We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Air T Stock Dips Post Q3 Earnings, Rex Deal Reshapes Outlook
Read MoreHide Full Article
Shares of Air T, Inc. (AIRT - Free Report) have lost 0.6% since the company reported its earnings for the quarter ended Dec. 31, 2025. This compares to the S&P 500 Index’s 0.02% decline over the same time frame. Over the past month, the stock gained 13.5% against the S&P 500’s 1.9% decline.
AIRT’s Earnings Snapshot
For the third quarter of fiscal 2026 ended Dec. 31, 2025, Air T reported revenues of $71.1 million, down 8.7% from $77.9 million in the prior-year quarter. The company posted an operating loss of $3.8 million against an operating income of $1.4 million a year earlier. Net loss attributable to Air T stockholders widened to $2.5 million, or $(0.91) per share, from a loss of $1.3 million, or $(0.47) per share, in the prior-year period.
On a nine-month basis, revenue declined 8.6% to $206.2 million from $225.5 million, while net income attributable to Air T stockholders fell 69.8% to $0.3 million, or $0.10 per share, from $0.9 million, or $0.32 per share, a year earlier.
Segment performance was mixed. Overnight air cargo revenue was essentially flat at $30.6 million. Ground support equipment sales rose 7.9% to $12.8 million from $11.8 million. Commercial aircraft, engines and parts revenue fell 42.4% to $18.8 million from $32.7 million. Digital solutions revenue increased 24.9% to $2.5 million from $1.9 million, while the newly added regional airline segment contributed $5.2 million for the partial quarter following the Rex acquisition.
Air T’s Other Key Business Metrics
Adjusted EBITDA for the quarter was $0.2 million, down from $2.7 million in the prior-year period. By segment, ground support equipment generated $1.7 million in adjusted EBITDA, up from $0.2 million a year earlier, reflecting improved product mix and spending discipline. Overnight air cargo produced $1 million, down 48.6% from $1.9 million.
Commercial aircraft, engines and parts posted an adjusted EBITDA loss of $0.2 million against a $2.9 million profit last year. The regional airline segment reported a $0.5 million adjusted EBITDA loss for its initial 13 days of operations under Air T ownership.
Order backlog in ground support equipment segment nearly doubled to $12.9 million as of Dec. 31, 2025, from $6.2 million a year earlier.
AIRT’s equity method investments balance increased to $33.6 million as of Dec. 31, 2025, from $19 million as of March 31, 2025, underscoring continued capital deployment into affiliated ventures.
Chairman and CEO Nick Swenson highlighted the December 2025 acquisition of Rex Regional Airlines, describing it as a strategic entry into the Australian regional airline market. Swenson emphasized the quality of the Rex management team and characterized the airline as a critical link between capital cities and regional Australia. He also acknowledged that the transaction required significant effort from Air T’s team throughout 2025.
Factors Influencing Air T’s Headline Numbers
The revenue decline was primarily due to weakness in the commercial aircraft, engines and parts segment, where lower component sales at Contrail reflected reduced inventory purchases over the prior 12 months. Additionally, the newly consolidated Rex operations generated a net loss of $1.5 million in the initial period due to fixed operating costs, regulatory compliance requirements and transaction-related integration expenses.
At the same time, the Rex acquisition resulted in a preliminary bargain purchase gain of $95.8 million, recorded as a deferred credit on the balance sheet, as the estimated fair value of net assets acquired exceeded the $11 million purchase consideration.
AIRT’s Guidance
Air T did not provide formal financial guidance for upcoming quarters or the remainder of fiscal 2026. Management commentary centered on operational integration of Rex and execution priorities rather than issuing specific revenue or earnings forecasts.
Air T’s Other Developments
On Dec. 18, 2025, Air T completed the acquisition of substantially all assets and operations of Rex Express Holdings Ltd. The preliminary fair value of assets acquired totaled $164.8 million against liabilities of $57.9 million, resulting in net assets of $106.9 million. The transaction included the assumption of liabilities under a Commonwealth Facility Agreement and the establishment of a creditors trust to address pre-existing claims, positioning Rex to exit voluntary administration and resume operations under AIRT’s ownership.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Air T Stock Dips Post Q3 Earnings, Rex Deal Reshapes Outlook
Shares of Air T, Inc. (AIRT - Free Report) have lost 0.6% since the company reported its earnings for the quarter ended Dec. 31, 2025. This compares to the S&P 500 Index’s 0.02% decline over the same time frame. Over the past month, the stock gained 13.5% against the S&P 500’s 1.9% decline.
AIRT’s Earnings Snapshot
For the third quarter of fiscal 2026 ended Dec. 31, 2025, Air T reported revenues of $71.1 million, down 8.7% from $77.9 million in the prior-year quarter. The company posted an operating loss of $3.8 million against an operating income of $1.4 million a year earlier. Net loss attributable to Air T stockholders widened to $2.5 million, or $(0.91) per share, from a loss of $1.3 million, or $(0.47) per share, in the prior-year period.
On a nine-month basis, revenue declined 8.6% to $206.2 million from $225.5 million, while net income attributable to Air T stockholders fell 69.8% to $0.3 million, or $0.10 per share, from $0.9 million, or $0.32 per share, a year earlier.
Segment performance was mixed. Overnight air cargo revenue was essentially flat at $30.6 million. Ground support equipment sales rose 7.9% to $12.8 million from $11.8 million. Commercial aircraft, engines and parts revenue fell 42.4% to $18.8 million from $32.7 million. Digital solutions revenue increased 24.9% to $2.5 million from $1.9 million, while the newly added regional airline segment contributed $5.2 million for the partial quarter following the Rex acquisition.
Air T’s Other Key Business Metrics
Adjusted EBITDA for the quarter was $0.2 million, down from $2.7 million in the prior-year period. By segment, ground support equipment generated $1.7 million in adjusted EBITDA, up from $0.2 million a year earlier, reflecting improved product mix and spending discipline. Overnight air cargo produced $1 million, down 48.6% from $1.9 million.
Commercial aircraft, engines and parts posted an adjusted EBITDA loss of $0.2 million against a $2.9 million profit last year. The regional airline segment reported a $0.5 million adjusted EBITDA loss for its initial 13 days of operations under Air T ownership.
Order backlog in ground support equipment segment nearly doubled to $12.9 million as of Dec. 31, 2025, from $6.2 million a year earlier.
AIRT’s equity method investments balance increased to $33.6 million as of Dec. 31, 2025, from $19 million as of March 31, 2025, underscoring continued capital deployment into affiliated ventures.
Air T, Inc. Price, Consensus and EPS Surprise
Air T, Inc. price-consensus-eps-surprise-chart | Air T, Inc. Quote
AIRT’s Management Commentary
Chairman and CEO Nick Swenson highlighted the December 2025 acquisition of Rex Regional Airlines, describing it as a strategic entry into the Australian regional airline market. Swenson emphasized the quality of the Rex management team and characterized the airline as a critical link between capital cities and regional Australia. He also acknowledged that the transaction required significant effort from Air T’s team throughout 2025.
Factors Influencing Air T’s Headline Numbers
The revenue decline was primarily due to weakness in the commercial aircraft, engines and parts segment, where lower component sales at Contrail reflected reduced inventory purchases over the prior 12 months. Additionally, the newly consolidated Rex operations generated a net loss of $1.5 million in the initial period due to fixed operating costs, regulatory compliance requirements and transaction-related integration expenses.
At the same time, the Rex acquisition resulted in a preliminary bargain purchase gain of $95.8 million, recorded as a deferred credit on the balance sheet, as the estimated fair value of net assets acquired exceeded the $11 million purchase consideration.
AIRT’s Guidance
Air T did not provide formal financial guidance for upcoming quarters or the remainder of fiscal 2026. Management commentary centered on operational integration of Rex and execution priorities rather than issuing specific revenue or earnings forecasts.
Air T’s Other Developments
On Dec. 18, 2025, Air T completed the acquisition of substantially all assets and operations of Rex Express Holdings Ltd. The preliminary fair value of assets acquired totaled $164.8 million against liabilities of $57.9 million, resulting in net assets of $106.9 million. The transaction included the assumption of liabilities under a Commonwealth Facility Agreement and the establishment of a creditors trust to address pre-existing claims, positioning Rex to exit voluntary administration and resume operations under AIRT’s ownership.