Air T (AIRT) Q3 2026 earnings summary

Executive summary

• Operates a diversified portfolio of aviation and related businesses, focusing on growth and cash flow generation over 40+ years.

• Recently expanded internationally by acquiring Regional Express Holdings Ltd. (Rex), Australia's largest independent regional airline, in December 2025, marking entry into the regulated Australian market.

• Management demonstrates alignment with shareholders through open market stock repurchases, holding $6.4M in treasury stock as of 12/31/25.

• Net loss attributable to stockholders was $2.5M for the quarter ended 12/31/25, compared to $1.3M in the prior year; nine-month net income was $0.3M, down from $0.9M.

• The Rex acquisition introduces integration, regulatory, and operational risks.

Financial highlights

• FY25 revenue reached $291.9M, a 2% increase year-over-year; FYTD26 nine-month revenue was $206.2M, down $19.3M from prior year.

• Q3 FY2026 revenue was $71.1M, down 8.7% year-over-year; operating loss was $3.8M versus prior year operating income of $1.4M.

• FY25 adjusted EBITDA was $7.4M, up $1.2M from FY24; FYTD26 adjusted EBITDA was $9.5M, up $1.0M from prior year.

• Adjusted EBITDA for Q3 FY2026 was $0.2M, down from $2.7M in the prior year quarter.

• Operating cash flow for the nine months was negative $25.0M, compared to positive $19.4M in the prior year, mainly due to inventory build and changes in working capital.

Outlook and guidance

• Growth strategies include reinvesting in high-performing businesses, acquiring new cash-flow generating businesses, and creating investment products with outside capital.

• Management expects the integration of Rex to require significant attention and resources, with anticipated additional costs and complexity.

• The company believes it has sufficient liquidity to meet obligations for at least the next 12 months, supported by $42.2M in cash and $53.6M in available credit as of 12/31/25.

• Focus on expanding both organically and through acquisitions, with a strong pipeline for future growth.