Company: AIRTP
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0000353184-25-000126
Chunk: 7

Company: AIR T INC
Filing Date: 2025-11-12
Form: 10-Q
Item: Item 2
Chunk 7
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 sales at Contrail, driven by a lower level of component inventory purchases during the preceding twelve-month period.

The digital solutions segment contributed $4.3 million of revenues in the six months ended September 30, 2025 compared to $3.5 million in the prior year six month period, an increase of $0.8 million (22%). The increase was primarily due to increased software subscriptions represented by monthly recurring revenues of $0.7 million as of September 30, 2025 versus $0.6 million as of September 30, 2024.

Operating Expenses

Consolidated segment operating expenses for the six-month period ended September 30, 2025 decreased by $13.1 million (11%) compared to the same period in the prior fiscal year.

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

Six Months EndedSeptember 30,Change20252024Overnight Air Cargo:Operating expense$50,821 $52,036 $(1,215)Percentage of segment net sales84 %85 %Ground Support Equipment:Operating expense18,842 18,929 (87)Percentage of segment net sales76 %87 %Commercial Aircraft, Engines and Parts:Operating expense29,084 41,493 (12,409)Percentage of segment net sales68 %70 %Digital Solutions:Operating expense1,598 1,238 360 Percentage of segment net sales37 %35 %Segments total100,345 113,696 (13,351)

The overnight air cargo segment contributed $50.8 million and $52.0 million to the Company's operating expenses for the six-month period ended September 30, 2025 and 2024, respectively, representing a $1.2 million (2%) decrease in the current period. The decrease was primarily attributable to lower costs associated with the decrease in revenues noted above.   

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Operating expenses from the ground support equipment segment for the six months ended September 30, 2025 was relatively flat compared to the six months ended September 30, 2024 but showed improvements when viewed as a percentage of net sales due to higher margins realized on deicer and part sales in the current year.

The commercial aircraft, engines and parts segment contributed $29.1 million and $41.5 million to the Company's operating expenses for the six months