Air T 2026 Q2 Earnings Strong Earnings Growth with 69.9% Net Income Surge

Air T (AIRT) reported fiscal 2026 Q2 results marked by robust earnings growth despite a revenue decline. The company’s EPS surged 76.9% year-over-year, and net income rose 69.9%, outperforming expectations. However, management did not provide specific forward guidance for future periods.

Revenue

Air T’s total revenue fell 21.0% to $64.15 million in fiscal 2026 Q2, reflecting weaker performance across key segments. The Overnight Air Cargo segment saw reduced flight administration fees due to increased parked aircraft, while Ground Support Equipment revenue declined from fewer deicing truck sales. The Commercial Aircraft, Engines, and Parts segment also faced a drop in component sales at Contrail.

Earnings/Net Income

The company’s earnings momentum accelerated, with EPS rising to $1.61 from $0.91 in the prior year. Net income surged to $5.03 million, up 69.9% year-over-year, driven by improved operational efficiency and cost management. This strong earnings performance underscores the company’s ability to enhance profitability despite revenue headwinds.

Price Action

Air T’s stock edged down 0.00% in the latest trading day but declined 6.35% for the week and 4.86% month-to-date.

Post-Earnings Price Action Review

The strategy of buying Air T shares on earnings report dates and holding for 30 days yielded a 17.5% cumulative return over three years, with an average annual return of 5.8%. This suggests the market has historically responded positively to the company’s earnings trajectory, aligning with its improved financial performance.

CEO Commentary

CEO Nick Swenson emphasized disciplined capital allocation, targeting investments with returns exceeding a 15% hurdle rate. He highlighted the Rex acquisition as a strategic move to expand Air T’s regional aviation footprint and expressed confidence in the company’s operational execution and long-term value creation.

Guidance

Management outlined plans to reinvest in high-performing businesses, acquire cash-flow generating operations, and expand its marketable securities portfolio. The company aims to leverage non-recourse leverage while refining risk management to protect downside exposure, aligning with its intrinsic value growth strategy.

Additional News

Air T secured creditor support for its $6.7 million cash acquisition of Rex Regional Airlines, with courts expected to finalize the deal by year-end. The transaction, backed by 60% of creditors by value, signals confidence in Air T’s regional aviation strategy. Additionally, Contrail’s debt reduction to $6.7 million from $74.9 million during the pandemic highlights improved financial flexibility.