Since the announcement of the company’s largest contract to date, the stock value of Air Industries Group (NYSE: AIRI) has experienced an exceptional jump. Shares of AIRI have more than doubled and are now trading at $7.70, up an amazing 105.38% as of the most recent market check. Increased investor confidence in the company’s future prospects is reflected in this notable increase.
$110 million contract accelerates the growth of Air Industries Path
In order to manufacture thrust struts, a crucial component of the jet engine used in Geared Turbo-Fan (GTF) aircraft, Air Industries has secured a $110 million, seven-year contract. Air Industries has furthered its dominance in the aerospace and military industrial business by being the exclusive supplier of this essential component since 2015.
This contract, which is slated to begin in January 2025 and last until 2031, will replace and build upon the present one, which was meant to end in December 2024. This new agreement marks a major turning point for Air Industries, particularly for its Thrust Struts product line, which has been the foundation of the business’s activities for almost a decade.
The contract will significantly bolster the company’s backlog, pushing it beyond $280 million for the first time—a remarkable achievement that underscores the strategic importance of this agreement.
Strategic Investments by AIRI and Its Market Impact
Air Industries’ Long Island manufacturing facility is expected to dedicate approximately 40,000 hours annually to fulfill the demands of this contract. The production process relies on highly specialized machinery, which the company has strategically upgraded in anticipation of such large-scale projects.
This foresight ensures that AIRI can meet the rigorous demands of the aerospace supply chain, where the Thrust Struts play a crucial role. The successful acquisition of this contract not only fortifies Air Industries’ relationship with a key customer but also delivers a substantial win for shareholders.
Following the recent Farnborough Air Show, Air Industries (AIRI) remains focused on business development, strengthening existing relationships, and exploring new partnerships, positioning itself for continued growth in the aerospace sector.
