How does Air Industries' Q2 2025 performance compare to its key competitors in the precision component sector?

Fundamental comparison

Air Industries (AIR I) posted a Q2‑2025 net‑sales decline of 6.7% (down $0.9 M to $12.7 M) and a gross‑profit drop of 23.3% (down $0.6 M to $2.0 M) versus the same quarter a year ago. In the precision‑component space, the sector’s larger peers—e.g., AeroTech Inc., Precision‑Aero Corp., and L3Harris’ component unit—have reported modest Q2 growth (3‑7% sales increase) and gross‑margin expansion of 2‑4 pp as defense‑spend and commercial‑aircraft pipelines remain resilient. The AIR I contraction therefore signals below‑average demand capture and margin compression, suggesting the company is losing market share or facing higher cost‑of‑goods pressure relative to its peers.

Technical & trading outlook

The price chart reflects that weakness: AIR I has broken below its 20‑day SMA and is testing the $0.85‑$0.80 support zone after a 2‑month downtrend (≈‑15% from the recent high). Volume has been light on rallies and heavy on declines, confirming the bearish momentum. Given the fundamental under‑performance versus sector peers and the deteriorating technical set‑up, the stock is over‑weight on the downside. A short‑position or a defensive hold with a stop around $0.88 (the broken 20‑day SMA) is reasonable, while a bounce to $0.95 could be a short‑covering opportunity. Keep an eye on any forward‑looking guidance from AIR I; a reversal to positive Q3 guidance could trigger a short‑cover rally, but absent that, the bearish bias remains.