Air Industries Group (AIRI): History, Ownership, Mission, How It Works & Makes Money

Air Industries Group (AIRI) is a critical player in aerospace and defense, but how does a company with a Trailing Twelve Month (TTM) revenue of approximately $52.28 million command a total backlog exceeding $0.25 billion? That 1.34:1 book-to-bill ratio in Q1 2025 tells you they are booking new business faster than they are shipping it, a powerful signal that future revenue is locked in, defintely worth a deeper look. You need to understand the mechanics behind this growth, especially as they focus on high-margin aftermarket Maintenance, Repair, & Overhaul (MRO) contracts, like the recent $6.9 million award for combat helicopter components. Let's break down the history, ownership structure, and the precise way Air Industries Group makes its money, so you can map out the real risks and opportunities in their defense-heavy model.

Air Industries Group (AIRI) History

You need to understand the true origin story of Air Industries Group, which isn't a single founding moment but a strategic consolidation of aerospace manufacturing powerhouses. The current public company structure was formally established in 2006 to roll up specialized, decades-old operations, giving it immediate scale and access to capital markets for further growth.

The company's operational DNA, however, is far older, tracing its lineage back to World War II, a critical detail that underpins its Tier 1 supplier status today. This long-standing heritage in flight-critical components is why major defense contractors trust the firm, even as it navigates near-term revenue headwinds, like the 10.2% decline in first-half 2025 revenue to $24.8 million.

Given Company's Founding Timeline

Year established

The current holding company, Air Industries Group, was formally incorporated in Delaware in 2006. Its operational roots, however, date back to 1941 in Connecticut, when an acquired subsidiary began producing parts for the F4-U Corsair fighter aircraft.

Original location

The corporate headquarters and primary operational base have long been centered in Bay Shore, New York. The company maintains two Centers of Excellence in the US: one in Long Island, New York, and the other in the Hartford, Connecticut, aerospace corridor.

Founding team members

The 2006 formation was a consolidation of existing entities rather than a traditional startup. Key figures involved in the structuring and early expansion phase of the public company included Peter D. Rettaliata, who took significant leadership roles. The current strategic direction is led by President and Chief Executive Officer Luciano M. Melluzzo.

Initial capital/funding

Specific initial seed capital for the 2006 holding company is not typically cited, as it was a public consolidation event. Its growth was financed through a combination of debt and equity issuance following its establishment as a public entity, which allowed it to execute a strategic acquisition roll-up.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The company's most transformative decisions have centered on a disciplined focus on high-margin, flight-critical components for the defense sector, which provides a stable, long-term revenue base. This is defintely a niche business. The shift from a collection of small shops to a cohesive Tier 1 supplier is the core of its modern trajectory.

• Strategic Acquisition Roll-up: The decision to form the Air Industries Group holding company in 2006 was a pivot from organic growth to a growth-by-acquisition model, allowing it to rapidly gain specialized capabilities, like those from Sterling Components (dating to 1951) and Compac Development Corp.
• Focus on Complex Assemblies: The company strategically moved away from simple parts to complex, high-precision assemblies-like landing gear, engine mounts, and flight controls-for platforms such as the Lockheed Martin F-35 Lightning II and Sikorsky UH-60 Black Hawk. This focus locks in long-term contracts with major Original Equipment Manufacturers (OEMs).
• 2025 Backlog and Cost Management: As of early 2024, the company maintained a substantial backlog of $97.0 million, which acts as a clear buffer against market volatility. The securing of $10 million in new aftermarket orders in Q2 2025, plus the implementation of cost-cutting measures expected to yield $1 million in annual savings, shows a decisive move to stabilize margins amid a challenging operating environment.

The company's ability to secure large, long-term agreements (LTAs) for mission-critical parts is its biggest advantage. If you want to dive deeper into who is betting on this strategy, you should be Exploring Air Industries Group (AIRI) Investor Profile: Who's Buying and Why?

Air Industries Group (AIRI) Ownership Structure

Air Industries Group (AIRI) operates as a publicly-traded company, but its ownership structure is heavily influenced by insiders, which gives management and key stakeholders significant control over strategic direction. This concentration of shares means major decisions are often driven by a small group, so you need to defintely pay attention to insider transactions.

Air Industries Group's Current Status

Air Industries Group is a publicly-traded aerospace and defense company, listed on the NYSE American exchange under the ticker AIRI. Its public status means it must adhere to Securities and Exchange Commission (SEC) reporting requirements, offering transparency into its financials and governance. As of November 2025, the company's market capitalization was reported at approximately $14.83 Million USD, placing it firmly in the micro-cap category. This smaller size can lead to higher stock volatility, but also greater potential for growth from new contracts or strategic investments, like the ones you can read about in Breaking Down Air Industries Group (AIRI) Financial Health: Key Insights for Investors.

Air Industries Group's Ownership Breakdown

The company's ownership is notably skewed toward insiders, which is common in smaller public companies. Insider ownership-shares held by officers, directors, and 10%+ shareholders-is substantial, giving this group considerable voting power. Institutional holdings are relatively low, meaning major asset managers like BlackRock or Vanguard hold a smaller stake compared to the company's overall float.

Here's the quick math for the breakdown as of November 2025:

Air Industries Group's Leadership

The company is steered by an experienced leadership team, with several executives having deep roots in the aerospace and defense sector. Their long tenure suggests stability, but still, you need to watch for any shifts in their strategic focus, especially given the competitive nature of the defense contracting space.

• Luciano (Lou) Melluzzo: President and Chief Executive Officer (CEO). He has served in this role since November 2017.
• Scott Glassman: Chief Financial Officer (CFO), Principal Accounting Officer, and Secretary. He was promoted to his current CFO position in 2023.
• Peter D. Rettaliata: Chairman of the Board. He was appointed Chairman in July 2023, bringing a long history with the company, including prior service as CEO.
• Michael Recca: Director of Strategic Projects. He previously served as the company's CFO until October 2023.

The Board of Directors also includes key figures like Michael N. Taglich and Robert F. Taglich, who are associated with Taglich Brothers, a significant shareholder and securities firm. This connection highlights the influence of key investment partners on the company's governance.

Air Industries Group (AIRI) Mission and Values

Air Industries Group (AIRI) is fundamentally driven by a core purpose that transcends quarterly earnings: to be an indispensable Tier 1 supplier in the demanding aerospace and defense sectors. This commitment to reliability and precision forms the cultural DNA, guiding their operational focus on manufacturing complex, flight-critical components.

You're looking for what truly anchors a company beyond its balance sheet, and for Air Industries Group, it's their role in the supply chain for major aircraft programs. They are a smaller player, but their specialized capabilities make them a vital link for their customers, especially given the current year's financial performance-net sales for the nine months ended September 30, 2025, were $35.1 million, showing that their mission is directly tied to securing high-value contracts.

Given Company's Core Purpose

The company's guiding principles are clearly visible in its operational mandate, even without a constantly updated, formal press release. Their purpose is to manage the complexity of manufacturing parts that are literally vital for flight safety and performance, which is defintely a high-stakes business.

Official mission statement

The operational mandate for Air Industries Group revolves around being a premier Tier 1 supplier of complex structural parts and assemblies. This means they focus on:

• Manufacturing precision components for mission-critical aerospace and defense applications.
• Ensuring quality and timely delivery for critical military and commercial aerospace programs.
• Serving as a prime contractor to the U.S. Department of Defense.

Honesty, the mission is about execution: delivering a landing gear component or a jet engine part that simply cannot fail. The company's backlog of $131.8 million as of the third quarter of 2025 shows this mission is translating into long-term customer trust.

Vision statement

Air Industries Group's vision is to solidify its position as a growing, indispensable partner to major aerospace and defense Original Equipment Manufacturers (OEMs). It's a vision focused on being essential, not just big.

This vision is supported by a relentless pursuit of manufacturing excellence in complex aerostructures. The recent Q3 2025 results, which showed a net loss of only $44,000 compared to a larger loss a year prior, suggest they are making progress on the operational efficiency needed to realize this long-term vision.

You can explore more details on this cultural foundation here: Mission Statement, Vision, & Core Values of Air Industries Group (AIRI).

Given Company slogan/tagline

While the company does not use a single, widely publicized corporate slogan, their branding strongly emphasizes their technical expertise and history.

• Defining Precision for the Aerospace Industry.
• Flight-Critical Expertise.
• Delivering Quality Solutions Since 1941.

The focus here is on the tangible-precision and expertise-which is what matters when your products are used on aircraft like the Lockheed Martin F-35 Lightning II or the Sikorsky UH-60 Black Hawk. It's a clear message that their value proposition is technical competence, not marketing fluff.

Air Industries Group (AIRI) How It Works

Air Industries Group operates as an integrated Tier 1 manufacturer, delivering mission-critical, high-precision components and assemblies primarily to the aerospace and defense sectors. The company creates value by translating complex engineering specifications into reliable, flight-safety-essential hardware for major prime contractors and the U.S. Department of Defense.

Air Industries Group's Product/Service Portfolio

The company's revenue, which stood at approximately $52.28 million for the trailing twelve months (TTM) ending June 30, 2025, is driven by two core product categories and their corresponding aftermarket services.

Air Industries Group's Operational Framework

To produce components that meet stringent flight-safety standards, Air Industries Group relies on a focused operational structure built around specialized expertise, which they call Centers of Excellence.

• Complex Machining: This Center, operated through subsidiaries like Air Industries Machining and Nassau Tool Works, specializes in high-speed machining of aluminum and intricate machining of hard metals, which is essential for components like landing gear.
• Turbine Engine Components: Handled by Sterling Engineering Corporation, this focus area is dedicated to high-tolerance, complex parts for both aircraft jet engines and ground turbines.
• Long-Term Agreements (LTAs): The company actively secures multi-year contracts, like a recently secured long-term agreement that represents the largest in its history, providing a more defintely predictable revenue stream.
• Aftermarket Support: A significant part of the operational value is lifecycle support, including repair, overhaul, and refurbishment services that extend the performance of components already in service.

Here's the quick math on recent performance: for the nine months ended September 30, 2025, the company reported Net Sales of $35.1 million, with a Gross Profit of $6.4 million, reflecting an 18.1% gross margin.

Air Industries Group's Strategic Advantages

The company's market success comes down to a few critical, difficult-to-replicate advantages in a heavily regulated industry. You can learn more about who is investing in this stability by Exploring Air Industries Group (AIRI) Investor Profile: Who's Buying and Why?

• Mission-Critical Niche: They focus exclusively on components vital for flight safety-like landing gear and flight controls-making them an indispensable supplier to major defense and aerospace Original Equipment Manufacturers (OEMs).
• Tier 1 Supplier Status: Operating as an integrated Tier 1 manufacturer and a prime contractor to the U.S. Department of Defense provides a direct, privileged position in the defense supply chain.
• High Barriers to Entry: The required quality certifications, decades of experience, and specialized manufacturing capabilities (like those in their Centers of Excellence) create a significant barrier for competitors.
• Backlog and Contract Stability: While the company reported a Net Loss of $1.5 million for the first nine months of 2025, its strategy of securing new orders and long-term agreements, including a recent $6.9 million contract win, points to future revenue stability.

Air Industries Group (AIRI) How It Makes Money

Air Industries Group primarily makes money by manufacturing and selling complex, high-precision structural components and assemblies for the global aerospace and defense industries, acting as a critical supplier to major prime contractors like Northrop Grumman and Sikorsky. The company secures its revenue through long-term agreements (LTAs) for flight-critical parts, which helps create a predictable, multi-year revenue stream.

Air Industries Group's Revenue Breakdown

The business is heavily weighted toward defense spending, which is typical for a precision component manufacturer in this space. Based on the most recent available structural data, military end-use is the clear majority of their sales, with commercial aerospace making up the rest.

Here's the quick math: In fiscal year 2024, nearly 70% of net sales came from military end-use, supporting critical defense platforms like the US Navy E-2D Advanced Hawkeye and Sikorsky's CH-53K. While net sales for the nine months ended September 30, 2025, were down year-over-year to $35.1 million, the long-term outlook remains strong due to a record backlog.

Business Economics

The economics of Air Industries Group are defined by high barriers to entry, long-cycle contracts, and the inherent risks of working with fixed-price agreements. You don't just walk into this business; the quality approvals and specialized tooling are expensive and difficult to duplicate.

• Long-Term Agreements (LTAs): The company secures multi-year contracts, such as the $110 million, 7-year contract for Geared Turbo-Fan (GTF) engine components, which provides revenue visibility well into 2031. This is a huge risk mitigator.
• Pricing Risk: A significant portion of their revenue comes from fixed contract pricing. This means if the cost of raw materials or labor increases unexpectedly-a major issue in 2025-their profitability gets squeezed because they can't pass on all those costs.
• Aftermarket Revenue: The business benefits from Maintenance, Repair, and Overhaul (MRO) or 'after-market' sustainment contracts, like those for the E-2D Advanced Hawkeye. These are often higher-margin and stickier revenue streams, as the aircraft are expected to stay in service for decades.
• Backlog as a Buffer: The total unfilled contract values stand at a massive $269.0 million, with a firm backlog of $131.8 million as of November 2025. This backlog is the primary indicator of future revenue stability, even if current sales are fluctuating due to supply chain bottlenecks.

The long-term contracts are great, but the fixed pricing model is a defintely a near-term margin headwind.

Air Industries Group's Financial Performance

As of November 2025, the company shows operational improvement despite a decline in top-line sales, a classic sign of a business focused on cost control amid a challenging delivery environment. For the nine months ended September 30, 2025, net sales totaled $35.1 million.

• Revenue and Profitability: Net sales for the first nine months of 2025 were $35.1 million, resulting in a net loss of approximately $1.5 million. This is an improvement from the prior year's comparable net loss of $812,000, though the Q3 2025 quarter itself was near break-even with a net loss of just $44,000.
• Margin Health: The gross profit margin for the nine-month period stood at 18.1%, a respectable figure for precision manufacturing. Critically, the Q3 2025 gross margin jumped to 22.3%, up significantly from 15.5% in Q3 2024, showing that cost-cutting and a better product mix are starting to pay off.
• Liquidity and Debt Risk: Total debt is a substantial $28.645 million. The most immediate risk is the credit facility expiring on December 30, 2025, which has led management to express 'substantial doubt' about continuing as a going concern without a successful refinancing. This is the most important financial metric to watch right now.
• Analyst Outlook: Full-year 2025 revenue is forecasted by analysts to be around $54.45 million, with the company anticipating the fourth quarter to be the strongest of the year.

To get a deeper look at the balance sheet and the debt situation, you should read Breaking Down Air Industries Group (AIRI) Financial Health: Key Insights for Investors.

Air Industries Group (AIRI) Market Position & Future Outlook

Air Industries Group operates as a micro-cap specialist in the massive aerospace and defense supply chain, focusing on high-precision, flight-critical components. The company's future hinges on converting its record $120 million backlog into profitable revenue while managing near-term sales contraction and operational bottlenecks.

The strategic move toward aggressive cost control has improved profitability metrics, but sustained growth requires capturing new market segments like Maintenance, Repair, & Overhaul (MRO) and embracing new technologies. You can see the foundation of this strategy in the Mission Statement, Vision, & Core Values of Air Industries Group (AIRI).

Competitive Landscape

Air Industries Group competes mainly within the Tier 1 and Tier 2 precision component manufacturing niche, but its size is dwarfed by larger, publicly traded peers in the broader aerospace component sector. The company's TTM revenue as of 2025 is approximately $52.26 million, which is a fraction of its key competitors.

Honestly, the sheer scale difference means Air Industries Group is fighting for niche contracts, not market share against these giants. They focus on complex, hard-to-machine parts for prime contractors like Lockheed Martin and Northrop Grumman.

Opportunities & Challenges

The company is in a pivotal phase, balancing a strong order book with the need to modernize its operational framework. Here's the quick math: a $120 million backlog against a TTM revenue of $52.26 million gives you over two years of revenue visibility, but the execution risk is high.

Industry Position

Air Industries Group holds a defintely critical, albeit small, position as an integrated Tier 1 manufacturer of precision components for the US defense and aerospace sectors.

• Core Focus: Manufacturing flight-critical components-landing gear, engine mounts, and flight controls-for high-profile military platforms like the Lockheed Martin F-35 Lightning II and Sikorsky UH-60 Black Hawk.
• Defense Importance: The company is a prime contractor to the U.S. Department of Defense, cementing its role in national defense supply chains.
• MRO Pivot: A key 2025 strategic goal is increasing penetration in the higher-margin MRO sustainment market, evidenced by aftermarket bookings totaling over $13 million since Q1.
• Financial Health: The company achieved a near-breakeven net loss of only $44,000 in Q3 2025, a substantial improvement from a $404,000 net loss in Q3 2024, showing that cost discipline is working.

The challenge now is to use the existing defense contracts as a stable base while investing in production capacity and technology to reverse the recent revenue decline and achieve scalable, long-term profitability.