Executive Summary
Air T Inc reported QQ2 2025 results showing a pronounced top-line decline but continued operating profitability and positive free cash flow, underscoring the company’s ability to generate earnings even in a revenue-constrained quarter. Revenue for QQ2 2025 stood at $17.13 million, a year-over-year drop of 78.3% and a sequential drop of 74.2%, suggesting material base effects or shifts in project mix. Despite the revenue contraction, the company delivered EBITDA of $6.41 million and net income of $2.52 million, with operating income of $3.90 million and an after-tax margin of roughly 14.7% on the period, culminating in diluted EPS of $0.91 on 2.76 million shares. Cash flow remained positive, with net cash from operating activities of $2.93 million and free cash flow of $3.27 million, contributing to a cash balance of $9.18 million at quarter end. A key architectural feature of the QQ2 results is the substantial debt load: total debt of $146.55 million and net debt of $137.94 million, yielding a debt-to-capitalization around 95% and an interest-coverage ratio near 1.80x, which underscores leverage risk in a volatile revenue environment.
Key Performance Indicators
QoQ: -74.21% | YoY:-78.31%
QoQ: -253.84% | YoY:-252.85%
QoQ: 775.74% | YoY:412.35%
QoQ: 852.24% | YoY:256.62%
QoQ: 858.33% | YoY:259.65%
Key Insights
Revenue: $17.13m (YoY -78.3%, QoQ -74.2%) | Gross Profit: -$21.59m (margin -1.26%) | EBITDA: $6.41m (EBITDA margin 37.4%) | Operating Income: $3.90m (margin 22.8%) | Net Income: $2.52m (margin 14.7%) | EPS: $0.91 | Cash Flow: Operating CF $2.93m; Free Cash Flow $3.27m; Net cash from financing $13.785m; Cash at end $9.184m | Balance Sheet: Total assets $197.12m; Total liabilities $181.04m; Total equity $7.04m; Net debt $137.94m; Current ratio 2.27; Quick ratio 1.14; Cash ratio 0.19 | Leverage &am...
Financial Highlights
Revenue: $17.13m (YoY -78.3%, QoQ -74.2%) | Gross Profit: -$21.59m (margin -1.26%) | EBITDA: $6.41m (EBITDA margin 37.4%) | Operating Income: $3.90m (margin 22.8%) | Net Income: $2.52m (margin 14.7%) | EPS: $0.91 | Cash Flow: Operating CF $2.93m; Free Cash Flow $3.27m; Net cash from financing $13.785m; Cash at end $9.184m | Balance Sheet: Total assets $197.12m; Total liabilities $181.04m; Total equity $7.04m; Net debt $137.94m; Current ratio 2.27; Quick ratio 1.14; Cash ratio 0.19 | Leverage & Coverage: Debt ratio 0.743; Debt-to-capitalization 0.954; Interest coverage 1.80x | Liquidity & Working Capital: DSO 34.08 days; DIO 73.09 days; CCC ~107 days
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
17.13M |
-78.31% |
-74.21% |
| Gross Profit |
-21.59M |
-252.85% |
-253.84% |
| Operating Income |
3.90M |
412.35% |
775.74% |
| Net Income |
2.52M |
256.62% |
852.24% |
| EPS |
0.91 |
259.65% |
858.33% |
Key Financial Ratios
operatingProfitMargin
4.8%
operatingCashFlowPerShare
$1.06
freeCashFlowPerShare
$-4.31
dividendPayoutRatio
54.8%
Management Commentary
Transcript data not provided in the supplied dataset. Hence, there are no management quotes or theme summaries to cite from an earnings call or transcript for QQ2 2025. The analysis therefore relies exclusively on the reported financial results and the implied commentary embedded in the filings.
Transcript not provided in the dataset.
— N/A
Transcript not provided in the dataset.
— N/A
Forward Guidance
No formal forward guidance was provided in the supplied data. Given industry dynamics in air freight and integrated logistics, investors should monitor: (1) revenue stabilization and mix shift toward higher-margin segments (e.g., Commercial Engines and Parts, Ground Equipment services) to improve gross profitability; (2) debt reduction or refinancing to reduce interest burden and improve leverage metrics; (3) working capital management to shorten the cash conversion cycle and bolster liquidity; (4) capacity utilization and fleet/asset management to sustain positive EBITDA in a volatile demand environment.