Aircastle (Aircastle) Q4 2026 earnings summary

Executive summary

• Fiscal 2025/2026 net income rose 57% year-over-year to $194 million, with record revenues of $975 million and the highest net income since 2018.

• 46 aircraft acquired for $1.7 billion and 33 aircraft sold for $730 million, with gains on sales totaling $96 million.

• 51% of the fleet's net book value at year-end comprised new technology aircraft, supporting a strategic modernization.

• Ended FY2026 with 282 aircraft, $8.5 billion fleet NBV, and 76 lessees across 45 countries.

• $71 million in Russia-related/insurance settlement proceeds collected during the year.

Financial highlights

• Q4 net income was $57 million on $251 million in total revenues, with Adjusted EBITDA of $230 million.

• Full-year Adjusted EBITDA reached $945 million, up from $790 million year-over-year.

• Lease rental revenues for Q4 rose 15% year-over-year to $194 million.

• Operating costs increased 12%, mainly due to higher depreciation and interest, offset by maintenance revenue.

• 174 lease transactions executed in 2025, including purchases, sales, amendments, and extensions.

Outlook and guidance

• Aircraft and engine shortages expected to persist, with demand outstripping supply into 2026.

• Management expects continued profitability and growth, leveraging disciplined investment and robust capital structure.

• Favorable financing conditions for investment-grade lessors anticipated to continue.

• Aircraft trading and leasing markets remain robust despite fuel price headwinds and supply chain challenges.

• Heightened vigilance planned due to geopolitical risks and surging fuel costs impacting airlines.