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Air Industries Secures a Contract to Supply Landing Gear Assemblies
AIRIAir Industries (AIRI) ZACKS·2024-12-11 15:00

Group 1: Company Overview - Air Industries Group (AIRI) secured an 11millioncontracttoprovidelandinggearassembliesfortheU.S.Navy′sE−2DAdvancedHawkeyeaircraft,withproductionstartinginthesecondhalfof2025anddeliverybeginninginthefirstquarterof2026[1]−AirIndustrieshasalonghistoryofprovidingkeycomponentsfordefenseandcommercialaerospace,includinglandinggear,thruststruts,andturbineenginecomponents,positioningthecompanyasareliablepartnerforaircraftperformanceandsafety[4]Group2:MarketTrends−Increasingglobalsocio−politicalunresthasledtoheightenedinvestmentsindefense,particularlyinfighterjets,whichinturndrivesdemandformaintenance,repair,andoverhaul(MRO)services[2]−TheglobalaircraftMROmarketispredictedtowitnessacompoundannualgrowthrate(CAGR)of4.811 million contract to provide landing gear assemblies for the U.S. Navy's E-2D Advanced Hawkeye aircraft, with production starting in the second half of 2025 and delivery beginning in the first quarter of 2026 [1] - Air Industries has a long history of providing key components for defense and commercial aerospace, including landing gear, thrust struts, and turbine engine components, positioning the company as a reliable partner for aircraft performance and safety [4] Group 2: Market Trends - Increasing global socio-political unrest has led to heightened investments in defense, particularly in fighter jets, which in turn drives demand for maintenance, repair, and overhaul (MRO) services [2] - The global aircraft MRO market is predicted to witness a compound annual growth rate (CAGR) of 4.8% during the 2025-2030 period [3] Group 3: Competitive Landscape - Other defense contractors benefiting from the expanding aircraft MRO market include RTX Corporation, which signed a 10-year contract for MRO services, and Lockheed Martin, which offers a range of system services through its Sikorsky unit [5][6] - AAR Corp. is noted as the largest independent MRO provider in North America, recently winning a contract valued at 1.2 billion for P-8A Poseidon jets [7][8] Group 4: Stock Performance - Air Industries stock (AIRI) has gained 26.1% over the past six months, contrasting with a 2.2% decline in the industry [9] - AIRI currently holds a Zacks Rank of 5 (Strong Sell) [11]