Q3 2025 Air Industries Group Earnings Call
Operator: Participants are on a listen-only mode. A brief question and answer session will follow the formal presentation. If you would like to ask a question during that time, please press star one on your telephone keypad. If you require operator assistance during the conference, please press star zero. This call may contain forward-looking statements as defined in Section 27A of the Securities Act of 1933 as amended, including statements regarding, among other things, the company's business strategy and growth strategy. Expressions which identify forward-looking statements speak only as of the date the statement is made. These forward-looking statements are based largely on our company's expectations and are subject to a number of risks and uncertainties, some of which are beyond our control and cannot be predicted or quantified. Future developments and actual results could differ materially from those set forth in contemplated by or underlying the forward-looking statements.
Question and answer session will follow the formal presentation.
Hello, and welcome to the Air Industries Group third quarter 2025 earnings Conference call. At this time all participants are in a listen only mode. A brief question and answer session will follow the formal presentation.
If you would like to ask a question during that time. Please press star one on your telephone keypad.
Operator: Hello, and welcome to the Air Industries Group Q3 2025 earnings conference call. At this time, all participants are on a listen-only mode. A brief question-and-answer session will follow the formal presentation. If you would like to ask a question during that time, please press star one on your telephone keypad. If you require operator assistance during the conference, please press star zero. This call may contain forward-looking statements as defined in Section 27A of the Securities Act of 1933 as amended, including statements regarding, among other things, the company's business strategy, and growth strategy. Expressions which identify forward-looking statements speak only as of the date the statement is made. These forward-looking statements are based largely on our company's expectations and are subject to a number of risks and uncertainties, some of which are beyond our control and cannot be predicted or quantified.
If you require operator assistance during the conference Please press Star zero.
If you would like to ask a question during that time. Please press star one on your telephone keypad.
This call may contain forward looking statements as defined in section 27, a of the Securities Act of 1933 as amended including statements regarding among other things the company's business strategy and growth strategy expressions, which identify forward looking statements speak only as of the date. The statement is made.
If you require operator assistance during the conference Please press Star zero.
This call may contain forward looking statements as defined in section 27, a of the Securities Act of 1933 as amended including statements regarding among other things the company's business strategy and growth strategy expressions, which identify forward looking statements speak only as of the date. The statement is made.
These forward looking statements are based largely on our company's expectations and are subject to a number of risks and uncertainties some of which are beyond our control and cannot be predicted or quantified.
These forward looking statements are based largely on our company's expectations and are subject to a number of risks and uncertainties.
Developments and actual results could differ materially from those set forth in contemplated by or underlying the forward looking statements.
Some of which are beyond our control and cannot be predicted or quantified.
In light of these risks and uncertainties there can be no assurance that the forward looking information will prove to be accurate.
Future developments and actual results could differ materially from those set forth in contemplated by or underlying the forward looking statements.
Operator: In light of these risks and uncertainties, there can be no assurance that the forward-looking information will prove to be accurate. This call does not constitute an offer to purchase any securities nor a solicitation of a proxy, consent, authorization, or agent designation with respect to a meeting of the company's shareholders. At this time, I would like to turn the call over to Luciano Melluzzo, President and Chief Executive Officer. Please go ahead, sir.
Operator: Future developments and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. In light of these risks and uncertainties, there can be no assurance that the forward-looking information will prove to be accurate. This call does not constitute an offer to purchase any securities, nor a solicitation of a proxy, consent, authorization, or agent designation with respect to a meeting of the company's shareholders. At this time, I would like to turn the call over to Lou Melluzzo, President and CEO. Please go ahead, sir.
This call does not constitute an offer to purchase any securities nor a solicitation of a proxy consent authorization or agent designation with respect to a meeting of the company's shareholders.
In light of these risks and uncertainties there can be no assurance that the forward looking information will prove to be accurate.
This call does not constitute an offer to purchase any securities nor a solicitation of a proxy consent authorization or agent designation with respect to a meeting of the company's shareholders.
At this time I would like to turn the call over to Lou Maluso, President and CEO. Please go ahead Sir.
Thank you Donald.
Good morning.
At this time I would like to turn the call over to Lou Maluso, President and CEO. Please go ahead Sir.
Luciano Melluzzo: Thank you, Donna. Good morning. Before we begin, I'd like to note that given the level of detail in our press release in Form 10-Q, we'll keep our prepared remarks brief. We will, of course, take a few questions at the end if anybody has them. Now on to the numbers. Before I turn the call over to Scott, I do want to let you know that on our consolidated balance sheet, we are reflecting all of our credit facility and subordinated debt as current. Our credit facility matures at the end of December 2025, and our related party subordinate notes mature on 1 July 2026. At this time, I can't comment further other than to say that the company is actively engaged in a constructive discussion with all lenders regarding potential refinancing or extension of these obligations.
Before we begin I would like to note that given the level of detail in our press release and Form 10-Q will keep our prepared remarks brief we will of course take a few questions at the end if anybody has.
Thank you Donald.
Good morning.
Luciano Melluzzo: Thank you, Donna. Good morning. Before we begin, I'd like to note that given the level of detail in our press release and Form 10Q, we'll keep our prepared remarks brief. We will, of course, take a few questions at the end if anybody has them. Now, on to the numbers. Before I turn the call over to Scott, I do want to let you know that on our consolidated balance sheet, we are reflecting all of our credit facility and subordinated debt as current. Our credit facility matures at the end of December 2025, and our related party subordinate notes mature on 1 July 2026. At this time, I can't comment further other than to say that the company is actively engaged in a constructive discussion with all lenders regarding potential refinancing or extension of these obligations.
Before we begin I would like to note that given the level of detail in our press release and Form 10-Q, we will keep our prepared remarks brief we will of course take a few questions at the end if anybody has.
Now onto the numbers.
But before I turn the call over to Scott I do want to let you know that on a consolidated balance sheet, we are reflecting all of our credit facility and subordinated debt as Kurt.
Now onto the numbers.
But before I turn the call over to Scott I do want to let you know that on our consolidated balance sheet, we are reflecting all of our credit facility and subordinated debt as Kurt.
Our credit facility matures at the end of December of 2025, and our related party subordinate notes mature on July one 2026 at this time I cannot comment further other than to say that the company is actively engaged in a constructive discussion with all lenders regarding potential refinancing or extension.
Our credit facility matures at the end of December of 2025, and our related party subordinate notes mature on July one 2026.
At this time I can't comment further other than to say that the company is actively engaged in a constructive discussion with all lenders regarding potential refinancing or extension of these obligations.
Of these obligations.
I encourage you to refer to our Form 10-Q for more details on the status of these notes and related disclosures.
Luciano Melluzzo: I encourage you to refer to our Form 10-Q for more details on the status of these notes and related disclosures. With that, I'll turn the call over to Scott for the numbers. Scott?
With that I'll turn the call over to Scott for the numbers.
I encourage you to refer to our Form 10-Q for more details on the status of these notes and related disclosures with that I'll turn the call over to Scott for the numbers.
Scott Thank you Lou and good morning, everyone.
Luciano Melluzzo: I encourage you to refer to our Form 10Q for more details on the status of these notes and related disclosures. With that, I'll turn the call over to Scott for the numbers. Scott.
Scott Glassman: Thank you, Lou, and good morning, everyone. Our results for Q3 2025 showed a meaningful improvement compared to both the first 2 quarters of this year and Q3 2024. Net sales for the 3 months ended 30 September 2025 were $10.3 million. Gross profit was $2.3 million or 22.3% of sales. This is a strong improvement reflecting the benefits of our cost reductions initiatives earlier this year. Our operating income, excuse me, came in at $316,000. Our net loss for the quarter was just $44,000 or $0.01 per share, compared to a loss of $404,000 in Q3 2024. Adjusted EBITDA for the 9 months ended 30 September was $2.7 million, up nearly 5% from the prior year.
Results for the third quarter of 2025 showed a meaningful improvement compared to both the first two quarters of this year in the third quarter of 2024.
Scott Thank you Lou and good morning, everyone.
Scott Glassman: Thank you, Lou, and good morning, everyone. Results for Q3 2025 showed a meaningful improvement compared to both the first two quarters of this year and Q3 2024. Net sales for the three months ended 30 September 2025 were $10.3 million. Gross profit was $2.3 million, or 22.3% of sales. This is a strong improvement reflecting the benefits of our cost reductions initiatives earlier this year. Our operating income, excuse me, came in at $316,000. Our net loss for the quarter was just $44,000, or one cent per share, compared to a loss of $404,000 in Q3 2024. Adjusted EBITDA for the nine months ended 30 September was $2.7 million, up nearly 5% from the prior year. Let me touch briefly on the balance sheet. Our total debt has increased by approximately $2.4 million.
Our results for the third quarter of 2025 showed a meaningful improvement compared to both the first two quarters of this year in the third quarter of 2024.
Net sales for the three months ended September 32025 were $10 $3 million gross profit was $2 3 million or 22, 3% of sales. This is a strong improvement reflecting the benefits of our cost reduction initiatives earlier this year.
Net sales for the three months ended September 32025 were $10 $3 million gross profit was $2 3 million or 22, 3% of sales. This is a strong improvement reflecting the benefits of our cost reductions initiatives earlier this year.
Operating income excuse me came in at 316000, our net loss for the quarter was just 44000 or <unk> <unk> per share compared to a loss of 404000 in Q3 of 2024.
Operating income excuse me came in at 316000, our net loss for the quarter was just 44000 or <unk> <unk> per share compared to a loss of 404000 in Q3 of 2024.
Adjusted EBITDA for the nine months ended September 30 was $2 7 million up nearly 5% from the prior year.
Let me touch briefly on the balance sheet. Our total debt has increased by approximately $2 $4 million.
Adjusted EBITDA for the nine months ended September 30 was $2 7 million up nearly 5% from the prior year.
Scott Glassman: Let me touch briefly on the balance sheet. Our total debt has increased by approximately $2.4 million. Inventory has increased by $5.6 million, reflecting our investment in work in process inventory and materials to support future deliveries. Accounts receivable has decreased by $2.1 million, and accounts payable has increased by approximately $2 million. With that, I will turn the call back over to Lou.
Inventories increased by $5 $6 million, reflecting our investment in work in process inventory and materials to support future deliveries.
Let me touch briefly on the balance sheet. Our total debt has increased by approximately $2 $4 million.
Accounts receivables decreased by $2 1 million and accounts payable has increased by approximately $2 million with that I will turn the call back over to Lou.
Inventories increased by $5 $6 million, reflecting our investment in work in process inventory and materials to support future deliveries.
Scott Glassman: Inventory has increased by $5.6 million, reflecting our investment in work in process inventory and materials to support future deliveries. Accounts receivable has decreased by $2.1 million, and accounts payable has increased by approximately $2 million. With that, I will turn the call back over to Lou.
Accounts receivables decreased by $2 1 million and accounts payable has increased by approximately $2 million with that I will turn the call back over to Lou.
Thanks Scott.
As you heard our third quarter performance showed measurable improvements in profitability and operational discipline, while we remain focused on completing our ongoing lender discussions in finalizing the right capital structure for the future. We are confident in the strength of our core business.
Luciano Melluzzo: Thanks, Scott. As you heard, our Q3 performance showed measurable improvements in profitability and operational discipline. While we remain focused on completing our ongoing lender discussions and finalizing the right capital structure for the future, we are confident in the strength of our core business. We continue to benefit from strong backlog levels and a healthy demand from both existing and new customers. Our focus remains squarely on execution, cost control, and driving shareholder value. We look forward to a strong finish to fiscal 2025 and continued momentum into 2026. Thank you for your time and support. Donna, with that, I would like to open the line to questions and answers, if you may.
Thanks Scott.
As you heard our third quarter performance showed measurable improvements in profitability and operational discipline, while we remain focused on completing our ongoing lender discussions in finalizing the right capital structure for the future. We are confident in the strength of our core business.
Luciano Melluzzo: Thanks, Scott. As you heard, our Q3 performance showed measurable improvements in profitability and operational discipline. While we remain focused on completing our ongoing lender discussions and finalizing the right capital structure for the future, we are confident in the strength of our core business. We continue to benefit from strong backlog levels, and a healthy demand from both existing and new customers. Our focus remains squarely on execution, cost control, and driving shareholder value. We look forward to a strong finish to fiscal 2025, and continued momentum into 2026. Thank you for your time and support. Donna, with that, I would like to open the line to questions and answers, if you may.
We continued to benefit from strong backlog levels and a healthy demand from both existing and new customers.
Our focus remains squarely on execution cost control and driving shareholder value.
We continued to benefit from strong backlog levels and a healthy demand from both existing and new customers.
We look forward to a strong finish to fiscal 2025 and continued momentum into 2026. Thank you for your time and support Donna with that I would like to open the line to questions and answers if you may.
Our focus remains squarely on execution cost control and driving shareholder value. We look forward to a strong finish to fiscal 2025 and continued momentum into 2026. Thank you for your time and support Donna with that I would like to open the line to questions and answers if you may.
Thank you the floor is now open for questions. If you would.
Operator: Thank you. The floor is now open for questions. If you would like to ask a question, please press star one on your telephone keypad at this time. A confirmation tone will indicate that your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys. Again, that's star one to register a question at this time. Again, that's star one to register a question at this time. Mr. Melluzzo, we're showing no questions in queue at this time. I would like to turn the floor back over to you for closing comments.
Like to ask a question. Please press star one on your telephone keypad at this time, a confirmation tone will indicate that your line is in the question queue. You May press star two if he would like to remove your question from the queue for participants using speaker equipment and may be necessary to pick up the handset before pressing the star Keys again, Thats Star One to register a question.
Thank you the floor is now open for questions. If you would like to ask a question. Please press star one on your telephone keypad at this time, a confirmation tone will indicate that your line is in the question queue. You May press star two if he would like to remove your question from the queue for participants using speaker equipment and may be necessary to pick up the handset before pressing the star.
Operator: Thank you. The floor is now open for questions. If you would like to ask a question, please press star one on your telephone keypad at this time. A confirmation tone will indicate that your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys. Again, that's star one to register a question at this time. One moment, please, while we pull for questions. Again, that's star one to register a question at this time. Mr. Melluzzo, we're showing no questions in queue at this time. I would like to turn the floor back over to you for closing comments.
At this time one moment, please while we poll for questions.
<unk> again Thats Star one to register a question at this time my mom in place, while we poll for questions.
Again, Thats Star one to register a question at this time.
Mr. Melissa we're showing no questions in queue at this time I would like to turn the floor back over to you for closing comments.
Again, Thats Star one to register a question at this time.
Thank you Donna.
Thank you all for taking the time to beyond the call today and for your continued interest in Air Industries Group, We look forward to updating you on the progress of our ongoing operations on the next call. Thank you all for joining.
Luciano Melluzzo: Thank you, Donna. Thank you all for taking the time to be on the call today and for your continued interest in Air Industries Group. We look forward to updating you on the progress of our ongoing operations on the next call. Thank you all for joining. Donna, you may end the call.
Mr. Maluso, we're showing no questions in queue at this time I would like to turn the floor back over to you for closing comments.
Thank you Donna.
Thank you all for taking the time to beyond the call today and for your continued interest in Air Industries Group, We look forward to updating you on the progress of our ongoing operations on the next call. Thank you all for joining.
Luciano Melluzzo: Thank you, Donna. Thank you all for taking the time to be on the call today and for your continued interest in Air Industries Group. We look forward to updating you on the progress of our ongoing operations on the next call. Thank you all for joining. Donna, you may end the call.
You may end the call.
Thank you ladies and gentlemen. This concludes today's event you may disconnect. Your lines at this time and enjoy the rest of your day.
Operator: Thank you. Ladies and gentlemen, this concludes today's event. You may disconnect your lines at this time and enjoy the rest of your day.
Call.
Thank you ladies and gentlemen. This concludes today's event you may disconnect. Your lines at this time and enjoy the rest of your day.
Operator: Thank you. Ladies and gentlemen, this concludes today's event. You may disconnect your lines at this time, and enjoy the rest of your day.