AIR Global PLC (NASDAQ: AIIR) reported first-half 2026 revenue of $206.9 million, up 3.7% from $199.5 million a year earlier, as the company navigated supply chain disruptions and absorbed $96 million in IPO-related expenses.
Gross profit reached $116.8 million, a 2.4% increase, though gross margin compressed to 56.4%. Adjusted EBITDA remained flat at $71.7 million, while reported net loss widened to $81.8 million, driven primarily by IPO costs including $47.7 million in listing expenses and $48.2 million in equity issued at listing. Reported EBITDA swung to a loss of $52.1 million from a $61.0 million profit in H1 2025.
Price and mix growth of 14% offset volume declines, with the company citing $3.8 million in extraordinary costs tied to regional supply chain disruptions. Net debt stood at $345 million at the end of June, with a leverage ratio of 2.5x adjusted EBITDA, matching its long-term target.
Regional performance showed mixed results. The Americas segment grew revenue 3.4% to $42.8 million and adjusted EBITDA 17.2% to $19.8 million, with the company estimating a 60–65% U.S. market share. Europe’s revenue remained flat at $25.2 million, but adjusted EBITDA fell 91.7% to $0.1 million due to excise tax increases, illicit competition, and timing effects. The Middle East, Africa, and Asia region, AIR Global’s largest, saw revenue rise 4.0% to $136.7 million, though adjusted EBITDA declined 4.0% to $59.7 million amid disruptions in the Strait of Hormuz and higher logistics costs.
The company attributed volume declines of 9.0% in flavored shisha molasses to the Strait of Hormuz closure, which forced a rerouting of approximately 70% of historical shipment volumes. Demand remained stable, with volume growth returning in June 2026 as the company implemented mitigation strategies, including a factory footprint reorganization and the establishment of a facility in Romania to reduce dependence on the Strait of Hormuz.
AIR Global, which went public on May 18, 2026, claims to be the global leader in flavored shisha molasses, anchored by its Al Fakher brand. The company estimates it serves about 1 billion hookah servings annually and holds roughly 30% of the global market excluding Russia and Turkey. Western markets, including the U.S. and EU, now account for 32% of revenue, up from 21% in 2019.
Looking ahead, AIR Global expects full-year 2026 shipment volumes to remain stable despite a 1.5% headwind from weaker global travel retail volumes. Revenue growth is projected at 4–6%, with adjusted EBITDA growth in the low-to-mid single digits due to incremental public company costs, factory reorganization expenses, and higher logistics and raw material costs linked to Middle East conflicts. The company plans capital expenditures of $15–18 million and does not expect to initiate share repurchases or dividends in 2026.
