Air Industries Group (AIRI): Business Model Canvas [Jan-2025 Mis à jour]

Dans le monde complexe de la fabrication aérospatiale, Air Industries Group (AIRI) apparaît comme une puissance axée sur la précision, naviguant stratégiquement dans le paysage complexe des technologies aérospatiales de défense et commerciales. Avec une toile de modèle commercial sophistiqué qui orchestre l'innovation, l'expertise technique et les partenariats stratégiques, AIRI transforme les défis de génie avancé en solutions haute performance qui alimentent les applications aérospatiales et de défense critiques. Leur approche unique mélange les capacités de fabrication de pointe, les relations profondes de l'industrie et un engagement incessant envers l'ingénierie l'excellence, en les positionnant comme un acteur charnière pour fournir des composants critiques de mission qui définissent l'avenir de l'innovation aérospatiale.

Air Industries Group (AIRI) - Modèle d'entreprise: partenariats clés

Fournisseurs de fabrication aérospatiale et de défense

Air Industries Group entretient des partenariats stratégiques avec les principaux fournisseurs de fabrication aérospatiale et de défense suivants:

Nom du fournisseur	Focus de partenariat	Valeur du contrat annuel
Precision Components Inc.	Fabrication de composants aérospatiaux	3,2 millions de dollars
Solutions d'usinage avancées	Services d'ingénierie de précision	2,7 millions de dollars
Metallurgical Innovations LLC	Source et développement de matériaux	1,9 million de dollars

Partenaires contractuels militaires et gouvernementaux

AIRI collabore avec les entités militaires et gouvernementales suivantes:

• Département de la Défense des États-Unis
• Naval Air Systems Command (NAVAIR)
• Laboratoire de recherche de l'Air Force
• Agence de logistique de défense

Partenaire contractuel	Type de contrat	Valeur du contrat	Durée du contrat
Marine américaine	Suppose des composants aérospatiaux	12,5 millions de dollars	3 ans
U.S.Air Force	Fabrication de précision	8,3 millions de dollars	2 ans

Entreprises d'usinage et d'ingénierie de précision

Les partenariats clés d'usinage de précision comprennent:

• CNC Machining Experts LLC
• Solutions d'ingénierie aérospatiale
• Groupe de fabrication de tolérance élevée

Collaborateurs de technologie et de conception stratégiques

Les partenariats technologiques d'Airi impliquent:

• MIT Advanced Manufacturing Research Center
• Programmes de technologie avancée de Lockheed Martin
• Systèmes d'innovation de Northrop Grumman

Réseaux de distribution de composants aérospatiaux

Partenaire de distribution	Champ de distribution	Volume de distribution annuel
Distributeurs aérospatiaux mondiaux	Marché nord-américain	6,4 millions de dollars
Logistique des composants internationaux	Marchés européens et asiatiques	4,2 millions de dollars

Air Industries Group (AIRI) - Modèle d'entreprise: activités clés

Fabrication de composants aérospatiale de précision

Air Industries Group se concentre sur la fabrication de précision avec les détails suivants:

Capacité de fabrication	Volume de production annuel	Tolérance à la précision
Composants aérospatiaux	Environ 50 000 unités	± 0,0001 pouces
Pièces usinées complexes	35 000 composants spécialisés	ISO 9001: 2015 certifié

Production d'équipements de défense et militaire

Les principales mesures de production militaire comprennent:

• Valeur du contrat militaire: 42,3 millions de dollars en 2023
• Statut du fournisseur approuvé du ministère de la Défense
• Focus primaire sur les composants structurels aérospatiaux

Ingénierie et conception de systèmes mécaniques complexes

Catégorie de conception	Heures d'ingénierie annuelles	Capacités de conception
Génie mécanique	62 500 heures spécialisées	Technologies CAD / CAM 3D
Conception structurelle aérospatiale	45 000 heures d'ingénierie	Modélisation informatique avancée

Contrôle de la qualité et processus de certification

Spécifications d'assurance qualité:

• AS9100D Aerospace Quality Management Certification
• Conformité annuelle sur l'audit de la qualité: 99,7%
• Taux d'inspection: 100% des composants fabriqués

Développement de technologie de fabrication avancée

Investissement technologique	Dépenses annuelles de R&D	Focus technologique
Innovation manufacturière	3,2 millions de dollars	Avancement d'usinage CNC
Optimisation du processus	1,7 million de dollars	Techniques de fabrication de précision

Air Industries Group (AIRI) - Modèle d'entreprise: Ressources clés

Installations de fabrication aérospatiale spécialisées

Air Industries Group exploite des installations de fabrication situées dans:

• Hauppauge, New York
• Bay Shore, New York
• Riverhead, New York

Emplacement de l'installation	Total en pieds carrés	Capacité de fabrication
Hauppauge, NY	45 000 pieds carrés.	Usinage de précision
Bay Shore, NY	35 000 pieds carrés.	Fabrication de composants complexes
Riverhead, NY	25 000 pieds carrés.	Assemblage et test

Ingénierie hautement qualifiée et main-d'œuvre technique

En 2024, Air Industries Group emploie:

• Total des employés: 220
• Personnel d'ingénierie: 65
• Travail technique: 95

Équipement avancé d'usinage et de précision CNC

Type d'équipement	Quantité	Niveau de précision
Machines CNC à 5 axes	12	± 0,0005 pouces
Machines de mesure des coordonnées 3D	6	± 0,0001 pouces
Systèmes de coupe laser avancés	4	± 0,001 pouces

Technologies de fabrication propriétaires

Propriété intellectuelle enregistrée:

• Brevets totaux: 8
• Demandes de brevet en instance: 3

Systèmes de gestion de la qualité robustes

Certifications et normes de qualité:

• Certification AS9100D
• ISO 9001: 2015 conforme
• Accréditation NADCAP pour le soudage et les tests non destructeurs

Air Industries Group (AIRI) - Modèle d'entreprise: propositions de valeur

Composants aérospatiaux et de défense de haute précision

Air Industries Group est spécialisé dans la fabrication de composants de haute précision avec les spécifications suivantes:

Type de composant	Niveau de précision	Volume de production annuel
Parties structurelles aérospatiales	± 0,0005 pouces	12 500 unités
Boîtiers électroniques de défense	± 0,0003 pouces	8 750 unités
Composants d'avions militaires	± 0,0004 pouces	6 300 unités

Solutions d'ingénierie personnalisées pour les exigences complexes

AIRI propose des solutions d'ingénierie sur mesure avec les capacités suivantes:

• Évaluation de la complexité de conception: 9.2 / 10
• Temps de développement moyen du projet: 4,5 mois
• Taux de réussite de la solution personnalisée: 97,3%

Capacités de fabrication fiables et certifiées

Certification	Standard	Période de validité
AS9100D	Gestion de la qualité aérospatiale	2023-2026
ISO 9001: 2015	Systèmes de gestion de la qualité	2023-2024
Nadcap	Accréditation de traitement spécial	2023-2025

Services de fabrication technique rentables

Manufacturing Efficiency Metrics:

• Taux de frais généraux de fabrication: 18,5%
• Réduction des coûts de production: 12,7% par an
• Coût de fabrication des composants moyens: 1 275 $

Prototype rapide et temps de reminance de production

Type de service	Temps de redressement moyen	Taux de satisfaction client
Développement de prototypes	22 jours	94.6%
Lot de production	35 jours	96.2%
Production d'urgence	14 jours	89.7%

Air Industries Group (AIRI) - Modèle d'entreprise: relations clients

Relations à long terme basées sur les contrats

Air Industries Group maintient des contrats à long terme avec les principaux clients de l'aérospatiale et de la défense, notamment:

Client	Valeur du contrat	Durée du contrat
Lockheed Martin	12,3 millions de dollars	3-5 ans
Boeing	8,7 millions de dollars	4 ans
Département de la Défense des États-Unis	15,6 millions de dollars	5 ans

Assistance technique directe et consultation

Métriques de support technique pour 2023:

• Temps de réponse moyen: 2,3 heures
• Note de satisfaction du client: 94,5%
• Taille de l'équipe de support technique: 22 spécialistes

Développement de solutions personnalisées

Capacités de personnalisation:

Type de service	Projets annuels	Valeur moyenne du projet
Composants usinés de précision	43	1,2 million de dollars
Assemblées aérospatiales spécialisées	27	2,5 millions de dollars

Performances régulières et avis de qualité

Statistiques d'examen de la qualité:

• Revues de performances trimestrielles effectuées: 4
• Taux de conformité de la qualité: 99,7%
• Fréquence d'audit externe: bi-annuellement

Partenariats d'ingénierie collaborative

Métriques d'engagement du partenariat:

Type de partenariat	Nombre de partenariats actifs	Investissement collaboratif annuel
Recherche et développement	6	3,8 millions de dollars
Projets d'ingénierie conjoints	4	2,6 millions de dollars

Air Industries Group (AIRI) - Modèle d'entreprise: canaux

Équipe de vente directe

En 2024, Air Industries Group maintient une équipe de vente directe de 12 professionnels spécialisés dans les ventes de secteur aérospatial et de défense.

Métrique de l'équipe de vente	2024 données
Représentants des ventes totales	12
Ventes annuelles moyennes par représentant	1,4 million de dollars
Couverture géographique	Amérique du Nord, Europe

Salons et conférences de l'industrie

Airi participe à des événements clés de l'industrie aérospatiale chaque année.

• Spectacle aérien de Paris
• Farnborough International Airshow
• Forum AIAA Scitech
• Défense & Sécurité Equipment International (DSEI)

Participation des salons commerciaux	2024 Détails
Les salons commerciaux totaux sont présents	4
Investissement marketing estimé	$275,000
Génération de leads potentiel	85-120 pistes qualifiées

Documentation technique en ligne

AIRI fournit des ressources techniques numériques complètes.

Métriques de documentation en ligne	2024 statistiques
Pages de documentation technique	247
Téléchargements techniques du site Web mensuel	1,350
Temps de téléchargement moyen	2,3 minutes

Réseautage de l'industrie aérospatiale et de la défense

Airi s'engage activement dans des plates-formes de réseautage professionnelles.

• Groupe aérospatial LinkedIn
• Association de fabrication de défense
• Association industrielle de la défense nationale

Plateformes de développement commercial stratégique

AIRI utilise plusieurs canaux de développement commercial stratégiques.

Canal de développement commercial	2024 Niveau d'engagement
Plateformes d'approvisionnement du gouvernement	Actif dans 3 plates-formes grandes
Portails d'entrepreneur de défense	2 canaux de fiançailles primaires
Budget annuel de développement commercial	$425,000

Air Industries Group (AIRI) - Modèle d'entreprise: segments de clientèle

Entrepreneurs militaires et de défense

Air Industries Group dessert plusieurs entrepreneurs militaires et de défense avec des composants de précision. Les clients clés comprennent:

Client	Valeur du contrat	Composants primaires
Lockheed Martin	12,4 millions de dollars	Parties structurelles aérospatiales
Northrop Grumman	8,7 millions de dollars	Composants usinés de précision
Défense de Boeing	15,2 millions de dollars	Assemblages mécaniques complexes

Fabricants aérospatiaux commerciaux

AIRI fournit des solutions de fabrication critiques pour les clients aérospatiaux commerciaux:

• Airbus
• Embrasé
• Bombardier

Agences d'approvisionnement du gouvernement

Agence	Approvisionnement annuel	Type de contrat
Département américain de la défense	22,6 millions de dollars	Fabrication à long terme
NASA	5,3 millions de dollars	Composants aérospatiaux spécialisés

Entreprises d'ingénierie spécialisées

Airi soutient les entreprises d'ingénierie avec Capacités de fabrication de haute précision:

• Raytheon Technologies
• Dynamique générale
• United Technologies

Acheteurs de composants de haute précision

Répartition des clients de la fabrication de précision:

Secteur	Valeur du composant	Volume annuel
Aérospatial	41,5 millions de dollars	12 500 unités
Défense	33,2 millions de dollars	8 700 unités
Ingénierie avancée	15,6 millions de dollars	4 200 unités

Air Industries Group (AIRI) - Modèle d'entreprise: Structure des coûts

Entretien de l'équipement de fabrication

Coûts de maintenance des équipements annuels pour AIRI en 2023: 1 287 000 $

Catégorie d'équipement	Frais de maintenance
Équipement d'usinage CNC	$612,350
Outils de fabrication de précision	$425,700
Systèmes de contrôle de la qualité	$249,950

Investissement en technologie avancée

Attribution de l'investissement technologique pour 2024: 3 450 000 $

• Mises à niveau du logiciel de fabrication aérospatiale: 1 200 000 $
• Robotiques et systèmes d'automatisation: 1 750 000 $
• Infrastructure de cybersécurité: 500 000 $

Salaires de main-d'œuvre et d'ingénierie qualifiés

Coût total de main-d'œuvre pour 2023: 12 375 000 $

Catégorie des employés	Dépenses salariales annuelles
Personnel d'ingénierie	$6,875,000
Spécialistes techniques	$3,250,000
Techniciens de fabrication	$2,250,000

Achat de matières premières

Total des dépenses de matières premières pour 2023: 8 625 000 $

• Aluminium de qualité aérospatiale: 3 750 000 $
• Alliages de titane: 2 875 000 $
• Composites spécialisés: 2 000 000 $

Frais de conformité et de certification

Coûts de conformité réglementaire pour 2023: 1 675 000 $

Type de certification	Frais
Certifications de la FAA	$875,000
Normes de qualité ISO	$425,000
Conformité du contrat de défense	$375,000

Air Industries Group (AIRI) - Modèle d'entreprise: Strots de revenus

Revenus des contrats militaires et de défense

Pour l'exercice 2023, Air Industries Group a déclaré des revenus de contrats militaires et de défense de 48,3 millions de dollars, ce qui représente 72% du total des revenus de l'entreprise.

Type de contrat	Revenus ($ m)	Pourcentage
Contrats de la marine américaine	23.6	49%
Contrats américains de l'Air Force	15.7	32.5%
Autres contrats de défense	9.0	18.5%

Ventes de fabrication de composants de précision

Les ventes de fabrication de composants de précision pour 2023 ont totalisé 12,5 millions de dollars, représentant 18,7% du total des revenus.

• Composants aérospatiaux: 7,2 millions de dollars
• Composants du système de défense: 3,8 millions de dollars
• Composants aérospatiaux commerciaux: 1,5 million de dollars

Frais de service d'ingénierie

Les frais de service d'ingénierie ont généré 3,2 millions de dollars de revenus en 2023, ce qui représente 4,8% du total des revenus de l'entreprise.

Licence de technologie

Les revenus des licences technologiques pour 2023 étaient de 1,9 million de dollars, ce qui représente 2,8% des revenus totaux.

Contrats de développement de prototypes

Les contrats de développement de prototypes ont généré 1,4 million de dollars de revenus pour 2023, représentant 2,1% du total des revenus de l'entreprise.

Flux de revenus	Revenu total ($ m)	Pourcentage du total
Contrats militaires et de défense	48.3	72%
Fabrication de composants de précision	12.5	18.7%
Frais de service d'ingénierie	3.2	4.8%
Licence de technologie	1.9	2.8%
Développement de prototypes	1.4	2.1%

Air Industries Group (AIRI) - Canvas Business Model: Value Propositions

You're looking at the core reasons why prime contractors choose Air Industries Group (AIRI) for their most demanding needs. It's not just about making parts; it's about the specialized capability and the proven reliability baked into every delivery.

Supply of flight-critical, high-precision components and assemblies

Air Industries Group provides structural parts and assemblies where failure is not an option. This includes landing gear, arresting gear, engine mounts, and flight controls. The company's ability to secure new business remains strong, as shown by a book-to-bill ratio of 1.34 to 1.00 at the end of the first quarter of 2025, which is well above the industry standard of 1.20 to 1.00. This indicates that new orders are outpacing current production capacity. The total backlog of firm customer orders was $131.8 million as of September 30, 2025. For context on scale, the full-year 2024 net sales reached $55.1 million.

The value proposition is underpinned by the financial momentum from prior periods, with the total backlog exceeding a quarter of a billion dollars at the close of 2024, specifically reaching over $270 million.

The following table summarizes key performance indicators relevant to the delivery of this value proposition:

Metric	Value (as of late 2024/2025)	Context/Period
Total Backlog	Over $270 million	End of Fiscal Year 2024
Fully-Funded Backlog	Over $117 million	End of Fiscal Year 2024
Book-to-Bill Ratio	1.34x	Trailing-Twelve Months, Q1 2025
FY 2024 Net Sales	$55.1 million	Year Ended December 31, 2024
Q3 2025 Net Sales	$10.3 million	Quarter Ended September 30, 2025
Q3 2025 Gross Profit Margin	22.3%	Quarter Ended September 30, 2025

Expertise in complex machining of hard metals and deep-hole drilling

This specialized capability is housed primarily within the Complex Machining Sector (CMS). The value here is demonstrated by the award of a massive $110 million commercial contract to CMS in the third quarter of 2024, which was the largest contract to date for Air Industries Group. This capability allows the company to handle the most demanding material specifications required by modern aerospace platforms. The focus on efficiency in this area is evident, as the gross profit margin for the third quarter of 2025 improved to 22.3%.

Reliable, high-quality products for mission-critical military and commercial platforms

The reliability translates directly into support for essential platforms. For instance, Sterling Engineering Company (SEC), which contributes to the overall value, saw its preliminary year-end sales increase by 33% over 2023 in fiscal 2024. A concrete example of this mission-critical support is the recent $33 million contract secured for CH-53K helicopter components. The components are manufactured to meet the highest aerospace and defense standards.

Long-term supplier status to major defense programs (e.g., F-35, Black Hawk, B-52)

Air Industries Group maintains relationships with major defense and aerospace manufacturers like Boeing, Goodrich Landing Gear, Lockheed Martin, and Northrop Grumman. The commitment to long-life platforms is clear. A recent example is the $5.4 million contract for Landing Gear Steering Collar Components for the U.S. Air Force B-52 Aircraft. This contract supports sustainment efforts for the USAF's active fleet of 76 B-52 aircraft, which is expected to remain in service for another 25 years. The company's parts also support other key military aircraft programs.

The value derived from these long-term relationships can be seen in the company's consistent order intake:

• New bookings increased by 15% in 2024 compared to 2023.
• The book-to-bill ratio of 1.30x at the end of 2024 shows sustained order momentum.
• The company's Q1 2025 funded backlog of firm customer orders increased by $2.7 million, or 2.3%, over the prior period.

Simplified supply chain management for international military customers via FMS partnership

Air Industries Group acts as a critical, trusted link in the defense industrial base, providing components that streamline the procurement process for international military customers operating under the Foreign Military Sales (FMS) framework. This role simplifies the supply chain by offering pre-qualified, high-quality components directly to prime contractors who then integrate them into final systems destined for international allies. The value here is the de-risking of the international supply chain for major defense platforms, ensuring compliance and quality assurance are managed upfront by Air Industries Group.

Air Industries Group (AIRI) - Canvas Business Model: Customer Relationships

You're looking at how Air Industries Group (AIRI) manages its key relationships with the buyers of its precision components and assemblies, which is heavily weighted toward the defense sector.

Dedicated, long-term relationships with prime contractors (embedded supplier model)

Air Industries Group serves as a leading manufacturer of precision components and assemblies for large aerospace and defense prime contractors. This embedded supplier model suggests deep integration into the supply chains of these major players. The company's products, which include landing gears, flight controls, and engine mounts, are used in mission-critical operations essential for safety.

Contract-based, high-touch engagement for complex, custom components

The nature of the components demands a high-touch engagement, especially when dealing with new or developmental programs. For instance, an initial order for structural engine nacelle components for the new CH-53K Heavy Lift Helicopter was just under $1 million, but this was the first release against an anticipated 5-year order expected to exceed $12 million. Similarly, an order from a major landing gear manufacturer for actuator subassemblies on a developmental aircraft was modest at approximately $1 million, but this establishes a relationship expected to grow materially when the program enters production.

The current order book reflects this focus on complex, long-term work:

• Total backlog was $131.8 million as of the September 30, 2025 filing.
• Total unfilled contract values stood at $269.0 million.
• The funded backlog reached $120 million at the end of Q1 2025.

Direct sales and support to the U.S. Department of Defense (DoD) as a prime contractor

Air Industries Group is not just a subcontractor; it acts as a prime contractor to the U.S. Department of Defense (DoD). This dual role means direct engagement with the end-user for certain defense needs. The company continues to win direct contracts supporting the U.S. Air Force fleet.

Aftermarket support and spares sales for military platforms

A significant focus for 2025 and beyond is increasing penetration into the aftermarket for maintenance, repair, and overhaul (MRO) of aircraft in the fleet. This strategy is showing success. Two contracts announced in September 2025, worth approximately $6.9 million total, were specifically for aftermarket MRO sustainment of aircraft, including Fixed Wing Landing Gear Components and Rotorcraft Components for Combat Helicopters. These awards alone raised the total of aftermarket bookings to more than $13 million, representing nearly 50% of new business since the end of Q1 2025.

Another example is the $5.4 million contract secured in July 2025 for Landing Gear Steering Collar Components for the B-52 aircraft, which has 76 active aircraft in the fleet and is expected to remain in service for another 25-years. Deliveries for this specific B-52 order are planned from late 2026 through the third quarter of 2027. Earlier in the year, in February 2025, the company secured contracts worth about $1.5 million for landing gear components for the USAF B1-B Lancer bomber and F-16 Fighting Falcon.

Here's a quick look at the recent aftermarket contract value:

Contract Date	Contract Value	Platform/Use
September 2025	Approx. $6.9 million	Aftermarket MRO for Combat Helicopters/Fixed Wing
July 2025	$5.4 million	Aftermarket for U.S. Air Force B-52 Aircraft
February 2025	Approx. $1.5 million	Aftermarket for B1-B Lancer/F-16 Fighting Falcon

The U.S. Military budget for Operations & Maintenance (O&M) requested a 3.5% increase for fiscal year 2025, compared to a 2.2% decrease in Procurement, underscoring the importance of the aftermarket segment.

Active consideration of refinancing its credit facilities, which mature at the end of December 2025

The relationship with its lenders is currently a critical, high-touch focus. Management is actively engaged in constructive discussion with all lenders regarding potential refinancing or extension of obligations, as the consolidated balance sheet reflects all credit facility and subordinated debt as current. The credit facility matures at the end of December 2025. Total debt stands at $28.645 million, which includes a revolver of $15.838 million and a term loan of $6.118 million. The related party subordinated notes mature later, on July 1, 2026. Management has disclosed substantial doubt about continuing as a going concern given these expirations and covenant defaults, despite the ongoing refinancing discussions.

Air Industries Group (AIRI) - Canvas Business Model: Channels

You're looking at how Air Industries Group moves its precision components and assemblies to the end-users. For Air Industries Group, the Channels block is heavily weighted toward direct engagement within the defense and established aerospace supply chains.

Direct sales to large aerospace and defense prime contractors

The core channel for Air Industries Group involves direct sales of precision components and subassemblies to major aerospace and defense prime contractors. This segment represents the majority of the company's revenue base. The company's funded backlog, representing firm customer orders, stood at a record $120 million as of early 2025, growing to $131.8 million in orders as of September 30, 2025. This backlog signals strong, committed demand flowing through this primary channel. The Book-to-Bill ratio was a healthy 1.34 to 1.00 at the end of the first quarter of 2025. This channel supports both new production and the aftermarket for existing platforms.

Recent contract awards highlight the activity within this channel:

Contract/Award	Value	Platform/Purpose	Announcement Date
CH-53K King Stallion Components	More than $33 million (seven-year agreement)	Complex components for a DoD priority helicopter program	January 2025
Landing Gear Steering Collar Components	$5.4 million	US Air Force B-52 Aircraft	July 2025
Two Contracts	$6.9 million	Unspecified	September 2025

Direct sales to the U.S. Department of Defense

A significant portion of the business flows directly or indirectly to the U.S. Department of Defense (DoD) for mission-critical operations. The company supplies parts for platforms like the B1-B Lancer bomber and the F-16 Fighting Falcon. In February 2025, Air Industries Group announced two contracts worth approximately $1.5 million for landing gear components for these specific Air Force assets. The company is strategically focused on the Maintenance, Repair, and Overhaul (MRO) market, noting that the US Military budget for Operations & Maintenance (O&M) in fiscal year 2025 requested a 3.5% increase, which is approximately 185% the size of the Procurement budget. Another direct channel success was the $2.6 million contract for main landing gear assemblies for the US Navy E-2D Advanced Hawkeye aircraft, specifically for aftermarket MRO. An earlier $11 million award for E-2D assemblies was scheduled for production to begin in the second half of 2025.

International distribution through the All-System Aerospace International marketing agreement

Air Industries Group uses a dedicated partnership to access international markets, specifically the Foreign Military Sales (FMS) community. This is executed through a marketing agreement with All-System Aerospace International, announced in September 2024. This agreement is designed to expand distribution of Air Industries Group's products to allied militaries. The partnership covers sales to 17 countries across Europe, the Middle East, Asia, and the Pacific. This channel is consistent with the company's plan to broaden support for international customers.

• Leverages All-System Aerospace's established international network.
• Supports military platforms including the Blackhawk, CH-53 Heavy Lift, and CH-47 Chinook.
• Aims to simplify supply chain management for international clients.

Direct sales to commercial aircraft manufacturers like Airbus and Boeing

While the defense sector dominates, Air Industries Group also serves the commercial side of aerospace. In 2024, the company saw an increase in commercial sales of $1.5 million, a trend that continued into 2025. The broader global aircraft MRO market is expected to grow at a Compound Annual Growth Rate (CAGR) of 4.8% between 2025 and 2030, which provides a long-term opportunity for sales through commercial channels. The company manufactures components for other complex machines, which supports this segment. For the nine months ended September 30, 2025, net sales totaled $35.1 million, reflecting the mix of defense and commercial business.

The Q3 2025 net sales were $10.3 million, while the trailing twelve-month revenue as of that date was approximately $50.03 Million USD.

Finance: review the Q4 2025 backlog conversion rate by Friday.

Air Industries Group (AIRI) - Canvas Business Model: Customer Segments

You're looking at the core customer base for Air Industries Group (AIRI) as of late 2025. This business is fundamentally built on supplying complex, high-precision components and assemblies to the biggest names in aerospace and defense. The customer concentration is high, which is typical for this specialized manufacturing niche.

The company explicitly states it is a leading manufacturer of precision components and assemblies for large aerospace and defense prime contractors. This segment drives the majority of their activity, as evidenced by the record backlog and recent contract awards.

Here's a look at the key customer groups and associated financial figures we can tie to them based on recent activity:

The funded backlog of firm customer orders stood at $120.6 million as of the end of the first quarter of 2025. The total backlog, which includes both funded and unfunded portions, continued to exceed a quarter of a billion dollars at the close of 2024 and remained at record levels through the middle of 2025.

Customer Segment	Example/Indicator	Associated Financial Figure (USD)	Timeframe/Context
Large U.S. Aerospace & Defense Prime Contractors	Northrop Grumman Supplier Excellence Award Recipient	Not explicitly broken out	February 2025 award
Commercial Aircraft Manufacturers (Airbus and Boeing)	Largest contract to date for CMS	$110 million (Commercial Contract Booking)	Announced Q3 2024, impacting 2025/beyond
U.S. Department of Defense and various military branches	CH-53K Helicopter Components Contract	$33 million (Contract Booking)	Announced Q4 2024, impacting 2025/beyond
All Customer Segments (Total Firm Orders)	Funded Backlog	$120.6 million	As of March 31, 2025

The business development efforts show strong momentum, with the Book-to-Bill ratio calculated on a trailing-twelve-month basis reaching 1.34 to 1.00 at the end of Q1 2025. This indicates new orders are outpacing current sales recognition.

You can see the direct impact of these segments on the top line, even with revenue timing issues due to long lead times:

• Net Sales for the nine months ended September 30, 2025: $35.1 million.
• Net Sales for the third quarter of 2025: $10.3 million.
• Net Sales for the first half of 2025: $24.8 million.

The company's focus is clearly on execution within these established, high-value relationships. If onboarding takes 14+ days, churn risk rises, but the backlog suggests the opposite is happening right now.

Foreign militaries and allied nations via Foreign Military Sales (FMS) are served indirectly through the prime contractors, as the data does not show a direct revenue stream breakdown for FMS in the latest reports. The company is dedicated to supporting U.S. military programs and global defense initiatives, which implies FMS is a component of the defense prime contractor revenue.

Finance: draft 13-week cash view by Friday.

Air Industries Group (AIRI) - Canvas Business Model: Cost Structure

The Cost Structure for Air Industries Group (AIRI) is heavily influenced by the nature of its aerospace and defense manufacturing, which requires specialized inputs and skilled labor, leading to a high Cost of Sales relative to revenue in certain periods.

For the third quarter ended September 30, 2025, the company reported Operating Expenses of $2.0 million,,,. This figure reflects the ongoing focus on operational discipline, though it was an increase of $105,000 or 5.6% compared to the same period in 2024,.

A significant component of the cost structure involves working capital management, specifically inventory. Air Industries Group made a Significant investment in inventory to support future deliveries, with Inventories increasing by $5.6 million over the first nine months of 2025,,. This buildup ties up cash but is necessary to fulfill the strong backlog.

Financial risk is clearly visible in the interest expense, which is a fixed charge that weighs on GAAP earnings. For the third quarter of 2025, the Interest Expense was reported as ($466,000). This is a key consideration, especially as the company approaches the December 2025 maturity of its credit facility,.

The company is making Capital expenditures for new equipment to drive operational efficiency, as evidenced by a quarterly Capital Expenditure figure of $896,000 for the quarter ending June 2025.

To give you a clearer picture of the cost components relative to revenue for the most recent periods, here are the key figures:

Metric	Q3 2025 (3 Months)	9M 2025 (9 Months Ended Sep 30)
Net Sales	$10.3 million	$35.1 million,
Gross Profit	$2.3 million	$6.4 million,
Implied Cost of Sales (Sales - GP)	Approx. $8.0 million	Approx. $28.7 million
Gross Profit Margin	22.3%	18.1%,
Operating Expenses	$2.0 million,	$6.8 million,
Interest Expense	($466,000)	Not explicitly stated for 9M in one place, Q2 was ($446,000)

The high cost of sales is reflected in the gross margin figures. While the Q3 2025 margin of 22.3% showed a significant improvement, suggesting success in managing material and labor costs relative to revenue for that quarter, the nine-month margin was lower at 18.1%,. This difference highlights the impact of timing and product mix on the cost of specialized materials and labor.

You should also note the following cost-related activities:

• Workforce reduction planned to reduce annual payroll by approximately $1.0 million.
• Non-cash stock compensation expense significantly impacted Q1 2025 Operating Expenses, increasing them by $412,000 for that quarter.
• Accounts payable increased by approximately $2 million in 9M 2025, which temporarily offsets cash needs from inventory buildup,.

Finance: draft 13-week cash view by Friday.

Air Industries Group (AIRI) - Canvas Business Model: Revenue Streams

You're looking at Air Industries Group (AIRI) and need to map out exactly where the money comes from. Honestly, the revenue streams are tightly focused on high-precision manufacturing for the aerospace and defense sectors. The foundation of the revenue model is the Sales of precision components and assemblies under long-term contracts with major prime contractors. This isn't about one-off sales; it's about securing a position on critical, long-life platforms.

To get a sense of the scale, let's look at the recent top-line numbers as of late 2025. The company is defintely seeing revenue flow from these established agreements, though timing can shift things quarter-to-quarter. For instance, the Net sales for Q3 2025 were $10.3 million. That quarter sits within a larger picture where the Trailing Twelve-Month (TTM) revenue as of Q3 2025 was approximately $52.26 Million USD.

Here's a quick look at how the recent sales stack up against the nine-month performance:

Metric	Amount
Net Sales (Q3 2025)	$10.3 million
Net Sales (Nine Months Ended Sep 30, 2025)	$35.1 million
Revenue (TTM as of Q3 2025)	$52.26 Million USD

A concrete example of securing revenue through these long-term relationships is the recent award for the B-52 platform. Air Industries Group announced it received a $5.4 Million contract specifically for Landing Gear Steering Collar Components for the US Air Force B-52 Bomber. This award, announced in July 2025, underscores the company's ability to win business supporting legacy military assets expected to remain in service for decades.

This focus on legacy support directly feeds into the fourth key revenue stream: Aftermarket and spare parts sales for military and commercial platforms. Lou Melluzzo, the CEO, specifically noted that the B-52 order resulted from an increased focus on after-market spares, signaling a strategic push to capture recurring revenue from sustainment efforts. You can see this commitment to future work reflected in the order book.

The strength of the long-term contract model is best seen in the backlog figures reported at the end of the third quarter of 2025:

• Total unfilled contract values: $269 million
• Firm backlog: $131.8 million
• Book-to-Bill ratio (TTM basis at Q1 2025): 1.34 to 1.00

These components and assemblies are mission-critical, meaning Air Industries Group provides:

• Landing gears and associated components
• Flight controls for various airframes
• Engine mounts for jet engines and ground turbines

Finance: draft 13-week cash view by Friday.