Company: AIRTP
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0000353184-25-000126
Chunk: 6

Company: AIR T INC
Filing Date: 2025-11-12
Form: 10-Q
Item: Item 2
Chunk 6
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 the difference between the federal statutory rate of 21.0% and the Company's effective tax rate for the three-month period ended September 30, 2024 were the valuation allowance related to the Company’s U.S. consolidated group, DTI, LGSS, DSI and BCCM Kenya, and the foreign rate differentials for Air T’s operations located in the Netherlands and Puerto Rico.

First Six Months of Fiscal 2026 Compared to First Six Months of Fiscal 2025

Operating Revenue

Consolidated segment revenue for the six-month period ended September 30, 2025 decreased by $12.6 million (9%) compared to the same period in the prior fiscal year.

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

42

Six Months EndedSeptember 30,Change20252024Overnight Air Cargo$60,513 $61,570 $(1,057)(2)%Ground Support Equipment24,707 21,809 2,898 13 %Commercial Aircraft, Engines, and Parts42,840 59,176 (16,336)(28)%Digital Solutions4,305 3,515 790 22 %Segments total132,365 146,070 (13,705)(9)%

Revenues from the overnight air cargo segment for the six months ended September 30, 2025 decreased by $1.1 million (2%) compared to the six months ended September 30, 2024. The decrease was principally attributable to lower flight admin fees driven by increased soft and hard parked aircraft when compared to the prior year comparable period.

The ground support equipment segment's revenue for the six-month period ended September 30, 2025 was $24.7 million compared to $21.8 million in the same period in the prior fiscal year, an increase of $2.9 million (13%). The increase is a result of increased deicer shipments and increase in spare parts sales in the current period. We believe the increase in parts revenue is driven by heightened demand for maintenance and overhaul services preparation for the coming winter season.

The commercial aircraft, engines and parts segment contributed $42.8 million of revenues in the six months ended September 30, 2025 compared to $59.2 million in the comparable prior year six months period. The decrease was largely attributable to a decline in component