Air T Posts $81.2 Million in Revenue and $0.91 EPS in Second Quarter
Key Facts
Air T announced on November 12, 2024, results for the second quarter of fiscal 2025, ended September 30, 2024, reporting revenue of $81.2 million and diluted earnings per share of $0.91. The company said in its statement that revenue increased by $2.3 million, or 3%, compared with the same quarter a year earlier. The company had reported a diluted loss per share of $0.57 in that comparable quarter. The figures reflect higher revenue and a move from a loss to earnings on a per-share basis. The official results for the period show performance that differs from the loss and revenue figures attributed to the company in another report.
Operating income rose to $3.9 million in the quarter ended September 30, 2024, from $0.8 million in the comparable period. Adjusted EBITDA was $5.0 million, compared with $1.6 million a year earlier. CEO Nick Swenson said the quarter's results were driven by "a strong margin in the aviation parts trading business." His explanation puts aviation parts trading at the forefront of the factors management linked to the period's performance. The increase in operating income and adjusted EBITDA adds to the statement's picture of improved profitability.
In the overnight air cargo segment, revenue rose 11% to $31.2 million, compared with $28.2 million in the same quarter. The company attributed the increase mainly to higher management fees, with the fleet growing to 105 aircraft from 85 a year earlier, as well as routes awarded by FedEx. In ground support equipment, revenue was $14.5 million, compared with $12.2 million in the comparable period. The segment's backlog also reached $9.1 million as of September 30, 2024, compared with $7.0 million on the corresponding date in 2023. These figures show revenue growth contributing across more than one of the company's businesses during the quarter.
Swenson said sales of deicing equipment were affected by a warmer winter, and said the company expects the business to recover with the market, possibly in the following year. In its component parts business, Air T said airlines focused on maintaining their existing 737NG and A320CEO fleets after canceling or postponing new orders from original equipment manufacturers. The company added that it has inventory to meet demand for component parts. These comments provide context for the mixed performance across businesses: strong margins in aviation parts trading, while deicing equipment was affected by winter conditions. The statement gave no timing beyond the following year for a possible recovery in deicing equipment.
The company said shareholder questions submitted through Slido will be answered live and in writing during the annual meeting, and will also receive written answers quarterly. This gives shareholders two channels for following up on questions specified by the company, one at the annual meeting and the other through periodic responses. The arrangement was included in the results statement issued on November 12, 2024. The reported figures cover the quarter ended September 30, 2024. Management tied the potential recovery in deicing equipment to the market and said it could occur in the following year.