Executive Summary
Air T Inc reported a mixed QQ1 2026 with topline strength but lingering profitability and balance-sheet leverage challenges. Revenue reached $70.87 million, up 6.7% year-over-year, aided by the company’s diversified industrial asset base in overnight air cargo ground equipment, commercial engines and related services. Gross profit rose to $15.477 million, yielding a gross margin of 21.84%, and EBITDA stood at $2.791 million (EBITDAR ~3.94% of revenue), signaling a thin but positive operating base as the company progresses through a period of capital-intensive asset management. However, the quarter posted a net loss of $1.636 million ($-0.61 per share), driven by significant financing costs and non-operating items, underscoring a liquidity and leverage risk profile that investors should monitor.
From a liquidity and capital structure perspective, Air T remains highly levered. Total debt approximates $139.1 million against equity of $5.3 million, and current assets ($92.9 million) comfortably cover current liabilities ($49.1 million), yielding a healthy short-term liquidity cushion. Cash at period end was $15.22 million, supported by financing activity of $12.58 million, while operating cash flow remained negative at approximately $1.10 million. The sizable long-term debt load (long-term debt around $140.3 million) suggests refinancing and interest-rate risk ahead, even as near-term funding activities provide temporary relief. Investors should weigh improving revenue momentum against structural profitability and debt-service considerations.
Key Performance Indicators
QoQ: 113.81% | YoY:177.30%
QoQ: 76.72% | YoY:-388.36%
QoQ: 76.54% | YoY:-408.33%
Key Insights
Revenue: $70.87M, YoY +6.71%, QoQ +6.87%
Gross Profit: $15.48M, YoY +10.27%, QoQ +59.34%
Gross Margin: 21.84%
Operating Income: $0.446M, YoY +177.3%, QoQ +113.8%
EBITDA: $2.791M, Margin ~3.94% of revenue
EBITDAR: $2.791M, Margin 3.94%
Net Income: -$1.636M, YoY -388.36%, QoQ +76.72%
EPS: -$0.61, Diluted -$0.61
Cash Flow from Operations: -$1.095M
Free Cash Flow: -$1.095M
Net Debt: -$124.661M (net debt), Total Debt: $139.121M
Cash and Cash Equivalents: $14.46M (cash at end = $15.223M including cash...
Financial Highlights
Revenue: $70.87M, YoY +6.71%, QoQ +6.87%
Gross Profit: $15.48M, YoY +10.27%, QoQ +59.34%
Gross Margin: 21.84%
Operating Income: $0.446M, YoY +177.3%, QoQ +113.8%
EBITDA: $2.791M, Margin ~3.94% of revenue
EBITDAR: $2.791M, Margin 3.94%
Net Income: -$1.636M, YoY -388.36%, QoQ +76.72%
EPS: -$0.61, Diluted -$0.61
Cash Flow from Operations: -$1.095M
Free Cash Flow: -$1.095M
Net Debt: -$124.661M (net debt), Total Debt: $139.121M
Cash and Cash Equivalents: $14.46M (cash at end = $15.223M including cash equivalents)
Total Assets: $190.037M
Total Liabilities: $184.745M
Total Stockholders’ Equity: $5.292M
Current Ratio: ~1.89 (Current Assets $92.933M vs Current Liabilities $49.051M)
Debt/Equity: High leverage with Equity near $5.3M vs Liabilities $184.7M
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
70.87M |
6.71% |
6.87% |
| Gross Profit |
15.48M |
10.27% |
59.34% |
| Operating Income |
446.00K |
177.30% |
113.81% |
| Net Income |
-1.64M |
-388.36% |
76.72% |
| EPS |
-0.61 |
-408.33% |
76.54% |
Management Commentary
Note: Earnings transcript data not provided in the supplied materials. No management quotes are available from the QQ1 2026 call in the provided dataset. Summary of management themes cannot be cited directly; however, investors should monitor liquidity management, fleet utilization, and capital-structure actions given the leverage profile. If a transcript becomes available, key themes typically would include asset utilization, maintenance cycles, demand for Overnight Air Cargo equipment and engines, and any guidance on refinancing or capital expenditures.
Forward Guidance
No formal forward guidance was disclosed in the supplied materials for QQ1 2026. Given Air T’s leverage and ongoing asset-intensive operations, a cautious near-term stance is prudent. Projections would hinge on: (1) maintenance and utilization of the fleet and related ground equipment; (2) demand for air cargo services and ancillary equipment maintenance; (3) refinancing timing and the cost of debt in a higher-rate environment; and (4) any strategic moves to optimize the balance sheet (asset sales, restructurings, or fleet optimization). Investors should monitor management commentary on fleet utilization trends, maintenance cycles, capital expenditure plans, and any updated guidance on debt maturities or financing costs as the year progresses.