Air Industries Group AIRI recently secured a contract worth more than $33 million to produce and deliver complex components for the CH-53K King Stallion helicopter program. This seven-year contract solidifies Air Industries' crucial contribution to one of the most significant procurement initiatives of the U.S. Department of Defense.
All components for this contract will be built at AIRI’s Sterling Engineering Division in Connecticut.
What Lies Ahead for Air Industries?
Increasing defense budgets and advancements in aerospace technology have been boosting the demand for maintenance and upgrade solutions. As nations are spending heftily these days to secure their borders, demand for combat helicopters is on the rise as they play a key role in defending a country’s aerial safety. As demand for new helicopters is rising, so is the need for maintenance, repair and overhaul (MRO) services.
Per a report by the Mordor Intelligence firm, the Military Aircraft MRO market will witness a CAGR of 2.8% during the 2024-2029 period.
Air Industries is well-positioned to benefit from the growing aircraft MRO market, with its more than 80 years of expertise in producing military aircraft parts. With products like landing gear, arresting gear, flight controls, turbine engine components and other critical parts, Air Industries helps keep aircraft operational and safe. The company’s products are currently deployed on important military aircraft, including Sikorsky helicopters, the UH-60 Black Hawk, CH-53 Heavy Lift and a few more.
Opportunities for Other Defense Companies
Apart from AIRI, defense contractors that are anticipated to benefit from the expanding Military Aircraft MRO market are as follows:
RTX Corporation RTX: The company’s unit, Collins Aerospace, is known for its advanced avionics solutions. Its MRO services include the maintenance and repair of avionics systems, seat inspections, teardown and analysis, from minor to major repairs.
RTX has a long-term (three to five years) earnings growth rate of 10.2%. The Zacks Consensus Estimate for RTX’s 2024 sales suggests growth of 7.2% from the prior-year reported figure.
Lockheed Martin LMT: Its Sikorsky Military Aircraft unit’s Overhaul and Repair organization offers a diversified range of system services, repairing and overhauling dynamic systems, blades, avionics and numerous other components, from aircraft tip to tail.
Lockheed Martin has a long-term earnings growth rate of 4.5%. The Zacks Consensus Estimate for LMT’s 2024 sales implies growth of 5.5% from the prior-year reported figure.
Curtiss-Wright Corporation CW: The company has more than 25 years of expertise in repairing and overhauling complex flight control actuators and structural components that support them. CW provides heavy maintenance support, modification programs and customized component repair solutions for these vital parts.
Curtiss-Wright has a long-term earnings growth rate of 11.7%. The Zacks Consensus Estimate for the company’s 2024 sales indicates an improvement of 8.4% from the prior-year reported figure.
AIRI Stock Price Movement
In the past six months, AIRI shares have risen 28.2% against the industry’s decline of 3.3%.
Image Source: Zacks Investment Research
AIRI’s Zacks Rank
Air Industries currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Naming Top 10 Stocks for 2025
Want to be tipped off early to our 10 top picks for the entirety of 2025?
History suggests their performance could be sensational.
From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2025. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
Curtiss-Wright Corporation (CW) : Free Stock Analysis Report
Air Industries Group (AIRI) : Free Stock Analysis Report
RTX Corporation (RTX) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
