Core Viewpoint - The stock market, particularly the Straits Times Index, is experiencing a bull run in 2025, with a year-to-date increase of over 21% as of December 15, 2025, yet three blue-chip stocks are underperforming, indicating potential investment opportunities beneath the surface [1]. Group 1: Thai Beverage (ThaiBev) - ThaiBev reported a total return of -11.1% year-to-date, with revenue declining by 2.1% year-on-year to THB333.3 billion and profit attributable to owners falling by 6.8% to THB25.4 billion for the fiscal year ending September 30, 2025 [2]. - The spirits segment saw a revenue dip of 1.8% to THB118.6 billion, while beer revenue tumbled by 2.5% to THB123.2 billion, with a significant 14% decline in beer revenue from Vietnam [3]. - A notable reduction in profit from associates and joint ventures contributed to the sharper drop in net profit, decreasing from THB5.5 billion in FY2024 to THB2.8 billion in FY2025 due to the disposal of Frasers Property Limited [4]. - Despite weaker earnings, ThaiBev's operating cash flow increased by 20.5% year-on-year to THB46 billion, and free cash flow rose by 12.5% to THB32.4 billion [4]. - The company declared a total dividend of THB0.62 per share for FY2025, an increase from THB0.6 the previous year [5]. Group 2: Mapletree Industrial Trust (MIT) - MIT reported a total return of -3.4% year-to-date, with gross revenue of S$346.1 million for the first half of the fiscal year ending March 31, 2026, down 3% year-on-year [6]. - Net property income declined by 3.5% to S$257.7 million, and distribution per unit fell by 5.1% year-on-year to S$0.0645 [6]. - Portfolio occupancy remained resilient at 91.3%, with Singapore maintaining 92.6% occupancy and Japan at full occupancy [7]. - The decline in financial performance was primarily due to lower contributions from the North American portfolio and foreign exchange headwinds from a weaker US dollar [7]. - MIT completed strategic divestments totaling S$535.3 million in Singapore and US$11.8 million for a Georgia data center, achieving premiums of 22.1% and 18.6% above market valuation, respectively [8]. - Aggregate leverage improved to 37.3% post-divestment, enhancing financial flexibility for future growth [8]. Group 3: SATS Ltd - SATS reported a total return of -2.8% year-to-date, with revenue rising by 9% year-on-year to S$3.1 billion for the first half of the fiscal year ending March 31, 2026, driven by higher cargo volumes and flight handling activities [9]. - Gateway services contributed nearly 78% of revenue, while net profit attributable to shareholders increased by 11.2% year-on-year to S$149.8 million [10]. - Free cash flow surged by 79.4% year-on-year to S$232.7 million, with management optimistic about continued growth in the global air cargo market in 2025 [10]. Group 4: Cash Flow Insights - ThaiBev's free cash flow rose by 12.5% year-on-year, SATS experienced a nearly 80% surge in cash generation, and MIT unlocked value through strategic divestments at premiums exceeding 20% [11].

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. (AIRT) shares increased by 9.4% following the fiscal year earnings report, outperforming the S&P 500 Index's 0.9% gain during the same period [1] - The company reported revenues of $291.9 million for the fiscal year ended March 31, 2025, marking a 1.7% increase from the previous year's $286.8 million [2] - Despite operational gains, AIRT posted a net loss per share of $2.23, an improvement from $2.42 in the prior fiscal year [2] Revenue and Earnings Overview - Operating income rose by 50.9% to $1.9 million from $1.3 million, while adjusted EBITDA improved to $7.4 million, reflecting an 18.9% increase from fiscal 2024 [2] - The adjusted EBITDA margin improved to 2.5% in fiscal 2025 from approximately 2.2% a year earlier, driven by cost discipline and a favorable sales mix [7] Segment Performance - Overnight Air Cargo segment revenues increased by 7.3% to $124 million, driven by higher labor revenue and administrative fees [3] - Ground Support Equipment revenues rose by 4.8% to $38.9 million, with an order backlog increasing to $14.3 million from $12.6 million [4] - The Commercial Aircraft, Engines and Parts segment saw a revenue decline of 5.8% to $118.2 million, but adjusted EBITDA surged by 60.7% to $9.8 million [5] - Digital Solutions segment revenues grew by 25.7% to $7.3 million, although it posted an adjusted EBITDA loss of $0.3 million due to higher personnel expenses [6] Key Business Metrics - AIRT's equity method investment balance grew to $19 million from $16.7 million, indicating expansion in joint ventures and non-operating assets [7] - FedEx dry-lease arrangements accounted for 39% of total consolidated revenues in fiscal 2025, up from 36% in fiscal 2024 [8] Management Commentary - Chairman and CEO Nick Swenson expressed optimism about the company's progress in building long-term shareholder value and highlighted new products and marketing initiatives [9] - Management continues to repurchase shares in the open market, aligning with shareholder interests [9] Future Outlook - AIRT did not provide specific numeric guidance for fiscal 2026 but plans to invest in engine parts inventory and expand commercial aircraft leasing activities [13] - The launch of Runway Aero Advisors LLC in January 2025 reflects a strategy to enhance capital-raising and advisory capabilities [15] Financial Developments - On March 31, 2025, AIRT amended its credit agreement with Alerus Bank, adding a $3 million Overline Note and a $14 million revolving credit facility, enhancing financial flexibility [14]