Air T, Inc. Reports $70.9 Million Revenue with 6.2% Growth, Net Loss of $1.6 Million

Air T, Inc. reported a consolidated revenue of $70.9 million for the three months ended June 30, 2025, marking a 6.2% increase from $66.4 million in the same period last year. The growth was primarily driven by a significant rise in the ground support equipment segment, which saw revenues increase by 105% to $15.1 million, up from $7.4 million. This surge was attributed to higher sales of deicing trucks. However, the commercial aircraft, engines, and parts segment experienced a decline, with revenues falling 16% to $22.0 million, down from $26.3 million, largely due to decreased component sales.

Operating expenses for the quarter rose to $70.4 million, a 5.4% increase from $67.0 million in the prior year. The increase in expenses was driven by higher costs in the ground support equipment segment, which saw operating expenses rise by 88% to $12.3 million, reflecting the increased sales volume. In contrast, the commercial aircraft segment's operating expenses decreased by 20.9% to $14.7 million, aligning with the drop in revenue. The overall operating income for the quarter was $446,000, a recovery from a loss of $577,000 in the previous year.

Air T's net loss attributable to stockholders for the quarter was $1.6 million, or $(0.61) per share, compared to a loss of $335,000, or $(0.12) per share, in the same quarter last year. The increase in net loss was influenced by a rise in interest expenses, which totaled $2.3 million, up from $1.9 million, and a loss from equity method investments. The company also recorded a tax benefit of $136,000, resulting in an effective tax rate of 16.9%.

Strategically, Air T completed the acquisition of Royal Aircraft Services, LLC for $1.2 million on May 15, 2025, which is expected to enhance its overnight air cargo segment. The company also reported a significant increase in cash and cash equivalents, which rose to $14.5 million from $5.9 million at the end of the previous fiscal year. This increase was attributed to improved cash flows from financing activities, which provided $12.6 million during the quarter.

Looking ahead, Air T anticipates continued growth in its ground support equipment segment, supported by a backlog of orders valued at $7.2 million. The company is also evaluating the potential impacts of recent tax reforms on its financial position. Despite the challenges posed by rising interest rates and market conditions, Air T remains focused on diversifying its earnings and enhancing its cash flow per share over time.