Air T, Inc. · NASDAQ:AIRT
Air T — FY2025 Earnings Presentation
44 slides from Air T's earnings presentation, Jun 30, 2025
Slide 1: FY25 Q4 Update: A Portfolio of Powerful Companies
NASDAQ: AIRT FY25 Q4 Update A PORTFOLIO OF POWERFUL COMPANIES As of March 31, 2025
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 and Operating Highlights
3 ■ AIR T, INC. (NASDAQ: AIRT) is an industrious American company focusing on growing intrinsic value per share at a high rate. ■ 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 shareholders own,
Slide 4: Contents
1. About AIR T, INC. 2. Performance 3. Our Growth Strategies 4. Appendix - Risk Factors 4 CONTENTS
Slide 5: About AIR T, INC.
ABOUT AIR T, INC. PUGGATTA A POR|IFOLIO OF POWERFUL COMPANIES
Slide 6: Industrious American company established 40+ years and growing
We are an industrious American company established 40+ years and growing. 6 ■ 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 overc
Slide 7: Investor-Operator Partnership
“Investor-Operator Partnership” is designed to drive short and long-term value creation. 7 “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 resour
Slide 8: Flywheel
8 Build a brand and industrious network FLYWHEEL Generate extremely attractive returns on capital Secure and empower dynamic management Match with capital partners Identify good ideas 8
Slide 9: FY25 Revenue, Adjusted EBITDA and Core Segments
$292M 9 FY25 Revenue $7.4M FY25 Adj. EBITDA* 4 CORE SEGMENTS 16 COMPANIES 646 EMPLOYEES OVERNIGHT AIR CARGO COMMERCIAL AIRCRAFT ENGINES AND PARTS GROUND SUPPORT EQUIPMENT *See Adjusted EBITDA reconciliation on slide 35 DIGITAL SOLUTIONS
Slide 10: FY Financial Highlights
AIR T, INC. FY Financial Highlights (For the Twelve-Month Period Ended 3/31) 10 FY Results ■ FY25 saw a 2% revenue increase compared to FY24. This includes a $7.3M decrease in Commercial Aircraft Engines and Parts, driven by a lower supply of whole assets available to purchase for tear-down and resa
Slide 11: Commercial Aircraft Engines and Parts Segment
Commercial Aircraft Engines and Parts 11 SEGMENT 1 ■ 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). ■ Companies in this segment include Contrail, AirCo, AirCo Services, Worthington, Jet Yard, A
Slide 12: Overnight Air Cargo Segment
Overnight Air Cargo 12 SEGMENT 2 ■ 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 since 1982 and 1983 ■ Air T added Worldwide Aircraft Services (WASI) to this segment in Q4 FY23.
Slide 13: Ground Support Equipment Segment
Ground Support Equipment 13 SEGMENT 3 ■ 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 efficient light manufacturing facility. ■ The segment is comprised of Global Ground Support LLC
Slide 14: Digital Solutions Segment
Digital Solutions 14 SEGMENT 4 ■ Digital solutions develops and provides digital aviation and other business services to customers within the aviation industry to generate recurring subscription revenues. Digital solutions has historically been reported as part of the central corporate function refe
Slide 15: Corporate and Other Operating Income
15 SEGMENT 5 Twelve-Month Period Ended 3/31 2025 2024 2023 2022 2021 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 Other ($9.2M) ($7.5M) ($10.6M) ($10.0M)1 ($9.4M) 1 Excludes one-time Employee Retention
Slide 16: Corporate Overhead Detail
16 SEGMENT 5 Twelve-Month Period Ended 3/31 2025 2024 2023 2022 2021 Salaries & benefits ($5.7M) ($5.3M) ($4.3M) ($4.0M) ($3.6M) Audit, tax, legal and professional fees ($1.8M) ($1.5M) ($1.9M) ($2.5M) ($1.3M) Health insurance1 ($0.7M) $0.7M ($0.5M) $0.1M ($0.8M) Other expenses2 ($3.0M) ($2.3M) ($2.0
Slide 17: Investing For Growth
17 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 financial futures for a
Slide 18: Aircraft JVs
Aircraft JVs 18 ■ We manage assets for ourselves and our investor partners. The asset types include leased aircraft, consignments, and teardowns. ■ Our Aircraft JVs consist of the aircraft portfolio managed by Crestone Asset Management, LLC, as well as additional assets from other strategic partners
Slide 19: BCCM Advisors
BCCM Advisors 19 ■ 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. BCCM also conducts ongoing research into new fund approaches. ■ Through 03/31/25, B
Slide 20: News: Alerus Credit Agreement
20 NEWS 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
Slide 21: Financial Highlights: Revenue Growth and Diversification
FINANCIAL HIGHLIGHTS Over the last eleven years, revenue has increased 244% and is more diversified. 21*Excludes revenue in FY25 earned outside of our four core segments. FY14 FY25 Digital Solutions Commercial Aircraft & Engines Overnight Air Cargo Ground Support Equipment 62% 38% 13% 43% 41% 3% +24
Slide 22: Non-Operating Assets
Non-Operating Assets 22 AIR T, Inc. owns the following public and private securities: OTHER 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
Slide 23: Distributions from Equity Method Investments
23 DISTRIBUTIONS 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 AIR T, INC. YTD FY25 Dividends Received from Equity Method Investees (For the Twelve-Month Period Ended 3/31)
Slide 24: Capitalization Table
24 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
Slide 25: Calibrated Investments & Capitalization Structure
Calibrated Investments & Capitalization Structure 25 Risk Management: Downside Protection • Anti-fragile company • Islands of segregated assets and businesses • Market-driven and savvy risk management program that oversees all of the company STRUCTURE Tailored, Limited, Convex Exposures • Convexity-
Slide 26: Financial Highlights: Share Price Performance
FINANCIAL HIGHLIGHTS 26 *Reporting period 9/30/13 to 6/16/25, includes $4M Trust Preferred dividend to common shareholders, paid August 12, 2022. + Compares to 11.6% return of the S&P 500 over the same period Since 12/31/2013, the share price of AIRT has increased by 11.1% per annum*+. $24.16
Slide 27: Average Yearly AIRT Stock Price Performance
FINANCIAL HIGHLIGHTS Average Yearly AIRT Stock Price Performance Taing ose Tara | Aarsirt | Na/3713 | Narain | taysits | tassite | wwssist7 | 12/30/18 | 12/30/19 | 12/30/20 | a/st/et | sesstee | s/st/es | Te/st/ee COED EWAES AVIS RAG 2RAAT RAB RAS eH ae 12/3/23 | 10.8% waste |_ 112% | 120% | 93% i e
Slide 28: Growth Strategies
GROWTH STRATEGIES PUGGATTA A POR|IFOLIO OF POWERFUL COMPANIES
Slide 29: Our Four Growth Strategies
GROWTH STRATEGIES Our four growth strategies are... 29 ■ 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 ca
Slide 30: Reinvest in High-Performing Businesses
GROWTH STRATEGY 1 We plan to reinvest in projects at our high-performing businesses by... 30 ■ Purchasing commercial aircraft for trading, leasing and part-out. ■ Purchasing engine parts inventory. ■ Funding deicer builds for Global Ground Support.
Slide 31: Acquire New Cash-Flow Generating Businesses
GROWTH STRATEGY 2 We seek to acquire new cash-flow generating businesses by... 31 ■ Identifying and acquiring high- performing businesses, which either complement our current portfolio or diversify into industries beyond aviation.
Slide 32: Identify Marketable Securities or Alternative Assets
GROWTH STRATEGY 3 We plan to identify great marketable securities or alternative assets by... 32 ■ 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.
Slide 33: Create Unique Investment Products with Capital Partners
GROWTH STRATEGY 4 We plan to create unique investment products with outside capital partners by... 33 ■ Offering thoughtful and sustainable products with attractive return profiles ■ Attracting and retaining sophisticated investment professionals and creating space for talented asset managers.
Slide 34: Theoretical Toy Model: Public Company versus Private Equity Fund
Theoretical Toy Model Public Company versus Private Equity Fund 34 TOY MODEL ASSUMPTIONS Annual Return on Investment 5% Taxes Paid by PE Fund @ 7-year Intervals 30% Year Public Company $1 Private Equity Fund $1 Taxes Paid 0 $1.00 $1.00 $0.00 7 $1.34 $1.24 $0.10 14 $1.89 $1.59 $0.15 21 $2.65 $2.04 $0
Slide 35: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation 35 FY Results *Includes one-time ERC credit of $9.1M (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 engine depreciation) $3.0M $2.8M $2.5M $1.6M $1.2M Asset Imp
Slide 36: Q&A with Management
Q&A WITH MANAGEMENT PUGGATTA A POR|IFOLIO OF POWERFUL COMPANIES
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 37 Can you explain how the equity method accounting of non-consol
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 38 What’s the right way to value your collection of businesses, e
Slide 39: Shareholder Q&A: Upside Potential and EPS
39 Out of all of the subsidiaries you operate or own, can you talk about which one has the largest upside potential as you see it? Per our corporate policy, we do not provide forecasts or projections nor do we make future-looking statements. However, when we evaluate our businesses and investments,
Slide 40: Appendix: Risk Factors
APPENDIX Risk Factors EVGA A PORGIFOLIO OF POWERFUL COMPANIES
Slide 41: Summary Risk Factors
SUMMARY RISK FACTORS 41 For more detail and explanation, please see the Company’s public filings including its Form S-3 and prospectus supplements filed with the SEC. The purchase of securities of Air T, Inc., the “Company,” is highly speculative and involves a very high degree of risk. An investmen
Slide 42: Risks Related to Our Segment Operations
Risks Related to Our Segment Operations ● The operating results of our segments may fluctuate, particularly our commercial aircraft engine and parts segment. ● Our Overnight Air Cargo Segment is dependent on a significant customer. ● Our dry-lease agreements with FedEx subject us to operating risks.
Slide 43: Risks Related to Our Segment Operations (continued)
Risks Related to Our Segment Operations (continued) ● Our lessees may fail to adequately insure our aircraft or engines which could subject us to additional costs. ● If our lessees fail to cooperate in returning our aircraft or engines following lease terminations, we may encounter obstacles and are
Slide 44: Risks Related to Our Structure and Financing/Liquidity Risks (continued)
Risks Related to Our Structure and Financing/Liquidity Risks (continued) ● Future acquisitions and dispositions of businesses and investments are possible, changing the components of our assets and liabilities, and if unsuccessful or unfavorable, could reduce the value of the Company and its securit