10-K · June 29, 2026
Air T, Inc. has undergone significant changes following the acquisition of Regional Express Holdings Pty Ltd (Rex) which deeply affects its operations and financial performance. While total revenue for fiscal 2026…
Earnings analysis · 10-Q
AIRT earnings analysis
Filed August 14, 2026 · Our reading of the company's report
The latest report
Revenue rose 63% year over year to $115.461 million following a full quarter of Rex consolidation, but profitability weakened sharply: operating income swung from $0.848 million of income to a $12.825 million loss,…
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Revenue rose 63% year over year to $115.461 million following a full quarter of Rex consolidation, but profitability weakened sharply: operating income swung from $0.848 million of income to a $12.825 million loss, driven by Rex, aviation leasing start-up costs, and weakness in commercial aircraft and ground support equipment. Overnight Air Cargo and Digital Solutions improved, while GGS backlog increased to $9.0 million, but operating cash flow was negative $2.830 million and investing cash use reached $44.023 million. Liquidity was supported by $21.7 million of cash and restricted cash and $42.4 million of available credit, although higher debt, interest expense of $5.673 million, Rex execution risk, and working-capital deterioration support a bearish assessment.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Operating margin
- -11.1%
What stood out
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Revenue surged on Rex consolidation
Consolidated revenue increased 63% year over year to $115.461 million from $70.870 million, primarily reflecting $55.909 million of Regional Airline revenue from a full quarter of Rex operations.
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Overnight Air Cargo improved
Overnight Air Cargo operating income increased 31% to $1.923 million from $1.466 million, supported by an approximately $0.4 million improvement in FedEx Maintenance gross profit and higher WASI parts and labor revenue.
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Digital Solutions turned profitable
Digital Solutions revenue increased 25% to $2.627 million, while operating income improved to $0.151 million from a $0.250 million loss, driven by data analytics growth and lower labor costs from AI-driven tools.
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GGS backlog and order timing support
Ground Support Equipment backlog increased to $9.0 million from $7.2 million year over year, and management anticipates the annual U.S. military order in the third quarter of fiscal 2027.
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Liquidity remains available
The company held $21.7 million of cash and restricted cash and had approximately $42.4 million of available funds under credit lines as of June 30, 2026; management stated liquidity should cover obligations for at least 12 months.
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Financing funded near-term needs
The company received $42.3 million of financing cash flow, including $18.9 million of net term-loan and revolver proceeds and a $10.0 million contribution from redeemable non-controlling interests.
What to watch
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Rex losses and fuel exposure
The Regional Airline segment generated a $7.727 million operating loss, with $11.8 million of fuel expense as the primary driver. Rex does not hedge fuel prices or its Australian dollar/U.S. dollar exposure, and higher unscheduled engine removals reduced aircraft availability.
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Operating losses and leverage
Consolidated operating results deteriorated to a $12.825 million loss from $0.848 million of operating income, while interest expense increased to $5.673 million from $2.314 million. The filing also identifies risks related to meeting debt-service covenants and refinancing existing obligations.
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Cash burn and working-capital pressure
Operating cash flow was negative $2.830 million versus negative $1.095 million in the prior-year quarter, while investing cash use rose to $44.023 million, including $21.3 million of capital expenditures and $19.2 million for acquisitions. Working capital declined $17.0 million to $47.4 million, including a $12.9 million inventory increase and a $5.4 million increase in current long-term debt.
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Rex integration and regulatory risk
The filing expands Rex-specific execution risks: Rex may be unable to return aircraft to service on anticipated timelines, retain regulated route contracts and protected airport slots, or maintain compliance with Rex Regional Commitments. The quarter included $0.7 million of post-acquisition integration costs.
Management's outlook
No quantitative revenue or EPS guidance was provided. Management stated it believes cash on hand and available liquidity are sufficient to meet obligations for at least 12 months following issuance of the financial statements.
Earlier filings 4
10-Q · February 13, 2026
Air T, Inc.'s Q3 2026 performance showed a revenue decrease of 8.7% year-over-year to $71 million, with a significant drop in diluted EPS to -0.91. The company's operating expenses also declined, driven by improved…
10-Q · November 12, 2025
Air T, Inc. reported a 21% decline in total revenue for Q2 FY2026 compared to the previous year, registering $64 million. Despite the revenue dip, EPS improved marginally to $1.61, aided by decreased operating expenses…
10-Q · August 13, 2025
Air T, Inc. reported Q1 FY2026 results with revenue of $71 million, up 7.6% from prior quarter, but a diluted EPS loss of -0.61, lower than anticipated. Segment performance showed significant growth in Ground Support…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.