Air T, Inc. (NASDAQ:AIRT) has announced a new capital‑raising program that will use its outstanding Alpha Income Preferred Securities (NASDAQ:AIRTP). The company will tap the securities through an at‑market (ATM) facility, allowing it to raise funds on an opportunistic basis, and it may also offer the same securities in private placements to institutional investors when the timing aligns with its capital strategy.
The proceeds are earmarked for two primary purposes: expanding the Commercial Aircraft Engine and Parts segment and providing additional capital to an existing investee. The engine segment expansion follows Air T’s recent acquisition of Regional Express Holdings Limited (Rex) on December 18, 2025, which marked the company’s entry into the Australian regional airline market and is expected to drive future growth in the aviation services portfolio.
Air T’s most recent financial results provide context for the capital raise. For the nine months ended December 31, 2025, the company reported revenue of $206.2 million, down from $225.5 million in the same period a year earlier, while adjusted EBITDA rose to $9.5 million from $8.6 million, indicating margin improvement amid lower sales. In fiscal 2025, revenue was $291.85 million, a modest 1.75% increase from the prior year, but the company posted a net loss of $6.14 million. These figures illustrate the need for additional capital to support ongoing investments and to strengthen the balance sheet during a period of revenue decline and operating loss.
CFO Tracy Kennedy said, "We are excited about the opportunities immediately in front of us and want to ensure we can take decisive action when the timing is right. The flexibility afforded by our trust preferred security and our ATM program provides us with an efficient path to raise capital while remaining thoughtful about dilution and cost of capital. These tools position us to move quickly on initiatives we believe will drive meaningful long-term value for shareholders."
Air T is operating under SEC baby shelf rules, which apply to issuers with a public float below $75 million. The rules limit the amount of securities that can be sold over a 12‑month period, but they also allow the company to access incremental capital in a controlled manner, balancing liquidity needs with regulatory compliance.
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