Air T, Inc. · NASDAQ:AIRT
Air T — Q4 FY2025 Earnings Presentation
44 slides from Air T's earnings presentation, Mar 31, 2025
Slide 1: A Portfolio of Powerful Companies: FY25 Q4 Update
As of March 31, 2025 A PORTFOLIO OF POWERFUL COMPANIES FY25 Q4 Update NASDAQ: AIRT
Slide 2: Safe Harbor
Statements in this document, which contain more than historical information, may be considered forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995), which are subject to risks and uncertainties. Actual results may differ materially from those e
Slide 3: Executive Summary: Who We Are
WHO WE ARE ■ AIR T, INC. (NASDAQ: AIRT) is an industrious American company focusing on growing intrinsic value per share at a high rate. EXECUTIVE ■ Founded in 1980, our businesses have a history of growth and cash flow generation. ■ Current management has been in place since 2013. ■ The two largest
Slide 4: Contents
1. About AIR T, INC. CONTENTS 2. Performance 3. Our Growth Strategies 4. Appendix - Risk Factors 4
Slide 5: About Air T, Inc.
ABOUT AIR T, INC. ETGTTE A POR|FOLIO OF POWERFUL COMPANIES
Slide 6: We are an industrious American company established 40+ years and growing
We are an industrious American company established 40+ years and growing. ■ Our businesses have a history of growth and cash flow generation. ■ We seek to identify and empower individuals and teams who will operate businesses well, increasing value over time. ■ We work to activate growth and overcom
Slide 7: Investor-Operator Partnership
“Investor-Operator Partnership” is designed to drive short and long-term value creation. “We want our businesses to be managed by dynamic individuals within high-performance teams. We are set up to make space for dynamos and support their enterprises. The holding company team seeks to focus resource
Slide 8: Flywheel
Identify good ideas Build a brand and industrious Match with network capital partners FLYWHEEL Generate Secure and extremely empower attractive returns dynamic on capital management 88
Slide 9: FY25 Revenue and Adjusted EBITDA; Core Segments
$292M $7.4M 4 16 646 FY25 Revenue FY25 Adj. EBITDA* CORE SEGMENTS COMPANIES EMPLOYEES COMMERCIAL AIRCRAFT DIGITAL SOLUTIONS ENGINES AND PARTS GROUND SUPPORT OVERNIGHT AIR CARGO EQUIPMENT *See Adjusted EBITDA reconciliation on slide 35 9
Slide 10: Air T, Inc. FY Financial Highlights
FY Results AIR T, INC. FY Financial Highlights (For the Twelve-Month Period Ended 3/31) 2025 2024 2023 2022 2021 Revenue $291.9M $286.8M $247.3M $177.1M $175.1M Operating $1.9M $1.3M ($4.4M) $8.8M ($9.2M) Income Adjusted $7.4M $6.2M1 $6.0M $11.4M ($1.3M) EBITDA* *See Adjusted EBITDA reconciliation o
Slide 11: Commercial Aircraft Engines and Parts
SEGMENT 1 Commercial Aircraft Engines and Parts Twelve-Month Period 2025 2024 Ended 03/31 Revenue $118.2M $125.5M Adjusted EBITDA* $9.8M $6.1M ■ We buy aircraft and engines, then either lease, trade, or send them to part out. ■ We supply parts to maintenance, repair, and overhaul facilities (MRO). ■
Slide 12: Overnight Air Cargo
SEGMENT 2 Overnight Air Cargo Twelve-Month Period 2025 2024 Ended 03/31 Revenue $124.0M $115.5M Adjusted EBITDA* $6.8M $7.1M ■ We operate two of the nine FedEx feeder airlines in North America. ■ Business units Mountain Air Cargo and CSA Air have a 40+ year history with FedEx. ■ Air T Companies sinc
Slide 13: Ground Support Equipment
SEGMENT 3 Ground Support Equipment Twelve-Month Period 2025 2024 Ended 03/31 Revenue $38.9M $37.2M Adjusted EBITDA* ($0.8M) ($0.9M) ■ We manufacture deicing equipment, scissor lift trucks, and other ground support equipment. ■ Sole-source deicer supplier to the US Air Force for 20+ years. ■ Highly e
Slide 14: Digital Solutions
SEGMENT 4 Digital Solutions Twelve-Month Period 2025 2024 Ended 03/31 Revenue $7.3M $5.8M Adjusted EBITDA* ($0.3M) $0.1M ■ Digital solutions develops and provides digital aviation and other business services to customers within the aviation industry to generate recurring subscription revenues. Digit
Slide 15: Corporate and Other Subcomponent of Operating Income
SEGMENT 5 Corporate and Other Subcomponent of Operating Income (excluding Equity Method Investments) Twelve-Month Period 2025 2024 2023 2022 2021 Ended 3/31 Corporate Overhead ($5.9M) ($3.1M)2 ($6.0M) ($5.6M)1 ($5.4M) Other subsidiaries3 ($3.3M) ($4.4M) ($4.6M)4 ($4.4M)4 ($4.0M)4 Total Corporate and
Slide 16: Corporate Overhead Detail
SEGMENT 5 Corporate Overhead Detail Twelve-Month Period 2025 2024 2023 2022 2021 Ended 3/31 Salaries & benefits ($5.7M) ($5.3M) ($4.3M) ($4.0M) ($3.6M) Audit, tax, legal and ($1.8M) ($1.5M) ($1.9M) ($2.5M) ($1.3M) professional fees Health insurance1 ($0.7M) $0.7M ($0.5M) $0.1M ($0.8M) Other expenses
Slide 17: Investing For Growth
Investing For Growth Investment manager focused on unearthing fundamentally attractive small and mid-cap opportunities. Allows us to further expand upon our idea generation capabilities to identify, analyze, develop and execute innovative investment strategies that are aimed at building better finan
Slide 18: Aircraft JVs
Aircraft JVs As of 3/31/25 3/31/24 3/31/23 3/31/22 Aircraft JV Assets Under Management $577M $428M $150M $84M (net of dispositions) Aircraft JV Assets $632M $429M $150M $84M Purchased ■ We manage assets for ourselves and our investor partners. The asset types include leased aircraft, consignments, a
Slide 19: BCCM Advisors
BCCM Advisors As of 3/31/25 3/31/24 3/31/23 3/31/22 BCCM Assets Under $26M $37M $33M $43M Management ■ Air T‘s wholly-owned management company, BCCM Advisors, is the manager of a fund focused on growth “at-a- reasonable-price” US Equities, as well as a fund dedicated to equity compounders in Africa.
Slide 20: News: Alerus Credit Agreement
Alerus Credit Agreement ■ On March 31, 2025, the Original Alerus Loan Parties under the Credit Agreement with Alerus entered into Amendment No. 3 to Credit Agreement with Alerus as well as a $3.0 million secured Overline Note and an Amended and Restated Revolving Credit Note in the amount of $14.0 m
Slide 21: Over the last eleven years, revenue has increased 244% and is more diversified
FINANCIAL HIGHLIGHTS Over the last eleven years, revenue has increased 244% and is more diversified. REVENUE $288M* 3% Digital Solutions 41% Commercial Aircraft & Engines +244% Overnight Air Cargo Ground Support $84M 43% Equipment 62% 13% 38% FY14 FY25 *Excludes revenue in FY25 earned outside of our
Slide 22: Non-Operating Assets
OTHER Non-Operating Assets AIR T, Inc. owns the following public and private securities: AIR T, INC. Non-Operating Assets (in millions) 3/31/25 3/31/24 3/31/23 3/31/22 3/31/21 Lendway, Inc. (LDWY) Stock – 0.5M Shares1 $0.7 $2.2 $3.8 $4.6 $4.3 CCI Investment (20.1% as of 03/31/25)2 $3.9 $3.7 $3.1 $2.
Slide 23: Dividends Received from Equity Method Investees
DISTRIBUTIONS AIR T, INC. YTD FY25 Dividends Received from Equity Method Investees (For the Twelve-Month Period Ended 3/31) Equity Method Investment (in millions) 2025 2024 Lendway $0.0 $0.0 CCI $0.0 $0.5 CAM $4.9 $2.2 Other $1.5 $0.5 Total $6.4 $3.2 23
Slide 24: Capitalization Table
CAPITALIZATION TABLE AIR T, INC.’s capital structure is designed to appropriately shape our bet sizes; in part by utilizing non-recourse leverage For example, AIR T guarantees Contrail’s bank loans to a maximum limit of $1.6 million. 1The revolver and term notes with MBT were fully paid off with the
Slide 25: Calibrated Investments & Capitalization Structure
STRUCTURE Calibrated Investments & Capitalization Structure Tailored, Limited, Convex Exposures • Convexity-promoting organizational design • Kelly-calibrated investments: sized to edge & bankroll • Limit downside: tailored exposures Risk Management: Downside Protection • Anti-fragile company • Isla
Slide 26: Since 12/31/2013, AIRT share price increased 11.1% per annum
FINANCIAL HIGHLIGHTS Since 12/31/2013, the share price of AIRT has increased by 11.1% per annum*+. $24.16 + Compares to 11.6% return of the S&P 500 over the same period *Reporting period 9/30/13 to 6/16/25, includes $4M Trust Preferred 26 dividend to common shareholders, paid August 12, 2022.
Slide 27: Average Yearly AIRT Stock Price Performance
FINANCIAL HIGHLIGHT: Average Yearly AIRT Stock Price Performance Starting Date wR | 42734744 | 12/34/42 | 42/34/43 | 12/34/44 | 12/31/45 | 12/31/46 | 12/31/17 | 12/31/48 | 12/31/49 | 12/31/20 | 12/31/21 | 12/31/22 | 12/31/23 | 12/31/24 TPZ | 27% 1231/13 |i 12/31/14 | RTaaen oee 3.6% 12/31/15 (S22 ee
Slide 28: Growth Strategies
GROWTH STRATEGIES ETGTTE A POR|FOLIO OF POWERFUL COMPANIES
Slide 29: Our four growth strategies
GROWTH STRATEGIES Our four growth strategies are... ■ Invest to build our current high-performing businesses. ■ Seek to acquire new cash-flow generating businesses. ■ Identify great marketable securities or alternative assets. ■ Create unique investment products and fund alongside third- party capit
Slide 30: Reinvest in projects at our high-performing businesses
GROWTH STRATEGY 1 We plan to reinvest in projects at our high-performing businesses by... ■ Purchasing commercial aircraft for trading, leasing and part-out. ■ Purchasing engine parts inventory. ■ Funding deicer builds for Global Ground Support. 30
Slide 31: Acquire new cash-flow generating businesses
GROWTH STRATEGY 2 We seek to acquire new cash-flow generating businesses by... ■ Identifying and acquiring high- performing businesses, which either complement our current portfolio or diversify into industries beyond aviation. 31
Slide 32: Identify great marketable securities or alternative assets
GROWTH STRATEGY 3 We plan to identify great marketable securities or alternative assets by... ■ Searching for another committed activist opportunity. ■ Investing in distressed and high yield securities. ■ Investing in small cap securities. ■ Further investing in our current securities portfolio. 32
Slide 33: Create unique investment products with outside capital partners
GROWTH STRATEGY 4 We plan to create unique investment products with outside capital partners by... ■ Offering thoughtful and sustainable products with attractive return profiles ■ Attracting and retaining sophisticated investment professionals and creating space for talented asset managers. 33
Slide 34: Theoretical Toy Model: Public Company versus Private Equity Fund
TOY MODEL Theoretical Toy Model Public Company versus Private Equity Fund Question: Does a permanent capital vehicle like a ASSUMPTIONS public company have a structural advantage compared Annual Return on Investment 5% to a 7-year PE fund vehicle? Taxes Paid by PE Fund @ 7-year Intervals 30% Hypothe
Slide 35: Adjusted EBITDA Reconciliation
FY Results Adjusted EBITDA Reconciliation (For the Twelve-Month Period Ended 3/31) 2025 2024 2023 2022 2021 Operating Income (GAAP) $1.9M $1.3M ($4.4M) $8.8M* ($9.2M) Depreciation (excluding leased $3.0M $2.8M $2.5M $1.6M $1.2M engine depreciation) Asset Impairment, write-downs, $1.5M $1.2M $7.8M $0
Slide 36: Q&A With Management
Q&A WITH MANAGEMENT 36
Slide 37: Shareholder Q&A: Equity method accounting
Our interactive Q&A capability, through Slido.com, allows shareholders to ask questions of our management. Recently submitted questions have been answered below. To submit your own question, go to (https://app.sli.do/event/j8drfixw).1 Can you explain how the equity method accounting of non-consolida
Slide 38: Shareholder Q&A: Valuing the businesses
Our interactive Q&A capability, through Slido.com, allows shareholders to ask questions of our management. Recently submitted questions have been answered below. To submit your own question, go to (https://app.sli.do/event/j8drfixw).1 What’s the right way to value your collection of businesses, espe
Slide 39: Shareholder Q&A: EPS and upside potential
Our interactive Q&A capability, through Slido.com, allows shareholders to ask questions of our management. Recently submitted questions have been answered below. To submit your own question, go to (https://app.sli.do/event/j8drfixw).1 What is the EPS versus last year in the same quarter? The FY25 (1
Slide 40: Appendix: Risk Factors
APPENDIX Risk Factors ETEGANTA A POR|HFOLIO OF POWERFUL COMPANIES
Slide 41: Summary Risk Factors
For more detail and explanation, please see the Company’s public filings including its Form S-3 and prospectus supplements filed with the SEC. SUMMARY RISK FACTORS The purchase of securities of Air T, Inc., the “Company,” is highly speculative and involves a very high degree of risk. An investment i
Slide 42: Summary Risk Factors: Segment Operations
For more detail and explanation, please see the Company’s public filings including its Form S-3 and prospectus supplements filed with the SEC. SUMMARY RISK FACTORS Risks Related to Our Segment Operations ● The operating results of our segments may fluctuate, particularly our commercial aircraft engi
Slide 43: Summary Risk Factors: Segment Operations (continued)
For more detail and explanation, please see the Company’s public filings including its Form S-3 and prospectus supplements filed with the SEC. SUMMARY RISK FACTORS Risks Related to Our Segment Operations (continued) ● Our lessees may fail to adequately insure our aircraft or engines which could subj
Slide 44: Summary Risk Factors: Structure and Financing (continued)
For more detail and explanation, please see the Company’s public filings including its Form S-3 and prospectus supplements filed with the SEC. SUMMARY RISK FACTORS Risks Related to Our Structure and Financing/Liquidity Risks (continued) ● Future acquisitions and dispositions of businesses and invest