Air Lease (AL) Q1 2026 earnings summary

Executive summary

• Completed a major merger in April 2026, creating a new holding company jointly owned by Sumitomo, SMBC Aviation Capital, Apollo, and Brookfield, with SMBC AC as exclusive servicer for most of the fleet and acquisition of the outstanding orderbook.

• Focus shifted to portfolio optimization and deleveraging, supported by a robust aircraft sales pipeline and strong customer response.

• Maintains a fleet of 496 owned aircraft, 83% of which are young, new technology models, with a 5.0-year weighted average age.

• Investment grade ratings (BBB/BBB/A-) confirmed post-acquisition, reflecting strong financial backing and strategic alignment.

• Four significant shareholders—Sumitomo Corporation, SMBC Aviation Capital, Apollo, and Brookfield—provide financial strength and industry expertise.

Financial highlights

• Q1 2026 total revenues were $739.2 million, nearly flat year-over-year, with rental revenue up 4% to $674 million.

• Net income attributable to common stockholders was $114.8 million, down from $364.8 million in Q1 2025 due to a prior-year $332 million Russian fleet insurance recovery.

• Adjusted net income before income taxes was $165.4 million, compared to $169.5 million in Q1 2025.

• Aircraft sales proceeds were $275 million from six aircraft, with a $5.6 billion sales pipeline including $940 million held for sale.

• Ended the quarter with $4.1 billion to $5.4 billion in liquidity and a largely unencumbered asset base.

Outlook and guidance

• Immediate focus on deleveraging and portfolio optimization, targeting a long-term debt-to-equity ratio of 3.0x.

• Expect robust aircraft sales in the next 12 months, leveraging strong market conditions and a $5.6 billion pipeline.

• No further aircraft purchase commitments after orderbook transfer; future acquisitions to be opportunistic and flexible.

• Long-term strategy includes flexible capital allocation and investment in new technology aircraft through various procurement channels.

• Management highlighted macroeconomic risks, interest rates, and industry uncertainties.