Alliance Aviation Services (AQZ) H1 2025 earnings summary

Executive summary

• Revenue increased 11.3% year-over-year to $339 million, with EBITDA up 25.9% to $101.2 million and profit before tax rising 9.5% to $41.3 million, driven by record flight hours and fleet expansion.

• Flight hours reached 58,362 (up 14.9%), with 76 aircraft in service, and 98% of flights operated under long-term contracts, providing revenue stability.

• Board renewal included the retirement of the Chairman and appointment of new directors.

Financial highlights

• Wet lease revenue increased 25% to $160.1 million, with 30 aircraft operating for Qantas; contract revenue was stable at $153.6 million.

• Net assets increased 7% to $440.3 million; net debt rose to $425.5 million, mainly to fund aircraft and hangar acquisitions.

• Statutory net cash from operating activities decreased by $15.1 million, mainly due to aircraft purchases.

• Total capital expenditure for the period was $145.7 million, focused on fleet expansion and maintenance.

Outlook and guidance

• Guidance unchanged: FY25 consensus forecast of $92.9 million PBT and $202.1 million EBITDA, with positive outlook supported by further E190 fleet expansion and wet lease deployments.

• Net debt expected to reduce post-acquisition phase, with capital retained for growth and debt repayment.

• Ongoing investment in technology, systems, and facilities to drive operational efficiency and offset labor cost increases.

• 13 E190 aircraft remain to be purchased by 2H26, with estimated cost of USD103 million.