Air T 2026 Q2 Earnings Strong Net Income Growth of 69.9% Amid Revenue Decline

Air T (AIRT) reported fiscal 2026 Q2 earnings on Nov 12, 2025, with results showing mixed performance. While revenue declined year-over-year, earnings per share (EPS) and net income surged, outperforming expectations. The company did not provide explicit guidance for future periods, aligning with its recent results.

Revenue

Air T’s total revenue fell 21.0% to $64.15 million in 2026 Q2, driven by reduced component sales at Contrail and lower deicing truck sales. The Overnight Air Cargo segment faced revenue declines due to increased parked aircraft, while the Ground Support Equipment segment saw margin improvements despite lower sales. Commercial Aircraft, Engines and Parts revenue also dipped, reflecting ongoing market challenges.

Earnings/Net Income

The company’s EPS rose sharply to $1.61, a 76.9% increase from $0.91 in 2025 Q2. Net income surged 69.9% to $5.03 million, underscoring strong cost management and operational efficiency. This performance highlights Air T’s ability to generate profitability despite top-line pressures.

Price Action

Air T’s stock edged down 0.00% during the latest trading day but faced a 6.35% weekly decline and a 4.86% monthly drop, reflecting broader market volatility.

Post-Earnings Price Action Review

The strategy of buying Air T shares on earnings release dates and holding for 30 days delivered a 17.5% cumulative return over three years, with an average annual gain of 5.8%. This suggests that the market historically responded positively to the company’s earnings momentum, though recent price trends indicate short-term caution.

CEO Commentary

CEO Nick Swenson emphasized Air T’s disciplined capital allocation, targeting investments with over 15% returns. The recent Rex acquisition, pending court approval, exemplifies the company’s strategy to expand its regional aviation footprint. Swenson highlighted balancing short-term operational gains with long-term industrial growth.

Guidance

Air T disclosed FY26 Q2 results: $64.15 million revenue, $1.61 EPS, and $5.03 million net income. Risks include economic volatility, contract dependencies, and operational hurdles, as outlined in the 8-K filing. No forward guidance was provided beyond Q2.

Additional News

Air T secured creditor support for its $6.7 million cash-backed bid to acquire Rex Regional Airlines, with courts expected to approve the deal by year-end. The stock surged 3.71% after hours to $21.77 following the news. Separately, the company’s Contrail unit eliminated all bank debt, signaling improved financial flexibility.