AIR Global (NASDAQ:AIIR) reported first-half 2026 revenue growth despite supply-chain disruption tied to the closure of the Straits of Hormuz, while adjusted EBITDA remained broadly stable. The company, which listed on Nasdaq in May, said it has established alternative shipping routes and is reorganizing its manufacturing footprint to reduce dependence on the region.
Revenue for the six months ended June 30 rose 3.7% to $206.9 million from $199.5 million a year earlier. Gross profit increased 2.4% to $116.8 million. Adjusted EBITDA was $71.7 million, essentially unchanged from the prior-year period.
Listing Costs Weighed on Reported Results
CFO Bassem Lotfy said the gap between reported EBITDA and adjusted EBITDA reflected primarily non-recurring, non-cash and public-company-related expenses. These included $48.2 million related to equity issued at the listing event, $47.7 million of IPO-related cash costs, $7.4 million of public-company readiness costs and $12.4 million in share-based compensation expense.
The company also identified $3.8 million of extraordinary regional-disruption costs, including air freight and temporarily elevated ingredient costs, as well as $2 million of regulatory costs associated with accelerated U.S. PMTA filings for nicotine vape and pouch products.
“Underlying trading was resilient, while reported results were materially affected by one-time listing related and other non-recurring items,” Lotfy said.
First-half flavored shisha molasses, or FSM, shipment volumes declined 9%, including a 46.5% decrease in global travel retail volumes. Excluding global travel retail, FSM shipment volumes declined 6.6%. However, AIR Global said volume growth resumed in June after disruption was concentrated in March and April. Price and mix rose 14% as the company accelerated pricing actions to offset inflation and supply-chain pressures.
Regional Performance and Supply-Chain Changes
The Americas segment generated revenue of $42.8 million, up 3.4%, while adjusted EBITDA increased 17.2% to $19.8 million. The company cited price and mix gains, cost control and stable U.S. market conditions. AIR Global expects full-year U.S. revenue growth to accelerate to high single digits, supported by share gains and innovation.
Revenue in the Middle East, Africa and Asia segment rose 4% to $136.7 million, driven by high-teens price and mix growth. Adjusted EBITDA in the segment declined 4% to $59.7 million, reflecting higher public-company and supply-chain costs. AIR said its market shares remained steady despite pricing actions and that it is gaining share in Saudi Arabia.
Europe revenue increased 0.4% to $25.2 million, while adjusted EBITDA fell to $0.1 million from $1.8 million a year earlier. Management said steep excise-tax increases and inadequate enforcement have contributed to illicit product activity in some European markets. CEO Stuart Brazier said Europe historically experiences stronger second-half performance because distributors and wholesalers build inventory ahead of January tax increases.
New growth categories generated $2.2 million of revenue, up 37.5% from a small base. The segment’s adjusted EBITDA loss narrowed to $7.9 million from $9.3 million. AIR Global said larger contributions from these categories will depend on regulatory developments, particularly FDA acceptance of PMTA applications in the U.S.
Historically, about 70% of AIR Global’s shipment volume moved through the Straits of Hormuz. Brazier said the company has shifted shipping through ports on the Gulf of Oman, Saudi Arabia and Oman, while also establishing additional inbound raw-material routes. AIR Global is also building a factory in Romania, expected to be commissioned by the end of 2026 and operational in 2027.
2026 Outlook Maintained
For full-year 2026, AIR Global expects shipment volumes to be stable versus 2025, despite an estimated 1.5% headwind from weaker global travel retail demand and the impact of above-normal pricing. The company forecast revenue growth of 4% to 6% in U.S. dollars and low- to mid-single-digit adjusted EBITDA growth.
Management said the EBITDA outlook reflects incremental public-company costs, accelerated factory-footprint reorganization and elevated logistics and raw-material expenses associated with the Middle East conflict. These pressures are expected to be partly offset by U.S. tariff refunds and excise-duty drawbacks.
For the medium term, AIR Global expects low-single-digit organic FSM shipment growth, mid-single-digit FSM revenue growth and high-single-digit FSM adjusted EBITDA growth. The company continues to target net debt to adjusted EBITDA of 2.5 times over the long term.
At June 30, AIR Global had $85.4 million in cash and cash equivalents and $430.2 million in total borrowings, resulting in net debt of $344.8 million. Net debt to adjusted EBITDA was 2.48 times based on trailing 12-month adjusted EBITDA. The company expects leverage at year-end to be broadly stable compared with 2025, reflecting IPO-related cash outflows and its investment in Greentank.
Greentank Investment Supports Vape Strategy
On July 29, AIR Global announced a $20 million investment in Greentank at a $170 million pre-money valuation. The transaction gives AIR Global an option to increase its ownership stake by an additional 20% over the next 24 months at a $250 million valuation, as well as the right to nominate a Greentank board director.
The investment provides AIR Global with access to Greentank’s Quantum Vape atomization platform, enhanced commercial terms and long-term supply assurance for its Crown Switch product. AIR Global is preparing to file a PMTA for Crown Switch later this year and plans to launch the product in the U.S. after the FDA accepts its application, subject to regulatory requirements.
Brazier said the company expects to initially target specific U.S. geographies as it builds its route-to-market capability. Crown Switch has already launched in Europe, where AIR Global said it is using early commercialization to refine its approach.
The company also said it has made targeted nicotine-pouch launches in the U.S. and Spain, though management described those efforts as early-stage. AIR Global said it will continue to invest in next-generation categories where it identifies opportunities for sustainable value creation, while maintaining flavored shisha molasses as the foundation of its business.
About AIR Global (NASDAQ:AIIR)
Cantor Equity Partners III Inc is a blank check company. It formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. Cantor Equity Partners III Inc is based in NEW YORK.
