Air T, Inc. Reports Second Quarter Fiscal 2027 Results

Rhea-AI Summary

Air T (NASDAQ:AIRT) reported fiscal second-quarter revenue of $146.9 million, with growth accompanied by a reversal to an operating loss. Revenue increased 129% year over year for the quarter ended September 30, 2026, including $56.8 million from Rex, acquired in December 2025. Operating loss was $11.8 million versus operating income of $5.5 million a year earlier. Loss per share was $7.48, compared with earnings of $1.61.

Adjusted EBITDA, a non-GAAP operating performance measure, fell to $4.371 million from $7.882 million. Overnight Air Cargo, Ground Support Equipment and Digital Solutions improved quarterly adjusted EBITDA, while Commercial Aircraft, Engines and Parts declined. Rex posted a $10.0 million operating loss. Aviation Leasing and Asset Management recorded a $4.7 million operating loss, including an unfavorable $3.3 million earnout remeasurement.

15 points · 0 major

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It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

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1 major · 22 points

How the balance works

Positive

• Moderate pointQuarterly revenue rose 129% to $146.9 million, including $56.8 million from the acquired Rex business.
• Moderate pointOvernight Air Cargo revenue increased $3.5 million to $34.5 million, principally from higher pricing at Mountain Air Cargo.
• Moderate pointOvernight Air Cargo quarterly adjusted EBITDA rose to $2.609 million from $1.802 million a year earlier.
• Moderate pointCommercial Aircraft, Engines and Parts revenue increased $7.0 million to $28.5 million year over year.
• Moderate pointGround Support Equipment revenue reached $18.9 million, versus $9.6 million, reflecting timing of a large customer's annual orders.
• Moderate pointGround Support Equipment quarterly adjusted EBITDA rose to $2.707 million from $1.653 million.
• Moderate pointOvernight Air Cargo six-month adjusted EBITDA increased to $4.705 million from $3.413 million.

8 minor points

• Minor pointDigital Solutions revenue increased $0.4 million to $2.6 million, driven by data analytics and airspace management engagements.
• Minor pointDigital Solutions quarterly adjusted EBITDA improved to $97,000 from a $65,000 loss a year earlier.
• Minor pointDigital Solutions labor costs declined as AI-driven tools improved efficiency.
• Minor pointAviation Leasing and Asset Management generated $7.8 million revenue, reflecting a full quarter of Crestone and Arena activity.
• Minor pointAviation Leasing and Asset Management quarterly adjusted EBITDA was $1.330 million, with no prior-year comparable.
• Minor pointRegional Airline six-month adjusted EBITDA was $970,000, with no prior-year comparable.
• Minor pointDigital Solutions six-month adjusted EBITDA improved to $515,000 from a $108,000 loss.
• Minor pointAviation Leasing and Asset Management six-month adjusted EBITDA was $1.019 million, with no prior-year comparable.

Negative

• Major pointQuarterly operating loss was $11.8 million, versus operating income of $5.5 million a year earlier.
• Moderate pointQuarterly adjusted EBITDA declined to $4.371 million from $7.882 million.
• Moderate pointRex engine removals and maintenance-provider delays reduced aircraft availability below planned levels.
• Moderate pointCommercial Aircraft, Engines and Parts quarterly adjusted EBITDA fell to $1.531 million from $6.882 million.
• Moderate pointAviation Leasing and Asset Management unfavorable earnout remeasurement was $3.3 million, with $0.5 million in integration costs. 4.1% of market cap

17 minor points

• Minor pointQuarterly loss per share was $7.48, versus earnings per share of $1.61 a year earlier.
• Minor pointQuarterly pretax loss was $16.2 million, versus pretax income of $7.2 million a year earlier.
• Minor pointRegional Airline operating loss was $10.0 million, including $9.4 million of depreciation and amortization.
• Minor pointRegional Airline quarterly adjusted EBITDA loss was $949,000, with higher fuel prices the primary driver.
• Minor pointRex does not hedge fuel prices or related currency exposure, purchasing fuel at prevailing market prices.
• Minor pointPrior-year aircraft sale gain of $7.0 million did not recur, driving the commercial aircraft segment's EBITDA decline.
• Minor pointContrail component-sales growth was primarily driven by one customer, concentrating the source of that increase.
• Minor pointJet Yard revenue declined because larger projects in the prior-year quarter did not recur.
• Minor pointGround Support Equipment backlog fell to $11.6 million at September 30, 2026, from $12.9 million a year earlier.
• Minor pointAviation Leasing and Asset Management operating loss was $4.7 million for the quarter.
• Minor pointCorporate and Other quarterly adjusted EBITDA loss widened to $3.189 million from $2.532 million.
• Minor pointEquity-method investment balance declined to $26.2 million at September 30, 2026, from $27.9 million a year earlier.
• Minor pointSix-month operating loss was $24.626 million, versus operating income of $6.354 million a year earlier.
• Minor pointSix-month adjusted EBITDA declined to $5.177 million from $9.346 million.
• Minor pointCommercial Aircraft, Engines and Parts six-month adjusted EBITDA fell to $988,000 from $7.544 million.
• Minor pointGround Support Equipment six-month adjusted EBITDA declined to $2.498 million from $3.027 million.
• Minor pointCorporate and Other six-month adjusted EBITDA loss widened to $5.867 million from $4.816 million.

News Explained

At September 30, 2026, Air T had $22.141 million in cash and $1.165 million in short-term investments; together, these equal 206.6 days of the last reported operating cash use at that rate, providing a point-in-time liquidity comparison with recent cash use.

Sources and calculations

• Air T fiscal second-quarter 2027 reported fundamentals (2027Q2)

• Available liquidity against the last reported quarterly operating outflow, in days at that rate ($22,141,000 + $1,165,000) / ($10,377,000 / 92) = 206.6 days

Key Figures

Quarterly revenue: $146.9 million Operating loss: $11.8 million Adjusted EBITDA: $4.4 million +3 more

Quarterly revenue

$146.9 million

Up $82.8 million, or 129%, from the prior-year comparable quarter

Operating loss

$11.8 million

Compared with prior-year operating income of $5.5 million

Adjusted EBITDA

$4.4 million

Compared with $7.9 million in the prior-year comparable quarter

Loss before income taxes

$16.2 million

Compared with prior-year income before income taxes of $7.2 million

Net loss per share

$7.48

Compared with prior-year net income per share of $1.61

Rex Adjusted EBITDA

approximately $0.9 million loss

On $56.8 million of quarterly revenue

Historical Context

1 past event · Latest: Aug 14

1 event

1. Aug 14

   earnings report

   24h Move

   -5.5%

   Revenue rose 63% while operating results shifted to a loss and Adjusted EBITDA declined year over year.

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

Key Terms

non-gaap financial measure, equity method investees, earnout remeasurement

3 terms

non-gaap financial measure financial

"Adjusted EBITDA is a non-GAAP financial measure"

A non-GAAP financial measure is a way companies present their financial results that excludes certain expenses or income to show how they believe their core business is performing. It matters because it can give a clearer picture of how the company is really doing, but it can also be used to make results look better than they actually are.

equity method investees financial

"The investment balance for the Company's equity method investees"

Equity method investees are companies in which an investor owns a substantial minority stake and can influence decisions but does not control them, typically through holding around 20–50% of voting shares. The investor records its share of the investee’s profits or losses on its own income statement and adjusts the carrying value of the investment, similar to reporting your share of profits from a jointly owned shop. For investors, these holdings matter because they affect reported earnings, balance-sheet exposure, and the firm’s economic risk without full consolidation of the investee’s assets and liabilities.

earnout remeasurement financial

"include an unfavorable earnout remeasurement of $3.3 million"

An earnout remeasurement is the post-acquisition adjustment of the recorded value of contingent consideration (an “earnout”) that a buyer may owe to a seller if future performance targets are met. It reflects updated estimates or changes in fair value after the acquisition and, under common accounting rules, is remeasured only when the contingent payment is classified as a liability or asset (not when classified as equity), with subsequent gains or losses typically recognized in the acquirer’s profit or loss.

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

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CHARLOTTE, NC / ACCESS Newswire / November 13, 2026 / Air T, Inc. (NASDAQ:AIRT) is an industrious American company with a portfolio of businesses, each of which is independent yet interrelated. We seek dynamic individuals and teams to operate companies with processes and insights that drive increasing value over time. We believe we can invest corporate resources to help activate growth and overcome challenges.

Our core segments are regional airline, overnight air cargo; commercial aircraft, engines and parts; ground support equipment; digital solutions; and aviation leasing and asset management.

Today, Air T announced results for the fiscal second quarter ended September 30, 2026:

• Revenues totaled $146.9 million for the quarter ended September 30, 2026, an increase of $82.8 million, or 129% from the prior year's comparable quarter. Revenues for the quarter ended September 30, 2026 included $56.8 million related to our acquisition of Regional Express Holdings Pty Ltd ("Rex") completed on December 18, 2025.
• Operating loss was $11.8 million for the quarter ended September 30, 2026, compared to the prior year's comparable quarter's operating income of $5.5 million.
• Loss before income taxes was $16.2 million for the quarter ended September 30, 2026, compared to income before income taxes of $7.2 million in the prior year's comparable quarter.
• Adjusted EBITDA* was $4.4 million for the quarter ended September 30, 2026, compared to $7.9 million in the prior year's comparable quarter.
• The investment balance for the Company's equity method investees was $26.2 million at September 30, 2026, compared to $27.9 million at September 30, 2025.
• Net loss per share was $7.48 for the quarter ended September 30, 2026, compared to net income per share of $1.61 in the prior year's comparable quarter.

*Adjusted EBITDA is a non-GAAP financial measure; see below for further explanation and reconciliation to GAAP measure.

Company Chairman and CEO Nick Swenson commented:

"While focused in one sector and with some interdependencies, Air T can be viewed as a set of businesses that operate independently of one another. The quarter just passed is an example of widely variable operational dynamics across our businesses. Several of our businesses, including Crestone and GGS, performed quite well in absolute terms and against comparables in the quarter. Crestone has particularly strong momentum at the moment. Rex financial performance was notably challenged in the quarter due to a combination of unscheduled engine removals, delays at engine overhaul shops and a doubling of fuel costs compared to pre-war levels. Adding back the large quarterly depreciation expense at Rex, we see an Adjusted EBITDA loss of approximately $0.9 million on $56.8 million of revenues for the quarter. Management continues to support business leaders as they navigate areas of risk management and growth management."

Business Segment Results

Regional Airline

• This segment provides scheduled regional passenger and cargo airline services in Australia, operating a fleet of aircraft serving regional communities and connecting passengers to major metropolitan centers.
• Revenues for this segment were $56.8 million for the quarter ended September 30, 2026, representing a full quarter of Rex operations, which was acquired on December 18, 2025. There is no prior-year comparable. Revenue consisted of passenger revenue, ancillary fees, freight and charter, and government subsidy income.
• Adjusted EBITDA* loss for this segment was $0.9 million for the quarter ended September 30, 2026. The significant add-backs to this segment's operating loss of $10.0 million include $9.4 million of depreciation and amortization. Fuel expense continued to be the primary driver of the loss, with the increase driven principally by higher per-liter fuel prices rather than increased consumption. Rex does not hedge its fuel price or related Australian dollar/U.S. dollar exposure and purchases fuel at prevailing market prices, mitigating higher costs through fare adjustments, capacity management, and fuel levy arrangements with certain state governments. Higher unscheduled engine removals, together with lower engine throughput from third-party maintenance, repair and overhaul providers, also contributed to the loss by reducing the number of aircraft available for service below planned levels.

Overnight Air Cargo

• This segment provides air express delivery services, primarily for FedEx Corporation, and repair services.
• Revenues for this segment totaled $34.5 million period ended September 30, 2026, an increase of $3.5 million compared to the second quarter of the prior fiscal year. The increase was principally attributable to higher pricing on flight administrative fees and billable labor at Mountain Air Cargo ("MAC").
• Adjusted EBITDA* for this segment was $2.6 million for the quarter ended September 30, 2026, an increase of $0.8 million when compared to the prior year's comparable quarter. The increase was mainly driven by higher revenue. In addition, higher gross margins related to both flight operations and maintenance at MAC drove operating income and Adjusted EBITDA higher.

Commercial Aircraft, Engines and Parts

• This segment acquires, leases, manages, repairs, disassembles, and sells commercial aircraft, jet engines, and aviation components, and provides related asset management, procurement, overhaul, repair, and logistics services.
• Revenues for this segment totaled $28.5 million for the quarter ended September 30, 2026, an increase of $7.0 million from the comparable prior year quarter. The increase was largely attributable to increased component sales at Contrail, primarily driven by an increase in sales to a single customer. Landing Gear Support Services, Inc. ("LGSS") and AirCo also contributed to the revenue growth due to strategic investments in aircraft inventory that were not in place during the prior year comparable quarter. Jet Yard saw reduced revenue, primarily due to the prior year quarter's revenue including some larger projects that did not recur in the current quarter.
• Adjusted EBITDA* for this segment was $1.5 million for the quarter ended September 30, 2026, compared to adjusted EBITDA* of $6.9 million in the prior year's comparable quarter. The decrease was primarily attributable to a $7.0 million gain on sale of aircraft in the prior year quarter, which did not recur in the current quarter. Partially offsetting the impact of this transaction was the overall revenue increase in this segment.

Ground Support Equipment

• This segment-which includes some of the world-leading offerings in the category-manufactures, repairs, and maintains mobile deicers and other specialized ground-support equipment. Customers include passenger and cargo airlines, airports, the military, and other industrial customers.
• Revenues for this segment totaled $18.9 million for the quarter ended September 30, 2026, an increase of $9.2 million from $9.6 million in the prior year's comparable quarter. The increase was primarily driven by a higher number of deicing trucks sold in the current quarter as a result of timing on fulfilling annual orders for a large customer.
• Adjusted EBITDA* for this segment was $2.7 million in the quarter ended September 30, 2026, compared to adjusted EBITDA* of $1.7 million in the prior year's comparable quarter. The increase was primarily attributable to the higher sales from timing of revenues as noted above.
• At September 30, 2026, this segment's order backlog was $11.6 million compared to $12.9 million at September 30, 2025.

Digital Solutions

• This segment develops and provides digital aviation and other business services to customers within the aviation industry to generate recurring subscription revenues.
• The digital solutions segment contributed $2.6 million of revenues for the quarter ended September 30, 2026, compared to $2.2 million in the prior year's comparable quarter. The increase of $0.4 million was primarily due to continued growth in data analytics and airspace management engagements.
• Adjusted EBITDA* for this segment was $0.1 million for the quarter ended September 30, 2026, an increase of $0.2 million from the prior year's comparable quarter. The improvement was primarily driven by two factors: revenue growth at high incremental margins and lower labor costs as AI-driven tools improved efficiency.

Aviation Leasing and Asset Management

• This segment originates and structures asset acquisitions and related financings and provides lease administration, technical and risk management, and remarketing services for aircraft and engines on lease to airline customers globally.
• The aviation leasing and asset management segment revenues totaled $7.8 million for the quarter ended September 30, 2026, representing a full quarter of activity for Crestone and Arena, which made up the segment as of the acquisition of Arena on June 10, 2026. There is no prior year comparable quarter. Revenue consisted of origination, due diligence, disposition, and asset management fees.
• Adjusted EBITDA* for this segment was $1.3 million for the quarter ended September 30, 2026, representing a full quarter of operations after the Arena acquisition and quarter-to-date activity related to Crestone Air Partners. The largest reconciling items between Adjusted EBITDA and this segment's operating loss of $4.7 million include an unfavorable earnout remeasurement of $3.3 million, depreciation and amortization add-backs of $2.2 million, and post-acquisition integration costs of $0.5 million.

*Adjusted EBITDA is a non-GAAP financial measure; see below for further explanation and reconciliation to GAAP measures.

Non-GAAP Financial Measures

The Company uses Adjusted EBITDA, a non-GAAP financial measure, to evaluate the Company's financial performance. The Company defines Adjusted EBITDA as operating income (loss), adjusted for the items shown in the reconciliation below.

Management believes that Adjusted EBITDA is a useful measure of the Company's performance because it provides investors additional information about the Company's operations allowing better evaluation of underlying business performance and better period-to-period comparability. We may periodically review and update our non-GAAP financial measures based on our determination of their relevance to our business which could result in the addition or elimination of select non-GAAP financial measures in the future. Adjusted EBITDA is not intended to replace or be an alternative to operating (loss) income, the most directly comparable GAAP measure.

The following table provides a reconciliation of operating (loss) income to Adjusted EBITDA (in thousands):

		Three Months Ended September 30,								Six Months Ended September 30,
		2026				2025				2026				2025
Operating (loss) income		$	(11,804	)		$	5,508			$	(24,626	)		$	6,354
Depreciation and amortization (excluding certain leased assets depreciation)1			12,311				730				22,196				1,432
Asset impairment, restructuring or impairment charges			63				198				93				239
(Gain) loss on sale of property and equipment			(226	)			21				(226	)			20
Securities issuance expenses			38				20				49				49
Share-based compensation			40				41				88				81
Earnout remeasurement			3,402				(264	)			3,402				(666	)
Acquisition and deal-sourcing expenses			2				1,628				2,956				1,837
Post-acquisition integration costs			545				-				1,245				-
Adjusted EBITDA		$	4,371			$	7,882			$	5,177			$	9,346
(1) There was no depreciation expense for leased assets to exclude for the three and six months ended September 30, 2026, respectively. For the three and six months ended September 30, 2025, leased assets depreciation expense excluded was $0.1 million and $0.7 million, respectively.

The following table provides the Company's Adjusted EBITDA (in thousands):

		Three Months Ended September 30,								Six Months Ended September 30,								Change
		2026				2025				2026				2025				QTD				YTD
Regional Airline		$	(949	)		$	-			$	970			$	-			$	(949	)		$	970
Overnight Air Cargo			2,609				1,802				4,705				3,413				807				1,292
Commercial Aircraft, Engines and Parts			1,531				6,882				988				7,544				(5,351	)			(6,556	)
Ground Support Equipment			2,707				1,653				2,498				3,027				1,054				(529	)
Digital Solutions			97				(65	)			515				(108	)			162				623
Aviation Leasing and Asset Management			1,330				-				1,019				-				1,330				1,019
Reportable segments total			7,325				10,272				10,695				13,876				(2,947	)			(3,181	)
Corporate and Other			(3,189	)			(2,532	)			(5,867	)			(4,816	)			(657	)			(1,051	)
Intersegment eliminations			235				142				349				286				93				63
Consolidated Air T, Inc.		$	4,371			$	7,882			$	5,177			$	9,346			$	(3,511	)		$	(4,169	)

NOTE REGARDING STAKEHOLDER 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 website, to submit your questions. We intend to keep that link open and available for shareholder questions. Questions submitted through Slido will be answered "live" and in writing at our Annual Meeting, and via a written response on a quarterly basis. Note that legal and pragmatic requirements restrict us from answering every question posted, yet we intend to address all reasonable and relevant questions with a written answer.

ABOUT AIR T, INC.

Established in 1980, Air T, Inc. is a portfolio of powerful businesses and financial assets, each of which is independent yet interrelated. Its core segments are 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 Air T's after-tax cash flow per share. Our goal is to build Air T's core businesses, and when appropriate, to expand into adjacent and other industries. We seek to activate growth and overcome challenges while delivering meaningful value for all stakeholders. For more information, visit www.airt.com. The information on our website is available for information purposes only and is not incorporated by reference into this press release.

FORWARD-LOOKING STATEMENTS

Certain statements in this press release are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the Company's financial condition, results of operations, plans, objectives, future performance and business. Forward-looking statements include those preceded by, followed by or that include the words "believes", "pending", "future", "expects," "anticipates," "estimates," "depends" or similar expressions. These forward-looking statements involve risks and uncertainties. Actual results may differ materially from those contemplated by such forward-looking statements, because of, among other things, potential risks and uncertainties, such as:

• An inability to finance our operations through bank or other financing or through the sale or issuance of debt or equity securities;
• Economic and industry conditions in the Company's markets;
• The risk that contracts with FedEx Corporation ("FedEx") could be terminated or adversely modified;
• The risk that the number of aircraft operated for FedEx will be reduced;
• The risk that Global Ground Support ("GGS") customers will defer or reduce significant orders for deicing equipment;
• The impact of any terrorist activities or armed conflict on United States soil or abroad;
• Changes in U.S. and foreign trade regulations and tariffs;
• The Company's ability to manage its cost structure for operating expenses, or unanticipated capital requirements, and match them to shifting customer service requirements and production volume levels;
• The Company's ability to meet debt service covenants and to refinance existing debt obligations;
• The risk of injury or other damage arising from accidents involving the Company's overnight air cargo operations, equipment or parts sold and/or services provided;
• Market acceptance of the Company's commercial and military equipment and services;
• Competition from other providers of similar equipment and services;
• Changes in government regulation and technology;
• The risk that we may not successfully integrate Regional Express Holdings Pty Ltd ("Rex") (including financial reporting, systems, and personnel), which could adversely affect our results and reporting;
• The risk that Rex's revenues and operating costs may be volatile or unpredictable and that we may be unable to offset cost increases or revenue decreases through pricing, surcharges, cost reductions, or other measures, which could adversely affect our results;
• The risk that Rex may be unable to return aircraft to service on anticipated timelines, to retain regulated route contracts and protected airport slots, or to maintain compliance with the Rex Regional Commitments under the Commonwealth Facilities;
• The risk that the bargain purchase gain recognized in connection with the Rex acquisition may increase scrutiny by investors, regulators, creditors, or other parties regarding the valuation assumptions and accounting judgments used in determining the purchase price allocation and bargain purchase gain;
• The risk that Rex's operations are subject to extensive regulation and oversight and that compliance failures or adverse regulatory actions could materially harm our business and results;
• The risk that the Rex transaction structure, including the Australian DOCA/administration process, could result in unexpected liabilities, claims, or delays that could materially harm our results and liquidity;
• Changes in the value of marketable securities held as investments;
• Mild winter weather conditions reducing the demand for deicing equipment;
• Market acceptance and operational success of the Company's aircraft asset management business and related aircraft joint ventures; and
• Despite our current indebtedness levels, we and our subsidiaries may still be able to incur substantially more debt, which could further exacerbate the risks associated with our substantial leverage.

We also wish to caution investors that other factors might in the future prove to be important in affecting our results of operations. New factors emerge from time to time. It is not possible for management to predict all of such factors, nor can it assess the impact of each such factor on the business or the extent to which any factor, or a combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

We undertake no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

CONTACT

Tracy Kennedy
Chief Financial Officer
tkennedy@airt.com

SOURCE: Air T, Inc.

View the original press release on ACCESS Newswire

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Air T's fiscal second-quarter 2027 revenue and earnings results?

Air T reported $146.9 million in revenue and a $7.48 loss per share for the quarter ended September 30, 2026. Revenue increased 129% year over year, while the per-share result reversed from earnings of $1.61 in the prior-year quarter.

Why did Air T's Rex airline business lose money in fiscal second-quarter 2027?

Higher fuel prices were the primary driver of Rex's loss, while unscheduled engine removals and slower maintenance-provider throughput reduced aircraft availability below planned levels. The fuel-cost increase principally reflected higher prices per liter rather than greater consumption. Rex does not hedge fuel prices or related Australian dollar/U.S. dollar exposure.

How does Air T address higher fuel costs at Rex?

Rex addresses higher fuel costs through fare adjustments, capacity management and fuel levy arrangements with certain state governments. It purchases fuel at prevailing market prices rather than hedging fuel prices or the related Australian dollar/U.S. dollar exposure.