Air T

Financial resilience is weak today. Operating cash flow for FY2026 was negative 25.0 million and Q1 FY2027 was negative 2.8 million.

Capex climbed (FY2026 16.5 million plus Q1 FY2027 21.3 million), resulting in an estimated TTM free cash outflow of about 64 million when adjusting for Q1 FY2026. Gross debt rose to 248.8 million as of June 30, 2026 with 21.7 million cash and restricted cash; trust preferred securities outstanding total 52.5 million at 8 percent.

At FY2026, the FedEx feeder segment constituted 35 percent of consolidated revenue under agreements that can be cut with short notice, which compounds liquidity risk if volumes fall. With the 10‑year U.S. Treasury around 5.2 percent, Air T’s negative FCF and higher-cost debt stack leave little room for shocks.