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Air T Stock Rises After FY25 Earnings Boost From Cargo, Parts Units
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Shares of Air T, Inc. (AIRT - Free Report) have gained 9.4% since the company reported its earnings for the fiscal year ended March 31, 2025. This compares to the S&P 500 Index’s 0.9% gain over the same time frame. Over the past month, the stock gained 17.3% compared with the S&P 500’s 3.9% rise.
AIRT’s Revenue and Earnings Snapshot
For the fiscal year ended March 31, 2025, Air T reported revenues of $291.9 million, a 1.7% increase from the prior fiscal year’s $286.8 million. Operating income rose 50.9% to $1.9 million from $1.3 million, while adjusted EBITDA improved to $7.4 million from $6.2 million, reflecting an 18.9% increase from fiscal 2024. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Despite these gains in operational metrics, AIRT posted a net loss per share of $2.23, which is a modest improvement from $2.42 in the prior fiscal year.
Air T’s Segmental Performance Review
Revenues from the Overnight Air Cargo segment increased 7.3% to $124 million from $115.5 million, driven by higher labor revenue, an increase in administrative fees and higher FedEx pass-through costs related to maintenance. Adjusted EBITDA for the segment decreased 4.7% to $6.8 million from $7.1 million, primarily due to increased loss provisions for bad debt and tax adjustments related to operations in Puerto Rico.
Ground Support Equipment Revenues rose 4.8% to $38.9 million from $37.2 million, thanks to increased spare parts sales and service revenues. However, the segment posted an adjusted EBITDA loss of $0.8 million, a slight improvement from the prior year’s $0.9 million loss. Notably, the segment’s order backlog rose to $14.3 million as of March 31, 2025, from $12.6 million a year earlier, indicating healthy demand going into fiscal 2026.
The Commercial Aircraft, Engines and Parts segment experienced a revenue decline of 5.8%, totaling $118.2 million from $125.5 million. The shortfall was primarily due to a reduced supply of aircraft available for part-out or resale as operators opted to retain older planes longer amid tight market conditions. However, segment profitability soared, with adjusted EBITDA jumping 60.7% to $9.8 million from $6.1 million, attributable to higher-margin component sales.
The smallest of Air T’s four core segments, Digital Solutions, grew revenues by 25.7% to $7.3 million from $5.8 million, fueled by an expanding base of software subscription customers. However, the segment posted an adjusted EBITDA loss of $0.3 million against a modest gain of $0.1 million in the prior year, due to elevated personnel expenses aimed at scaling operations.
Air T’s adjusted EBITDA margin improved to 2.5% in fiscal 2025 from approximately 2.2% a year earlier, reflecting the impact of cost discipline and a more favorable sales mix, especially within the Commercial Aircraft, Engines and Parts segment. The company’s equity method investment balance grew to $19 million from $16.7 million, signaling continued expansion in joint ventures and non-operating assets.
AIRT also continues to generate consistent revenues from FedEx dry-lease arrangements, which represented 39% of total consolidated revenues in fiscal 2025, up from 36% in fiscal 2024. Notably, despite its heavy customer concentration risk with FedEx, Air T remains one of the largest feeder operators in North America.
Air T’s Management Commentary
Chairman and CEO Nick Swenson struck an optimistic tone, emphasizing the company’s steady progress in building long-term shareholder value. He highlighted the traction gained from new products and marketing initiatives, reaffirming management’s commitment to enhancing stakeholder returns. Management continues to repurchase shares in the open market, a sign of alignment with shareholders.
Factors Influencing AIRT’s Results
Several macroeconomic and operational dynamics shaped Air T’s fiscal 2025 performance. In the Overnight Air Cargo segment, the increase in revenue was primarily driven by a rise in billable maintenance hours under the company’s dry-lease agreements with FedEx, which translated into higher pass-through revenues and administrative fees. In the Commercial Aircraft, Engines and Parts segment, although overall revenue declined due to a limited supply of aircraft and engines available for teardown or resale, profitability improved markedly thanks to higher-margin component package sales.
Meanwhile, the Ground Support Equipment segment benefited from an uptick in spare parts and support services demand, though sales of deicing units grew only slightly. Lastly, the Digital Solutions business expanded its software subscription base, reflecting effective customer acquisition efforts; however, the segment’s bottom line was affected by higher personnel expenses required to support its operational scaling.
Overall, AIRT faced a constrained aircraft parts market as airlines opted to keep aging aircraft in operation longer, which limited the availability of assets for resale and disassembly, a key factor noted by management.
Air T’s Guidance
Air T did not provide specific numeric guidance for fiscal 2026. However, management plans to continue investing in engine parts inventory, fund deicer builds and expand its commercial aircraft leasing and trading activities. The launch of Runway Aero Advisors LLC in January 2025 also reflects Air T’s broader strategy to build complementary capital-raising and advisory capabilities.
AIRT’s Other Developments
Air T continued refining its capital structure. On March 31, 2025, the company amended its credit agreement with Alerus Bank, adding a $3 million Overline Note and a $14 million revolving credit facility, maturing Oct. 31, 2025. The restructuring excluded several co-borrowers and reduced the number of entities under the agreement, potentially enhancing financial flexibility.
Another notable update was the launch of Runway Aero Advisors LLC in January 2025, a new subsidiary focused on advising companies on capital raising. The unit is led by Steve Welo, who joined the firm in September 2024, and is expected to support Air T’s existing businesses and its joint ventures like Crestone Air Partners.
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Air T Stock Rises After FY25 Earnings Boost From Cargo, Parts Units
Shares of Air T, Inc. (AIRT - Free Report) have gained 9.4% since the company reported its earnings for the fiscal year ended March 31, 2025. This compares to the S&P 500 Index’s 0.9% gain over the same time frame. Over the past month, the stock gained 17.3% compared with the S&P 500’s 3.9% rise.
AIRT’s Revenue and Earnings Snapshot
For the fiscal year ended March 31, 2025, Air T reported revenues of $291.9 million, a 1.7% increase from the prior fiscal year’s $286.8 million. Operating income rose 50.9% to $1.9 million from $1.3 million, while adjusted EBITDA improved to $7.4 million from $6.2 million, reflecting an 18.9% increase from fiscal 2024. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Despite these gains in operational metrics, AIRT posted a net loss per share of $2.23, which is a modest improvement from $2.42 in the prior fiscal year.
Air T’s Segmental Performance Review
Revenues from the Overnight Air Cargo segment increased 7.3% to $124 million from $115.5 million, driven by higher labor revenue, an increase in administrative fees and higher FedEx pass-through costs related to maintenance. Adjusted EBITDA for the segment decreased 4.7% to $6.8 million from $7.1 million, primarily due to increased loss provisions for bad debt and tax adjustments related to operations in Puerto Rico.
Ground Support Equipment Revenues rose 4.8% to $38.9 million from $37.2 million, thanks to increased spare parts sales and service revenues. However, the segment posted an adjusted EBITDA loss of $0.8 million, a slight improvement from the prior year’s $0.9 million loss. Notably, the segment’s order backlog rose to $14.3 million as of March 31, 2025, from $12.6 million a year earlier, indicating healthy demand going into fiscal 2026.
The Commercial Aircraft, Engines and Parts segment experienced a revenue decline of 5.8%, totaling $118.2 million from $125.5 million. The shortfall was primarily due to a reduced supply of aircraft available for part-out or resale as operators opted to retain older planes longer amid tight market conditions. However, segment profitability soared, with adjusted EBITDA jumping 60.7% to $9.8 million from $6.1 million, attributable to higher-margin component sales.
The smallest of Air T’s four core segments, Digital Solutions, grew revenues by 25.7% to $7.3 million from $5.8 million, fueled by an expanding base of software subscription customers. However, the segment posted an adjusted EBITDA loss of $0.3 million against a modest gain of $0.1 million in the prior year, due to elevated personnel expenses aimed at scaling operations.
Air T, Inc. Price, Consensus and EPS Surprise
Air T, Inc. price-consensus-eps-surprise-chart | Air T, Inc. Quote
AIRT’s Other Key Business Metrics
Air T’s adjusted EBITDA margin improved to 2.5% in fiscal 2025 from approximately 2.2% a year earlier, reflecting the impact of cost discipline and a more favorable sales mix, especially within the Commercial Aircraft, Engines and Parts segment. The company’s equity method investment balance grew to $19 million from $16.7 million, signaling continued expansion in joint ventures and non-operating assets.
AIRT also continues to generate consistent revenues from FedEx dry-lease arrangements, which represented 39% of total consolidated revenues in fiscal 2025, up from 36% in fiscal 2024. Notably, despite its heavy customer concentration risk with FedEx, Air T remains one of the largest feeder operators in North America.
Air T’s Management Commentary
Chairman and CEO Nick Swenson struck an optimistic tone, emphasizing the company’s steady progress in building long-term shareholder value. He highlighted the traction gained from new products and marketing initiatives, reaffirming management’s commitment to enhancing stakeholder returns.
Management continues to repurchase shares in the open market, a sign of alignment with shareholders.
Factors Influencing AIRT’s Results
Several macroeconomic and operational dynamics shaped Air T’s fiscal 2025 performance. In the Overnight Air Cargo segment, the increase in revenue was primarily driven by a rise in billable maintenance hours under the company’s dry-lease agreements with FedEx, which translated into higher pass-through revenues and administrative fees. In the Commercial Aircraft, Engines and Parts segment, although overall revenue declined due to a limited supply of aircraft and engines available for teardown or resale, profitability improved markedly thanks to higher-margin component package sales.
Meanwhile, the Ground Support Equipment segment benefited from an uptick in spare parts and support services demand, though sales of deicing units grew only slightly. Lastly, the Digital Solutions business expanded its software subscription base, reflecting effective customer acquisition efforts; however, the segment’s bottom line was affected by higher personnel expenses required to support its operational scaling.
Overall, AIRT faced a constrained aircraft parts market as airlines opted to keep aging aircraft in operation longer, which limited the availability of assets for resale and disassembly, a key factor noted by management.
Air T’s Guidance
Air T did not provide specific numeric guidance for fiscal 2026. However, management plans to continue investing in engine parts inventory, fund deicer builds and expand its commercial aircraft leasing and trading activities.
The launch of Runway Aero Advisors LLC in January 2025 also reflects Air T’s broader strategy to build complementary capital-raising and advisory capabilities.
AIRT’s Other Developments
Air T continued refining its capital structure. On March 31, 2025, the company amended its credit agreement with Alerus Bank, adding a $3 million Overline Note and a $14 million revolving credit facility, maturing Oct. 31, 2025. The restructuring excluded several co-borrowers and reduced the number of entities under the agreement, potentially enhancing financial flexibility.
Another notable update was the launch of Runway Aero Advisors LLC in January 2025, a new subsidiary focused on advising companies on capital raising. The unit is led by Steve Welo, who joined the firm in September 2024, and is expected to support Air T’s existing businesses and its joint ventures like Crestone Air Partners.