Company: AIRTP
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0000353184-25-000073
Chunk: 97

Company: AIR T INC
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 8
Chunk 97
---
, engines and parts segment contributed $22.0 million of revenues in the quarter ended June 30, 2025 compared to $26.3 million in the comparable prior year quarter, which is a decrease of $4.3 million (16.3%). The decrease was primarily driven by lower component sales in the current quarter, partially offset by an increase in lease income resulting from two assets being on lease this quarter, compared to none in the same fiscal quarter of the prior year.

The digital solutions segment contributed $2.1 million of revenues in the quarter ended June 30, 2025 compared to $1.7 million in the prior year quarter, an increase of $0.4 million (25%). The increase is primarily due to increased software subscriptions driven by continued acquisition of new customers.

Operating expenses

Consolidated segment operating expenses for the three-month period ended June 30, 2025 increased by $2.4 million (4.6%) compared to the same quarter in the prior fiscal year.

Following is a table detailing operating expenses by segment during the three months ended June 30, 2025 compared to the same quarter in the prior fiscal year (in thousands):

Three Months EndedJune 30,Change20252024Overnight Air Cargo:Operating expense$25,899 $25,709 $190 Percentage of segment net sales85 %85 %Ground Support Equipment:Operating expense12,303 6,533 5,770 Percentage of segment net sales82 %89 %Commercial Aircraft, Engines and Parts:Operating expense14,656 18,533 (3,877)Percentage of segment net sales67 %71 %Digital Solutions:Operating expense836 556 280 Percentage of segment net sales40 %33 %Segments total53,694 51,331 2,363 

Operating expenses from the overnight air cargo segment for the three-month period ended June 30, 2025 was relatively flat compared to the first quarter of the prior fiscal year.

The ground support equipment segment contributed approximately $12.3 million and $6.5 million to the Company's operating expenses for the three-month period ended June 30, 2025 and 2024, respectively, representing a $5.8 million (88.3%) increase in the current quarter. The increase was primarily attributable to increased costs incurred in connection with the higher sales noted in the segment revenue discussion above. The percentage increase in segment operating expenses was less