Aircastle (Aircastle) Q2 2025 earnings summary

Executive summary

• Net income for Q2 2024 was $29 million, with total revenues of $217 million and Adjusted EBITDA of $199 million, driven by gains on aircraft sales and improved lease revenues.

• Fleet utilization exceeded 99%, reflecting strong demand in the aircraft leasing sector.

• The company sold 10 aircraft for net gains of $35 million and acquired four narrow-body aircraft for $120 million.

• Owned and managed 253 aircraft leased to 78 airline customers in 46 countries as of August 31, 2024.

• Well-diversified customer base with no single customer over 8% of NBV and exposure across 46 countries.

Financial highlights

• Q2 2024 total revenue rose to $217 million from $168 million in Q2 2023; net income increased to $29 million from $6 million.

• Lease rental and direct financing lease revenue grew 8% year-over-year; $35 million in gains from $304 million in flight equipment sales.

• Adjusted EBITDA for Q2 2024 reached $199 million, up from $152 million in Q2 2023.

• Sale proceeds from aircraft and equipment reached $304 million.

• The fleet is valued at $7.1 billion, with 85% unencumbered assets, an all-time high.

Outlook and guidance

• Management expects to expand the fleet in the second half of the fiscal year, focusing on new-technology narrow-body aircraft.

• Over $3 billion in liquidity and a net debt-to-equity ratio of 1.9x position the company to ramp up acquisitions.

• Positive macro drivers in aviation with global passenger demand at record highs and ongoing supply shortages.

• OEM production constraints and engine issues are extending the utility of current technology aircraft, supporting robust lease rates.

• Sufficient liquidity is projected to meet all contractual obligations over the next twelve months.