Air Industries Group reported net sales of $10.3 million for the third quarter ended September 30, 2025, a decline of 18% from $12.555 million in the same period a year earlier. The drop reflects a combination of delayed customer orders and subcontractor bottlenecks that limited the company’s ability to fulfill demand, even as the mix shifted toward higher‑margin products.
Adjusted EBITDA for the quarter rose to $1.3 million, up from $1.1 million in Q3 2024. Gross margin expanded to 22.3% from 15.5% a year earlier, driven by disciplined cost control and a stronger product mix. The margin lift offsets the revenue contraction and signals that the company’s operational efficiency program is delivering tangible results.
Over the nine‑month period ending September 30, 2025, adjusted EBITDA reached $2.7 million, compared with $2.62 million for the same period in 2024. Net loss narrowed to $44,000, or $0.01 per share, a significant improvement over the $404,000 loss ($–0.22 per share) reported in Q3 2024.
CEO Lou Melluzzo said the quarter demonstrated the effectiveness of the company’s cost‑control initiatives. He noted that “delayed customer orders and subcontractor bottlenecks” contributed to the revenue decline, but emphasized that the focus on profitability and operational efficiency positions the company for a strong finish to fiscal 2025.
Liquidity remains a concern. The company’s credit facility, which expires on December 30, 2025, has experienced covenant defaults, raising a going‑concern warning. Management is actively pursuing refinancing options, but the near‑term debt maturity and covenant issues add risk to the company’s financial stability.
Analysts reacted positively to the margin expansion, noting that the company beat earnings expectations by $0.21 per share versus a consensus of $–0.22, a beat of $0.43. Revenue also exceeded estimates by 3.09%, underscoring the company’s ability to maintain profitability despite top‑line pressure.
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