Air T, Inc.
Key statistics
from XBRL data in SEC filingsAI briefing
from the latest 10-K, 10-Q and 8-K eventsAir T, Inc. is a holding company with five segments including overnight air cargo, ground support equipment, commercial aircraft parts, digital solutions, and a newly acquired Australian regional airline, Rex.
What they do
Air T operates businesses across aviation services: overnight air cargo for FedEx, manufacturing mobile deicers and ground support equipment, leasing and selling commercial aircraft parts, digital aviation subscriptions via WorldACD, and regional passenger/freight airline services in Australia through Rex.
Revenue drivers
- Overnight Air Cargo — Provides air express delivery services primarily for FedEx; revenue increased 3% in FY2026 to around $130M (implied), driven by WASI and Royal.
- Ground Support Equipment (GGS) — Manufactures and services mobile deicers and other equipment; revenue grew 21% to $47.2M in FY2026.
- Commercial Aircraft, Engines and Parts — Manages, leases, and sells aviation assets and aftermarket engine components; size not specified but part of the portfolio.
- Regional Airline (Rex) — Acquired December 18, 2025; contributed $55.3M revenue in FY2026 (about 10 weeks, seasonally slow), operating Saab 340 fleet in Australia.
Recent performance
FY2026 revenue was $327.1M, up 12% from $291.9M, including $55.3M from Rex. Net income swung to $78.0M ($28.85 EPS) from a $6.1M loss, driven by a $111.2M non-cash bargain purchase gain on Rex. Operating loss was $11.2M versus $1.9M income in FY2025. Adjusted EBITDA rose to $10.1M from $7.4M. Operating cash flow was negative $25.0M in FY2026.
Strategy
Management says the Rex acquisition and Crestone's merger with Arena (in Q1 FY2027) will transform the balance sheet and income statement. The company follows an 'allocator-operator' model, giving leaders autonomy to drive growth. They aim to grow earnings power and compound free cash flow per share over time. They are also integrating Rex's operations and reporting.
Risks
- FedEx contract dependence — A large portion of overnight cargo revenue relies on FedEx contracts; termination or reduced aircraft assignments would hurt results.
- Rex acquisition and integration — Rex operations are subject to Australian regulation, potential unexpected liabilities from the DOCA/administration process, and integration risks that could impact results.
- Weather-dependent deicer demand — Mild winters reduce demand for deicing equipment, directly affecting GGS revenue.
- High leverage and refinancing risk — The company has substantial debt; despite current levels, it may incur more debt, and rising interest rates could increase debt service costs.
Outlook
Management expects the Rex acquisition and Crestone/Arena merger to be 'significant positive generators of shareholder value over time.' They acknowledge current year results were burdened by acquisition expenses and Rex's seasonally slow contribution. They believe underlying portfolio businesses are performing well and set to build per-share value.