Air Industries Group (AIRI), an aerospace and defense company, has surged 7.86% in the pre-market trading session and as a result, is trading at $0.93 at the time of the writing. The surge could be attributed to winning LTAs. On Wednesday, the stock slightly declined by 0.9% during the mid-day session and closed the day at $0.8622.
Why AIRI Rising?
On Wednesday, Air Industries Group announced that its subsidiary, Air Industries Machining Corp. has won two separate Long-Term Agreements (LTAs) for manufacturing flight-critical assemblies for the Blackhawk helicopter. The company said that the estimated value of the two LTAs will be about $18.2 million over their five-year terms. As soon as the news came out, AIRI stock started to soar and has rallied 14.31% till the time of the writing.
Award of Life of Program Extension
On the 6th of January, AIRI announced that its Sterling Engineering subsidiary had been awarded Life of the Program Extension of a Long-Term Agreement (LTA). The extension was meant to deliver Turbine Exhaust Case (TEC) components for the PW-4000 jet engine which is used on numerous Airbus and Boeing commercial aircraft. The company anticipated contract extension would generate revenue of more than $6 million over its remaining term.
Expansion in Revolving Credit Facility and Term Loan
In late November, AIRI announced that the Sterling National Bank had agreed to the expansion of the size and maturity of its Revolving Credit Facility and Term Loan. The revolving credit facility gained an increase of $4 million or 25% from its current limit of $16 million. The maturity dates of the term loan and Revolving Credit Facility were also extended by three years.
Future Outlook for AIRI
Stats reveal that during the last month, AIRI stock has declined by approximately 10%. Looking ahead, the company seems confident that the stock can attract investors. So, potential investors should keep a close eye on the performance of AIRI stock.