On January 19, Air Industries Group (AIRI) announced winning two long-term agreements with a combined value of $18.2 million. Consequently, the stock increased by 14.31% in the after-hours.
During regular trading, the stock saw a high of $0.88 and a low of $0.86 at 4.17 million shares. AIRI stock closed the session with a mild loss of 0.90% at $0.86. Following the announcement, the stock reached up to $0.99 at an after-hours volume of 4.14 million.
The aerospace and defense company, Air Industries Group was founded in 1979. Currently, it has a market capitalization of $27.95 million with 32,13 million shares outstanding.
The Long Terms Agreements (LTAs)
As per Wednesday’s announcement, AIRI’s Air Industries Machining Corp. has won two LTAs for manufacturing Blackhawk helicopter’s flight-critical assemblies. Moreover, the estimated combined value of the two LTAs is $18.2 million approx. Air Industries Machining Corp. is the company’s Long-Island-based subsidiary.
The two five-year long-term agreements are: First, for manufacturing Blackhawk’s primary flight control assembly, which has an estimated life-of-the-contract value of $9.9 million; Second, for the production of a flight critical component of the same helicopter, with the estimated life-of-the-contract value of $8.3 million.
According to the CEO of AIRI, Mr. Lou Melluzzo, the company has been manufacturing both critical products for over two decades and is proud to receive the contracts.
Other Recent LTAs
Previously, on January 06, the company announced the “Life of the Program Extension” of an LTA being awarded to its Sterling Engineering subsidiary. As per the agreement, Sterling Engineering is to deliver Turbine Exhaust Case (TEC) components for the PW-4000 jet engine. Furthermore, the PW-4000 jet engine is used on many Airbus and Boeing commercial aircraft like A-330 and Boeing 777. Hence, the contract extension is expected to result in excess revenue of $6 million over the remaining term.
In addition, the company’s subsidiary, Sterling Engineering has experience of over a decade in the production of TEC components for the PW-4000 jet engine.
AIRI’s Financial Report
On November 03, the company disclosed its financial results for the third quarter of 2021, which ended on September 30.
In the third quarter of 2021, the consolidated net sales were $14.4 million against $13.7 million in Q3 of 2020. This shows an increase of 5.1% year over year.
Additionally, AIRI generated an operating income of $178,000 in the third quarter of 2021, against an operating loss of $243,000 in the year-ago quarter.
