Alliance Aviation Services (AQZ) investor relations material

Executive summary

• Underlying profit before tax for FY26 was $38.2 million, within revised guidance, despite lower revenue and flight hours due to the end of aviation trading and reduced Qantas wet lease flying.

• Statutory loss before tax was $129.9 million and net loss after tax was $90.9 million, mainly due to non-cash impairments and asset write-downs on the Fokker fleet.

• A strategic reset included renegotiating major wet lease contracts, a performance improvement program, cost discipline, and a refreshed management team with a new CEO appointed.

• A fully underwritten $40 million equity raising and planned asset sales are underway to strengthen the balance sheet and reduce leverage.

• Core FIFO operations remained resilient, supported by robust demand and long-term contracts in the Australian resources sector.

Financial highlights

• Underlying revenue for FY26 was $712.6 million, down 7.4% year-over-year; underlying EBITDA was $177.5 million, down 14.4%.

• Operating cash flow before aircraft purchases was $17.7 million, down from $105 million in FY25.

• Net debt increased to $459.8 million at 30 June 2026, reflecting lower cash generation and ongoing fleet investment.

• Capital expenditure reduced 40% to $162 million, with maintenance CapEx at $135.6 million and growth CapEx at $26.6 million.

• Net tangible assets at 30 June 2026 were $2.32 per share.

Outlook and guidance

• FY27 guidance: underlying EBITDA of $175–190 million and underlying profit before tax of $55–60 million, with EBITDA margin expected between 27% and 29%.

• Targeting net debt to underlying EBITDA of approximately 2.1x by June 2027.

• Cost optimization expected to deliver $27 million in FY27 and $38 million annualized from FY28.

• Planned asset sales of $60–75 million and no dividends expected in FY27.

• Guidance subject to risks including operational performance, aircraft utilization, customer demand, fuel costs, labor availability, and economic conditions.