Aircastle (Aircastle) Q1 2027 earnings summary

Executive summary

• Achieved total revenues of $236 million and net income of $34 million for Q1 FY2026, with a 6% year-over-year increase in lease rental revenue.

• Adjusted EBITDA reached $208 million, reflecting strong operational performance despite sector challenges from conflict-related fuel prices.

• Acquired 4 aircraft for $117 million and sold 5 aircraft and other flight equipment for $114 million, realizing $11 million in gains.

• New technology aircraft comprised 52% of the fleet's net book value as of May 31, 2026.

• Owned and managed 279 aircraft leased to 72 airline customers in 43 countries, with a Net Book Value of $8.4 billion as of May 31, 2026.

Financial highlights

• Lease rental revenue was $194.6 million, up from $183 million year-over-year.

• Total revenues reached $236 million for the quarter, down from $260 million in Q1 2025.

• Net income for the quarter was $34 million, down from $49.3 million in the prior year.

• Adjusted EBITDA was $208 million, compared to $232 million in the prior year.

• Operating expenses totaled $194.1 million, nearly flat year-over-year.

Outlook and guidance

• Healthy pipeline of aircraft acquisition and sales opportunities expected to continue through 2026.

• Management remains disciplined, focusing on risk-adjusted returns and investment profitability, supported by strong shareholder backing.

• Confident in expanding investments in FY2026, supported by strong liquidity and capital access.

• Aviation finance market maturity and supply shortages are expected to sustain high aircraft values.

• Management expects to meet all contractual obligations over the next twelve months.