Air Industries Group Inc. reported its financial results for the first quarter of 2025, revealing a decrease in net sales and an increase in gross profit. The company's net sales for the three months ended March 31, 2025, totaled $12.1 million, marking a 13.7% decline from $14.1 million in the same period of 2024. Despite the drop in sales, gross profit improved by 6.7%, reaching $2.0 million compared to $1.9 million the previous year. This improvement in gross profit was attributed to enhanced operating efficiency, as evidenced by a gross margin increase of 320 basis points to 16.8%. However, operating expenses rose by $615,000, or 28.4%, primarily due to a significant increase in non-cash stock compensation expense, which accounted for $412,000 of the rise. Consequently, the operating loss increased to $746,000 from $259,000 in 2024, and the net loss for the quarter grew by $282,000 to $988,000. Despite the challenges, Air Industries reported an improvement in adjusted EBITDA, which rose by 59.1% to $576,000 from $362,000 in the prior year. The company's CEO, Lou Melluzzo, highlighted the focus on operating efficiency as a key driver for the improved gross profit margin, even as sales were lower compared to the previous year.