% revenue growth to $55.1 million shows modest top-line expansion, but more impressive is the 180 basis point gross margin improvement to 16.2%, indicating better manufacturing efficiency and potential pricing power.

The company's return to positive operating income ($459,000 versus a $295,000 loss) represents a significant inflection point, though AIRI still posted a $1.4 million net loss. However, the 35.9% reduction in net loss suggests the company is moving in the right direction.

Most compelling is the company's record backlog exceeding $250 million and 15% growth in new bookings. The book-to-bill ratio of 1.30x (exceeding the aerospace industry's 1.20x benchmark) indicates strong future revenue potential. This substantial backlog provides exceptional revenue visibility and suggests continued growth trajectory for 2025.

Q4 results were more mixed, with revenue and gross profit growth offset by an operating loss of $111,000 and net loss of $554,000, primarily attributed to higher non-cash stock compensation expenses. This compensation timing creates somewhat misleading quarterly comparisons.

The 35.3% increase in adjusted EBITDA to $3.6 million further reinforces the operational improvements underway. The Northrop Grumman Supplier Excellence award also validates AIRI's quality and delivery improvements, potentially positioning them for additional contract opportunities.

BAY SHORE, N.Y.--(BUSINESS WIRE)-- Air Industries Group (“Air Industries”) (NYSE American: AIRI), a leading manufacturer of precision components and assemblies for large aerospace and defense prime contractors, today announced preliminary unaudited financial results for the calendar year ended December 31, 2024. The Company also reported record levels of new business and backlog and noted it will utilize the automatic 15-day extension to file its Annual Report on Form 10-K for the year ended December 31, 2024.

Preliminary Fiscal 2024 Financial Results (unaudited)

For the year ended December 31, 2024, Air Industries achieved growth in net sales, gross profit, and operating income, while significantly reducing its net loss.

• Net Sales in 2024 rose to $55.1 million, a 7% increase from $ 51.5 million in 2023.
• Gross Profit in 2024 improved to $8.9 million from $7.4 million in 2023. Gross profit as a percentage of sales rose to 16.2%, an increase of 180 basis points from 14.4% in 2023.
• Operating income was $459,000 – up from an operating loss of $295,000 in 2023.
• Net loss for 2024 was reduced by $765,000 to $1.4 million, an improvement of 35.9% from the prior year.

Q4 2024 Snapshot

For the fourth quarter, sales and gross profit increased, while operating and net results were impacted by certain timing and cost factors. Net Sales in 2024 reached $14.9 million, up 11.9% from $13.4 million in 2023

• Gross Profit rose to $2.4 million, up 13.2% from $2.2 million in 2023. Gross profit as a percentage of sales for 2024 was 16.3% just slightly higher than Q4 of 2023.
• Operating loss was $111,000, compared to operating income of $587,000 in 2023.
• Net loss totaled $554,000 in 2024, compared to net income of $181,000 in the prior year.
• The increase in operating and net losses was due primarily to higher non-cash stock compensation expense increasing operating expense for the quarter.

Summary Financial Charts and EBITDA Commentary

	For the Year Ended December 31: ($ 000's)	2024 (unaudited)				2023				Variance
										in $				As a %
	Net Sales	$	55,108			$	51,516			$	3,592			7.0%
	Cost of Sales		46,176				44,088				2,088			4.7%
	Gross Profit		8,932				7,428				1,504			20.2%
	GP as a % of Sales		16.2	%			14.4	%			n/m
	Operating Expenses		8,473				7,723				750			9.7%
	Operating Income (Loss)		459				(295	)			754			n/m
	Other Income (Expense)
	Interest Expense		(1,893	)			(1,920	)			27			-1.4%
	Other Income (Expense)		68				84				(16	)		-19.0%
	Net (Loss)	$	(1,366	)		$	(2,131	)		$	765			-35.9%

Adjusted EBITDA for fiscal 2024 was $3.6 million, an increase of nearly $1.0 million or 35.3% from $2.7 million in 2023. The reconciliation of EBITDA to GAAP net income is shown below.

	For the Year Ended December 31: ($ 000's)	2024 (unaudited)				2023
	Net (Loss)	$	(1,366	)		$	(2,131	)
	Interest Expense		1,893				1,920
	Taxes		-				6
	Stock Compensation		797				482
	Depreciation		2,249				2,352
	Amortization		68				68
	Adjusted EBITDA	$	3,641			$	2,697

Record Bookings and Backlog Fuel Growth:

Air Industries achieved significant growth in both bookings and backlog in 2024:

• New bookings increased by 15% compared to 2023. The “book-to-bill” ratio was 1.30x, exceeding the accepted aerospace industry benchmark of 1.20x.
• Total Backlog (Funded & Unfunded) now exceeds a quarter of a billion dollars – a new record for the company.

CEO Commentary

Lou Melluzzo, Chief Executive Officer of Air Industries Group, commented:

• “Air Industries made meaningful progress across all key areas in 2024. We achieved record bookings, grew revenue, expanded gross margins, and returned to positive operating income. This performance reflects our continued focus on operational improvement and customer satisfaction.”
• “While full-year sales rose a solid 7%, our gross profit increased more than 20% - nearly three-times faster – demonstrating the operating leverage inherent in our business model. Perhaps most significantly, we converted an operating loss in 2023 into positive operating income in 2024 and reduced our net loss by nearly 36%.”
• “Improved delivery performance drove increased customer satisfaction, culminating in Air Industries receiving the prestigious Northrop Grumman Supplier Excellence award in February 2025 – an honor granted to less than .5% of their 11,000 suppliers.”
• “2024 was also defined by significant long-term contract wins and unprecedented order activity. Our funded backlog, supported by firm customer orders, reached an all-time high, and total backlog now exceeds $250 million. Materials and manufacturing lead times remain long in aerospace, but the increase in backlog positions us for continued progress in 2025. While quarterly results may vary, we believe year-end 2025 results will exceed those of 2024, continuing the positive trend we have established.”

ABOUT AIR INDUSTRIES GROUP

Air Industries Group is a leading manufacturer of precision components and assemblies for large aerospace and defense prime contractors. Its products include landing gears, flight controls, engine mounts and components for aircraft jet engines, ground turbines and other complex machines. Whether it is a small individual component or complete assembly, its high quality and extremely reliable products are used in mission critical operations that are essential for the safety of military personnel and civilians.

FORWARD LOOKING STATEMENTS

Certain matters discussed in this press release are 'forward-looking statements' intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. In particular, the Company's statements regarding trends in the marketplace, future revenues, earnings and Adjusted EBITDA, the ability to realize firm backlog and projected backlog, cost cutting measures, potential future results and acquisitions, are examples of such forward-looking statements. The forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, the timing of projects due to variability in size, scope and duration, the inherent discrepancy in actual results from estimates, projections and forecasts made by management, regulatory delays, changes in government funding and budgets, and other factors, including general economic conditions, not within the Company's control. The factors discussed herein and expressed from time to time in the Company's filings with the Securities and Exchange Commission could cause actual results and developments to be materially different from those expressed in or implied by such statements. The forward-looking statements are made only as of the date of this press release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

NON-GAAP FINANCIAL MEASURES

The Company uses Adjusted EBITDA, a Non-GAAP financial measure as defined by the SEC, as a supplemental profitability measure because management finds it useful to understand and evaluate results, excluding the impact of non-cash depreciation and amortization charges, stock based compensation expenses, and nonrecurring expenses and outlays, prior to consideration of the impact of other potential sources and uses of cash, such as working capital items. This calculation may differ in method of calculation from similarly titled measures used by other companies and may be different than the EBITDA calculation used by our lenders for purposes of determining compliance with our financial covenants. This Non-GAAP measure may have limitations when understanding performance as it excludes the financial impact of transactions such as interest expense necessary to conduct the Company’s business and therefore are not intended to be an alternative to financial measure prepared in accordance with GAAP. The Company has not quantitatively reconciled its forward looking Adjusted EBITDA target to the most directly comparable GAAP measure because items such as amortization of stock-based compensation and interest expense, which are specific items that impact these measures, have not yet occurred, are out of the Company’s control, or cannot be predicted. For example, quantification of stock-based compensation is not possible as it requires inputs such as future grants and stock prices which are not currently ascertainable.

Anyone wishing to contact us or send a message can also do so by visiting: www.airindustriesgroup.com/contact-us/.

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Air Industries Group

Chief Financial Officer

631-328-7039

Source: Air Industries Group

FAQ

What were Air Industries Group's (AIRI) key financial achievements in 2024?

AIRI achieved 7% revenue growth to $55.1M, improved gross profit to $8.9M, turned operating loss to $459K profit, and reduced net loss by 35.9% to $1.4M in 2024.

How did AIRI's Q4 2024 performance compare to Q4 2023?

Q4 2024 sales increased 11.9% to $14.9M, but showed an operating loss of $111K compared to $587K profit in Q4 2023, mainly due to higher stock compensation expenses.

What is Air Industries' (AIRI) current backlog status and book-to-bill ratio?

AIRI's total backlog exceeds $250M (a company record), with bookings up 15% and a book-to-bill ratio of 1.30x, above the industry benchmark of 1.20x.

How much did AIRI's Adjusted EBITDA improve in 2024?

AIRI's Adjusted EBITDA increased by 35.3% to $3.6M in 2024, up from $2.7M in 2023.

What significant recognition did AIRI receive in 2025?

AIRI received the Northrop Grumman Supplier Excellence award in February 2025, an honor given to less than 0.5% of their 11,000 suppliers.