Air T Stock Rises Following Q1 Earnings With Higher Revenue and Loss

Shares of Air T, Inc. AIRT have gained 2.5% since the company reported its earnings for the fiscal year ended June 30, 2025. This compares to the S&P 500 Index’s 0.1% gain over the same time frame. Over the past month, the stock gained 3.2% compared with the S&P 500’s 2.5% rise.AIRT’s Revenue and Earnings PerformanceAir T reported revenues of $70.9 million for the first quarter of fiscal 2026 ended June 30, 2025, up 6.7% from $66.4 million in the prior-year quarter. Despite the revenue growth, AIRT posted a net loss attributable to stockholders of $1.6 million compared with a loss of $0.3 million in the year-ago quarter. Loss per share was $0.61, widening from $0.12 in the prior-year quarter. Operating income stood at $0.4 million against a loss of $0.6 million in the year-ago quarter.Segment results showed strong contributions from Ground Support Equipment and Digital Solutions, partly offset by weakness in Commercial Aircraft, Engines and Parts.Air T’s Other Key Business MetricsAdjusted EBITDA was $1.5 million, up 71.1% from $0.9 million in the prior year. The company’s investment balance in equity method investees also increased to $19.9 million from $19 million at the end of March 2025.Segment performance revealed mixed dynamics. Overnight Air Cargo revenues were up 0.7% at $30.6 million from $30.4 million, but segment adjusted EBITDA slipped 17.2% to $1.6 million from $1.9 million due to lower maintenance margins. Ground Support Equipment revenues surged 104.9% to $15.1 million from $7.4 million, with adjusted EBITDA turning positive at $1.4 million from a loss of $0.5 million a year earlier.The Commercial Aircraft, Engines and Parts segment posted $21.9 million in revenues, down 16.3% year over year from $26.3 million, primarily due to weaker component sales; Adjusted EBITDA decreased 54.7% to $0.8 million from $1.7 million. Digital Solutions revenues rose 24.9% to $2.1 million from $1.7 million, while narrowing its adjusted EBITDA loss to $0.1 million from $0.3 million.Air T, Inc. Price, Consensus and EPS Surprise Air T, Inc. price-consensus-eps-surprise-chart | Air T, Inc. QuoteAIRT’s Management CommentaryChairman and CEO Nick Swenson emphasized that management is “pleased with the company’s performance” and highlighted execution on the annual plan along with several strategic initiatives aimed at long-term value creation. The commentary suggested confidence in segmental growth drivers, particularly Ground Support Equipment and Digital Solutions, while acknowledging challenges in commercial aircraft-related sales.Factors Influencing Air T’s Headline NumbersThe revenue increase was primarily fueled by the robust demand for deicing trucks in the Ground Support Equipment segment, which more than doubled sales compared to the prior year. This gain helped offset declines in Commercial Aircraft, Engines and Parts, where lower component sales weighed on results despite incremental lease income from two assets on rent during the quarter. Overnight Air Cargo performance was steady, supported by FedEx-related operations, though profitability declined due to lower-margin maintenance activity. Digital Solutions benefited from customer acquisition momentum in subscription software.On the expense side, consolidated operating expenses increased 5.1% year over year, primarily tied to higher costs in Ground Support Equipment. Non-operating results were less favorable, as higher interest expense and weaker contributions from equity method investments led to a non-operating loss of $1.3 million against income of $0.7 million in the prior year.AIRT’s GuidanceAir T did not issue specific financial guidance. However, management discussion pointed to an ongoing focus on strategic diversification and growth initiatives, particularly in aviation services and digital solutions, while cautioning on industry and economic risks.Air T’s Other DevelopmentsOn May 15, 2025, Air T’s subsidiary Mountain Air Cargo acquired Royal Aircraft Services, an aircraft maintenance and repair company based in Hagerstown, MD, for $1.2 million. The business has been integrated into the Overnight Air Cargo segment. Additionally, on July 15, 2025, Contrail’s subsidiary sold two Airbus A321 aircraft for over $18 million, effectively transferring lease obligations to the buyer. These moves highlight continued portfolio restructuring and capital allocation in line with Air T’s strategy.Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.Investors who bought shares like Nvidia at the right time have had a shot at huge gains.But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Air T, Inc. (AIRT): Get Free ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks