Air Lease (AL) Q2 2026 earnings summary

Executive summary

• Adjusted net income before tax for Q2 2026 was $126.4 million, reflecting merger-related expenses and a sharp decline from the prior year.

• Integration with SMBC Aviation Capital is progressing well, with servicing activities in place and positive customer feedback.

• Two large portfolio sales totaling $4.4 billion have been converted to binding contracts to support deleveraging and portfolio optimization.

• The company maintains a young, liquid fleet with 85–87% new technology aircraft and an average age of ~7 years.

• Post-merger, the company shifted focus to portfolio optimization and deleveraging, with a significant portion of the fleet classified as held for sale.

Financial highlights

• Total revenue for Q2 2026 was $641.1 million on a non-GAAP combined basis, down 12.4% year-over-year due to lower rental revenue and aircraft sales gains.

• Net income to common stockholders was $7.2 million, reflecting $65 million in transaction costs and $26 million in accelerated stock-based compensation.

• Sales proceeds for the quarter were $423 million from the sale of nine aircraft.

• Net book value of flight equipment subject to operating leases was $23.9 billion as of June 30, 2026.

• Ended the quarter with $3.5 billion in liquidity, including $368.6 million in cash and $3.1 billion undrawn revolving credit.

Outlook and guidance

• Aircraft sales pipeline totals $5.1 billion, with most sales expected to close by the end of Q1 2027.

• Focus remains on portfolio optimization and deleveraging, targeting an adjusted debt-to-equity ratio of 3.0x (currently at 3.5x).

• No significant growth in lease rentals expected as the company continues to optimize its fleet.