Air Industries Group (AIRI) reported its financial results for the third quarter and nine months ended September 30, 2024, showing a modest increase in revenue but continued net losses. For Q3 2024, net sales reached $12.6 million, a 2.1% increase from $12.3 million in Q3 2023. Gross profit for the same period improved significantly to $1.9 million, representing 15.5% of net sales, compared to $1.2 million (10.0% of net sales) in the prior year. Operating expenses decreased to $1.9 million, down 7.4% from $2.0 million in Q3 2023.

Despite these improvements, the company reported a net loss of $404,000 for Q3 2024, a notable reduction from a loss of $1.3 million in Q3 2023. For the nine months ended September 30, 2024, net sales totaled $40.2 million, up 5.6% from $38.0 million in the same period last year. Gross profit for the nine months also increased to $6.5 million (16.2% of net sales), compared to $5.3 million (13.9% of net sales) in 2023. The net loss for the nine months was $812,000, a significant improvement from a loss of $2.3 million in the prior year.

The company’s cash position declined, with cash at the end of Q3 2024 at $186,000, down from $346,000 at the end of 2023. Total assets decreased slightly to $50.4 million from $50.7 million. Current debt rose to $17.1 million, while long-term debt increased to $1.7 million. Total stockholders’ equity also fell to $14.7 million from $15.2 million.

AIRI's backlog increased from $98.1 million at the end of 2023 to $105.2 million as of September 30, 2024, indicating potential for future revenue growth. The company anticipates an increase in net sales for fiscal 2024 compared to 2023, with further growth expected into fiscal 2025.

Strategically, AIRI has focused on enhancing production efficiency and expanding manufacturing capabilities, with investments in capital equipment expected to total approximately $750,000 for the remainder of 2024. The company has also made amendments to its Current Credit Facility, which includes waivers for certain financial covenants and adjustments to capital expenditure limits.

Overall, while AIRI has shown improvements in revenue and gross profit, it continues to face challenges with net losses and cash flow, necessitating ongoing strategic adjustments and financial management.