Air T, Inc. reported revenues of $327.1 million for the fiscal year ended March 31, 2026, an increase of 12% from the prior fiscal year, driven primarily by the acquisition of Regional Express Holdings Pty Ltd ("Rex") completed on December 18, 2025. The company recorded net income per share of $28.85 for the period, a significant turnaround from the net loss per share of $2.23 reported in the prior fiscal year. This shift was largely influenced by a $111.2 million non-cash bargain purchase gain related to the Rex acquisition, which does not represent cash generated by Rex or operating income from its business.

Adjusted EBITDA, a non-GAAP financial measure, increased to $10.1 million for the fiscal year ended March 31, 2026, compared to $7.4 million in the prior fiscal year. Despite the revenue growth, the company reported an operating loss of $11.2 million, compared to operating income of $1.9 million in the prior year. Earnings before income taxes were $86.0 million, compared to a loss before income taxes of $5.0 million in the prior fiscal year.

Segment Performance

The company's business segments delivered mixed results for the fiscal year. The Ground Support Equipment segment saw revenues rise 21% to $47.2 million, with Adjusted EBITDA turning positive at $4.3 million compared to a loss of $0.8 million in the prior year. The Overnight Air Cargo segment revenues increased by 3%, with Adjusted EBITDA rising slightly to $6.9 million.

Conversely, the Commercial Aircraft, Engines and Parts segment reported a revenue decline of $29.5 million to $89.9 million, leading to a decrease in Adjusted EBITDA to $7.3 million from $9.2 million. The Digital Solutions segment contributed $9.1 million in revenue but reported an Adjusted EBITDA loss of $0.4 million. The Regional Airline segment, reflecting Rex's contribution from December 18, 2025, generated $55.3 million in revenue with Adjusted EBITDA of less than $0.1 million.

Financial Metrics

The following table outlines the key financial metrics for Air T, Inc. for the fiscal year ended March 31, 2026, compared to the prior fiscal year:

Strategic Outlook

Company Chairman and CEO Nick Swenson described fiscal 2026 as a transformative year, highlighting the completion of the Rex acquisition and the upcoming merger of Crestone with Arena in the first quarter of fiscal 2027. Swenson noted that current year results were impacted by significant acquisition-related expenses and a seasonally slow period for Rex. He emphasized that the company's allocator-operator model is expected to drive shareholder value over time, despite the complexity of the business portfolio.

Crestone Air Partners, a majority-owned business of Air T, Inc., has completed the acquisition of Arena Aviation Capital, an aviation asset manager with a diversified portfolio. The transaction, initially disclosed on March 8, 2026, closed following the satisfaction of all customary conditions and required approvals. This acquisition significantly expands Crestone's scale, bringing the combined platform's assets under management (AUM) to $3.6 billion.

Financial Impact and Valuation

The acquisition marks a substantial increase in AUM for Crestone. As of December 31, 2025, AUM stood at $800 million, growing to $1.2 billion by March 31, 2026. Post-transaction, the figure has risen to $3.6 billion. Crestone generates revenue through standard aviation industry management fees, including origination, administrative, and disposition fees, alongside an incentive fee above a hurdle rate. The platform targets returns of 10% or more after fees.

Ownership Restructuring

Prior to closing, Air T owned 90% of the common interests in Crestone Asset Management, LLC (CAM), with entities controlled by Mill Road Investors holding the remaining 10%. Air T and Aviation Growth Initiatives, LLC (AGI), a management-affiliated entity, acquired the 10% stake from Mill Road Investors at a pre-money valuation of $62 million for $6.2 million in cash. Additionally, Blue Owl Capital invested in Crestone Air Partners at a post-merger valuation of $80 million, acquiring up to 12.5% equity dependent on performance. Following these transactions, Air T owns approximately 83.9% of the equity in Crestone Air Partners.

Strategic Rationale

Air T characterized the deal as an expression of its permanent-capital, buy-to-build investment model. Nick Swenson, Chief Executive Officer of Air T, Inc., emphasized that the company provides permanent capital without expiration dates, allowing business units to grow. Crestone's growth from zero to over $3.5 billion in AUM within five years is cited as evidence of this strategy. The integration leverages Air T's network, which includes airframe and engine material sales, landing gear leasing, disassembly, storage, and MRO facilities.

Key Metrics