Aircastle (Aircastle) Q4 2025 earnings summary

Executive summary

• Fiscal 2024/2025 saw net income rise 48% to $124 million, the strongest since 2019, driven by higher lease rental and finance lease revenues, gains on sales, and settlements.

• The fleet reached 272–273 owned and managed aircraft with a net book value of $8.1 billion, 45% of which is new technology narrowbodies.

• 50 aircraft were acquired for $1.6 billion, all narrowbodies, and 27 aircraft were sold for $566 million, with $77 million in gains.

• Fleet utilization remained above 99%, and operating cash flows increased 25% year-over-year.

• Liquidity as of April–July 2025 was $2.6–$2.7 billion, including $2.1 billion undrawn facilities and $100 million unrestricted cash.

Financial highlights

• Q4 net income was $61 million on $206 million in total revenues; full-year net income was $124 million, up from $83 million.

• Adjusted EBITDA for the year was $790 million, up from $760 million; Q4 Adjusted EBITDA was $222 million.

• Lease rental revenue increased year-over-year, with $652 million for the full year.

• 27 aircraft sold in 2024 for $566 million, generating $77 million in gains.

• $50 million in Russia-related settlement proceeds recognized in Q4.

Outlook and guidance

• Management is cautious for 2025 due to tariff-driven volatility, recession risks, and slower aviation growth forecasts.

• Moody’s and S&P revised outlooks to Positive, citing improved fleet and liquidity.

• Demand for new technology narrowbody aircraft remains strong amid supply constraints and OEM delivery delays.

• Commitments to purchase 22–23 aircraft for $1.1–$1.2 billion through December 2027 remain in place.

• Only 1% of Net Book Value is at risk from off-lease or expiring leases in fiscal 2025.