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

Financial Performance:

• Total revenues reached $146.9 million for the quarter ended September 30, 2026, a 129% increase ($82.8 million) from the prior year's comparable quarter; $56.8 million of this revenue is attributed to the acquisition of Regional Express Holdings Pty Ltd ("Rex").
• Operating loss was $11.8 million for the quarter, compared to operating income of $5.5 million in the prior year's comparable quarter.
• Loss before income taxes was $16.2 million, compared to income before income taxes of $7.2 million in the prior year's comparable quarter.
• Adjusted EBITDA was $4.4 million for the quarter, a decrease from $7.9 million in the prior year's comparable quarter.
• Net loss per share was $7.48 for the quarter, compared to net income per share of $1.61 in the prior year's comparable quarter.
• The investment balance for equity method investees was $26.2 million at September 30, 2026, down from $27.9 million at September 30, 2025.
• For the six months ended September 30, 2026, Adjusted EBITDA was $5.2 million, down from $9.3 million in the prior year period.

Business Segments and Product Lines:

• Regional Airline: Generated $56.8 million in revenue (full quarter of Rex operations); Adjusted EBITDA loss was $0.9 million. Loss drivers included fuel costs doubling compared to pre-war levels, unscheduled engine removals, and lower engine throughput from third-party maintenance providers.
• Overnight Air Cargo: Revenues totaled $34.5 million, an increase of $3.5 million year-over-year, driven by higher pricing on flight administrative fees and billable labor at Mountain Air Cargo ("MAC"). Adjusted EBITDA was $2.6 million, up $0.8 million year-over-year, driven by higher revenue and gross margins.
• Commercial Aircraft, Engines and Parts: Revenues were $28.5 million, up $7.0 million year-over-year, driven by increased component sales at Contrail (including a single customer), strategic inventory investments by LGSS and AirCo, partially offset by reduced revenue at Jet Yard. Adjusted EBITDA was $1.5 million, down from $6.9 million, primarily due to a $7.0 million gain on sale of aircraft in the prior year quarter that did not recur.
• Ground Support Equipment: Revenues were $18.9 million, up $9.2 million year-over-year, driven by timing of annual orders for a large customer. Adjusted EBITDA was $2.7 million, up from $1.7 million. Order backlog was $11.6 million at September 30, 2026, compared to $12.9 million at September 30, 2025.
• Digital Solutions: Revenues were $2.6 million, up $0.4 million year-over-year, driven by growth in data analytics and airspace management engagements. Adjusted EBITDA was $0.1 million, up $0.2 million, driven by revenue growth at high incremental margins and lower labor costs from AI-driven efficiency.
• Aviation Leasing and Asset Management: Revenues were $7.8 million (full quarter of Crestone and Arena activity following the June 10, 2026 acquisition of Arena). Adjusted EBITDA was $1.3 million. Reconciliation items included an unfavorable earnout remeasurement of $3.3 million, depreciation and amortization of $2.2 million, and post-acquisition integration costs of $0.5 million.

Other Key Points:

• Air T completed the acquisition of Regional Express Holdings Pty Ltd ("Rex") on December 18, 2025, and the acquisition of Arena on June 10, 2026.
• Rex does not hedge fuel prices or Australian dollar/U.S. dollar exposure, mitigating costs through fare adjustments, capacity management, and fuel levy arrangements with state governments.
• Management noted that Crestone and GGS performed well in absolute terms and against comparables, while Rex faced challenges from unscheduled engine removals and fuel costs.
• The company utilizes Adjusted EBITDA as a non-GAAP measure to evaluate performance, adjusting for items such as depreciation, asset impairments, earnout remeasurements, and acquisition costs.
• The press release includes a detailed reconciliation of operating loss to Adjusted EBITDA for both the three and six months ended September 30, 2026 and 2025.
• Stakeholder questions are managed via an interactive Q&A capability on Slido.com, with answers provided live at the Annual Meeting and quarterly in writing.