Air T, Inc. — First Quarter Fiscal 2027 Earnings Summary

Financial Performance

• Total revenues were $115.5 million for the quarter ended June 30, 2026, a 63% increase ($44.6 million) from the prior year comparable quarter; $55.9 million of this revenue was attributed to the acquisition of Regional Express Holdings Pty Ltd ("Rex").
• Operating loss was $12.8 million for the quarter ended June 30, 2026, compared to an operating income of $0.8 million in the prior year comparable quarter.
• Loss before income taxes was $15.0 million for the quarter ended June 30, 2026, compared to $0.8 million in the prior year comparable quarter.
• Adjusted EBITDA was $0.8 million for the quarter ended June 30, 2026, a decrease from $1.5 million in the prior year comparable quarter.
• Net loss per share was $5.86 for the quarter ended June 30, 2026, compared to a net loss per share of $0.61 in the prior year comparable quarter.
• The investment balance for equity method investees was $27.9 million at June 30, 2026, compared to $19.9 million at June 30, 2025.

Business Segments and Product Lines

• Regional Airline: Generated $55.9 million in revenue (full quarter of Rex operations) and $1.9 million in Adjusted EBITDA. Operating loss was $7.7 million, driven by $11.8 million in fuel expenses due to higher per-liter prices and reduced aircraft availability from unscheduled engine removals.
• Overnight Air Cargo: Revenues remained consistent at $31.2 million year-over-year. Adjusted EBITDA increased to $2.1 million from $1.6 million, driven by improved FedEx Maintenance results at Mountain Air Cargo and higher parts/labor revenue at Worldwide Aircraft Services.
• Commercial Aircraft, Engines and Parts: Revenues decreased $1.6 million to $20.8 million, primarily due to a $3.3 million drop in component sales at Contrail. Adjusted EBITDA loss was $0.5 million, compared to a profit of $0.7 million in the prior year, driven by softness at AirCo and Worthington offset by improvements at Jet Yard Companies.
• Ground Support Equipment (GGS): Revenues decreased $11.4 million to $3.7 million due to the timing of a U.S. military order and the absence of a large one-time deicing truck order from the prior year. Adjusted EBITDA loss was $0.2 million, compared to a profit of $1.4 million in the prior year. Order backlog was $9.0 million at June 30, 2026, up from $7.2 million at June 30, 2025.
• Digital Solutions: Revenues increased $0.5 million to $2.6 million, driven by growth in data analytics and airspace management engagements. Adjusted EBITDA improved to $0.4 million from a loss of $0.4 million in the prior year, aided by AI-driven efficiency and lower labor costs.
• Aviation Leasing and Asset Management: Generated $1.4 million in revenue with no prior year comparable. Adjusted EBITDA loss was $0.3 million, with significant add-backs including $3.0 million in deal sourcing expenses related to the acquisition of Arena.

Other Key Points

• The acquisition of Regional Express Holdings Pty Ltd ("Rex") was completed on December 18, 2025.
• The acquisition of Arena was completed on June 10, 2026.
• Integration efforts for Arena into Crestone and Rex into Air T are ongoing.
• The company utilizes a Slido portal for shareholder questions, with answers provided live at the Annual Meeting and via written response quarterly.
• Forward-looking statements highlight risks including the inability to finance operations, potential termination or modification of FedEx contracts, volatility in Rex's revenues and operating costs, and risks associated with the Australian DOCA/administration process.