Free cash flow remains deeply negative, evidenced by a -14.8% FCF margin in 2026Q1 and a consistent failure to convert net income into operating cash.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 |
|---|
| Cash from Operations | -4.17M | -1.35M | 324K | 4.86M | 448K | 4.06M | -1.52M | -888K | -2.34M | -3.99M | -692K | -894K | -2.8M | 8.89M | 1.69M | 3.63M | 2.9M | -140K | -5.95M | -729.53K | -1.16M | 671.04K | 441.78K | 190.33K | -33.65K | 25.33K | -132.64K |
| Operating CF Margin % | - | -2.82% | 0.59% | 9.44% | 0.84% | 6.9% | -3.04% | -1.63% | -5.04% | -7.99% | -1.03% | -1.11% | -4.35% | 14.15% | 2.64% | 6.76% | 5.97% | -0.36% | -12.91% | -2.21% | -41.88% | 10.58% | 6.74% | 5.33% | -0.63% | 0.47% | -7.1% |
| Operating CF Growth % | -2057.21% | -517.28% | -93.34% | 985.27% | -88.98% | 366.49% | -71.73% | 61.99% | 41.39% | -476.01% | 22.6% | 68.06% | -131.49% | 424.73% | -53.37% | 25.28% | 2171.43% | 97.65% | -715.38% | 37.27% | -273.31% | 51.89% | 132.11% | 665.61% | -232.86% | 119.1% | - |
| Net Income | -1.34M | 0 | -1.37M | -2.13M | -1.08M | 1.63M | 1.1M | -2.73M | -10.99M | -22.55M | -15.62M | -832K | 667K | 3.74M | 2.55M | 2.25M | -2.91M | -16.54M | 627.9K | -336.57K | -749.7K | -1.21M | 696.36K | 27.61K | -1.4M | 70.56K | 28.28K |
| Depreciation & Amortization | 3.44M | 0 | 2.92M | 3M | 3.07M | 3.29M | 3.05M | 3.47M | 2.88M | 3.4M | 4.63M | 4.35M | 3.53M | 2.87M | 2.76M | 2.39M | 1.94M | 2.26M | 1.3M | 714.17K | 78.66K | 31.29K | 21.76K | 30.47K | 31.62K | 28.95K | 13.51K |
| Stock-Based Compensation | 573K | 0 | 797K | 482K | 526K | 443K | 211K | 244K | 292K | 564K | 167K | 100K | 42K | 38K | 101K | 131K | 0 | 237K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 627K | 0 | 846K | 13.38M | 2.06M | -215K | -1.04M | -1.24M | -59K | 0 | 0 | -515K | 389.06K | -163.46K | 0 | 0 | 0 | 0 | 7.89K | -7.89K | 0 |
| Other Non-Cash Items | 1.17M | 3.14M | 67K | 68K | -499K | 8K | -1.9M | 1.5M | 3.93M | 1.83M | 1.36M | 683K | 685K | -361K | 154K | 389K | -785K | 10.67M | 856.71K | 394.08K | 516.58K | 105.06K | -595.79K | -42.52K | 2.53K | 117.8K | 62 |
| Working Capital Changes | -8.02M | -4.5M | -2.1M | 3.44M | -1.57M | -1.31M | -4.61M | -3.37M | 713K | -607K | 6.71M | -4.98M | -6.68M | 2.98M | -3.81M | -1.52M | 4.66M | 3.75M | -9.08M | -984.66K | -1.01M | 1.75M | 319.45K | 174.78K | 1.32M | -184.09K | -174.49K |
| Change in Receivables | -915K | 2.06M | -1.06M | 1.53M | 1.3M | -1.59M | -1.04M | -1.65M | -561K | 1M | 4.62M | 91K | -2.42M | 2.87M | -4.61M | -2.09M | 900K | -229K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -6.35M | -5.45M | 1.04M | 1.97M | -2.29M | 2.59M | -3.47M | 405K | 1.4M | 905K | -2.9M | -8.41M | -1.8M | 440K | 1.14M | -1.08M | -340K | -2.86M | -3.32M | -2.65M | -434.36K | 361.71K | -646.33K | -202.84K | 127.98K | -179.23K | -7.47K |
| Change in Payables | 69K | 888K | 961K | 0 | 0 | -1.59M | 275K | -970K | -2.2M | -3.53M | 4.98M | 2.79M | -2.25M | -809K | -474K | 1.56M | 0 | 424K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -2.33M | -3.12M | -2.29M | -2.11M | -2.36M | -1.36M | -3.8M | -764K | 3.69M | 1.76M | -924K | -8.56M | -9.66M | -1.12M | -13.04M | -1.29M | -1.11M | -2.82M | -9.72M | 4.16M | -8.44M | -55.93K | 269.99K | 0 | 122.16K | -185.51K | -47.34K |
| Capital Expenditures | -2.53M | -3.32M | -2.3M | -2.12M | -2.36M | -1.36M | -3.8M | -764K | -1.79M | -2.5M | -2.6M | -2.22M | -906K | -668K | -1.44M | -1.29M | -770K | -2.56M | -9.72M | -812.37K | -4.32M | -55.93K | -30.01K | 0 | -3.52K | -32.63K | -47.34K |
| CapEx % of Revenue | 5.34% | 6.93% | 4.18% | 4.11% | 4.43% | 2.31% | 7.58% | 1.4% | 3.86% | 5.01% | 3.88% | 2.76% | 1.41% | 1.06% | 2.24% | 2.4% | 1.58% | 6.62% | 21.09% | 2.46% | 155.67% | 0.88% | 0.46% | - | 0.07% | 0.6% | 2.53% |
| Acquisitions | 200K | 200K | 0 | 0 | 0 | 0 | 0 | 0 | 5.47M | 4.26M | 1.67M | -6.34M | -8.76M | -450K | -11.6M | 0 | 0 | 0 | 0 | 0 | -4.12M | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 16K | 7K | 0 | 0 | 0 | 0 | -523K | 3.27M | 1.67M | -656K | -335K | -380K | -11.89M | 0 | -340K | -256K | 0 | 4.97M | 1.68K | 0 | 300K | 0 | -25K | -152.88K | 0 |
| Cash from Financing | 10.44M | 8.33M | 2.37M | -2.69M | 1.57M | -4.58M | 6.53M | 934K | 33K | 1.55M | 2.39M | 8.56M | 13.32M | -7.7M | 11.26M | -2.31M | -1.71M | 3.12M | 15.66M | -4.49M | 10.66M | -495.21K | -719.13K | -257.48K | -132.17K | 131.52K | 297.42K |
| Debt Issued (Net) | 6.78M | 3.82M | 2.04M | -2.66M | 1.59M | -4.58M | 5.78M | 250K | -2.73M | -6.13M | -1.43M | 13.49M | 8.72M | -7.08M | 5.21M | -2.19M | 0 | 3.55M | 8.34M | -4.57M | 3.88M | 148.37K | -612.31K | -257.48K | -137.13K | 139.99K | 0 |
| Equity Issued (Net) | 3.78M | 4.64M | 327K | 0 | 0 | 0 | 984K | 0 | 2.88M | 0 | 0 | 0 | 0 | 0 | 6.53M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7.36K | 374.9K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -4.47M | -3.75M | -1.43M | -359K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -587K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -127K | -127K | 0 | -25K | -20K | 0 | -226K | 684K | -125K | 7.68M | 3.82M | -462K | 8.34M | 810K | -122K | -116K | -1.71M | -424K | 7.32M | 86K | 6.79M | -643.58K | -106.83K | 0 | 4.97K | -15.84K | -77.48K |
| Net Change in Cash | 3.93M | 3.86M | 407K | 65K | -346K | -1.88M | 1.21M | -718K | 1.38M | -674K | 775K | -889K | 857K | 71K | -87K | 40K | 80K | 164K | 0 | -1.06M | 1.06M | 119.89K | -7.37K | -67.15K | -43.65K | -28.66K | 117.44K |
| Free Cash Flow | -6.71M | -4.67M | -1.98M | 2.74M | -1.91M | 2.7M | -5.32M | -1.65M | -4.12M | -6.49M | -3.29M | -3.11M | -3.71M | 8.22M | 256K | 2.35M | 2.13M | -2.7M | -15.66M | -1.54M | -5.49M | 615.1K | 411.76K | 190.33K | -37.17K | -7.3K | -179.98K |
| FCF Margin % | -14.15% | -9.75% | -3.59% | 5.32% | -3.59% | 4.58% | -10.62% | -3.03% | -8.9% | -13% | -4.91% | -3.87% | -5.76% | 13.08% | 0.4% | 4.36% | 4.38% | -6.99% | -34% | -4.67% | -197.55% | 9.7% | 6.28% | 5.33% | -0.69% | -0.14% | -9.64% |
| FCF Growth % | -405.66% | -136.42% | -172.07% | 243.39% | -170.85% | 150.73% | -222.16% | 59.93% | 36.42% | -97.29% | -5.56% | 15.95% | -145.07% | 3111.33% | -89.08% | 10.09% | 178.8% | 82.74% | -915.86% | 71.89% | -991.88% | 49.38% | 116.34% | 611.99% | -409.23% | 95.94% | - |
| FCF per Share | -1.40 | -0.98 | -0.59 | 0.84 | -0.59 | 0.74 | -1.45 | -0.57 | -1.53 | -4.90 | -4.34 | -4.16 | -5.36 | 13.86 | 0.54 | 6.55 | 13.15 | -153.82 | -923.28 | -191.49 | -1725.14 | 803.01 | 537.55 | 262.16 | -51.20 | -4.89 | -148.38 |
| FCF Conversion (FCF/Net Income) | 5.01x | 1.04x | -0.24x | -2.28x | -0.42x | 2.50x | -1.39x | 0.33x | 0.21x | 0.18x | 0.04x | 1.07x | -4.20x | 2.38x | 0.66x | 1.62x | 5.37x | 0.01x | -9.47x | 2.16x | 1.55x | -0.55x | 0.63x | 6.89x | 0.02x | 0.36x | -4.69x |
| Interest Paid | 429K | 1.83M | 1.85M | 1.91M | 1.29M | 1.21M | 924K | 2.27M | 1.51M | 2.04M | 1.49M | 1.65M | 1.07M | 1.19M | 1.58M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 4K | 21K | 20K | 6.1K | 6K | 7K | 0 | 22K | 2K | 8K | 13K | 445K | 2.49M | 1.06M | 64K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Persistent negative operating cash
According to the provided cash flow statements, AIRI consistently fails to convert net income into operating cash, with the OCF/NI ratio reaching an extreme 59.64 in 2025Q3, suggesting that reported earnings are frequently decoupled from the actual cash-generating capacity of the underlying manufacturing operations.
The frequent divergence between net income and operating cash flow indicates that accruals and working capital swings are masking the core business's inability to generate self-sustaining cash. Investors should monitor this volatility, as it suggests that the company's earnings quality is low and highly sensitive to non-cash adjustments.
As reported in financial statements, AIRI's free cash flow trajectory remains deeply negative, with the company burning cash in nine of the last ten quarters, including a significant -14.8% FCF margin in 2026Q1, which highlights a structural inability to fund operations through internal cash generation.
The persistent negative FCF suggests that the company is currently reliant on external financing or existing liquidity to cover its operational and capital requirements. This trend appears unsustainable without a fundamental improvement in throughput or a significant reduction in the cost base.
Based on reported figures, working capital changes have been a consistent drain on cash, with a $3.5 million outflow in 2025Q3 alone, indicating that the company struggles to efficiently manage its inventory and receivables cycle amidst a contracting revenue environment.
The recurring negative working capital adjustments suggest that the company may be experiencing production bottlenecks or delays in collecting payments from defense prime contractors. This pattern warrants further investigation into whether the company is accumulating obsolete inventory or facing extended payment terms that pressure its cash position.
Data indicates that AIRI continues to deploy capital into machinery, with CapEx/Revenue ratios peaking at 10.0% in 2025Q1, which appears disproportionately high given the 13.04% decline in revenue and the company's inability to achieve positive operating margins on its existing asset base.
The continued investment in capital equipment during a period of revenue contraction may indicate a commitment to maintaining specialized NAVAIR-certified capabilities. However, this strategy appears to be exacerbating the company's cash burn, as the new assets are not yet contributing to meaningful margin expansion or revenue growth.
Quick answers to the most common questions about buying AIRI stock.
Air Industries Group (AIRI) generated $-1.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Air Industries Group (AIRI) reported negative free cash flow of $4.7M in 2025, indicating capital requirements exceeded cash from operations.
Air Industries Group (AIRI) spent $3.3M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.