Air Industries Group

Hello and welcome to the Air Industries Group third quarter 2025 earnings conference call. At this time, all participants are on a listen-only mode. A brief question and answer session will follow the formal presentation. If you would like to ask a question during that time, please press star 1 on your telephone keypad. If you require operator assistance during the conference, please press star 0. This call may contain forward-looking statements as defined in Section 27A of the Securities Act of 1933 as amended, including statements regarding, among other things, the company's business strategy and growth strategy. Expressions which identify forward-looking statements speak only as of the date the statement is made. These forward-looking statements are based largely on our company's expectations and are subject to a number of risks and uncertainties. some of which are beyond our control and cannot be predicted or quantified. Future developments and actual results could differ materially from those set forth in contemplated by or underlying the forward-looking statements. In light of these risks and uncertainties, there can be no assurance that the forward-looking information will prove to be accurate. This call does not constitute an offer to purchase, any securities nor solicitation of a proxy, consent, authorization, or agent designation with respect to a meeting of the company's shareholders. At this time, I would like to turn the call over to Lou Leluzzo, President and CEO. Please go ahead, sir.

Thank you, Donna. Good morning. Before we begin, I'd like to note that given the level of detail in our press release and Form 10-Q, we'll keep our prepared remarks brief. We will, of course, take a few questions at the end if anybody has them. Now on to the numbers. But before I turn the call over to Scott, I do want to let you know that on our consolidated balance sheet, we are reflecting all of our credit facility and subordinated debt as current. Our credit facility matures at the end of December of 2025, and our related party subordinate notes mature on July 1st, 2026. At this time, I can't comment further other than to say that the company is actively engaged in a constructive discussion with all lenders regarding potential refinancing or extension of these obligations. I encourage you to refer to our forum 10Q for more details on the status of these notes and related disclosures. With that, I'll turn the call over to Scott for the numbers.

Scott? Thank you, Lou, and good morning, everyone. Results for the third quarter of 2025 showed a meaningful improvement compared to both the first two quarters of this year and the third quarter of 2024. Net sales for the three-month ended September 30, 2025, were $10.3 million. Gross profit was $2.3 million, or 22.3% of sales. This is a strong improvement reflecting the benefits of our cost productions initiatives earlier this year. Our operating income came in at $316,000. Our net loss for the quarter was just $44,000, or one cent per share, compared to a loss of $404,000 in Q3 of 2024. Adjusted EBITDA for the nine months ended September 30th was $2.7 million, up nearly 5% from the prior year. Let me touch briefly on the balance sheet. Our total debt has increased by approximately $2.4 million. Inventory has increased by $5.6 million, reflecting our investment in work and process inventory and materials to support future deliveries. Accounts receivable has decreased by $2.1 million, and accounts payable has increased by approximately $2 million. With that, I will turn the call back over to Lou. Thanks, Scott.