BOC Aviation (2588) investor relations material

Executive summary

• Net profit after tax rose 4.4% year-over-year to US$357 million for 1H 2026, with EPS at US$0.51, reflecting growth across all business areas.

• Total revenues and other income increased 4.4% to US$1,297 million, driven by higher lease rental and finance lease income.

• Core lease rental contribution reached a record US$388 million, up 13% year-over-year.

• Interim dividend per share increased 22% to US$0.1799, with payout ratio lifted to 35%.

• Fleet utilization remained at 100% with a young average age of 5.0 years and a long average remaining lease term of 7.7 years.

Financial highlights

• Lease rental income grew 5.5% to US$988 million; finance lease income up 8.2% to US$141 million.

• Net gain on sale of aircraft increased 13.5% to US$69 million; other income fell due to absence of prior year insurance proceeds.

• Total assets increased 6% to US$27.8 billion as of 30 June 2026; net assets per share rose 3% to US$10.13.

• Gross debt-to-equity ratio at 2.6 times, up from 2.5 times at year-end 2025.

• Total liquidity stood at US$6.3 billion, supporting growth and resilience.

Outlook and guidance

• Committed capex of US$18 billion supports long-term growth targets and an orderbook of 320 aircraft.

• On track for at least 49 aircraft deliveries in 2026, with US$17.6 billion in future committed investments.

• Highest future committed operating lease revenue since 2021 at US$18.2 billion.

• Aviation demand expected to grow, but airline profitability faces headwinds from higher fuel prices and slower traffic growth.

• Tight aircraft supply and resilient demand support continued high utilization and lease rates.