Air T (AIRT) AI Stock Analysis

• Market Cap: $70.27M
• Dividend Yield: N/A
• Average Volume (3M): 1.21K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.21
• Revenue Growth: 5.14%
• EPS Growth: -17.39%
• Country: US
• Employees: 624
• Sector: Industrials
• Sector Strength: 72
• Industry: Integrated Freight & Logistics
• EPS (TTM): -0.60
• Shares Outstanding: 2,702,639
• 10 Day Avg. Volume: 1,070
• 30 Day Avg. Volume: 1,209
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.78
• Enterprise Value/Revenue: 0.66
• Enterprise Value/Gross Profit: 3.24
• Enterprise Value/Ebitda: 24.53
• 1Y Price Target: $26.00
• Price Target Upside: 0.00%
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 55 Neutral
• Price Target: $26.00 ▲(0.00% Upside)

Air T's overall stock score is driven by positive technical indicators and supportive corporate events, which are offset by weak financial performance and unattractive valuation. The company's strategic initiatives and financial flexibility improvements are promising, but profitability and leverage remain significant concerns.

Positive Factors

Financial Flexibility

The amendment of credit agreements to lower interest rates and extend maturity enhances Air T's financial flexibility, allowing for better cash management and operational support over the long term.

Revenue Growth

Consistent revenue growth, particularly in overnight air cargo and digital solutions, indicates strong market demand and effective business strategies, supporting long-term financial health.

Strategic Asset Management

The strategic sale of aircraft assets for significant capital demonstrates effective asset management, providing liquidity and supporting strategic initiatives.

Negative Factors

High Debt Levels

The high debt levels indicate a reliance on debt financing, which can strain financial stability and limit growth opportunities if not managed effectively.

Negative Profit Margins

Persistent negative profit margins suggest challenges in achieving profitability, necessitating improvements in cost management and operational efficiency for sustainable growth.

Cash Flow Challenges

Challenges in converting earnings into cash flow can impact the ability to fund operations and reduce debt, highlighting the need for improved cash flow management.

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 several key streams. The primary source of income comes from its subsidiaries that provide air cargo services, which includes transporting freight for businesses and individuals. Additionally, the company earns revenue from ground handling services at airports, which involves managing baggage, cargo, and passenger services for various airlines. Air T also benefits from logistics and supply chain management services, optimizing the transportation of goods. Strategic partnerships with major carriers and logistics companies enhance their service offerings and customer base, contributing significantly to the company's overall earnings.

Air T Financial Statement Overview

Summary

Air T's financial performance is challenged by negative profit margins and high financial leverage. Despite revenue growth, the company's profitability and financial stability are concerning due to high debt levels and negative return on equity.

Income Statement

Air T's income statement shows a mixed performance. The company has experienced revenue growth, with a TTM growth rate of 1.53%. However, profitability is a concern, as evidenced by negative net profit margins and declining EBIT margins. The gross profit margin is relatively stable but not high enough to offset the losses. Overall, the company needs to improve its cost management and operational efficiency to enhance profitability.

Balance Sheet

The balance sheet reveals significant financial leverage, with a high debt-to-equity ratio of 26.29 in the TTM period. This indicates a heavy reliance on debt financing, which poses a risk, especially given the negative return on equity. The equity ratio is low, suggesting limited financial stability. The company must focus on strengthening its equity base and reducing debt to improve financial health.

Cash Flow

Cash flow analysis shows some positive aspects, such as a high free cash flow to net income ratio, indicating efficient cash generation relative to earnings. However, the free cash flow growth rate is negative, and the operating cash flow to net income ratio is below 1, suggesting challenges in converting earnings into cash. The company should aim to enhance cash flow generation to support operations and reduce debt.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	296.31M	291.85M	286.83M	247.32M	177.08M	175.12M
Gross Profit	60.28M	60.19M	56.48M	48.83M	39.38M	31.67M
EBITDA	7.96M	7.97M	5.85M	1.07M	20.43M	-4.03M
Net Income	-7.44M	-6.14M	-6.82M	-12.29M	10.93M	-7.28M
Balance Sheet
Total Assets	190.04M	173.78M	177.17M	189.56M	207.60M	140.75M
Cash, Cash Equivalents and Short-Term Investments	14.95M	6.35M	7.10M	5.81M	6.47M	12.40M
Total Debt	139.12M	129.12M	125.20M	137.52M	143.99M	95.94M
Total Liabilities	184.75M	168.24M	158.37M	163.87M	171.12M	119.44M
Stockholders Equity	5.29M	-3.22M	4.77M	11.90M	24.61M	13.72M
Cash Flow
Free Cash Flow	22.13M	7.82M	16.10M	15.73M	-34.64M	-7.82M
Operating Cash Flow	22.29M	23.50M	17.18M	16.91M	-33.08M	-1.82M
Investing Cash Flow	-24.92M	-20.19M	-2.50M	-6.17M	-33.39M	2.52M
Financing Cash Flow	9.07M	-4.80M	-13.91M	-12.38M	59.25M	71.00K

Air T Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AIRT, the sentiment is Positive. The current price of 26 is above the 20-day moving average (MA) of 23.54, above the 50-day MA of 22.75, and above the 200-day MA of 19.88, indicating a bullish trend. The MACD of 0.87 indicates Negative momentum. The RSI at 64.71 is Neutral, neither overbought nor oversold. The STOCH value of 79.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AIRT.

Air T Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.74B	15.33	7.44%	2.00%	2.86%	-14.57%
AIRT	55 Neutral	$70.27M	―	-790.22%	―	5.14%	-17.39%
ATXG	―	$7.83M	―	-16.84%	―	―	―
SFWL	79 Outperform	$93.42M	8.10	9.93%	―	21.10%	31.75%
PSIG	46 Neutral	$12.73M	―	-5.73%	―	―	―
PAL	45 Neutral	$195.08M	―	-2.85%	―	―	―
NCEW	―	$12.83M	―		―	―	―

Air T Corporate Events

Air T Amends Credit Agreements with Alerus Financial

On September 3, 2025, Air T, Inc. and its subsidiaries entered into several agreements with Alerus Financial, National Association to amend their revolving credit financing and Term Note A. The amendments included a decrease in the interest rate, an extension of the maturity date to August 28, 2027, and an increase in the revolving credit commitment to $20 million. These changes aim to enhance financial flexibility and support the company’s ongoing operations.

Air T Holds Annual Stockholders Meeting, Key Proposals Voted

On August 14, 2025, Air T held its Annual Meeting of Stockholders, where 91.54% of the company’s outstanding shares were represented. During the meeting, stockholders voted on several key proposals, including the election of directors, approval of executive compensation, and an amendment to increase authorized preferred shares. The appointment of Deloitte & Touche LLP as the independent registered public accounting firm for 2025 was also ratified.

Air T Updates Investor Presentation with Financial Highlights

Air T, Inc. has updated its investor presentation, reflecting its financial performance and strategic positioning. For the fiscal year ending March 31, 2025, the company reported revenues of $291.9 million and an adjusted EBITDA of $7.4 million, with a notable increase in ground support equipment sales. The company continues to focus on empowering dynamic management and creating long-term value, while addressing risks such as economic conditions and contract modifications with FedEx.

Air T Completes $18M Aircraft Sale to FTAI

On July 15, 2025, CASP Leasing I, LLC, a subsidiary of Contrail Aviation Support, LLC, completed the sale of two Airbus aircraft with engines for over $18 million to FTAI Aircraft Leasing Ireland (2025) DAC. This transaction involved the assignment of lease rights and obligations to the new lessor, marking a significant financial move for the company.

Air T Highlights Revenue Growth in Investor Update

Air T, Inc. has updated its investor presentation, highlighting a 2% revenue increase for the fiscal year ending March 31, 2025, compared to the previous year. The company reported revenues of $291.9 million and an adjusted EBITDA of $7.4 million. Key growth areas included overnight air cargo and digital solutions, while the commercial aircraft engines and parts segment saw a revenue decrease due to a lower supply of assets. The company’s strategic focus on empowering dynamic management and securing attractive returns on capital aims to drive long-term value creation.

Air T’s Subsidiary Sells Two Airbus Aircraft

On June 19, 2025, CASP Leasing I, LLC, a subsidiary of Contrail Aviation Support, LLC, entered into agreements to sell two Airbus aircraft to FTAI Aircraft Leasing Ireland (2025) DAC, with a total transaction value exceeding $25 million. The transactions are expected to close during the week of July 7, 2025, but are subject to various conditions, and there is no guarantee of completion on the anticipated dates. The agreements include representations and warranties that are not intended for reliance by third parties, as they are subject to important qualifications and limitations.