Air Industries Group Secures Largest Contract in Company’s History: $110 Million for GTF Aircraft Engine Components
Air Industries Group (NYSE American: AIRI) has secured a $110 million, 7-year contract for the production of Thrust Struts used in Geared Turbo-Fan (GTF) aircraft jet engines. This contract, the largest in the company's history, will run from January 2025 through 2031, replacing and expanding an existing contract. The new deal has increased Air Industries' backlog to over $280 million, marking a significant milestone. CEO Lou Melluzzo highlighted that this project will require approximately 40,000 hours of annual production at their Long Island facility. The company's strategic investment in specialized machinery and equipment upgrades will support this order. Thrust Struts are critical components in the aerospace supply chain, with every GTF engine requiring a pair.
Air Industries Group (NYSE American: AIRI) ha ottenuto un contratto di 110 milioni di dollari della durata di 7 anni per la produzione di Thrust Struts utilizzati nei motori a reazione Geared Turbo-Fan (GTF). Questo contratto, il più grande nella storia dell'azienda, avrà inizio a gennaio 2025 e continuerà fino al 2031, sostituendo e ampliando un contratto esistente. Il nuovo accordo ha aumentato il backlog di Air Industries a oltre 280 milioni di dollari, segnando un traguardo significativo. Il CEO Lou Melluzzo ha sottolineato che questo progetto richiederà circa 40.000 ore di produzione annuale presso il loro stabilimento di Long Island. L'investimento strategico dell'azienda in macchinari specializzati e aggiornamenti delle attrezzature supporterà questo ordine. I Thrust Struts sono componenti critici nella catena di approvvigionamento aerospaziale, poiché ogni motore GTF richiede una coppia di essi.
Air Industries Group (NYSE American: AIRI) ha asegurado un contrato de 110 millones de dólares por 7 años para la producción de Thrust Struts utilizados en motores a reacción Geared Turbo-Fan (GTF). Este contrato, el más grande en la historia de la empresa, estará vigente desde enero de 2025 hasta 2031, reemplazando y ampliando un contrato existente. El nuevo acuerdo ha incrementado la cartera de pedidos de Air Industries a más de 280 millones de dólares, marcando un hito significativo. El CEO Lou Melluzzo destacó que este proyecto requerirá aproximadamente 40,000 horas de producción anuales en su instalación de Long Island. La inversión estratégica de la compañía en maquinaria especializada y actualizaciones de equipos apoyará este pedido. Los Thrust Struts son componentes críticos en la cadena de suministro aeroespacial, ya que cada motor GTF requiere un par.
에어 인더스트리즈 그룹(AIRI, NYSE American: AIRI)은 GTF(기어 터보 팬) 항공기 제트 엔진에 사용되는 스러스트 스트럿 생산을 위한 1억 1천만 달러, 7년 계약을 체결했습니다. 이 계약은 회사의 역사상 가장 큰 계약으로, 2025년 1월부터 2031년까지 진행되며 기존 계약을 대체하고 확장하는 것입니다. 새로운 계약으로 에어 인더스트리즈의 백로그는 2억 8천만 달러 이상으로 증가해 중요한 이정표를 세웠습니다. CEO 루 멜루조는 이 프로젝트가 롱 아일랜드 시설에서 연간 약 40,000 시간의 생산을 필요로 할 것이라고 강조했습니다. 회사는 이 주문을 지원하기 위해 특수 기계 및 장비 업그레이드에 전략적으로 투자하고 있습니다. 스러스트 스트럿은 항공 우주 공급망에서 중요한 구성 요소로, 모든 GTF 엔진은 한 쌍의 스러스트 스트럿을 필요로 합니다.
Air Industries Group (NYSE American: AIRI) a obtenu un contrat de 110 millions de dollars d'une durée de 7 ans pour la production de Thrust Struts utilisés dans les moteurs à réaction Geared Turbo-Fan (GTF). Ce contrat, le plus important de l'histoire de l'entreprise, sera en vigueur de janvier 2025 à 2031 et remplacera un contrat existant tout en l'élargissant. Le nouvel accord a porté le carnet de commandes d'Air Industries à plus de 280 millions de dollars, marquant une étape significative. Le PDG Lou Melluzzo a souligné que ce projet nécessitera environ 40 000 heures de production annuelles dans leur installation de Long Island. L'investissement stratégique de l'entreprise dans des machines spécialisées et des mises à niveau d'équipements soutiendra cette commande. Les Thrust Struts sont des composants essentiels dans la chaîne d'approvisionnement aéronautique, chaque moteur GTF nécessitant une paire.
Air Industries Group (NYSE American: AIRI) hat einen Vertrag über 110 Millionen Dollar mit einer Laufzeit von 7 Jahren für die Produktion von Thrust Struts, die in Geared Turbo-Fan (GTF) Flugzeugtriebwerken verwendet werden, gesichert. Dieser Vertrag, der größte in der Geschichte des Unternehmens, läuft von Januar 2025 bis 2031 und ersetzt und erweitert einen bestehenden Vertrag. Der neue Vertrag hat den Auftragsbestand von Air Industries auf über 280 Millionen Dollar erhöht, was einen bedeutenden Meilenstein darstellt. CEO Lou Melluzzo betonte, dass dieses Projekt voraussichtlich 40.000 Stunden jährliche Produktion in ihrem Werk auf Long Island erfordern wird. Die strategische Investition des Unternehmens in spezialisierte Maschinen und Geräteupgrades wird diesen Auftrag unterstützen. Thrust Struts sind kritische Komponenten in der Luft- und Raumfahrtversorgungskette, da jeder GTF-Triebwerk ein Paar benötigt.
- Secured largest contract in company history worth $110 million
- Backlog increased to over $280 million
- 7-year contract duration provides long-term revenue stability
- Sole supplier of critical Thrust Struts component since 2015
- Expected significant impact on top and bottom lines
- 40,000 hours of annual production at Long Island facility
- None.
This $110 million contract marks a significant milestone for Air Industries Group, potentially transforming its financial outlook. The deal's 7-year duration provides long-term revenue visibility, a important factor for investor confidence. With the backlog now exceeding
The expected 40,000 annual production hours suggests a substantial boost to capacity utilization, likely improving operational efficiency and margins. However, investors should monitor the company's ability to manage this increased production without compromising quality or facing supply chain bottlenecks. The strategic investment in specialized machinery positions AIRI well to meet demand, but also increases fixed costs and potential risks if demand fluctuates.
The contract for Thrust Struts in the GTF engine underscores AIRI's critical role in the aerospace supply chain. As the sole supplier since 2015, AIRI has likely developed significant expertise and intellectual property in this niche, creating a strong competitive moat. The GTF engine's growing adoption in commercial aviation, known for its fuel efficiency, positions AIRI favorably in the industry's push towards sustainability.
However, this reliance on a single product line also presents concentration risks. Investors should consider the potential impact of any issues with the GTF engine program or shifts in aviation technology. The company's focus on business development post-Farnborough Air Show is important for diversifying its portfolio and mitigating these risks.
The strategic investment in specialized machinery prior to securing this large contract demonstrates AIRI's foresight and operational acumen. This proactive approach likely played a important role in winning the contract and positions the company to efficiently meet production demands without significant additional capital expenditure.
The challenge now lies in execution. Ramping up to 40,000 production hours annually requires careful planning in workforce management, quality control and supply chain logistics. Investors should watch for any signs of production delays or quality issues in the coming quarters. The company's ability to maintain its sole supplier status while scaling up will be a key indicator of its operational excellence and long-term viability in this critical aerospace niche.
New 7-Year Contract Expands Backlog to over
![(Photo: Business Wire)](https://mms.businesswire.com/media/20240822786514/en/2222190/4/Picture1AIRI.jpg)
(Photo: Business Wire)
The new contract will commence in January 2025 and extend through 2031 replacing and expanding on an existing contract set to expire in December of 2024. Once production and deliveries begin, annual sales are expected to benefit significantly.
Lou Melluzzo, Chief Executive Officer of Air Industries Group commented: “This contract is a milestone for our company, underscoring the significance of our Thrust Struts product line, which has been a cornerstone of our business for nearly a decade. With this single order, our backlog has surged to over
Melluzzo added, "This product is manufactured on highly specialized machines that are challenging to procure. This order will be supported by our strategic decision to previously invest in upgrades and significant enhancements to our machinery and equipment. No GTF engine can be fitted to an airframe without a pair of Thrust Struts, making this a critical component in the aerospace supply chain.”
In conclusion, Melluzzo stated, “Following the recent Farnborough Air Show, we remain focused on business development activities, strengthening our relationships with long-standing customers, and building new partnerships.”
Peter Rettaliata, Chairman of the Board of Air Industries, commented, “This remarkable achievement is a testament to the focused and strategic efforts of Lou and his team. Their hard work has not only strengthened our relationship with a key customer but has also delivered significant win to our shareholders. This accomplishment reflects the collective dedication and expertise of our entire team. On behalf of the Board of Directors and our shareholders, I extend my sincere congratulations and gratitude.”
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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240822786514/en/
Air Industries Group
Chief Financial Officer
631-328-7039
Anyone wishing to contact us or send a message can also do so by visiting: www.airindustriesgroup.com/contact-us/
Source: Air Industries Group
FAQ
What is the value and duration of Air Industries Group's new contract for GTF engine components?
How has the new contract affected Air Industries Group's (AIRI) backlog?
What is the expected annual production requirement for the new Thrust Struts contract at AIRI?