Air Industries Group Secures Two Contracts worth $1.5 Million for Landing Gear Components for the USAF B1-B Lancer Bomber and F-16 Fighting Falcon
Air Industries Group (NYSE American: AIRI) has secured two contracts totaling $1.5 million for landing gear components for the US Air Force B1-B Lancer bomber and F-16 Fighting Falcon. The contracts align with the company's strategic focus on the military maintenance, repair, and overhaul (MRO) market.
According to the Congressional Research Service, the US Military's Operations & Maintenance (O&M) budget is approximately 185% larger than the Procurement budget for new products. The Pentagon's FY2025 budget request includes a 3.5% increase in O&M funding while showing a 2.2% decrease in Procurement.
Air Industries Group (NYSE American: AIRI) ha ottenuto due contratti per un totale di 1,5 milioni di dollari per componenti del carrello di atterraggio per il bombardiere B1-B Lancer e il F-16 Fighting Falcon dell'Air Force degli Stati Uniti. I contratti sono in linea con il focus strategico dell'azienda sul mercato della manutenzione, riparazione e revisione (MRO) militare.
Secondo il Congressional Research Service, il budget per le Operazioni e Manutenzione (O&M) delle Forze Armate statunitensi è circa 185% più grande rispetto al budget per l'Acquisto di nuovi prodotti. La richiesta di budget del Pentagono per l'anno fiscale 2025 include un aumento del 3,5% nel finanziamento O&M, mostrando al contempo una riduzione del 2,2% nell'Acquisto.
Air Industries Group (NYSE American: AIRI) ha asegurado dos contratos por un total de 1,5 millones de dólares para componentes del tren de aterrizaje del bombardero B1-B Lancer y el F-16 Fighting Falcon de la Fuerza Aérea de EE. UU. Los contratos están alineados con el enfoque estratégico de la empresa en el mercado de mantenimiento, reparación y revisión (MRO) militar.
Según el Servicio de Investigación del Congreso, el presupuesto de Operaciones y Mantenimiento (O&M) del Ejército de EE. UU. es aproximadamente 185% más grande que el presupuesto de Adquisiciones para nuevos productos. La solicitud de presupuesto del Pentágono para el año fiscal 2025 incluye un aumento del 3,5% en la financiación de O&M, mientras muestra una disminución del 2,2% en Adquisiciones.
Air Industries Group (NYSE American: AIRI)는 150만 달러에 달하는 두 개의 계약을 체결하여 미 공군 B1-B 랜서 폭격기와 F-16 파이팅 팔콘의 착륙 장비 부품을 공급합니다. 이 계약은 군사 유지보수, 수리 및 개조(MRO) 시장에 대한 회사의 전략적 초점과 일치합니다.
의회 조사국에 따르면, 미국 군대의 운영 및 유지보수(O&M) 예산은 새로운 제품을 위한 조달 예산보다 약 185% 더 큽니다. 펜타곤의 2025 회계연도 예산 요청에는 O&M 자금이 3.5% 증가하는 반면, 조달은 2.2% 감소하는 것으로 나타났습니다.
Air Industries Group (NYSE American: AIRI) a obtenu deux contrats d'une valeur totale de 1,5 million de dollars pour des composants de train d'atterrissage pour le bombardier B1-B Lancer et le F-16 Fighting Falcon de l'Armée de l'air américaine. Ces contrats sont en accord avec l'orientation stratégique de l'entreprise vers le marché de la maintenance, de la réparation et de la révision (MRO) militaire.
Selon le Service de recherche du Congrès, le budget des opérations et de la maintenance (O&M) de l'armée américaine est environ 185% plus important que le budget d'acquisition de nouveaux produits. La demande de budget du Pentagone pour l'exercice 2025 comprend une augmentation de 3,5% du financement O&M tout en affichant une diminution de 2,2% des acquisitions.
Air Industries Group (NYSE American: AIRI) hat zwei Verträge im Gesamtwert von 1,5 Millionen Dollar für Fahrwerkkomponenten für den B1-B Lancer Bomber und den F-16 Fighting Falcon der US Air Force gesichert. Die Verträge stehen im Einklang mit dem strategischen Fokus des Unternehmens auf den militärischen Wartungs-, Reparatur- und Überholungsmarkt (MRO).
Laut dem Congressional Research Service ist das Budget der US-Militärs für Operationen und Wartung (O&M) etwa 185% größer als das Beschaffungsbudget für neue Produkte. Der Haushaltsantrag des Pentagons für das Haushaltsjahr 2025 umfasst eine 3,5%ige Erhöhung der O&M-Finanzierung, während eine 2,2%ige Verringerung bei der Beschaffung zu verzeichnen ist.
- Secured new contracts worth $1.5 million for military aircraft components
- Strategic alignment with growing O&M market segment
- Pentagon's FY2025 budget shows 3.5% increase in O&M funding
- Individual contract values described as 'modest' by management
Insights
Air Industries Group's new $1.5 million in contracts for USAF landing gear components represents approximately 13% of the company's current market capitalization of $11.8 million, making this announcement materially significant despite the modest absolute dollar amount.
The strategic importance exceeds the financial impact, as these contracts validate AIRI's pivot toward the Defense Operations & Maintenance (O&M) sector - a market nearly twice the size of new procurement budgets. This sector is not only larger but growing faster, with the Pentagon requesting a 3.5% increase in O&M spending while reducing procurement by 2.2% for FY2025.
For micro-cap aerospace suppliers like AIRI, securing positions in maintenance supply chains offers several advantages:
- More predictable revenue streams compared to new production contracts
- Typically higher margins than original equipment manufacturing
- Lower capital investment requirements
- Potential for long-term recurring business as aircraft remain in service for decades
The B1-B and F-16 platforms represent ideal targets, as both are mature systems requiring ongoing maintenance with established supply chains. The CEO's characterization of these wins as "evidence of growing success" suggests these contracts may be early results from a deliberate strategy shift rather than one-off opportunities.
For investors, execution will be critical - AIRI must deliver on these contracts flawlessly to secure follow-on business in this competitive space while managing the working capital demands that come with new defense contracts.
Lou Melluzzo, Chief Executive Officer of Air Industries Group commented: “The market for supplying products used in maintenance, repair, and overhaul of aircraft is very large. According to the Congressional Research Service, a unit of the US Government, the US Military budget for Operations & Maintenance (O&M) is approximately
“Our reenergized business development activities are focused on this large market. These two contracts, while individually modest are important evidence of the growing success of our efforts.”
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
Source: Air Industries Group
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