Air Industries Group. (AIRI), an aerospace and defence company has surged 17.31% in aftermarket trading session. As a result, AIRI stock is changing hands at $1.22 at the time of the writing. On Thursday, AIRI stock closed the day at $1.04 after increasing 0.97% during regular trading hours. The reason for this continuous increase seems to be the announcement of an agreement for a CH-53K Heavy Lift Helicopter.
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AIRI subsidiary awarded LTA
AIRI announced on Thursday that its subsidiary, namely Sterling Engineering, has been awarded a long term agreement (LTA) for the delivery of Chaff Pods for the new CH-53K heavy-lift helicopter. The long term agreement should have a minimum value of more than $5.2 million based on existing orders for the aircraft. The contract is a success for Sterling Engineering. The program can support some important military needs. CH-53K, a long-range, sea-based, heavy-lift helicopter, provides three times with the lift capability of its predecessor. It exceeds all the other DOD rotary-wing platforms. The foremost mission of the aircraft was to provide support to the US Marine Corps in personnel transportation as well as transportation of equipment from the naval ships to the land. The forecast says that the production of the helicopter would be more than double (from 4 to 9) in 2023. An additional 2/3rd increase (to 15) until 2026 is also forecasted. It is expected that CH-53K would remain in production beyond the year 2032.
Q2 2021 financial and operational highlights
On 4th August, AIRI reported the financial and operational results for the second quarter of the fiscal year 2021 which ended on 30th June. The company received $7.4 million orders for the Thrust Struts They are a critical component of Geared Turbofan (GTF) Jet Engine. The company’s fully funded backlog at the time of issuance of results was $91.5 million. The net sales for the quarter were $15.5 million, an increase of 82.4% when compared with the same period of 2020. The gross profit for the three months was $2.6 million, an increase of 333.3% when compared with the same period of 2020. The gross profit as a percentage of sales was 16.8% for the three months. The operating income for the period was $0.4 million, an increase of $1.7 million.
What lies ahead for AIRI?
Based on the stats, it appears that the time ahead is fecund for reaping the benefits. The excellent quarterly results give a glimpse of what the company is capable of achieving. So, potential investors should keep a keen and close eye on the latest developments related to AIRI.