Air Industries Group Secures $4.0 Million Contract for F-35 Arresting Gear Components
Air Industries Group (NYSE American: AIRI) has secured a follow-on contract worth $4.0 million for manufacturing arresting gear components for the F-35 Lightning II fighter aircraft. The contract, originating from a European F-35 program partner nation, follows an initial agreement from 2023.
Production is scheduled to begin in the first half of 2025 with completion expected by year-end 2025. The company, which specializes in manufacturing precision components for aerospace and defense prime contractors, views this contract as validation of their established relationship with the customer and alignment with their strategic goal of expanding international sales and supporting the F-35 program.
Air Industries Group (NYSE American: AIRI) ha ottenuto un contratto di follow-on del valore di 4,0 milioni di dollari per la produzione di componenti per il sistema di arresto degli aerei da combattimento F-35 Lightning II. Il contratto, proveniente da un paese partner del programma europeo F-35, segue un accordo iniziale del 2023.
La produzione è prevista per iniziare nella prima metà del 2025, con completamento atteso entro la fine del 2025. L'azienda, specializzata nella produzione di componenti di precisione per appaltatori primari nel settore aerospaziale e della difesa, considera questo contratto come una convalida della loro relazione stabilita con il cliente e in linea con il loro obiettivo strategico di espandere le vendite internazionali e supportare il programma F-35.
Air Industries Group (NYSE American: AIRI) ha asegurado un contrato adicional por un valor de 4,0 millones de dólares para la fabricación de componentes del sistema de arresto para el caza F-35 Lightning II. El contrato, que proviene de un país socio del programa europeo F-35, sigue un acuerdo inicial del 2023.
La producción está programada para comenzar en la primera mitad de 2025 y se espera que finalice a finales de 2025. La empresa, especializada en la fabricación de componentes de precisión para contratistas principales de la industria aeroespacial y de defensa, considera este contrato como una validación de su relación establecida con el cliente y en alineación con su objetivo estratégico de expandir las ventas internacionales y apoyar el programa F-35.
에어 인더스트리 그룹 (NYSE American: AIRI)는 F-35 라이트닝 II 전투기용 체포 장비 구성품 생산을 위한 400만 달러 규모의 후속 계약을 체결했습니다. 이 계약은 유럽 F-35 프로그램 파트너 국가에서 유래하였으며, 2023년의 초기 계약에 따른 것입니다.
생산은 2025년 상반기에 시작될 예정이며, 2025년 말까지 완료될 것으로 예상됩니다. 항공우주 및 방산 주요 계약자를 위한 정밀 부품 제조를 전문으로 하는 이 회사는 이 계약을 고객과의 확립된 관계의 검증으로 보고 있으며, 국제 판매를 확대하고 F-35 프로그램을 지원하겠다는 전략적 목표와 일치한다고 생각합니다.
Air Industries Group (NYSE American: AIRI) a obtenu un contrat supplémentaire d'une valeur de 4,0 millions de dollars pour la fabrication de composants du matériel d'arrêt destiné aux avions de chasse F-35 Lightning II. Ce contrat, provenant d'un pays partenaire du programme européen F-35, fait suite à un accord initial de 2023.
La production est prévue pour commencer dans la première moitié de 2025, avec une achèvement prévu d'ici la fin de l'année 2025. L'entreprise, spécialisée dans la fabrication de composants de précision pour les entrepreneurs principaux dans les secteurs aérospatial et de la défense, considère ce contrat comme une validation de leur relation établie avec le client et en accord avec leur objectif stratégique d'élargir les ventes internationales et de soutenir le programme F-35.
Air Industries Group (NYSE American: AIRI) hat einen Folgeauftrag im Wert von 4,0 Millionen USD für die Herstellung von Arrestierungsausrüstungs-Komponenten für den Kampfflugzeug F-35 Lightning II gesichert. Der Vertrag stammt von einem europäischen Partnerland des F-35-Programms und folgt einem ursprünglichen Vertrag aus dem Jahr 2023.
Die Produktion soll in der ersten Hälfte von 2025 beginnen, mit einem Abschluss, der bis Ende 2025 erwartet wird. Das Unternehmen, das sich auf die Herstellung von Präzisionskomponenten für Hauptauftragnehmer im Bereich Luft- und Raumfahrt sowie Verteidigung spezialisiert hat, betrachtet diesen Vertrag als Bestätigung ihrer etablierten Kundenbeziehung und als Übereinstimmung mit ihrem strategischen Ziel, den internationalen Absatz auszubauen und das F-35-Programm zu unterstützen.
- Secured new $4.0 million contract for F-35 components
- Represents repeat business from existing European customer
- Expands international market presence
- Production won't begin until 2025, indicating delayed revenue recognition
Insights
The
The timing of production starting in H1 2025 with completion by year-end provides good revenue visibility for the upcoming fiscal year. For a small-cap aerospace component manufacturer, securing stable contracts with major defense programs is important for financial stability and growth. The repeat business nature of this order suggests strong execution on the initial 2023 contract and potential for future opportunities.
The contract for F-35 arresting gear components highlights Air Industries' strategic positioning within the F-35 program's global supply chain. Arresting gear systems are critical safety components that enable fighter jets to land on aircraft carriers and short runways, making them essential to the F-35's operational capabilities. The expansion of business with European F-35 partners is particularly significant as these nations continue to increase their F-35 fleets amid growing defense spending.
The company's ability to secure follow-on contracts in the highly competitive aerospace defense sector demonstrates their technical capabilities and quality standards. This positions them well for potential additional orders as the F-35 program continues its planned production ramp-up.
Production of the arresting gear components is expected to begin in the first half of 2025, with the contract scheduled for completion by year end 2025. This agreement demonstrates Air Industries Group’s commitment to supporting global defense initiatives and solidifying its role as a trusted supplier in the aerospace and defense sector.
Lou Melluzzo, Chief Executive Officer of Air Industries Group commented:
“The initial contract for these products was awarded in 2023, representing our first experience with this new customer. The current order affirms the mutual trust that we have established during the period of performance, and underscores our strategic objective to expand international sales, and to continue our strong support of the F-35 program.”
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.
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Air Industries Group
Chief Financial Officer
631-328-7039
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Source: Air Industries Group
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