Air T (AIRT) AI Stock Analysis

• Market Cap: $55.43M
• Dividend Yield: N/A
• Average Volume (3M): 942.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.03
• Revenue Growth: -1.72%
• EPS Growth: -137.31%
• Country: US
• Employees: 624
• Sector: Industrials
• Sector Strength: 72
• Industry: Integrated Freight & Logistics
• EPS (TTM): -0.91
• Shares Outstanding: 2,702,639
• 10 Day Avg. Volume: 705
• 30 Day Avg. Volume: 942
• PEG Ratio: 0.96
• Price to Book (P/B): -14.45
• Price to Sales (P/S): 0.16
• P/FCF Ratio: 5.95
• Enterprise Value/Market Cap: 4.31
• Enterprise Value/Revenue: 0.88
• Enterprise Value/Gross Profit: 4.39
• Enterprise Value/Ebitda: 35.81
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: $20.50 ▲(0.24% Upside)
• Action: Reiterated Date: 02/15/26
• Date: Action: Reiterated 02/15/26

Overall score is held down primarily by weak financial performance (negative equity, elevated leverage, and TTM cash flow deterioration). Technicals are comparatively supportive with price above key moving averages and positive MACD, while valuation remains constrained by losses (negative P/E). Corporate events add some support due to strategic expansion and financing initiatives, but do not fully offset the underlying balance-sheet and cash-flow risks.

Positive Factors

Business diversification & Rex acquisition

The Rex acquisition creates a new regional airline segment and geographic diversification into Australia, shifting segment mix and expanding route/network scale. Over 2–6 months this structural change can broaden revenue sources and reduce single-market dependence, if integration and fleet plans proceed.

Contracted air-feeder revenue base

A material portion of air cargo revenue comes from contracted feeder services tied to FedEx, providing predictable scheduled cash flows and high fleet utilization. This contractual backbone supports revenue stability and operational planning over the medium term, assuming contract renewals and service performance persist.

Steady gross margins and positive adjusted EBITDA

Margins have been relatively steady and the company reported positive adjusted EBITDA despite revenue headwinds. Persistent mid‑teens to low‑twenties gross margins and operating profitability signal underlying operational leverage and the potential to convert revenue into operating cash as the business scales or integrates acquisitions.

Negative Factors

Negative shareholders' equity

Negative equity materially weakens the capital structure, distorting leverage metrics and reducing cushion for creditors. Over months this limits access to unsecured financing, raises refinancing risk, and increases the likelihood that lenders impose restrictive covenants or seek recovery remedies against assets.

TTM operating & free cash flow deterioration

A sharp swing to negative trailing cash flow undermines internal funding for fleet maintenance, Rex integration, and working capital. Sustained negative cash generation increases reliance on external financing, elevates refinancing and liquidity risk, and can force asset sales or further dilution over the medium term.

Revenue volatility and recent TTM decline

Volatile top‑line trends and recent TTM revenue declines reduce predictability of earnings and cash conversion. Combined with intermittent net losses, this limits management's ability to invest, deleverages balance sheet repair, and raises execution risk for restructuring and growth initiatives like Rex.

Air T Business Overview & Revenue Model

Company Description

Air T, Inc., through its subsidiaries, provides overnight air cargo, ground equipment sale, and commercial jet engines and parts, and printing equipment and maintenance services in the United States and internationally. The company's Overnight Air Cargo segment offers air express delivery services. As of March 31, 2022, this segment had 72 aircraft under the dry-lease agreements with FedEx. Its Ground Equipment Sales segment manufactures, sells, and services aircraft deicers, scissor-type lifts, military and civilian decontamination units, flight-line tow tractors, glycol recovery vehicles, and other specialized equipment. This segment sells its products to passenger and cargo airlines, ground handling companies, the United States Air Force, airports, and industrial customers. Its Commercial Aircraft, Engines and Parts segment offers commercial aircraft trading, leasing, and parts solutions; commercial aircraft storage, storage maintenance, and aircraft disassembly/part-out services; commercial aircraft parts sales, exchanges, procurement services, consignment programs, and overhaul and repair services; and aircraft instrumentation, avionics, and a range of electrical accessories for civilian, military transport, regional/commuter and business/commercial jet, and turboprop aircraft. This segment also provides composite aircraft structures, and repair and support services. Air T, Inc. was incorporated in 1980 and is based in Denver, North Carolina.

How the Company Makes Money

Air T generates revenue through multiple streams, primarily by offering air freight and cargo services. The company earns money from transporting goods via air, which involves charging clients for shipping services based on weight, distance, and delivery speed. Additionally, Air T benefits from ground handling services, where it manages cargo loading and unloading operations at airports. Key partnerships with airlines and logistics companies enhance its service offerings and expand its customer base. The company may also realize revenue from ancillary services related to cargo logistics, such as warehousing and distribution, which further contribute to its overall earnings.

Air T Financial Statement Overview

Summary

Weak fundamentals drive the score: revenue has been volatile with a TTM decline, profitability remains challenged with recent net losses, the balance sheet is stressed with negative equity and elevated leverage, and operating/free cash flow flipped sharply negative in TTM.

Income Statement

Revenue has been volatile: strong gains in FY2023 and FY2024, modest growth in FY2025, then a decline in TTM (Trailing-Twelve-Months). Profitability remains challenged—net income is negative in the most recent periods (FY2023–TTM), despite some improvement in operating performance versus FY2021 and a positive operating result in FY2024–FY2025. Gross margin has been relatively steady around the ~18%–22% range, but the company has not consistently converted that into bottom-line profits.

Balance Sheet

The balance sheet is the key weakness. Stockholders’ equity has turned negative in the most recent two periods, which makes leverage risk meaningfully higher and limits financial flexibility. Total debt is elevated, and the debt-to-equity readings are extreme/distorted due to negative equity (still signaling heavy leverage). Overall, the capital structure looks stressed relative to the company’s profit profile.

Cash Flow

Cash generation has been inconsistent. Several years showed positive operating cash flow and free cash flow (FY2023–FY2025), but TTM (Trailing-Twelve-Months) flipped sharply negative on both measures, indicating deterioration in cash earnings and/or working-capital needs. The recent swing to negative free cash flow is a notable risk, especially given the leveraged balance sheet.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	272.47M	291.85M	286.83M	247.32M	177.08M	175.12M
Gross Profit	54.37M	60.19M	52.38M	48.83M	39.38M	31.67M
EBITDA	6.67M	7.97M	5.53M	741.00K	20.06M	-4.32M
Net Income	-6.76M	-6.14M	-6.82M	-12.29M	10.93M	-7.28M
Balance Sheet
Total Assets	381.76M	173.78M	177.17M	189.56M	207.60M	140.75M
Cash, Cash Equivalents and Short-Term Investments	43.50M	6.35M	7.10M	5.81M	6.47M	12.40M
Total Debt	224.50M	129.12M	125.20M	137.52M	143.99M	95.94M
Total Liabilities	375.87M	168.24M	158.37M	163.87M	171.12M	119.44M
Stockholders Equity	-1.17M	-3.22M	4.77M	11.90M	24.61M	13.72M
Cash Flow
Free Cash Flow	-22.26M	7.82M	16.10M	15.73M	-34.64M	-7.82M
Operating Cash Flow	-20.88M	23.50M	17.18M	16.91M	-33.08M	-1.82M
Investing Cash Flow	3.60M	-20.19M	-2.50M	-6.17M	-33.39M	2.52M
Financing Cash Flow	40.96M	-4.80M	-13.91M	-12.38M	59.25M	71.00K

Air T Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 20.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AIRT, the sentiment is Negative. The current price of 20.45 is below the 20-day moving average (MA) of 22.81, below the 50-day MA of 21.29, and below the 200-day MA of 21.51, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 33.92 is Neutral, neither overbought nor oversold. The STOCH value of 4.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AIRT.

Air T Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SFWL	73 Outperform	$79.51M	3.59	9.93%	―	21.10%	31.75%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
PAL	58 Neutral	$209.28M	-7.95	-3.26%	―	―	―
PSIG	52 Neutral	$55.92M	―	―	―	―	―
AIRT	50 Neutral	$55.43M	-5.27	-157.83%	―	-1.72%	-137.31%

Air T Corporate Events

Air T Highlights Q3 2026 Performance and Growth Strategy

Air T has released an updated investor presentation covering its fiscal 2026 third-quarter position, highlighting a 12‑year expansion from three to 20 businesses, revenue growth to $206.2 million for the nine months ended Dec. 31, 2025, and adjusted EBITDA of $9.5 million despite a year‑over‑year revenue decline. The materials also detail the Dec. 18, 2025 acquisition of substantially all assets and operations of Australia’s Rex Express Holdings, marking Air T’s entry into the Australian regional airline market, the creation of a new regional airline segment and a shift in segment mix that could reshape its international aviation services footprint and earnings profile.

The most recent analyst rating on (AIRT) stock is a Hold with a $23.50 price target. To see the full list of analyst forecasts on Air T stock, see the AIRT Stock Forecast page.

Air T Sets 2026–2027 Alpha Income Preferred Dividends

On February 5, 2026, Air T, Inc. announced the 2026 and 2027 distribution and record dates for cash dividends on Air T Funding’s Alpha Income Preferred (AIP) securities (NASDAQ: AIRTP), setting quarterly cash distributions at $0.50 per share, equivalent to an 8.0% annual rate. The scheduled distribution dates run from February 17, 2026 through November 15, 2027, providing preferred shareholders with a clearly defined payout calendar that underpins the income profile of the AIP securities and signals ongoing commitment to returning capital to this class of investors.

The most recent analyst rating on (AIRT) stock is a Hold with a $23.00 price target. To see the full list of analyst forecasts on Air T stock, see the AIRT Stock Forecast page.

Air T Finalizes Rex Acquisition and Long-Term Financing

On December 17, 2025, Air T, Inc., through its subsidiary structure, completed the court-approved acquisition of all outstanding shares of Regional Express Holdings Limited (Rex), assuming approximately A$108 million of liabilities for a nominal cash price of $1.00, and simultaneously put in place a complex, multi-party financing stack to support Rex’s restructuring and ongoing operations. The deal is anchored by a US$40 million, 11.5% senior secured note issued to Honeywell-affiliated investors, whose proceeds fund a new A$50 million credit facility from Air T to the Rex group, and by amended and new loan facilities from the Commonwealth of Australia, which remains a secured creditor with about A$108 million outstanding and up to an additional A$60 million in undrawn funding for engine overhauls and operations. An intercreditor framework sets priority over aircraft and other collateral, mandates excess cash flow sweeps between Air T and the Commonwealth, and gives the Commonwealth step-in and equity acquisition rights if Air T-linked notes go unpaid, while new warrants in the acquisition vehicle align certain executives with the performance – and risk – of the Rex financing structure. Air T and Rex’s management present the transaction as the resolution of a financially challenging period and the start of a “revitalised” phase aimed at restoring Rex’s fleet from about 31 to 45 aircraft over two years and reinforcing regional air connectivity across Australia, with long-dated facilities and shared governance rights positioning both Air T and the Australian government as key long-term stakeholders in the airline’s future.

The most recent analyst rating on (AIRT) stock is a Hold with a $19.50 price target. To see the full list of analyst forecasts on Air T stock, see the AIRT Stock Forecast page.