Air T, Inc. Continues Track Record of Growth in First Quarter Fiscal 2027: Crestone Completes Acquisition of Arena

Rhea-AI Summary

Air T (NASDAQ:AIRT) reported fiscal 2027 Q1 revenue of $115.5 million, up 63% year over year, but posted an operating loss of $12.8 million versus prior-year operating income of $0.8 million. Adjusted EBITDA was $0.8 million, down 45% from $1.5 million.

On a trailing twelve‑month basis, revenue reached $371.7 million, up 25%, with an operating loss of $24.9 million and Adjusted EBITDA of $9.5 million, up 19%. Losses were mainly driven by Crestone’s Arena acquisition costs and higher non‑cash depreciation from the Rex fleet revaluation.

Crestone acquired Arena Aviation Capital on June 10 for $33.9 million, creating a platform with $3.0 billion of assets under management and $0.6 billion under LOI (124 aircraft, 17 engines). Blue Owl invested $10.0 million for 10.25% of the platform; Air T now owns 83.9% of Crestone and has launched an Aviation Leasing and Asset Management reporting segment. Rex generated Q1 revenue of $55.9 million, Adjusted EBITDA of $1.9 million, and an operating loss of $7.7 million, largely due to $8.8 million of non‑cash depreciation.

Positive

• Q1 FY27 revenue growth to $115.5 million, up 63% year over year
• TTM revenue increased 25% to $371.7 million
• TTM Adjusted EBITDA rose 19% to $9.5 million
• Crestone–Arena platform size at $3.0 billion AUM plus $0.6 billion under LOI
• Rex Q1 Adjusted EBITDA positive at $1.9 million despite integration headwinds
• Liquidity with $21.7 million cash and $42.4 million available under credit lines
• Share repurchases of 840,855 shares since 2013, 31% of outstanding shares

Negative

• Q1 operating loss of $12.8 million versus $0.8 million operating income prior year
• Q1 Adjusted EBITDA declined 45% to $0.8 million
• TTM operating loss of $24.9 million versus prior‑year operating income of $3.3 million
• Crestone–Arena 21‑day operating loss of $3.5 million, including $3.0 million transaction costs
• Rex Q1 operating loss of $7.7 million driven by $8.8 million D&A from fleet revaluation

News Explained

Air T ended the quarter with $21.7 million cash and restricted cash plus $42.4 million of available credit as Arena began contributing.

With the Arena acquisition completed and consolidated into Air T's new Aviation Leasing and Asset Management segment, its first 21 days generated $1.4 million of fees but a $3.5 million operating loss.

The loss was primarily driven by $3.0 million of acquisition-related transaction costs; adjusted EBITDA was a $0.3 million loss, with the company attributing the remainder to fixed costs incurred before transaction closings.

Air T ended the quarter with $21.7 million in cash and restricted cash and $42.4 million available under its credit lines.

For Rex, the stated operational constraint is aircraft availability: 32 aircraft were active and 30 were scheduled on regular lines, with unscheduled engine removals and third-party maintenance turnaround cited as causes.

Market Context

Acquisition-tagged events averaged a 0.32% 24-hour move. That record places this release alongside p...

Analysis

Acquisition-tagged events averaged a 0.32% 24-hour move. That record places this release alongside prior acquisition outcomes, while the disclosed operating losses and aircraft availability remain key risks; short positioning was low.

Key Figures

Revenue: $115.5 million Revenue growth: 63% Operating loss: $12.8 million +5 more

8 metrics

Revenue $115.5 million Fiscal 1Q27 ended June 30, 2026

Revenue growth 63% Fiscal 1Q27 versus prior-year quarter

Operating loss $12.8 million Fiscal 1Q27 versus $0.8 million operating income prior year

Adjusted EBITDA $0.8 million Fiscal 1Q27 versus $1.5 million prior year

Acquisition consideration $33.9 million Crestone acquisition of Arena

Cash consideration $21.7 million Crestone acquisition of Arena

Contingent consideration $12.2 million Crestone acquisition of Arena

Assets under management $3.0 billion Combined Crestone and Arena platform

Previous Acquisition Reports

5 past events · Latest: Jun 16 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jun 16	Acquisition completion	Positive	+4.8%	Crestone completed Arena acquisition; Blue Owl investment and Air T ownership were disclosed.
Mar 09	Acquisition proposal	Positive	+0.5%	Crestone entered definitive agreement to acquire Arena, expanding aviation asset management scale.
Dec 18	Rex acquisition closing	Positive	-2.0%	Air T closed Rex acquisition with full ownership and assumed liabilities.
Nov 11	Creditor support	Positive	-0.6%	Rex creditors voted for Air T's bid, pending court and other approvals.
May 21	Aircraft-services acquisition	Positive	-1.1%	Mountain Air Cargo acquired Royal Aircraft Services to strengthen MRO capabilities.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Acquisition announcements aligned with positive 24-hour reactions twice and diverged three times in the tag-specific sample.

Key Terms

adjusted ebitda, fair-value step-up, purchase accounting, contingent consideration, +1 more

5 terms

adjusted ebitda financial

"Adjusted EBITDA was $0.8 million, a decrease of 45%"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

fair-value step-up financial

"non-cash depreciation arising from the fair-value step-up"

An accounting adjustment made when one company buys another that raises the book value of the acquired assets to their current market (fair) values, reflecting what the buyer effectively paid for those assets. Like re-tagging items in a store to their true price, a fair-value step-up changes future depreciation or amortization charges and can create tax basis differences, so it affects reported earnings, cash taxes, and valuation measures investors watch.

purchase accounting financial

"recorded in purchase accounting"

Purchase accounting is the method used to record a company acquisition by treating the buyer as if it bought each asset and assumed each liability at their fair values on the purchase date. It matters to investors because this re‑valuation can create or change visible items like goodwill, cause future earnings to be lower or higher as costs are spread out, and alter balance sheet strength—much like re‑tagging items and debts after buying a house affects your net worth and monthly costs.

contingent consideration financial

"$21.7 million of cash plus $12.2 million of contingent consideration"

Contingent consideration is an additional payment agreed when one company buys another that will be paid later only if specific future targets are met, such as revenue, profit, or regulatory milestones. It matters to investors because it shifts risk between buyer and seller and affects the acquiring company's future cash flow and reported value — like promising a bonus after results are proven.

mro technical

"third-party MRO turnaround times"

MRO stands for Maintenance, Repair, and Operations, referring to the supplies and services companies provide to keep machinery, buildings, and infrastructure functioning smoothly. These essentials are vital for ongoing business activities, much like routine car maintenance keeps a vehicle running reliably. Investors pay attention to MRO companies because their performance reflects the health of industries that rely heavily on regular upkeep and support services.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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MINNEAPOLIS, MN / ACCESS Newswire / August 14, 2026 / Air T, Inc. (NASDAQ:AIRT) today reported results for its fiscal 2027 first quarter ended June 30, 2026.

Revenues totaled $115.5 million for the quarter ended June 30, 2026, an increase of $44.6 million, or 63%, compared to the same quarter in the prior fiscal year. The Company reported an operating loss of $12.8 million for the quarter, compared to operating income of $0.8 million in the prior-year quarter, a decrease of $13.7 million. Adjusted EBITDA was $0.8 million, a decrease of 45% from $1.5 million in the prior-year quarter.

On a trailing twelve-month basis, revenues were $371.7 million, an increase of $75.4 million, or 25%, over the twelve months ended June 30, 2025. The operating loss for the trailing twelve-month period was $24.9 million, compared to operating income of $3.3 million in the prior-year period, a decrease of $28.2 million, while Adjusted EBITDA increased 19% to $9.5 million from $8.0 million.

The operating loss in both the three-month ended and twelve-month ended June 30, 2026 periods was driven primarily by two items: transaction and integration costs related to Crestone Air Partners' acquisition of Arena Aviation Partners, and non-cash depreciation arising from the fair-value step-up of the Rex aircraft fleet recorded in purchase accounting. While challenges exist that we must overcome, management remains confident in the long-term prospects of both Crestone and Rex.

CRESTONE COMPLETES ACQUISITION OF ARENA

On June 10, Crestone acquired Arena Aviation Capital for $33.9 million - $21.7 million of cash plus $12.2 million of contingent consideration. The combined platform includes $3.0 billion of assets actively under management and $0.6 billion of assets committed under LOI: 124 aircraft and 17 engines, supported by a team of 55 experienced professionals based in Denver, Amsterdam, and Dublin. Blue Owl, an investor familiar and aligned with Air T's permanent capital investment philosophy, was also brought on and funded $10.0 million of the purchase for Class B preferred units representing 10.25% of the platform. Air T owns 83.9% of Crestone following the acquisition. Post-close, the platform contributed $1.4 million of fees in the final twenty-one days of this quarter; a $3.5 million 21-day operating loss; and a $0.3 million 21-day adjusted EBITDA loss. The operating loss was primarily driven by $3.0 million of acquisition-related transaction costs, and the segment's adjusted EBITDA loss reflects fixed general and administrative costs incurred over the full 21-day period against a limited number of transaction closings, primarily a timing issue.

Concurrent with the acquisition, as of June 10^th, Air T launched a new reporting segment: Aviation Leasing and Asset Management. Going forward, Crestone and Arena will be consolidated into Air T's financials through this segment. This acquisition reflects the core of our investment thesis: we seek to empower dynamic, insightful leaders to build on businesses that they know well, and give them the runway and resources to thrive.

REX DELIVERS QUARTER OF POSITIVE ADJUSTED EBITDA, CONTINUES OPERATIONAL TRANSFORMATION

In 1Q27, Rex generated $55.9 million of revenue, $1.9 million of Adjusted EBITDA, and $7.7 million of operating losses. The operating loss is primarily attributable to $8.8 million of Depreciation & Amortization driven by the revaluation of the fleet at acquisition for purchase accounting. Recall upon closing of the Rex acquisition, Air T recognized a $111.2 million bargain purchase gain which drove a non-cash write-up of Rex assets - as a result, these assets will correspondingly incur elevated D&A charges going forward. This is an entirely non-cash item that supports an otherwise fully owned and paid off fleet of Saab 340 aircraft. Owning a fleet provides Rex with crucial variable utilization capability, allowing the company to match passenger traffic supply with demand.

Air T continues to focus on recovering the core operational foundation at Rex, which has previously supported over two decades of consistently profitable execution. The binding constraint continues to be aircraft availability due to unscheduled engine removals and third-party MRO turnaround times. Rex presently operates with 32 active aircraft, 30 of which are scheduled on regular lines of flying.

Air T deeply values our continued partnership with the Australian Commonwealth and the regional and remote communities that Rex serves. We see active aircraft growth and network restoration as top Rex priorities. We are committed to growing essential connectivity to remote and rural Australia with our highly-skilled, steadfast and customer-centric management team.

OTHER QUARTERLY HIGHLIGHTS

Air T ended the quarter with $21.7 million in cash and restricted cash and $42.4 million in available funds under its lines of credit. Since current management arrived in October 2013, the Company has repurchased 840,855 shares, net of issuances, representing 31% of shares outstanding.

PLEASE ASK US QUESTIONS!

If you have questions related to this release or other Air T matters, please use our interactive Q&A capability through Slido.com, accessible from our www.airt.com website. Questions will be answered at our Annual Meeting and in our quarterly investor deck.

ANNUAL MEETING

Our Annual Meeting will be held on Tuesday, August 25, 2026, and we would enjoy the chance to meet our shareholders in person.

The meeting will be held in person at the Company's Minnesota executive office, 5000 W. 36th Street, Suite 105, Minneapolis, Minnesota 55416. The meeting will also be accessible by webcast by visiting https://agm.issuerdirect.com/airt. We recommend that you log in at least 15 minutes before the meeting to ensure you are logged in when the meeting starts. The proxy materials were either made available to you over the Internet or mailed to you beginning on or about July 10, 2026.

ABOUT AIR T, INC.

Established in 1980, Air T Inc. is a portfolio of 21 companies and 1,600+ employees across six core segments: overnight air cargo, ground support equipment, commercial aircraft, engines and parts, regional airline, digital solutions, and aviation leasing and asset management. We seek to expand, strengthen and diversify after-tax cash flow per share.

Contains forward-looking statements subject to risks and uncertainties, including the integration and performance of Rex and Arena, fuel and foreign exchange volatility, aircraft availability, and geopolitical conditions, as described in the Company's SEC filings.

CONTACT: Tracy Kennedy, Chief Financial Officer - tkennedy@airt.com - www.airt.com

APPENDIX - LTM RECONCILIATIONS ($000s)

EXHIBIT A - TOTAL REVENUE

EXHIBIT B - OPERATING INCOME

EXHIBIT C - ADJUSTED EBITDA

SOURCE: Air T, Inc.

View the original press release on ACCESS Newswire

FAQ

How did Air T (AIRT) perform financially in Q1 fiscal 2027?

Air T reported Q1 fiscal 2027 revenue of $115.5 million, up 63% year over year. According to Air T, the quarter showed an operating loss of $12.8 million and Adjusted EBITDA of $0.8 million, down from $1.5 million a year earlier.

What are the key terms of Crestone’s acquisition of Arena Aviation Capital for Air T (AIRT)?

Crestone acquired Arena Aviation Capital for $33.9 million, including $21.7 million cash and $12.2 million contingent consideration. According to Air T, the combined platform manages $3.0 billion of assets, has $0.6 billion under LOI, and includes 124 aircraft and 17 engines.

How does the Crestone–Arena platform impact Air T’s ownership and segment reporting (AIRT)?

Following the Arena acquisition, Air T owns 83.9% of Crestone, while Blue Owl holds 10.25% via a $10.0 million preferred investment. According to Air T, Crestone and Arena will be reported under a new Aviation Leasing and Asset Management segment from June 10, 2026.

What were Rex’s Q1 fiscal 2027 results within Air T (AIRT)?

Rex generated $55.9 million revenue, $1.9 million Adjusted EBITDA, and a $7.7 million operating loss in Q1 fiscal 2027. According to Air T, the loss mainly reflects $8.8 million of non‑cash depreciation and amortization from the revalued Saab 340 fleet.

What is Air T’s liquidity and leverage position as of June 30, 2026 (AIRT)?

Air T ended Q1 fiscal 2027 with $21.7 million in cash and restricted cash. According to Air T, the company also had $42.4 million of available funds under its lines of credit, providing flexibility to support operations and integration activities.

How much stock has Air T (AIRT) repurchased under current management?

Since October 2013, Air T has repurchased 840,855 shares, net of issuances. According to Air T, these buybacks represent approximately 31% of shares outstanding, indicating a long‑running capital allocation focus on reducing share count over time.

When is Air T’s 2026 annual shareholder meeting and how can investors attend (AIRT)?

Air T’s annual meeting is scheduled for Tuesday, August 25, 2026, at its Minnesota executive office. According to Air T, shareholders can also attend via webcast at https://agm.issuerdirect.com/airt, with login recommended 15 minutes before the start.