Air Industries Group (AIRI) Q2 2026 earnings summary

Executive summary

• Net sales for Q2 2026 were $11.99M, down 5.2% year-over-year, with a net loss of $846K, more than double the prior year's loss for the same period.

• Gross profit margin improved to 20.7% from 16.0% year-over-year, driven by cost reductions and product mix changes.

• Operating expenses rose significantly due to $1.2M in professional fees related to a pending merger and IT/cybersecurity investments.

• The company is pursuing a merger with Tenax Aerospace, which, if completed, will result in Tenax members owning 96% of the combined entity.

Financial highlights

• Six-month net sales were $23.6M, down 4.8% year-over-year; net loss for the period was $1.87M, up from $1.41M.

• Gross profit for the six months rose to $5.09M (21.5% margin) from $4.06M (16.4% margin) year-over-year.

• Cash at June 30, 2026 was $694K; working capital was $5.41M.

• Total assets were $59.2M; stockholders' equity was $18.1M, down 5.7% from year-end.

Outlook and guidance

• Unfilled contract values total $279M, including $139.7M in funded backlog, supporting a positive outlook for future growth.

• The company expects a substantial portion of backlog to convert to sales over the next 24 months, assuming timely supply chain and customer acceptance.