Air Industries Group (AIRI) has received a major boost to its business with a new $110 million contract to produce Thrust Struts for Geared Turbo-Fan (GTF) aircraft jet engines. This seven-year contract, starting in January 2025 and extending through 2031, marks a significant expansion for the company, which has been the sole supplier of these critical components since 2015.
The contract replaces and expands an existing agreement set to expire in December 2024, and is expected to generate substantial annual sales once production and deliveries begin. This will have a significant impact on both the company’s top and bottom lines.
Lou Melluzzo, CEO of Air Industries, expressed enthusiasm for the contract, stating, “This contract is a milestone for our company, underscoring the significance of our Thrust Struts product line, which has been a cornerstone of our business for nearly a decade. With this single order, our backlog has surged to over $280 million, marking the first time our backlog has exceeded a quarter of a billion dollars.” He also highlighted the significant impact on production, noting, “This order will significantly impact our top and bottom lines, with this project alone expected to require approximately 40,000 hours of production annually at our Long Island manufacturing facility.”
The contract is a testament to Air Industries’ expertise in precision manufacturing for the aerospace and defense industries. The company manufactures critical components and assemblies for large prime contractors, solidifying its position as a key player in the industry.
Air Industries’ recent performance has been strong, reporting sales of $13.6 million in the second quarter, an increase from $13.21 million a year ago. The company’s stock price has reacted positively to the news, surging by 103.6% to $7.63 at the last check on Thursday.
This significant contract win further reinforces Air Industries’ position as a leading supplier in the aerospace sector and highlights the growth potential of the company.
