Air Industries Group (AIRI) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 2026 were $11.6M, down 4.4% year-over-year, primarily due to changes in product mix and customer demand.

• Gross profit margin improved to 22.4% from 16.8% in Q1 2025, driven by cost reductions and operational efficiencies.

• Net loss was $1.02M, slightly higher than the $988K loss in Q1 2025.

• The company entered into a merger agreement with Tenax Aerospace, which, if completed, will result in Tenax members owning approximately 96% of the outstanding shares.

Financial highlights

• Net sales: $11.6M (Q1 2026), down from $12.1M (Q1 2025).

• Gross profit: $2.6M (22.4% margin), up from $2.0M (16.8% margin) in Q1 2025.

• Operating expenses: $3.2M, up $387K year-over-year, mainly due to higher stock-based compensation and professional fees.

• Interest expense: $494K, up 11.2% due to higher loan balances.

• Net loss: $1.02M, compared to $988K in Q1 2025.

• Cash at quarter-end: $286K, with $3.93M in restricted cash.

Outlook and guidance

• Backlog of $134.7M and total unfilled contract values of $269.2M support a positive long-term outlook.

• Revenue acceleration is expected to be delayed until late 2026 due to extended lead times for raw materials and manufacturing complexity.

• The company is focused on securing new contracts, improving operations, and completing the merger with Tenax.