Air Industries Group (AIRI) shares soared 14.31% in after-hours on Wednesday, January 19, 2022, and closed the daily trading at $0.99. However, in the regular trading session of Wednesday, AIRI’s stock lost 0.90%. AIRI shares have fallen 43.65% over the last 12 months, and they have moved down 4.20% in the past week. Over the past three months, the stock has lost 17.89%, while over the past six months, it has declined 32.64%.
Let’s have a brief discussion about its latest news and developments.
AIRI won two contracts
On January 19, 2022, Air Industries Group (AIRI), announced that its Long Island-based subsidiary, Air Industries Machining Corp., has been awarded two separate Long-Term Agreements to manufacture flight-critical assemblies for the Blackhawk helicopter. The estimated value of the two LTAs will total approximately $18.2 million over their five-year terms.
Air Industries Machining Corp will manufacture the primary flight control assembly for the Blackhawk helicopter, with an estimated life-of-the-contract value of $9.9 million. The second agreement is to produce a flight critical component for the same aircraft, which has an estimated life-of-the-contract value of $8.3 million.
AIRI Subsidiary contract extension
On January 06, 2022, Sterling Engineering, which is a subsidiary of Air Industries Group (AIRI) was awarded a “Life of the Program Extension” of a Long-Term Agreement to deliver Turbine Exhaust Case (TEC) components for the PW-4000 jet engine used on many Airbus and Boeing commercial aircraft, including the A-330 and Boeing 777. The company will get extra revenue of $6 million from the extended contract.
Sterling Engineering has been producing a Turbine Exhaust Cases component for the PW-4000 jet engine for over ten years. It is a critical component of jet engines. The TEC for the PW-4000 is five feet in diameter.
AIRI expansion and extension of credit facility
On November 29, 2021, Sterling National Bank agreed to expand the size of and extend the maturity of its Revolving Credit Facility and Term Loan for Air Industries Group (AIRI).
The company now has a revolving credit facility of $20 million compared to the previous $16 million. The inventory sublimity of the revolving credit facility also increased by $3 million, to $14 million.
AIRI latest financial results
On November 03, 2021, Air Industries Group (AIRI) announced significantly improved financial results for the three and nine-month periods ended September 30, 2021.
Q3 2021 financial highlights
- AIRI net sales were $14.4 million for the third quarter of 2021 compared with $13.7 million in Q3 2020.
- In Q3 2021, gross profit was $2.0 million compared with $1.7 million in Q3 2020.
- Operating income was $178,000 compared with an operating loss of $243,000 in Q3 2020.
- Adjusted EBITDA was $1.1 million compared with $544,000 in Q3 2020.
The recent two agreements were the reason behind its after-hours gains on Wednesday and it can continue to climb up on Thursday as well.