Air Industries Group announced its financial results for the second quarter ended June 30, 2025, reporting net sales of $12.659 million, a decrease from $13.572 million in Q2 2024. The company posted a net loss of $(422) thousand, compared to a net profit of $298 thousand in the same period last year.
Gross profit for Q2 2025 decreased to $2.028 million from $2.644 million in Q2 2024, with the gross margin falling to 16.0% from 19.5%. CEO Lou Melluzzo attributed these challenges primarily to delays in customer orders and extended lead times from subcontractors, alongside higher non-cash stock compensation expenses.
In response to these headwinds, management is adjusting its outlook, expecting overall second-half 2025 results to be lower than the first half, though the fourth quarter is anticipated to be the strongest. The company has implemented cost-saving initiatives, including a workforce reduction expected to reduce annual payroll by approximately $1.0 million.
Despite the quarterly loss, Adjusted EBITDA for the first half of 2025 remained positive at $1.469 million. The company also successfully completed an At-The-Market (ATM) offering in early July 2025, raising nearly $4.0 million in gross proceeds through the sale of 1,003,653 common shares, which strengthened its balance sheet.
Mr. Melluzzo reiterated confidence in the long-term business outlook, noting that the backlog remains at record levels. The benefits from this robust backlog are expected to be realized in fiscal year 2026 and beyond, indicating a delayed but sustained demand for the company's products.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.