Air Industries Group (AIRI) stock prices were down by 2.38% as of the market close on August 6th, 2021, bringing the price per share down to USD$1.23 at the end of the trading day. Subsequent premarket fluctuations saw the stock rise by 7.32%, bringing it up to USD$1.32.
F-35 Aircraft LTA
AIRI stock reported having received a follow-on Long-Term Agreement (LTA) that will see the company produce landing gear components for the F-35 Joint Strike Fighter Aircraft. The agreement with the customer is anticipated to secure purchases ranging from USD$12 million to USD$18 million over the course of a three-year period starting in 2022. The company produces a variety of landing gear components to be used in all three variants of the aircraft.
AIRI Stock’s Thrust Struts LTA
May 2021 had seen AIRI stock announce having received an order for Thrust Struts, which are a critical component of the Geared Turbofan Jet Engine. This development builds on a previously announced Long-Term Agreement, with the order for Thrust Struts expected to generate USD$7.4 million in revenue.
Strong AIRI Stock Financials
AIRI stock reported promising Q2 2021 financial reports on August 4th, 2021 for the time period ended June 30th, 2021. In relation to the USD$7.4 million order for Thrust Struts, the company reported a fully funded backlog of USD$91.5 million. Consolidated net sales were up by USD$7 million up to USD$15.5 million. This is a massive 82.4% increase from the USD$8.5 million AIRI stock reported for the prior-year quarter. Consolidated gross profits were also up, this time by a staggering 333.3% from USD$600,000 in the second quarter of 2020 to USD$2.6 million in Q2 2021.
Additional Financials
Operating income for the second quarter of fiscal 2021 was reported at USD$400,000. This is a USD$1.7 million improvement on the operating loss of USD$1.3 million reported in the prior-year quarter. AIRI stock reported Adjusted EBITDA in the amount of USD$1.4 million in Q2 2021, representing a USD$1.5 million increase from the EBITDA loss of USD$100,000 reported in the second quarter of fiscal 2020.
Future Outlook for AIRI Stock
Armed with the tenured security resulting from its Long-Term Agreements, AIRI stock is poised to capitalize on the strength of its most recently disclosed financials. The company is keen to execute its business strategy so as to continue its trajectory of success. Investors are hopeful that management will be able to maintain its financial strength over the course of the upcoming quarters, ensuring consistent increases in shareholder value.
