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AIR T INC (AIRT)·Q1 2026 Earnings Summary

Executive Summary

  • Q1 FY2026 delivered solid YoY improvement: revenue rose 7% to $70.9M, operating income swung to a $0.4M profit from a $0.6M loss, and Adjusted EBITDA increased to $1.5M from $0.9M, driven by strength in Ground Support Equipment and stable Overnight Air Cargo .
  • Segment mix: GGS revenue more than doubled YoY to $15.1M with a $1.4M Adjusted EBITDA profit; Overnight Air Cargo revenue was stable at $30.6M; Commercial Aircraft, Engines & Parts softened on lower component sales; Digital Solutions grew modestly with improving losses .
  • No formal guidance ranges were issued; management emphasized execution against the annual plan and ongoing strategic initiatives to drive long-term value .
  • Consensus estimates appear unavailable (S&P Global coverage limited), so no definitive beat/miss versus Street; near-term narrative catalysts include GGS demand normalization and portfolio actions highlighted in subsequent quarter commentary (Contrail deleveraging; Rex Regional engagement) .

What Went Well and What Went Wrong

What Went Well

  • Ground Support Equipment (GGS) delivered a sharp YoY rebound: revenue up 105% to $15.1M and Adjusted EBITDA improved by ~$1.9M to a $1.4M profit, supported by higher deicing truck sales and better margins .
  • Overnight Air Cargo revenue held steady at $30.6M and the company returned to positive operating income; CEO: “Management is pleased with the company’s performance in the June Quarter… developing several strategic initiatives which we believe will drive long term value creation.” .
  • Digital Solutions grew revenue to $2.1M (+$0.4M YoY) with improved Adjusted EBITDA loss (-$0.1M vs -$0.3M), indicating traction in recurring software subscriptions .

What Went Wrong

  • Commercial Aircraft, Engines & Parts revenue fell to $22.0M (-$4.3M YoY) and Adjusted EBITDA declined to $0.8M (-$0.9M YoY), driven by lower component sales and weaker parts margins; lease income helped offset softness .
  • Overnight Air Cargo Adjusted EBITDA decreased $0.3M YoY to $1.6M, with lower margins on maintenance revenue pressuring profitability .
  • GGS backlog was $7.2M at 6/30/2025, below $9.9M at 6/30/2024, suggesting timing variability and potential demand normalization following a strong sales quarter .

Financial Results

Consolidated financials vs prior quarters

Values marked with * retrieved from S&P Global.

MetricQ3 2025Q4 2025Q1 2026
Revenue ($USD Millions)$77.9 $63.5*$70.9
Operating Income ($USD Millions)$1.8 -$2.8*$0.446
Adjusted EBITDA ($USD Millions, non-GAAP)$2.7 N/A$1.466
Diluted EPS - Continuing Ops ($USD)-$0.47*-$2.57*-$0.61*
EBITDA ($USD Millions)$3.1*-$1.5*$1.73*
EBITDA Margin (%)4.0%*-2.2%*2.4%*
Net Income Margin (%)-1.7%*-10.6%*-2.3%*

Values retrieved from S&P Global.*

Notes:

  • Q1 FY2026 non-GAAP reconciliation: Operating income $0.446M; add-backs include depreciation/amortization $0.702M (excl. leased assets), impairment $0.040M, securities issuance $0.030M, share-based comp $0.039M, deal-sourcing $0.210M, etc., yielding Adjusted EBITDA $1.466M .
  • Q3 FY2025 Adjusted EBITDA was $2.692M; operating income $1.816M, with detailed non-GAAP add-backs disclosed .

Segment breakdown

SegmentQ1 2026 Revenue ($USD Millions)Q1 2026 Adj. EBITDA ($USD Millions)Q2 2026 Revenue ($USD Millions)Q2 2026 Adj. EBITDA ($USD Millions)
Overnight Air Cargo$30.6 $1.6 $29.9 $1.8
Ground Support Equipment (GGS)$15.1 $1.4 $9.6 $1.7
Commercial Aircraft, Engines & Parts$22.0 $0.8 $20.9 $6.9
Digital Solutions$2.1 -$0.1 $2.2 -$0.2

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY2026/Q2-Q4None providedNone providedMaintained (no formal guidance)
MarginsFY2026/Q2-Q4None providedNone providedMaintained (no formal guidance)
OpEx/Operating IncomeFY2026/Q2-Q4None providedNone providedMaintained (no formal guidance)
Tax rateFY2026None providedNone providedMaintained (no formal guidance)
Segment-specificFY2026None providedNone providedMaintained (no formal guidance)
DividendsFY2026None providedNone providedMaintained (no formal guidance)

Management emphasized executing against the annual plan and strategic initiatives but did not issue quantitative guidance ranges .

Earnings Call Themes & Trends

Note: No traditional Q1 FY2026 earnings call transcript found; Air T directs Q&A via Slido and addresses questions at the Annual Meeting and via quarterly written responses .

TopicPrevious Mentions (Q-2: Q3 FY2025; Q-1: FY2025 results)Current Period (Q1 FY2026)Trend
GGS demand/marginsWeak deicer sales industry-wide; product development ongoing; Q3 FY2025 GGS revenue $11.8M and Adj. EBITDA $0.2M; backlog $12.9M at 12/31/2024 Strong rebound: revenue $15.1M (+105% YoY) and Adj. EBITDA $1.4M; backlog $7.2M (vs $9.9M prior-year) Improving sales/margins; backlog normalized from prior peaks
Overnight Air Cargo & FedEx dynamicsFleet increased to 105 aircraft vs 85 YoY; revenue $30.6M; stable Adj. EBITDA $2.0M in Q3 FY2025 Revenue steady at $30.6M; Adj. EBITDA down $0.3M YoY on lower maintenance margins Stable revenue; margin pressure on maintenance
Commercial Aircraft/Parts (Contrail/CASP)Q3 FY2025 strong component sales; segment revenue $32.7M; Adj. EBITDA $2.9M Q1 FY2026 lower component sales; revenue $22.0M; Adj. EBITDA $0.8M; lease income partially offsets Softer component sales; lease income supportive
Digital Solutions subscriptionsContinued growth; contributes to Corporate/Other in Q3 FY2025 Revenue $2.1M (+$0.4M YoY); improving Adj. EBITDA loss Gradual growth; improving profitability
Strategic portfolio actionsFY2025: segment renaming/recast; broader initiatives; optimism Management focusing on annual plan; longer-term value creation Ongoing execution; portfolio optimization continues
Subsequent quarter strategic updatesN/A in Q3/FY25Q2 FY2026: Contrail eliminated bank debt; potential Rex Regional acquisition engagement Positive deleveraging; potential M&A catalyst forming

Management Commentary

  • CEO Nick Swenson: “Management is pleased with the company’s performance in the June Quarter. We are working hard to execute on our annual plan and developing several strategic initiatives which we believe will drive long term value creation.”
  • Non-GAAP policy reminder: Adjusted EBITDA used to better evaluate underlying operations; leased assets depreciation excluded from the non-GAAP add-back in certain cases (e.g., $0.6M excluded in Q1) .
  • Q2 FY2026 forward-looking commentary (context for trajectory): “Contrail has… eliminated all of its bank debt… well positioned if the secondary market for end of life and low green time engines starts to soften… engaging with various parties about Rex Regional Airlines… If courts approve… expect to close… in December.”

Q&A Highlights

  • No earnings call transcript available for Q1 FY2026. Air T directs stakeholder questions through Slido, answered at the Annual Meeting and via quarterly written responses; management notes legal/pragmatic limits on response scope .
  • No analyst Q&A or guidance clarifications were published for Q1 FY2026 in primary documents .

Estimates Context

  • S&P Global consensus coverage appears limited for AIRT in Q1 FY2026; EPS and number of estimates unavailable, preventing beat/miss assessment. Revenue consensus also not available; Street comparisons not feasible this quarter [GetEstimates].
MetricQ1 2026
Primary EPS Consensus MeanN/A
Revenue Consensus MeanN/A
Primary EPS – # of EstimatesN/A
Revenue – # of EstimatesN/A

Values retrieved from S&P Global.*

Implication: With limited coverage, investor focus should shift to segment trends, non-GAAP reconciliation quality, and operational drivers rather than consensus deltas this quarter.

Key Takeaways for Investors

  • Mix shift favors GGS: strong sales and margin expansion in deicers drove the consolidated YoY improvement; watch backlog normalization ($7.2M vs $9.9M prior-year) and order timing into seasonally stronger periods .
  • Overnight Air Cargo remains resilient but margins on maintenance are a watch item; stable revenue with small Adj. EBITDA pressure suggests capacity/maintenance mix is impacting profitability .
  • Commercial Aircraft/Parts softness is tied to lower component sales and margin compression; lease income provided partial offset. Monitor Contrail inventory purchasing cadence and aftermarket dynamics .
  • Digital Solutions continues to build recurring revenue with improving losses; subscriptions are scaling, offering potential steady growth contribution .
  • Non-GAAP reconciliation shows deal-sourcing and other specific items; understanding these adjustments is critical to assessing true operating momentum (e.g., $0.210M deal-sourcing; $0.040M impairment; $0.702M D&A in Q1) .
  • No formal guidance and limited Street coverage increase the importance of management execution signals and subsequent disclosures; potential catalysts from Q2 commentary include Contrail deleveraging and the Rex Regional process .
  • Near-term trading implication: favor exposure tied to GGS seasonal demand and OAC stability; medium-term thesis hinges on successful portfolio optimization and normalization in component markets .

KPIs and Operational Metrics

KPIQ1 2026Prior Periods
GGS Order Backlog ($USD Millions)$7.2 at 6/30/2025 $9.9 at 6/30/2024 ; $12.9 at 9/30/2025
Equity Method Investees Balance ($USD Millions)$19.9 at 6/30/2025 $19.0 at 3/31/2025 ; $27.9 at 9/30/2025
FedEx Fleet (OAC)Stable operations105 aircraft vs 85 prior-year at 12/31/2024

Cross-References and Adjustments

  • Q1 FY2026 Adjusted EBITDA reconciliation components explicitly disclosed; leased assets depreciation excluded ($0.6M) in the period .
  • Q3 FY2025 provided detailed non-GAAP reconciliation and segment EBITDA; useful for trend comparison across quarters .

Additional Notes

  • Subsequent quarter (Q2 FY2026) showcased a stronger profit profile (Operating income $5.5M; Adjusted EBITDA $7.9M; EPS $1.61) driven by gains on aircraft sales and segment contributions, informing trajectory into the second half .