Air Industries Group · AMEX:AIRI
Air Industries — Investor Presentation (February 2025)
17 slides from Air Industries's investor presentation, February 2025
Slide 1: Investor Presentation
INVESTOR PRESENTATION February 2025 NYSE AMEX: AIRI www.AirIndustriesGroup.com
Slide 2: Overview – Locations & Capabilities
A I R I N D U S T R I E S G R O U P (NYSE ~ AIRI) OVERVIEW – LOCATIONS & CAPABILITIES Supporting the Warfighter since 1941. Strategic Locations: Close to Customers, Suppliers and Processors Deep Pool of Talented, Experienced Employees BARKHAMSTED, CT 2 Facilities Turbine Engine Components 200,000 Sq
Slide 3: Highly Sophisticated & Essential Aerospace Supplier
HIGHLY SOPHISTICATED & ESSENTIAL AEROSPACE SUPPLIER Critical supplier to military and commercial Prime contractors, and Tier 1 and Tier 2 integrators. PRIMES TIER SYSTEM INTEGRATORS 01 We often receive Long-Term Agreements (“LTAs”) from our TIER customers, leading us to become the ASSEMBLY / EQUIPME
Slide 4: Key Programs
KEY PROGRAMS AIRI IS VITAL TO U.S. MILITARY AND COMMERICAL AEROSPACE SIX AIRCRAFT PLATFORMS DROVE 84% of 2024 NET SALES 3% 24% 23% 24% 6% 4% F-18 Hornet Advanced E-2D Hawkeye UH-60 Blackhawk CH-53K PW1000G (GTF) King Stallion F-35 Lightning II (JSF)
Slide 5: Customers and End-Users
CUSTOMERS AND END-USERS Commercial Aerospace & Defense Prime Contractors US Government
Slide 6: The Challenge ~ Our Response
The Challenge ~ Our Response The Challenge: Air Industries Group, and the Aerospace industry in general, endured a challenging market and serious disruption in recent years. These included: • Supply chain challenges from delays in supply of raw materials, bottlenecks at processing suppliers. • Const
Slide 7: Improving Book-to-Bill Ratio
IMPROVING BOOK-to-BILL RATIO Book to Bill Ratio (Bookings of new business / sales) • Increased by 73% in two-years • Now consistently above the industry standard of 1.20 times sales • Seven new Long-Term Agreements awarded in 2024 1.60 1.39 1.40 130 1.20 1.13 1.20 1.20 1.00 0.89 0.75 0.92 0.80 Book-
Slide 8: Increased Bookings = Growing Backlog
INCREASED BOOKINGS = GROWING BACKLOG Backlog • Improved bookings of new business results in a growing backlog. • Since December 2022 our full “funded” backlog, supported by firm customer purchase orders: • Increased by $31.7 million or 36.7%, • Now almost $118 million. 130,000 $117,910 120,000 110,0
Slide 9: Unprecedented Full Backlog
UNPRECENTED FULL BACKLOG Full – Funded & Unfunded – Backlog • Full Backlog is now over $ 271 million. • Unprecedented level in recent years; • an increase of more than $ 100 million, or 61% increase in two-years 350,000 300,000 Full Backlog (in 000's) 271,300 250,000 200,000 168,300 150,000 100,000
Slide 10: Pipeline & Prospects
PIPELINE & PROSPECTS • Pipeline is full, over $250M in outstanding contract bids: • Production Opportunities: $200M • Aftermarket (Maintenance / Repair Overhaul) Opportunities: $50M • We will not win all this business, but a reasonable percentage of wins would increase revenue dramatically. • Numero
Slide 11: Operating Income / (Loss) 2019 to 9/2024
OPERATING INCOME / (LOSS) 2019 TO 9/2024 OPERATING INCOME (LOSS) • Operating income is the primary measure of operating performance, results have been highly variable reflecting industry-wide disruption. • Return to operating profitability for the nine months ended September 2024 2,487 Operating Inc
Slide 12: Attractive Multiple & Valuation
ATTRACTIVE MULITIPLE & VALUATION SHARE PRICE AT A DISCOUNT TO INDUSTRY AVERAGE • AIRI shares trade at an attractive valuation. A major investment bank calculates the average multiple of similar defense suppliers at 15.7X EBITDA (as of 01-29-2025). • AIRI shares trade at 7.2X, a 55% discount. If the
Slide 13: Taking Off and Positioned for Growth: Key Takeaways
KEY TAKEAWAYS The Company is successfully executing it’s five-year strategic plan. The three pillars of our growth initiative continue to solidify: Portfolio expansion (existing Taking Off customers) Acquire New customers Penetrate Aftermarket (MRO) and Positioned for Growth Significant
Slide 14: The Market Supports Our Multi-Year Strategy to Grow
The Market Supports Our Multi-Year Strategy to Grow Taking Off and Positioned for Growth
Slide 15: Our Growth Potential Is Unlimited
OUR GROWTH POTENTIAL IS UNLIMITED We have plenty of room to grow, and we are confident that we can achieve sustainable and profitable growth in 2025. We operate in the market of High Precision Machined Components with over $100B in annual spend. Based on our skills, our capabilities, and our industr
Slide 16: Focus on Core Market Expansion
FOCUS ON CORE MARKET Current - $4.6B Opportunity EXPANSION TARGET THE DEFENSE Near-Term - $1.4B Opportunity AFTERMARKET TARGET LEGACY Mid-Term - $1.6B Opportunity COMMERCIAL AIRCRAFT UNDER-SERVED OR Mid-Term - $1.8B Opportunity FORGOTTEN MARKETS SMALL AIRCRAFT LANDING GEAR Mid to Long-Term - $1.5B O
Slide 17: Why Buy the Stock? Why Now?
WHY BUY THE STOCK? WHY NOW? OUR FUTURE IS SUPPORTED BY IMPROVING BOOKINGS LEADING TO AN EXPANDING BACKLOG. SALES GROWTH WITH BOTH LEGACY AND NEW CUSTOMERS ~ ACTIVELY PURSUING PROGRAMS THAT REPRESENT THE CORE OF FUTURE FLIGHT. MAJOR NEW BUSINESS AWARDS ARE EXPECTED IN THE NEAR FUTURE . OPERAT
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