Company Overview: Air T, Inc.

Business Operations

• Type: Holding company with a portfolio of operating businesses and financial assets.
• Primary Goal: Grow earnings power and compound free cash flow per share over time.

Core Industry Segments

1. Overnight Air Cargo
   • Focus: Air express delivery services.
   • Operations: Operates via Mountain Air Cargo (MAC), CSA Air, and Worldwide Aircraft Services (WASI).
   • Fleet: As of March 31, 2025, owns 103 aircraft under dry-lease agreements with FedEx (typical lease terms, renewal in 2026).
   • Customers: Primarily FedEx (since 1980), which accounted for approximately 39% of company revenues in fiscal 2025.
   • Revenue FY 2025: $124.0 million (7% increase over FY 2024).
   • Employees: Not specified, but MAC and CSA operate aircraft with crew.
2. Ground Support Equipment (GSE)
   • Location: Olathe, Kansas.
   • Products: Manufactures and services aircraft deicers, mobile deicing trucks, scissor lifts, decontamination units, tow tractors, glycol recovery vehicles.
   • Customers: Domestic and international passenger and cargo airlines, airports, U.S. Air Force, industrial clients.
   • Revenue FY 2025: $38.9 million (5% increase over FY 2024).
   • Market: Highly competitive; relies on product quality, reliability, delivery, and price.
   • Seasonal: Business peaks in second and third fiscal quarters for deicing products.
   • Contract: U.S. Air Force supply contract expiring in October 2027; 15 deicers sold in FY 2025.
3. Commercial Aircraft, Engines, and Parts
   • Principal Entities: Contrail (trading, leasing, parts solutions), Jet Yard, Jet Yard Solutions (disassembly and storage), AirCo (parts sales, overhaul), Worthington (parts and maintenance), LGSS (landing gear services), Air'Zona (FBO), WASI (repair station).
   • Focus: Buying, selling, leasing, disassembling, overhauling, and providing parts/services for commercial aircraft and engines.
   • Specialty: Focus on CFM56 and V2500A5 engines powering Boeing 737 and Airbus A320 aircraft.
   • Operations: Aircraft storage/disassembly in Arizona; parts procurement and overhaul services.
   • Revenue FY 2025: $118.2 million (6% decline from FY 2024).
4. Digital Solutions
   • Entities: WACD (data aggregator for air cargo shipments), Ambry Hills Technology (software solutions for MRO and aftermarket businesses).
   • Revenue FY 2025: $7.3 million (26% increase from FY 2024).
   • Focus: Recurring subscription revenues from aviation industry software and data services.

Corporate & Other

• Acts as capital allocator and resource for operating units.
• Includes insignificant businesses and interests.
• Employees: 646 full-time and full-time equivalents as of March 31, 2025.
• Stockholders: Approximately 149 legal record holders as of March 31, 2025.
• Market Capitalization (as of September 30, 2024): ~$14.3 million in market value of common equity held by non-affiliates.

Financial Highlights (Fiscal Year Ended March 31, 2025)

• Total Revenue: $291.9 million (2% increase over FY 2024).
• Net Loss: $6.14 million attributable to Air T stockholders.
• Operating Income: $1.9 million.
• Adjusted EBITDA: $7.4 million (1.2 million increase over FY 2024).
• Employees: 646.
• Customer Base (Air Cargo): Mainly FedEx, with dependency significant; FedEx revenue represented 39% of total FY 2025 revenue.

Summary

• Air T operates across multiple aviation-related segments — core activities include air cargo logistics for FedEx, manufacturing and servicing of ground support equipment, buying/selling/leasing/disassembling commercial aircraft and engines, and providing digital solutions to aviation industry clients.
• The company has a substantial fleet of leased aircraft with FedEx, a broad manufacturing base for ground support equipment, and a diversified portfolio of aerospace parts and services.
• It employs over 600 employees, with key relationships primarily with FedEx, and generates hundreds of millions in annual revenue.