Avation (AVAP) investor relations material

Executive summary

• Owned a diversified fleet of 33 aircraft leased to 16 airlines across 15 countries as of December 31, 2025, with a focus on narrow-body and turboprop aircraft and a fully utilized fleet.

• Achieved portfolio growth through new ATR deliveries, secondary market acquisitions, and lease extensions, including a major lease with EVA and new placements with SUM Air and Clic Air.

• Improved credit ratings (Moody’s B1, Fitch B, S&P B) and refinanced unsecured debt with a new $300 million bond maturing in 2031, extending the debt maturity profile.

• Maintained a stable capital structure, disciplined capital management, and ongoing share buybacks.

Financial highlights

• Total income for the six months ended December 31, 2025, rose to $56.0 million, with EBITDA at $54.0–$55.6 million and operating profit up to $29.3 million year-over-year.

• Net indebtedness reduced by $61.5 million to $542.7 million, and net asset value per share increased by 7% to £2.74 ($3.70).

• Loss after tax of $4.9 million, mainly due to $13 million in non-cash adjustments related to bond redemption.

• Net debt to EBITDA improved to 5.1x; EBITDA to interest expense at 2.6x; debt/equity ratio at 2.6x.

Outlook and guidance

• Fleet projected to grow from 33 to 39–45 aircraft by FY2028, with nine ATR 72-600s to be delivered by Q2 2028 and 24 ATR 72 purchase rights through June 2034.

• Lease yield improved to 11.5% and expected to remain above 11% in the near term.

• No significant loan maturities until FY2028, providing financial stability.

• Management expects continued strong demand for leased aircraft due to OEM order backlogs and supply chain delays.