Core Viewpoint - Air T, Inc. has successfully completed the acquisition of Regional Express Holdings Limited (Rex), marking a significant expansion in the regional airline sector in Australia [1] Company Summary - Air T, Inc. now owns 100% of Rex, which is recognized as Australia's leading regional airline [1] - The acquisition is expected to initiate a new chapter for Rex and enhance its service to regional communities across Australia [1]

Group 1 - Airtel Africa has partnered with SpaceX to introduce Starlink's direct-to-cell satellite technology [1] - The partnership will extend the satellite technology to all 14 markets where Airtel Africa operates [1]

Core Insights - The article highlights the performance and outlook of several stocks, including Microsoft, Novartis, RTX, and Air T, as analyzed by Zacks Equity Research [1][2]. Microsoft - Microsoft's shares have outperformed the Zacks Computer - Software industry over the past year, with a growth of 6.8% compared to the industry's 2.3% [4]. - The company holds a 25% market share in the cloud sector through Azure and integrates AI strategically via OpenAI, generating over $100 billion in annual operating cash flows with margins exceeding 40% [4]. - Fiscal 2026 net sales are expected to grow by 15.1% from fiscal 2025, but the company faces competition from AWS and Google Cloud, regulatory scrutiny, and rising capital expenditures for AI infrastructure [5]. Novartis - Novartis has outperformed the Zacks Large Cap Pharmaceuticals industry over the past year, with a growth of 38.8% compared to 14.9% for the industry [6]. - The company has a diverse portfolio, including drugs like Kisqali and Pluvicto, with projected compound annual growth rates (CAGR) of 37.9% and 43.3% over the next three years [7]. - New drug approvals and label expansions are expected to mitigate the impact of generic competition for key drugs, supported by recent acquisitions and collaborations [8]. RTX - RTX's shares have outperformed the Zacks Aerospace - Defense industry over the past year, with a growth of 54.1% compared to 28.1% for the industry [9]. - The company has a backlog of $251 billion as of September 30, 2025, driven by strong demand for defense products and improving global commercial air traffic [10]. - However, uncertainties from U.S. government import tariffs and ongoing supply-chain challenges pose risks to RTX's performance [11]. Air T - Air T has outperformed the Zacks Transportation - Air Freight and Cargo industry over the past year, with a growth of 0.8% compared to a decline of 8.4% for the industry [12]. - The company shows operational strength with margin expansion in Commercial Aircraft & Engines and stable cash flow from FedEx feeder operations [12]. - Elevated leverage, rising interest costs, and execution risks across segments constrain earnings durability, with liquidity pressured by volatile working-capital needs [13].

Summary of Air T (NasdaqCM:AIRT) FY Conference Call Company Overview - **Company Name**: Air T - **Ticker Symbol**: AIRT - **Industry**: Aviation and Aircraft Asset Management - **Key Personnel**: Dan Philpe (Senior Vice President, Corporate Development), Nick Swenson (CEO) Core Business Model - Air T focuses on building aviation companies through acquisitions and starting new businesses, primarily in aircraft asset management [2][3] - The company typically acquires one to two businesses per year, emphasizing a patient and strategic approach to acquisitions [3] - Air T operates with a decentralized management structure, allowing individual business units to make local decisions [4][10] Financial and Shareholder Insights - Senior management owns 20% of the company, with CEO Nick Swenson owning 49% [5] - The company has conducted stock buybacks, removing 22% of its stock from the market over time [5] - Air T aims to improve shareholder communication and transparency [6] Business Units and Operations - Air T owns three feeder airlines for FedEx, which are cash-generative and asset-light [8] - The company has a diversified portfolio, including businesses focused on aircraft engines, airframes, and maintenance services [21][22] - Recent acquisitions include World ACD, a co-op database for cargo information, and Crestone, which manages aircraft joint ventures [19][24] Recent Developments - Air T is in the process of acquiring Regional Express, the third-largest airline in Australia, which is expected to close soon [36] - The company has developed a significant asset management platform, allowing it to manage aircraft and generate fee income [28][30] Financial Performance - The company reported a working capital high due to inventory levels in its de-icing manufacturing business [17] - Air T's capital structure includes $35 million in trust-preferred securities with an 8% coupon [16] - The company is approaching $1 billion in assets under management (AUM) for its aircraft joint ventures [29] Market Position and Strategy - Air T aims to capitalize on the aging aircraft market, with many older aircraft still in operation due to issues with newer technology [40] - The company is focused on making the end-of-life aircraft market more institutionalized and understandable [41] - Air T plans to grow its leasing capabilities and potentially acquire younger aircraft as it scales [41] Digital Initiatives - Air T has invested in digital solutions, including Amber Hill Technologies, which provides ERP solutions for maintenance and repair facilities [32][33] - The company is experiencing growth in annual recurring revenue (ARR) from its software and data businesses [31] Conclusion - Air T is strategically positioned in the aviation industry with a focus on aircraft asset management and a diversified portfolio of businesses. The company is committed to enhancing shareholder value through acquisitions, operational efficiency, and improved communication.

Core Insights - Air T, Inc. (AIRT) shares have decreased by 0.3% since the fiscal year results were reported, outperforming the S&P 500 Index's 1.9% decline during the same period, but the stock has lost 8.2% over the past month compared to the S&P 500's 0.1% gain [1] Financial Performance - For the second quarter of fiscal 2026, Air T reported a 21% year-over-year decline in revenues to $64.2 million, down from $81.2 million, primarily due to reduced activity in the Commercial Aircraft, Engines and Parts segment [2] - Operating income increased by 52.2% to $5.5 million from $3.6 million a year ago, indicating stronger margins and effective cost controls [2] - Adjusted EBITDA rose by 56.6% to $7.9 million from $5 million, while earnings per share climbed by 76.9% to $1.61 from $0.91 [2] Segment Performance - The Overnight Air Cargo segment experienced a 4% revenue decline, Ground Support Equipment revenue fell by 33.3%, and Commercial Aircraft, Engines and Parts revenue contracted by 36.6% [3] - Digital Solutions, although the smallest segment, saw a revenue increase of 20.3% year over year [3] - Despite softer sales trends, segments like Commercial Aircraft and Ground Support Equipment reported strong year-over-year EBITDA gains [3] Balance Sheet and Cash Flow - Air T's engine and aircraft asset management business, Contrail, eliminated all bank debt, ending the quarter with $6.7 million in cash, a significant improvement from peak pandemic-era debt of $74.9 million [4] - The investment balance for equity method investees increased to $27.9 million as of Sept. 30, 2025, up from $19 million at the end of March 2025 [4] Consolidated Results - For the six-month period ending Sept. 30, 2025, consolidated revenues declined by 8.6% to $135 million from $147.7 million a year earlier, while adjusted EBITDA grew by 58.7% to $9.3 million from $5.9 million [5] Management Commentary - CEO Nick Swenson emphasized operational discipline and strategic positioning, praising the Contrail team for their efforts in deleveraging the business [7] - Management highlighted progress toward acquiring Rex Regional Airlines in Australia, pending court approval and expected to close in December 2025 [7] Factors Influencing Results - The revenue decline was attributed to timing-related issues and lower component inventory availability, with fewer deicing trucks sold due to earlier orders shifting revenue recognition [8] - The Commercial Aircraft segment's revenue contraction was due to reduced component inventory purchases over the prior 12 months [8] - Profitability improved due to strong execution in higher-margin areas, including the sale of two Airbus A321-111 aircraft, which significantly boosted earnings [9] Future Outlook - Air T did not provide formal forward guidance but emphasized continued investment in asset management and growth through selective acquisitions [10] - Management reiterated the goal of expanding cash flow per share while leveraging partnerships and disciplined capital allocation [10] Recent Developments - Air T signed a Sale and Implementation Deed to acquire Regional Express Holdings Limited (Rex), subject to creditor and court approvals [11] - The company amended its revolving credit agreement, increasing borrowing capacity to $20 million and reducing interest costs [11] - In the Commercial Aircraft segment, the sale of two Airbus A321-111 aircraft generated net proceeds of $19.9 million, contributing significantly to second-quarter profitability [11]

Core Insights - Air T, Inc. is an industrious American company with a diverse portfolio of independent yet interrelated businesses [1] Company Overview - The company seeks dynamic individuals and teams to operate its businesses [1] - Air T, Inc. focuses on processes and insights that drive increasing value over time [1]

Financial Results - Air T, Inc. reported financial results for the quarter ended September 30, 2025, with a focus on operational performance and market conditions[7] - The company issued a press release detailing its earnings, which is available as Exhibit 99.1[7] Regulatory Compliance - The report is filed under the Securities Exchange Act of 1934, ensuring compliance with regulatory requirements[8] - The financial results will not be deemed "filed" under the Exchange Act, indicating a specific reporting structure[8] Management - Tracy Kennedy serves as the Chief Financial Officer, responsible for the financial disclosures[13]

Revenue Performance - Consolidated revenue for the three-month period ended September 30, 2025 decreased by $17.1 million (21.0%) compared to the same quarter in the prior fiscal year[140]. - The ground support equipment segment's revenue decreased by $4.8 million (33%) to approximately $9.6 million for the quarter ended September 30, 2025[141]. - The commercial aircraft, engines, and parts segment's revenue decreased by $12.0 million (37%) to $20.9 million for the quarter ended September 30, 2025[143]. - Digital solutions segment revenue increased by $0.4 million (20%) to $2.2 million for the quarter ended September 30, 2025[144]. - Consolidated segment revenue for the first six months of fiscal 2026 decreased by $12.6 million (9%) compared to the same period in fiscal 2025[153]. - Overnight air cargo segment revenue decreased by $1.1 million (2%) to $60.5 million, primarily due to lower flight admin fees[154][155]. - Ground support equipment segment revenue increased by $2.9 million (13%) to $24.7 million, driven by higher deicer shipments and spare parts sales[155]. - Commercial aircraft, engines, and parts segment revenue decreased by $16.3 million (28%) to $42.8 million, attributed to lower component sales[156]. - Digital solutions segment revenue increased by $0.8 million (22%) to $4.3 million, mainly due to increased software subscriptions[157]. Operating Expenses - Consolidated segment operating expenses decreased by $15.2 million (24%) for the three-month period ended September 30, 2025[145]. - Consolidated operating expenses decreased by $13.1 million (11%) to $100.3 million, with significant reductions in the commercial aircraft segment[158]. - General and administrative expenses increased by $3.9 million (27%) to $14.2 million for the quarter ended September 30, 2025[149]. - General and administrative expenses increased by $4.7 million (17%) to $33.1 million, primarily due to acquisition-related costs and higher payroll[162]. Non-Operating Income and Tax - The company recorded net non-operating income of $1.7 million for the quarter ended September 30, 2025, compared to a net non-operating loss of $0.3 million in the prior year quarter[150]. - The effective tax rate for the three-month period ended September 30, 2025 was 30.4%, with a recorded income tax expense of $2.2 million[151]. - The company recorded a net non-operating income of $0.1 million for the first six months of fiscal 2026, down from $0.3 million in the prior year[163]. Cash and Liquidity - As of September 30, 2025, the company held approximately $17.5 million in cash and cash equivalents, with working capital increasing by $18.5 million to $49.4 million[171][172]. - The company entered into a new term loan of $1.1 million to finance the acquisition of Royal, maturing on May 15, 2030[173]. - The Multiple Advance Note has an annual interest rate of 8.5%, maturing on May 31, 2035[175]. - Net cash used in operating activities for the six months ended September 30, 2025 was $6.5 million, a decrease of $9.5 million compared to the prior year[181]. - Net cash provided by investing activities for the same period was $13.9 million, primarily from the sale of two Airbus Model A321-111 aircraft[182]. - Net cash provided by financing activities was $3.7 million, a decrease from $12.5 million in the prior year, due to increased payments on revolving lines of credit and term loans[183]. - The Company has sufficient cash and liquidity to meet obligations for at least 12 months following the issuance of financial statements[179]. - The revolving credit commitment was increased to an aggregate principal amount not to exceed $20.0 million, with a reduced interest rate of 5.00% or 1-month SOFR plus 1.90%[178]. Adjusted EBITDA and Segment Performance - Adjusted EBITDA for the six months ended September 30, 2025 was $9.3 million, compared to $5.9 million in the prior year[188]. - The Company’s Adjusted EBITDA by segment for the three months ended September 30, 2025 was highest in Commercial Aircraft, Engines and Parts at $6.9 million[188]. Trust Preferred Securities - The Trust Preferred Securities have an annual distribution rate of 8% on a liquidation amount of $25.00, payable quarterly[189]. - As of September 30, 2025, there are $48.5 million in Trust Preferred Securities outstanding, with $13.0 million held by the Company's wholly-owned subsidiaries[195]. - The Trust Agreement allows for the issuance of up to $100.0 million of Trust Preferred Securities[195]. - The Company has the right to defer interest payments on Junior Subordinated Debentures for up to 20 consecutive quarters, with a maturity date of June 7, 2049[194]. - The Company does not currently intend to exercise its right to defer interest payments on the Junior Subordinated Debentures[194]. - The Trust is classified as a "finance subsidiary" and does not file periodic reports with the SEC[196]. Market Risk - Market risk exposures have not changed materially since March 31, 2025[197].

Core Points - Air T, Inc. has received strong support from a majority of Rex's creditors for its acquisition bid, indicating confidence in the company's vision for Rex and commitment to regional aviation in Australia [1] Company Summary - The second meeting of creditors took place on November 11, 2025, where the majority of creditors, both in number and value, voted in favor of Air T, Inc.'s bid [1]

Core Insights - Air T, Inc. has entered into a Sale and Implementation Deed with the Administrators of Regional Express Holdings Limited and its subsidiaries, indicating a strategic acquisition move [1] - The acquisition of Regional Express, a leading regional airline in Australia, is expected to be finalized by the end of the year, pending necessary approvals [1] Company Summary - Air T, Inc. is pursuing the acquisition of Regional Express Holdings Limited, which operates a prominent regional airline in Australia [1] - The completion of the acquisition is contingent upon obtaining creditor and other necessary approvals [1]