Air T 2026 Q2 Earnings Net Income Surges 69.9% Despite Revenue Drop

Air T (AIRT) reported fiscal 2026 Q2 earnings on Nov 12, 2025, delivering mixed results amid a challenging market environment. While revenue declined, earnings growth outperformed expectations, and management provided specific forward-looking guidance. The stock faced modest near-term selling pressure but historical data suggests earnings-driven strategies have historically yielded moderate returns.

Revenue

The total revenue of Air T decreased by 21.0% to $64.15 million in 2026 Q2, down from $81.24 million in 2025 Q2.

Earnings/Net Income

Air T's EPS rose 76.9% to $1.61 in 2026 Q2 from $0.91 in 2025 Q2, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $5.03 million in 2026 Q2, marking 69.9% growth from $2.96 million in 2025 Q2. This significant improvement in profitability highlights effective cost management and operational efficiencies despite lower top-line results.

Price Action

The stock price of Air T has edged down 0.00% during the latest trading day, has dropped 6.35% during the most recent full trading week, and has dropped 4.86% month-to-date.

Post-Earnings Price Action Review

The strategy of buying Air T (AIRT) shares on the date of its revenue raise and holding for 30 days showed favorable performance over the past three years. The cumulative return was 17.5%, with an average annual return of 5.5%. This indicates the strategy captured moderate gains following the earnings release, suggesting it aligned well with the company's positive financial outlook.

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CEO Commentary

Nick Swenson, CEO of Air T, emphasized the company’s focus on “activating growth and overcoming challenges” through strategic investments in high-performing businesses and disciplined capital allocation. He highlighted the acquisition of Royal Aviation Services (RAS) as a step to strengthen the Overnight Air Cargo segment and noted the importance of “dynamic management teams” in driving long-term value. Swenson acknowledged challenges, including a 23% reduction in shares outstanding since 2013 and a 2% FY25 revenue increase driven by mixed segment performance, but expressed confidence in the company’s ability to generate “extremely attractive returns on capital” through its diversified portfolio and operational efficiency.

Guidance

The company provided explicit forward-looking guidance for FY26 Q2, reflecting revenue of $64.15 million and net income of $5.03 million, with EPS of $1.61. It anticipates continued reinvestment in high-performing segments, such as aircraft acquisitions and digital solutions, while navigating risks like economic volatility and sector-specific challenges (e.g., reduced deicer demand in mild winters). Management expects to maintain a disciplined capital structure, prioritizing returns exceeding 15% for new investments, and emphasized alignment with shareholders through treasury stock purchases and strategic partnerships.

Additional News

Air T recently completed the acquisition of Royal Aviation Services (RAS), a strategic move to bolster its Overnight Air Cargo division. This acquisition aligns with CEO Nick Swenson’s emphasis on expanding high-performing business units. Additionally, the company has reduced shares outstanding by 23% since 2013, reflecting an ongoing commitment to shareholder value through disciplined capital allocation. Management also announced plans to accelerate investments in digital solutions to enhance operational efficiency, signaling a focus on technology-driven growth. These initiatives underscore Air T’s strategy to navigate macroeconomic uncertainties while strengthening its competitive positioning in the aviation sector.