Air T, Inc. Reports Fiscal 2026 Results (Form 8-K)

Air T, Inc. Reports Fiscal 2026 Results

CHARLOTTE, NC, June 29, 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 overnight air cargo; ground support equipment; commercial aircraft, engines and parts; digital solutions; and regional airline.

Today, Air T announced results for the fiscal year ended March 31, 2026:

•Revenues totaled $327.1 million for the fiscal year ended March 31, 2026, an increase of $35.2 million, or 12% from the prior fiscal year. Revenues for the fiscal year ended March 31, 2026 included $55.3 million related to our acquisition of Regional Express Holdings Pty Ltd ("Rex") completed on December 18, 2025.

•Operating loss was $11.2 million for the fiscal year ended March 31, 2026, compared to operating income in the prior fiscal year of $1.9 million.

•Earnings before income taxes were $86.0 million for the fiscal year ended March 31, 2026, compared to a loss before income taxes of $5.0 million in the prior fiscal year. Results for the fiscal year ended March 31, 2026 include a $111.2 million non-cash bargain purchase gain related to the Rex acquisition. The gain does not represent cash generated by Rex or operating income from Rex's business.

•Adjusted EBITDA* was $10.1 million for the fiscal year ended March 31, 2026, compared to $7.4 million in the prior fiscal year.

•The investment balance for the Company's equity method investees was $26.1 million at March 31, 2026, compared to $19.0 million at March 31, 2025.

•Net income per share was $28.85 for the fiscal year ended March 31, 2026, compared to net loss per share of $2.23 for the prior fiscal year. As noted above, fiscal year 2026 results include a $111.2 million non-cash pre-tax bargain purchase gain related to the Rex acquisition.

*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:

"Air T's fiscal 2026 represents an important year of transformation. The completion of the Rex acquisition and Crestone's merger with Arena in the first quarter of fiscal 2027 will be transformative to our long-term balance sheet and income statement. Our current year results were subject to significant expenses associated with the Rex acquisition, and just over three months of Rex's operating activity in our income statement during their seasonally slow summer. We believe that both acquisitions will be significant positive generators of shareholder value over time.

Moreover, we believe our allocator-operator model - making space for dynamos- continues to be an intangible driver of shareholder value. Leaders are motivated when they have their own ship to sail on a course of their choosing.

We know that Air T is difficult to understand and clearly some will put us in the "too hard" pile. And while it's certainly possible we are too optimistic, our perception is that the underlying businesses in the Air T portfolio have continued to perform well and are set on a course to build per share value over time."

Business Segment Results

Overnight Air Cargo

•This segment provides air express delivery services, primarily for FedEx Corporation, and repair services.

•Revenues from the overnight air cargo segment increased by $3.8 million (3%) for the fiscal year ended March 31, 2026 compared to the prior fiscal year. The increase was driven by Worldwide Aircraft Services, Inc. ("WASI") and Royal Aircraft Services, LLC ("Royal"). Royal was acquired in May 2025, driving an additional $1.5 million in revenue with no prior-year comparable. WASI experienced an increase in revenue of $2.8 million, driven by increases in labor revenue from expanded third-party maintenance activity and project-based revenue. Revenues at Mountain Air Cargo, Inc. ("MAC") and CSA Air, Inc. ("CSA") remained relatively consistent with the prior year.

•Adjusted EBITDA* for this segment was $6.9 million for the fiscal year ended March 31, 2026, an increase of $0.1 million when compared to the prior fiscal year, as WASI's substantial improvement offset declines at MAC and CSA.

Ground Support Equipment ("GGS")

•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 $47.2 million for the fiscal year ended March 31, 2026, up 21% versus $38.9 million in the prior fiscal year. The increase was driven primarily by new and expanded deicing contracts and catering equipment sales, partially offset by lower overhaul revenue.

•Adjusted EBITDA* for this segment was $4.3 million in the fiscal year ended March 31, 2026, compared to an adjusted EBITDA* loss of $0.8 million in the prior fiscal year. The improvement reflects an $8.2 million revenue increase generating approximately $6.4 million of incremental gross margin and the elimination of elevated inventory carrying costs and overhead variances that weighed on prior fiscal year results.

•At March 31, 2026, this segment's order backlog was $0.6 million compared to $14.3 million at March 31, 2025. The decrease was driven by the timing of the annual U.S. Air Force order, which was placed in May 2026.

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 $89.9 million for the fiscal year ended March 31, 2026, a decrease of $29.5 million from the prior fiscal year. The decrease was driven primarily by a $38.8 million decrease in component sales at Contrail. The prior fiscal year reflected an elevated level of trading activity not expected to recur at that level in the foreseeable future. The decrease in revenue at Contrail was partially offset by activity at the other companies in this segment. Most notably, Worthington Aviation, LLC ("Worthington") revenues increased by $7.8 million year-over-year, or 23%, to $41.0 million, reflecting maintenance, repair and overhaul ("MRO") volume growth and expansion in Australia. Landing Gear Support Services, Inc. ("LGSS") revenues increased by $1.2 million year-over-year, or 36%, to $4.6 million, driven by a brokered landing gear sale and incremental lease revenue. Jet Yard Companies won new major projects and additional off-site teardown projects.

•Adjusted EBITDA* for this segment was $7.3 million for the fiscal year ended March 31, 2026, compared to $9.2 million in the prior fiscal year. The decrease was primarily attributable to Contrail's revenue-driven decline, partially offset by improvement at Jet Yard Companies and LGSS. The earnout remeasurement gain of $0.7 million and inventory write-down of $0.9 million are recorded within this segment.

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 $9.1 million of revenues for the fiscal year ended March 31, 2026, compared to $7.3 million in the prior fiscal year. The increase of $1.8 million was primarily due to increased revenue of $1.8 million at WorldACD, reflecting growth in data analytics and airspace management engagements. Revenue at Ambry Hills Technology, LLC remained flat at $0.9 million for the fiscal year ended March 31, 2026, with annual recurring revenue at $1.1 million.

•Adjusted EBITDA* loss for this segment was $0.4 million for the fiscal year ended March 31, 2026. Adjusted EBITDA* loss increased by $0.2 million in the current fiscal year, primarily due to WorldACD's improvement being offset by wider losses at Ambry Hills Technology.

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.

•Regional airline revenues for the fiscal year ended March 31, 2026 were $55.3 million, representing the contribution of Rex for the period from its acquisition date of December 18, 2025 through March 31, 2026. There is no prior-year comparable. Revenue consisted of passenger revenue, ancillary fees, freight and charter, and government subsidy income.

•Adjusted EBITDA* for this segment was less than $0.1 million for the fiscal year ended March 31, 2026. The significant add-backs to this segment's operating loss of $14.2 million includes $8.8 million of depreciation and amortization, $2.0 million of non-recurring post-acquisition integration expenses and $3.4 million of landholder duty charges, a one-time transaction-based tax imposed by Australian state and territory governments on the transfer of interests in landholding entities, incurred as a direct result of the acquisition.

*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 earnings before taxes, interest, and depreciation and amortization ("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 depreciation and amortization and the other 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 income, the most directly comparable amounts reported under GAAP.

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

						Year Ended
						March 31, 2026						March 31, 2025
Operating (loss) income						$	(11,197)					$	1,908
Depreciation and amortization (excluding leased assets depreciation)1						11,661						2,998
Inventory write-down and reserves						850						1,463
(Gain) loss on sale of property and equipment						(65)						15
Securities issuance expenses						136						212
Share-based compensation						175						88
Severance expenses						100						244
Earnout remeasurement						(666)						435
Landholder duty charges						3,444						-
Acquisition and integration expenses						5,687						-
Adjusted EBITDA						$	10,125					$	7,363
(1) Depreciation expense of $0.7 million and $1.4 million was excluded for the fiscal years ended March 31, 2026 and 2025, respectively.

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

						Year Ended									Change
						March 31, 2026						March 31, 2025
Mountain Air Cargo, Inc.						$	4,134					$	5,298		$	(1,164)
CSA Air, Inc.						814						863			(49)
Worldwide Aircraft Services, Inc.						2,160						616			1,544
Royal Aircraft Services, LLC						(182)						-			(182)
Overnight Air Cargo						6,926						6,777			149
Contrail Aviation Support, LLC						9,989						12,567			(2,578)
AirCo, LLC, AirCo 1, LLC, AirCo 2, LLC and AirCo Services, LLC						(2,002)						(1,878)			(124)
Worthington Aviation, LLC						(719)						197			(916)
Jet Yard, LLC and Jet Yard Solutions, LLC						(23)						(1,133)			1,110
Air'Zona Aircraft Services, Inc.						132						174			(42)
Landing Gear Support Services, Inc.						(47)						(714)			667
Commercial Aircraft, Engines and Parts						7,330						9,213			(1,883)
Global Ground Support, LLC						4,251						(773)			5,024
Ground Support Equipment						4,251						(773)			5,024
Ambry Hill Technology, LLC						(3,563)						(2,704)			(859)
WorldACD Market Data B.V.						3,135						2,432			703
Digital Solutions						(428)						(272)			(156)
Regional Express Holdings Pty Ltd						10						-			10
Regional Airline						10						-			10
Reportable segments total						18,089						14,945			3,144
Corporate and Other						(8,862)						(8,476)			(386)
Intersegment eliminations						898						894			4
Consolidated Air T, Inc.						$	10,125					$	7,363		$	2,762

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 and digital solutions. 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.