Aircastle (Aircastle) Q2 2027 earnings summary

Executive summary

• Q2 FY2027 revenue was $282.953M and net income was $69.328M; Adjusted EBITDA was $247.465M.

• Aircraft sales generated $38.2M in gains on $243M of proceeds; strong travel demand and constrained aircraft supply supported lease rates and asset values.

• As of May 31, the fleet comprised 268 owned and managed aircraft across 67 lessees in 42 countries, with $8.3B of fleet NBV.

Financial highlights

• Q2 revenue increased 24% YoY from $227.510M; net income rose from $57.233M. Prior-year comparisons included substantial insurance-settlement income.

• Q2 maintenance revenue was $43.0M versus $9.7M, and aircraft disposition gains were $38.2M versus $23.9M.

• H1 revenue was $518.483M versus $487.354M; net income was $102.946M versus $106.520M, and Adjusted EBITDA was $455.623M versus $494.356M.

• Q2 operating expenses fell $23.4M to $203.2M; H1 expenses declined $24.1M to $397.3M, primarily reflecting lower depreciation and impairment charges.

• H1 operating cash flow was $238.294M versus $218.6M; investing cash flow provided $0.780M versus $629.6M used.

Outlook and guidance

• Total liquidity was $2.8B as of October 1, including $2.0B of undrawn facilities, $0.7B of projected adjusted operating cash flows and contracted sales, and $0.1B of unrestricted cash.

• Management cited ample liquidity and confidence in servicing customers and sourcing attractive investments in the second half of the fiscal year.

• Aircraft purchase commitments were $904.3M for 22 aircraft at August 31; by October 9, commitments were 20 aircraft for $767.3M.

• As of October 9, 8 aircraft were off-lease and 5 had leases expiring in FY2026, together representing 3% of fleet NBV; 7 were expected to be sold or parted out.