Air T Inc
AIRT
$22.71 -0.41%
Exchange: NASDAQ | Sector: Industrials | Industry: Integrated Freight Logistics
Q2 2025
Published: Nov 12, 2024

Earnings Highlights

  • Revenue of $17.13M down 78.3% year-over-year
  • EPS of $0.91 increased by 259.7% from previous year
  • Gross margin of -126.1%
  • Net income of 2.52M
  • "N/A" - N/A

Air T Inc (AIRT) QQ2 2025 Results – Revenue Contraction, Leverage Pressure and Turnaround Potential in Integrated Freight Logistics

Executive Summary

Air T Inc posted a markedly uneven Q2 2025, with revenue of $17.13 million representing a year-over-year decline of approximately 78% and a quarter-over-quarter drop of about 74%. The period showed a negative gross profit of $(21.59) million on negative gross margin (-1.26%), yet the company delivered positive operating income of $3.90 million and EBITDA of $6.41 million, culminating in a net income of $2.52 million and earnings per share of $0.91. The discrepancy between negative gross profit and positive bottom-line performance suggests a non-operating component or unusual items contributing to net income, alongside relatively lower operating expenses in aggregate during the quarter. Free cash flow was positive at $3.27 million and operating cash flow stood at $2.93 million, underscoring ongoing cash generation even as revenue and gross margin deteriorated. The balance sheet remains leverage-intensive: total debt stood at $146.6 million with long-term debt at $131.3 million, and equity of only $7.04 million, yielding a debt-to-capitalization near 0.95 and an interest coverage of 1.80x. Cash and cash equivalents totaled about $8.6–9.2 million over the period, with working capital dynamics driven by substantial accounts receivable and inventory levels. Management commentary (where available in the dataset) is not provided, limiting visibility into the drivers of the gross-margin deterioration and the path to de-leveraging. From a market perspective, Air T operates across three segments – Overnight Air Cargo, Ground Equipment Sales, and Commercial Aircraft Engines & Parts – offering exposure to aerospace maintenance, repair, and logistics services. While the Q2 results reflect a challenging quarter for top-line growth, the company’s ability to generate positive EBITDA and free cash flow in a leveraged capital structure could support a path to balance-sheet repair if revenue stability resumes and operating efficiencies improve. Investors should monitor debt reduction progress, any shifts in revenue mix that could restore gross margins, and the trajectory of cash conversion relative to working capital needs. Given the absence of formal forward guidance in the dataset, the investment thesis hinges on de-leveraging momentum, stabilization of revenue streams, and execution of cost containment and asset-light opportunities within Air T’s service portfolio.

Key Performance Indicators

Revenue

17.13M
QoQ: -74.21% | YoY:-78.31%

Gross Profit

-21.59M
-1.26% margin
QoQ: -253.84% | YoY:-252.85%

Operating Income

3.90M
QoQ: 775.74% | YoY:412.35%

Net Income

2.52M
QoQ: 852.24% | YoY:256.62%

EPS

0.91
QoQ: 858.33% | YoY:259.65%

Revenue Trend

Margin Analysis

Key Insights

Revenue: $17.13 million; YoY change: -78.31%; QoQ change: -74.21%. Gross Profit: $(21.59) million; Margin: -1.26% (YoY: -252.85%; QoQ: -253.84%). Operating Income: $3.89 million; Margin: 0.23% (YoY: +412.35%; QoQ: +775.74%). EBITDA: $6.41 million; EBITDARatio: 0.37. Net Income: $2.52 million; Net Margin: 14.71% (YoY: +256.62%; QoQ: +852.24%). EPS: $0.91; Weighted Avg Shares: 2.76 million; EPS Diluted: $0.91. Cash Flow: Operating Cash Flow $2.93 million; Capex $0.34 million; Free Cash Flow $3.27 ...

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q1 2026 70.87 -0.61 +6.7% View
Q4 2025 66.32 -2.60 -8.8% View
Q3 2025 77.88 -0.47 +22.2% View
Q2 2025 17.13 0.91 -78.3% View
Q1 2025 66.41 -0.12 -7.0% View