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AIR T INC (AIRT)·Q4 2025 Earnings Summary

Executive Summary

  • Q4 FY2025 saw sequential revenue decline to $63.5M*, with gross margin stable at ~22.5%; quarterly EPS was a loss of $2.57, and FY2025 loss per share was $2.23, modestly better than FY2024 loss per share of $2.42 .
  • FY2025 Adjusted EBITDA improved to $7.4M and operating income to $1.9M, while segment recast added a new “Digital Solutions” disclosure and clarified segment naming, aiding transparency .
  • Segment dynamics: Commercial Aircraft, Engines & Parts revenue fell YoY (FY) amid scarce whole asset supply and extended in-service lives, but segment Adjusted EBITDA rose on higher-margin component packages . Ground Support Equipment backlog rose to $14.3M (vs $12.6M) despite a softer deicer selling environment .
  • No formal quantitative guidance was issued; the company emphasized ongoing initiatives and optimism. Near-term catalysts include component demand tied to airlines maintaining older fleets, FedEx fleet activity, and scaling of digital subscription revenues .

What Went Well and What Went Wrong

What Went Well

  • Commercial Aircraft, Engines & Parts delivered higher FY Adjusted EBITDA ($9.8M vs $6.1M) on increased component package sales with stronger gross profit .
  • Ground Support Equipment backlog expanded to $14.3M (vs $12.6M), and Q3 segment revenue grew 40% YoY with positive Adjusted EBITDA on higher deicer and parts/service volumes .
  • Management’s tone: “We have a number of important initiatives in the works... gaining traction with several new products and marketing channels. We are optimistic about the future.” (Nick Swenson, CEO) .

What Went Wrong

  • FY revenue in Commercial Aircraft, Engines & Parts decreased by $7.3M due to fewer whole assets available and operators keeping older aircraft in service longer, reducing teardown/resale opportunities .
  • Overnight Air Cargo FY Adjusted EBITDA declined by $0.3M due to increased loss provisioning and additional taxes related to Puerto Rico operations, despite revenue growth and higher FedEx pass-through .
  • Q4 FY2025 quarterly profitability was weak: EBITDA margin of -2.23%* and EPS loss of $2.57*, reflecting end-of-year mix and expense items; FY net income remained negative *.

Financial Results

Quarterly Performance (sequential)

MetricQ2 2025Q3 2025Q4 2025
Revenue ($USD Millions)$81.2 $77.9 $63.5*
Diluted EPS ($USD)$0.91 -$0.47*-$2.57*
Gross Margin (%)23.45%*22.25%*22.54%*
EBITDA ($USD Millions)$4.85*$3.15*-$1.48*
EBITDA Margin (%)6.0%*4.0%*-2.23%*

Year-over-Year for Q4

MetricQ4 2024Q4 2025
Revenue ($USD Millions)$70.4*$63.5*
Diluted EPS ($USD)-$0.61*-$2.57*
Gross Margin (%)22.82%*22.54%*
EBITDA Margin (%)2.98%*-2.23%*

Values with an asterisk were retrieved from S&P Global.

Adjusted EBITDA (Non-GAAP)

MetricQ2 2025Q3 2025FY 2025
Adjusted EBITDA ($USD Millions)$5.0 $2.7 $7.36

Segment Breakdown (FY2025)

SegmentRevenue ($USD Millions)Adjusted EBITDA ($USD Millions)Notes
Overnight Air Cargon/a (revenue +$8.5M YoY) $6.81 Pass-through costs rose to $39.9M (vs $36.4M)
Ground Support Equipment$38.9 -$0.77 Backlog $14.3M (vs $12.6M)
Commercial Aircraft, Engines & Parts$118.2 $9.83 Higher gross profit from component packages
Digital Solutions$7.3 -$0.27 Increased subscription revenues
Corporate & Other—-$8.23 Consolidated businesses and smaller interests

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY/Q4 FY2025Not providedNot providedMaintained (no formal guidance issued)
MarginsFY/Q4 FY2025Not providedNot providedMaintained (no formal guidance issued)
OpExFY/Q4 FY2025Not providedNot providedMaintained (no formal guidance issued)
Tax RateFY/Q4 FY2025Not providedNot providedMaintained (no formal guidance issued)
DividendsFY/Q4 FY2025Not providedNot providedMaintained (no formal guidance issued)

No quantitative guidance was disclosed in the Q4 FY2025 materials .

Earnings Call Themes & Trends

Note: No earnings call transcript was available for Q4 FY2025. Narrative drawn from press releases.

TopicPrevious Mentions (Q2 FY2025)Previous Mentions (Q3 FY2025)Current Period (Q4 FY2025)Trend
Deicer demand / GGS marketWarmer winter; election uncertainty affecting sales; backlog $9.1M Revenue +40% YoY; backlog $12.9M; positive adj. EBITDA Backlog $14.3M; slight adj. EBITDA loss FY; expectation of rebound Improving backlog; mixed profitability
Airlines keeping older fleetsContrail component sales strong (737NG/A320CEO); OEM delivery delays Higher component sales; operating income at Contrail rose Whole asset supply tight; older aircraft remain in service; component packages drove margin Supportive for components; headwind for whole assets
FedEx fleet / pass-throughFleet increased to 105; admin fees up Fleet at 105; overnight revenue +5% Pass-through costs up to $39.9M; overnight revenue up YoY Stable-to-positive activity
Digital solutionsSubscriptions growing (Shanwick) Continued steady growth expected FY revenue $7.3M; segment separately disclosed; scaling personnel Scaling; investing for growth
Equity method investees / CAMCAM AUM $410.4M; equity investee net income to AIRT $2.3M in Q2 Investee balance $18.7M Investee balance $19.0M at FY-end Growing exposure

Management Commentary

  • “Air T is working to build shareholder value each and every day… we are gaining traction with several new products and marketing channels. We are optimistic about the future.” — Nick Swenson, CEO .
  • “Aviation assets are rising in value… requiring careful calibration of future expectations… Contrail has deleveraged significantly… Crestone has both sold aviation assets and added net assets to the portfolio…” .
  • “Results for the quarter were driven by strong margins in our aviation parts trading business… GGS’s great team is primed with new products and services; and we expect them to rebound with the market…” .

Q&A Highlights

  • No Q4 FY2025 earnings call transcript was available. The company directed stakeholders to submit questions via Slido, to be addressed at the Annual Meeting and with quarterly written responses .
  • No additional guidance clarifications or live Q&A themes were published in Q4 materials .

Estimates Context

  • S&P Global consensus for Q4 FY2025 appeared unavailable: no Primary EPS Consensus Mean, no Revenue Consensus Mean returned for forward comparison; only actual revenue populated. As a result, explicit beat/miss vs Street cannot be determined for Q4 FY2025 from SPGI data.
  • Given the absence of consensus, investors should focus on sequential deterioration in quarterly EPS and EBITDA and the FY non-GAAP improvements, assessing sustainability into FY2026 *.

Values with an asterisk were retrieved from S&P Global.

Key Takeaways for Investors

  • Near-term: Focus on component sales strength and margins within Commercial Aircraft, Engines & Parts as airlines extend fleet lives; this remains a key earnings lever despite tighter whole asset supply .
  • Watch GGS backlog progression and deicer demand normalization into the next selling season; backlog improved through FY-end even as profitability lagged .
  • Overnight Air Cargo trends tied to FedEx fleet/admin fees and pass-through mechanics; rising pass-through costs and tax items impacted segment Adjusted EBITDA, but revenue momentum persisted .
  • Digital Solutions is scaling with subscription growth and increased personnel; segment separation highlights a potential recurring-revenue driver as operations mature .
  • Equity method investees (incl. CAM/CJVII) expanded exposure; monitor cash distributions and AUM growth as contributors to consolidated results and capital allocation flexibility .
  • With no formal guidance, triangulate expected trajectory using segment commentary and prior-quarter run-rates; sequential softness in Q4 metrics warrants caution on near-term earnings prints, while FY non-GAAP improvements suggest underlying operational progress *.
  • Trading lens: Stock narrative likely pivots on evidence of component margin durability, GGS backlog-to-sales conversion, and any updates on asset availability and FedEx network activity—key catalysts for estimate revisions and sentiment .