Air Transport Services Group (ATSG) Q4 2024 earnings summary

Executive summary

• Fourth quarter 2024 revenue was $517 million, flat year-over-year, with GAAP EPS of $0.21 versus a loss of $0.24 in Q4 2023.

• Adjusted EBITDA for Q4 rose to $162.2 million from $129.9 million, and free cash flow improved to $34.7 million from negative $65.5 million.

• Full year 2024 revenue was $2.0 billion, down from $2.1 billion, with GAAP EPS of $0.40 compared to $0.82 in 2023.

• Adjusted full-year EPS was $0.87, down from $1.46, and adjusted EBITDA was $549.4 million versus $561.6 million.

• ATSG is being acquired by Stonepeak, with stockholder approval received and regulatory approval pending.

Financial highlights

• Q4 adjusted pretax earnings were $39.8 million, up from $19.8 million; full year adjusted pretax earnings were $83.0 million, down from $146.7 million.

• Q4 operating income was $41.8 million, up from $36.6 million; full year operating income was $127.8 million, down from $199.8 million.

• Q4 net earnings from continuing operations were $14.7 million, compared to a loss of $15.6 million in Q4 2023.

• Free cash flow for 2024 was $228.1 million, a significant turnaround from negative $111.8 million in 2023.

Segment performance

• CAM leasing revenues fell 12% in Q4 and 6% for the year, with pretax earnings down 44% in Q4 and 46% for the year due to aircraft returns and lower maintenance revenue.

• ACMI Services Q4 pretax earnings were $26 million, up from a $2 million loss, driven by additional customer-provided aircraft and higher rates; full year pretax earnings dropped to $1 million from $32 million due to reduced flying and higher costs.

• CAM added nine 767-300 freighters in 2024, all placed with external customers; 14 CAM-owned aircraft were in or awaiting conversion at year-end.