--- title: "Air Industries | 10-Q: FY2026 Q1 Revenue: USD 11.61 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/286309568.md" datetime: "2026-05-13T20:08:43.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286309568.md) - [en](https://longbridge.com/en/news/286309568.md) - [zh-HK](https://longbridge.com/zh-HK/news/286309568.md) --- # Air Industries | 10-Q: FY2026 Q1 Revenue: USD 11.61 M Revenue: As of FY2026 Q1, the actual value is USD 11.61 M. EPS: As of FY2026 Q1, the actual value is USD -0.21. EBIT: As of FY2026 Q1, the actual value is USD -72 K. Air Industries Group operates as one operating segment, with all revenues, long-lived tangible assets, and operating lease right-of-use assets located in the United States. #### Net Sales Net sales for the three months ended March 31, 2026, were $11,606,000, representing a decrease of $529,000, or -4.4%, from $12,135,000 in the comparable period of 2025. This decrease was primarily due to overall changes in the mix of products requested by customers. Lockheed Martin accounted for 34.4% of net sales in 2026 (39.6% in 2025), and RTX accounted for 28.4% (28.8% in 2025). Sales by platform for 2026 included 31.2% from UH-60 Black Hawk Helicopter, 23.4% from GTF, 7.5% from CH-53 Helicopter, 6.9% from E-2D Hawkeye, 5.8% from F-35 Lightning II, and 1.5% from F-18 Hornet. #### Cost of Sales Cost of sales for the three months ended March 31, 2026, was $9,004,000, a decrease of $1,097,000 or -10.86% compared to $10,101,000 for the same period in 2025. #### Gross Profit Gross profit for the three months ended March 31, 2026, was $2,602,000, an increase from $2,034,000 for the three months ended March 31, 2025. The gross profit percentage increased to 22.4% in 2026 from 16.8% in 2025, attributed to changes in sales across major platforms, shifts in product mix, and overall operating efficiencies, including cost reductions implemented in the second half of 2025. #### Operating Expenses Operating expenses increased by $387,000, or 13.92%, to $3,167,000 for the three months ended March 31, 2026, from $2,780,000 in the prior year period. As a percentage of consolidated net sales, operating expenses increased to 27.3% in 2026, up from 22.9% in 2025, primarily due to increases in stock-based compensation costs, professional fees, and costs associated with improving information technology systems and cybersecurity defenses. #### Net Loss Net Loss for the three months ended March 31, 2026, was - $1,020,000, compared to a net loss of - $988,000 for the three months ended March 31, 2025. #### Interest Expense Interest expense (including amortization of deferred financing costs) was $494,000 for the three months ended March 31, 2026, an increase of $50,000 or 11.2% from $444,000 in the same period of 2025. This increase was primarily due to higher loan balances under the Current Credit Facility, although the average interest rate decreased to 6.10% in 2026 from 6.85% in 2025. Interest expense related to related parties was - $86,000 for the three months ended March 31, 2026, compared to - $99,000 for the same period in 2025. #### Other Income, Net Other income, net, decreased to $38,000 for the three months ended March 31, 2026, from $202,000 in the prior year period. #### Cash Flow from Operating Activities Cash used in operating activities for the three months ended March 31, 2026, was - $1,298,000, a decrease from cash provided of $1,525,000 for the three months ended March 31, 2025. This decrease was primarily due to increases in inventory and accounts receivable and a decrease in accounts payable, partially offset by an increase in customer deposits. #### Cash Flow from Investing Activities Cash used in investing activities was - $425,000 for the three months ended March 31, 2026, compared to - $1,217,000 for the same period in 2025, both primarily for the purchase of new property and equipment. #### Cash Flow from Financing Activities Cash provided by financing activities was $1,329,000 for the three months ended March 31, 2026, compared to cash used of - $776,000 for the same period in 2025. This was driven by increased borrowings under the Current Credit Facility by $1,403,000, partially offset by payments of $59,000 for financing lease obligations, $13,000 on the Solar Credit Facility, and $2,000 on a loan payable. #### Unfilled Contract Values (Backlog) As of March 31, 2026, Air Industries Group had total unfilled contract values amounting to $269.2 million, including $134.7 million in funded backlog and additional potential funded orders against Long-Term Agreements (LTAs). A substantial portion of this backlog is estimated to be recognized as net sales within the next twenty-four months, with the remainder thereafter. #### Debt and Liquidity As of March 31, 2026, total debt outstanding was $26,562,000. The company was in default of its minimum Fixed Charge Coverage Ratio (FCCR) of 1.10x, having attained a ratio of 0.93x. The Current Credit Facility and Related Party Subordinated Notes, totaling approximately $29,747,000, are classified as current liabilities and mature on September 30, 2026, and October 1, 2026, respectively. This situation raises substantial doubt about the company’s ability to continue as a going concern for the next twelve months. The company had borrowing capacity of approximately $717,000 under the Revolving Loan as of March 31, 2026. #### Merger Information On February 16, 2026, Air Industries Group entered into a Merger Agreement with Tenax Aerospace Acquisition, LLC. Upon consummation, Tenax will become a wholly-owned subsidiary of Air Industries Group. Based on the Air Net Indebtedness as of March 31, 2026, approximately 122.6 million shares of Air Industries Group common stock would be issued to Tenax Members, resulting in Tenax Members collectively owning approximately 96% of the outstanding shares after the merger. The merger is subject to customary conditions, including regulatory approvals and the listing of the merger consideration on the NYSE American. #### Outlook and Strategy For the remainder of fiscal year 2026, Air Industries Group is focused on securing new contract awards, improving operations, and successfully completing the Merger Agreement with Tenax. The company intends to limit capital expenditures until its debt situation is resolved, believing it has sufficient liquidity for day-to-day cash requirements based on current revenue visibility, backlog strength, and available credit. However, it needs to pay or refinance large portions of its indebtedness prior to September 30, 2026, as failure to close the merger would likely prevent the company from paying existing debt and necessitate refinancing its Current Credit Facility and Related Party Notes, potentially with higher interest rates or more restrictive covenants. ### Related Stocks - [AIRI.US](https://longbridge.com/en/quote/AIRI.US.md) ## Related News & Research - [The Home Depot Announces First Quarter Fiscal 2026 Results; Reaffirms Fiscal 2026 Guidance | HD Stock News](https://longbridge.com/en/news/286890512.md) - [ONWARD Medical to Announce First Quarter 2026 Results on May 26, 2026 | ONWRY Stock News](https://longbridge.com/en/news/286858298.md) - [TDK publishes 2026 annual report for fiscal year ended March 31, 2026](https://longbridge.com/en/news/287131408.md) - [Correction: NextNRG to Host First Quarter 2026 Financial Results Conference Call on May 18, 2026 at 9:00 a.m. ET | NXXT Stock News](https://longbridge.com/en/news/286673001.md) - [Hafnia’s Q1 2026 Financial Results Presentation to Be Held on 27 May 2026 | HAFN Stock News](https://longbridge.com/en/news/287014236.md)