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Air Industries Secures $110M Contract for GTF Engine Parts
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Air Industries Group (AIRI - Free Report) recently secured its largest contract, a $110 million deal to manufacture Thrust Struts for Geared Turbo-Fan (GTF) jet engines. This contract will begin in January 2025 and run through 2031.
Successful delivery of the thrust struts is likely to bolster AIRI’s top-line performance. Following this contract win, the company’s backlog count has increased to more than $280 million.
AIRI & Combat Jets
Air Industries plays an important role in the military jet market as a leading manufacturer of precision components and assemblies, such as landing gears, flight controls, engine mounts, and components for aircraft jet engines. These components are crucial for the safety and reliability of military jets.
Notably, the company builds thrust struts for GTF jet engines, made by prominent aircraft engine manufacturer – Pratt & Whitney. The GTF family of jet engines powers some of the most renowned aircraft across the globe, such as Airbus A320neo, A220 and E2 jets of Embraer. The demand for AIRI’s thrust struts, thus, remains solid. The company, therefore, enjoys steady orders for its thrust struts, like the latest one, which in turn are expected to boost its future operating results.
AIRI’s Growth Prospects
Military jets are increasingly sought after due to their advanced technological features, including improved stealth capabilities, precision targeting, and enhanced speed. In recent times, solid demand for military jets has been witnessed worldwide, driven by increasing geopolitical tensions and the need for nations to enhance their defense capabilities. As global conflicts and the threat of warfare are on the rise, countries are investing heavily in modernizing their air forces to maintain strategic advantages.
This must have led the Morder Intelligence firm to predict that the global fighter aircraft market will witness a CAGR of 37% during the 2024-2029 time period.
This trend has benefitted Air Industries, with the company’s products currently being deployed on many high-profile military aircraft such as the Sikorsky UH-60 Black Hawk, Lockheed Martin F-35 Lightning II (Joint Strike Fighter) and F-16 Fighting Falcon, Northrop Grumman E-2C/D, Boeing F-15 Eagle and F-18 Hornet.
AIRI’s Peer Prospects
Other aerospace companies in the sector that are likely to enjoy the perks of the expanding fighter jet market have been discussed below.
The Boeing Company’s (BA - Free Report) Defense, Space & Security division is a renowned manufacturer of fixed-wing and rotary-wing combat aircraft. The company’s product portfolio includes military jets like the F/A–18 Super Hornet, F-15 EX and EA-18G Growler.
Boeing has a long-term (three to five years) earnings growth rate of 21.3%. The Zacks Consensus Estimate for BA’s third-quarter 2024 sales indicates an improvement of 10.8% from the prior-year quarter’s figure.
Lockheed Martin Corporation (LMT - Free Report) is the producer of some of the most advanced military jets in the world. Its key jet programs include the F-35 Lightning II, F-22 Raptor, F-16 Fighting Falcon and C-130 Hercules.
Lockheed has a long-term earnings growth rate of 4.7%. The Zacks Consensus Estimate for 2024 sales indicates year-over-year growth of 5.3%.
Northrop Grumman Corporation (NOC - Free Report) is a leading provider of proven manned and unmanned air systems. It builds some of the world’s most advanced aircraft like the B-2 Spirit Stealth Bomber, A-10 Thunderbolt II, B-21 Raider and F-35 Lightning II.
Northrop Gruman has a long-term earnings growth rate of 8.7%. The consensus estimate for 2024 sales indicates year-over-year growth of 5.4%.
AIRI Stock Price Movement
Shares of AIRI have gained 56.8% in the past month compared with the industry’s 2.2% growth.
Image: Bigstock
Air Industries Secures $110M Contract for GTF Engine Parts
Air Industries Group (AIRI - Free Report) recently secured its largest contract, a $110 million deal to manufacture Thrust Struts for Geared Turbo-Fan (GTF) jet engines. This contract will begin in January 2025 and run through 2031.
Successful delivery of the thrust struts is likely to bolster AIRI’s top-line performance. Following this contract win, the company’s backlog count has increased to more than $280 million.
AIRI & Combat Jets
Air Industries plays an important role in the military jet market as a leading manufacturer of precision components and assemblies, such as landing gears, flight controls, engine mounts, and components for aircraft jet engines. These components are crucial for the safety and reliability of military jets.
Notably, the company builds thrust struts for GTF jet engines, made by prominent aircraft engine manufacturer – Pratt & Whitney. The GTF family of jet engines powers some of the most renowned aircraft across the globe, such as Airbus A320neo, A220 and E2 jets of Embraer. The demand for AIRI’s thrust struts, thus, remains solid. The company, therefore, enjoys steady orders for its thrust struts, like the latest one, which in turn are expected to boost its future operating results.
AIRI’s Growth Prospects
Military jets are increasingly sought after due to their advanced technological features, including improved stealth capabilities, precision targeting, and enhanced speed. In recent times, solid demand for military jets has been witnessed worldwide, driven by increasing geopolitical tensions and the need for nations to enhance their defense capabilities. As global conflicts and the threat of warfare are on the rise, countries are investing heavily in modernizing their air forces to maintain strategic advantages.
This must have led the Morder Intelligence firm to predict that the global fighter aircraft market will witness a CAGR of 37% during the 2024-2029 time period.
This trend has benefitted Air Industries, with the company’s products currently being deployed on many high-profile military aircraft such as the Sikorsky UH-60 Black Hawk, Lockheed Martin F-35 Lightning II (Joint Strike Fighter) and F-16 Fighting Falcon, Northrop Grumman E-2C/D, Boeing F-15 Eagle and F-18 Hornet.
AIRI’s Peer Prospects
Other aerospace companies in the sector that are likely to enjoy the perks of the expanding fighter jet market have been discussed below.
The Boeing Company’s (BA - Free Report) Defense, Space & Security division is a renowned manufacturer of fixed-wing and rotary-wing combat aircraft. The company’s product portfolio includes military jets like the F/A–18 Super Hornet, F-15 EX and EA-18G Growler.
Boeing has a long-term (three to five years) earnings growth rate of 21.3%. The Zacks Consensus Estimate for BA’s third-quarter 2024 sales indicates an improvement of 10.8% from the prior-year quarter’s figure.
Lockheed Martin Corporation (LMT - Free Report) is the producer of some of the most advanced military jets in the world. Its key jet programs include the F-35 Lightning II, F-22 Raptor, F-16 Fighting Falcon and C-130 Hercules.
Lockheed has a long-term earnings growth rate of 4.7%. The Zacks Consensus Estimate for 2024 sales indicates year-over-year growth of 5.3%.
Northrop Grumman Corporation (NOC - Free Report) is a leading provider of proven manned and unmanned air systems. It builds some of the world’s most advanced aircraft like the B-2 Spirit Stealth Bomber, A-10 Thunderbolt II, B-21 Raider and F-35 Lightning II.
Northrop Gruman has a long-term earnings growth rate of 8.7%. The consensus estimate for 2024 sales indicates year-over-year growth of 5.4%.
AIRI Stock Price Movement
Shares of AIRI have gained 56.8% in the past month compared with the industry’s 2.2% growth.
Image Source: Zacks Investment Research
AIRI’s Zacks Rank
AIRI currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.