Executive Summary
Air T Inc completed QQ1 2025 with a steady gross margin above 21% but a net loss of $0.335 million on revenue of $66.411 million. Despite a positive EBITDA of $2.809 million, negative operating income (-$0.577 million) and a modest pre-tax profit of $0.103 million reflect tighter cost control within a constrained revenue environment. The quarter shows a disciplined cost base offsetting depreciation and interest burdens, yielding an EBITDA margin of roughly 4.2% and an EBITDAR of 4.22%. Net income declined year-over-year in reported terms for the quarter as revenue declined, but major drivers of the bottom line remained in non-operating items and financing costs. Free cash flow was negative at $(0.226) million, while operating cash flow was a small positive $0.113 million, underscoring limited near-term cash-generation capacity given elevated working capital and capex needs.
From a strategic perspective, Air T continues to operate a diversified mix across Overnight Air Cargo, Ground Equipment Sales, and Commercial Aircraft Engines and Parts. The company maintains a robust current ratio (~2.15) and a modest quick ratio (~0.92), but exhibits a high leverage posture (Total debt to capitalization ~0.97) and negative earnings per share despite positive gross margins. This implies the business remains in a transition/repair phase: ensuring liquidity while pursuing revenue growth through equipment, maintenance services, and aircraft trading platforms. Investors should monitor leverage trajectory, working capital efficiency, and any shifts in demand within the aerospace and logistics cycles as potential catalysts for profitability and cash flow expansion.
Key Performance Indicators
QoQ: -139.71% | YoY:-187.69%
Key Insights
Revenue: $66.411 million in QQ1 2025, down YoY by 7.03% and QoQ by 8.63% (four-quarter data corroborates a softer top line in the latest period).
Gross Profit: $14.035 million; Gross Margin: 21.13% (vs. 21.41% prior period implied by provided data).
Operating Income: -$0.577 million; Operating Margin: -0.87% (EBITDA was $2.809 million, margin ~4.22%).
Net Income: -$0.335 million; Net Margin: -0.50%; EPS: -$0.12.
EBITDA: $2.809 million; EBITDA Margin: ~4.22% (EBITDARatio: 0.0423).
Balance Sheet: ...
Financial Highlights
Revenue: $66.411 million in QQ1 2025, down YoY by 7.03% and QoQ by 8.63% (four-quarter data corroborates a softer top line in the latest period).
Gross Profit: $14.035 million; Gross Margin: 21.13% (vs. 21.41% prior period implied by provided data).
Operating Income: -$0.577 million; Operating Margin: -0.87% (EBITDA was $2.809 million, margin ~4.22%).
Net Income: -$0.335 million; Net Margin: -0.50%; EPS: -$0.12.
EBITDA: $2.809 million; EBITDA Margin: ~4.22% (EBITDARatio: 0.0423).
Balance Sheet: TotalAssets $175.49 million; Total Liabilities $162.91 million; TotalStockholders’ Equity $4.12 million.
Liquidity & Leverage: Current ratio 2.15; Quick ratio 0.92; Cash ratio 0.17; Total Debt $130.59 million; Net Debt $122.77 million; Debt to Capitalization ~0.97; Interest Coverage negative (-0.30x).
Cash Flows: Operating cash flow $0.113 million; Capex $(0.339) million; Free Cash Flow $(0.226) million; Net cash provided by operating activities $0.113 million; Cash at end of period $8.705 million.
Receivables/Inventory: Net Receivables $25.997 million; Inventory $57.758 million; DSO ~30.9 days; DIO ~100.87 days; DPO ~24.45 days; CCC ~107.36 days.
Valuation/Market Signals: P/BV 11.69x; P/S ~0.73x; P/E negative; Dividend Yield ~2.87% (on a small, high-leverage base); Enterprise Value Multiple ~934.15x (context: small-cap, capital-intensive).
Peers/Benchmarks: Gross margins among logistics peers range from ~6.5% to ~24%, with Air T at 21.1%. Cash generation and leverage levels vary widely; Air T’s EBITDA margin compares favorably to many peers but the company remains structurally highly leveraged with limited cushion for financing costs if revenue deteriorates further.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
66.41M |
-7.03% |
-8.63% |
| Gross Profit |
14.04M |
4.65% |
-15.84% |
| Operating Income |
-577.00K |
-187.69% |
-139.71% |
| Net Income |
-335.00K |
36.91% |
80.29% |
| EPS |
-0.12 |
36.84% |
80.33% |
Key Financial Ratios
operatingProfitMargin
-0.87%
operatingCashFlowPerShare
$0.04
freeCashFlowPerShare
$-0.08
dividendPayoutRatio
-412%
priceEarningsRatio
-35.95
Management Commentary
No earnings call transcript or management commentary was provided in the data set. As a result, this section cannot include direct quotes or thematically grouped insights from executives. If a transcript becomes available, we will extract themes around strategy, operations, market conditions, and guidance.
Forward Guidance
No explicit forward guidance was issued for QQ2 2025 in the provided materials. Given the quarterly performance and sector dynamics, investors should monitor: (i) demand trajectory in Overnight Air Cargo and related maintenance/repair services; (ii) capital expenditure pacing and fleet/ground equipment utilization; (iii) working capital movements and receivables collection; (iv) financing costs and debt refinancing options given leverage near 0.97x capitalization; and (v) potential earnings catalysts from higher-margin segments (e.g., parts, engines, and maintenance). Achievability of profitability hinges on either revenue stabilization/growth or meaningful cost containment to drive operating leverage, coupled with modest debt service relief as rates and capex dynamics evolve.