Investment Thesis
Air Industries Group demonstrates severe operational distress with persistent negative profitability across all margins despite flat revenue growth. The company is burning cash operationally (-$754K) while maintaining minimal liquidity reserves ($126K), creating an unsustainable financial position. Negative interest coverage and deteriorating cash flow dynamics indicate fundamental business model challenges that require immediate operational restructuring.
AIRI Strengths
- Conservative leverage with low debt-to-equity ratio of 0.08x providing some balance sheet stability
- Moderate current ratio of 1.22x suggesting some near-term liquidity coverage
- Flat revenue maintenance indicating stable market presence despite profitability challenges
AIRI Risks
- Critical cash burn of $3.8M in free cash flow against only $126K cash reserves indicates potential liquidity crisis within months
- Negative operating margins (-1.2%) and operating cash flow (-$754K) demonstrate the core business is destroying rather than generating value
- Negative interest coverage (-0.4x) signals inability to service debt obligations from operating earnings, creating default risk
- Severely depleted quick ratio of 0.30x indicates inadequate liquid assets to meet short-term obligations without asset sales
Key Metrics to Watch
- Quarterly operating cash flow trend - any continued negative trajectory signals imminent solvency risk
- Gross margin sustainability - whether 18.1% margin can expand to cover operating expenses
- Cash balance depletion rate - critical to monitor given only $126K available liquidity
AIRI Financial Metrics
AIRI Profitability Ratios
AIRI Balance Sheet & Liquidity
AIRI 5-Year Financial Trend
5-Year Trend Summary: AIR INDUSTRIES GROUP's revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $-0.65 indicates the company is currently unprofitable.
AIRI Growth Metrics (YoY)
AIRI Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $10.3M | -$44.0K | $-0.01 |
| Q2 2025 | $12.7M | $298.0K | $0.08 |
| Q1 2025 | $12.1M | -$706.0K | $-0.21 |
| Q2 2018 | $19.0K | $185.0K | $0.01 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
AIRI Capital Allocation
AIRI SEC Filings
Access official SEC EDGAR filings for AIR INDUSTRIES GROUP (CIK: 0001009891)