AIR Global (AIIR) H1 2026 earnings summary

Executive summary

• Revenue grew 3.7% year-over-year to $206.9 million in H1 2026, with adjusted EBITDA stable at $71.7 million, despite major supply chain disruptions from the Strait of Hormuz closure and significant one-time IPO and listing-related costs.

• Strong price/mix growth of 14% offset inflation and supply chain pressures, while FSM shipment volumes declined 9% but recovered by June.

• Net loss of $81.8 million was driven by non-recurring IPO, listing, and supply chain expenses.

• Maintained global leadership in flavored shisha molasses with 36%-44% global volume share and 60–65% U.S. market share.

• Strategic $20 million investment in Greentank to support next-generation product innovation and U.S. market entry.

Financial highlights

• Revenue: $206.9 million, up 3.7% year-over-year; gross profit: $116.8 million, up 2.4%.

• Adjusted EBITDA: $71.7 million, broadly flat; reported EBITDA: loss of $52.1 million.

• Operating loss: $63.6 million; net loss: $81.8 million; EPS: -$0.57.

• Net debt: $344.8 million; net debt to adjusted EBITDA: 2.48x.

• Gross margin: 56.4% in H1 2026.

Outlook and guidance

• Full-year 2026 guidance: stable shipment volumes, 4%-6% revenue growth, low to mid-single digit adjusted EBITDA growth.

• Medium-term: low single-digit organic FSM volume growth, mid-single digit FSM revenue growth, high single-digit FSM adjusted EBITDA growth, and continued deleveraging.

• Capital expenditures projected at $15–18 million for FY 2026; effective tax rate expected at ~15%.

• No share repurchases or dividends planned for FY 2026; long-term leverage target of 2.5x net debt to adjusted EBITDA.

• Shipment volumes expected to remain stable versus FY 2025, with a 1.5% headwind from weaker Global Travel Retail.