Alliance Aviation Services (AQZ) H2 2025 earnings summary

Executive summary

• Achieved fifth consecutive year of record flight hours, up 8.7% to 113,621 hours, driven by wet lease operations and fleet expansion.

• Revenue grew 19% year-over-year to $769.7m, led by wet lease and charter activity, despite contract revenue decline from reduced BHP Nickel West flying and weather disruptions.

• EBITDA rose 16% to $207.3m, while profit before tax fell 5% to $82.1m, reflecting higher operating expenses and finance costs from fleet expansion.

• Returned to paying fully franked dividends (3.0 cents per share), first since FY 2020.

• Leadership transition with Stewart Tully appointed Joint Managing Director and board succession plan in place.

Financial highlights

• Record revenue and EBITDA, with EBITDA at $207.3 million for the year.

• Net debt reduced to $378.1 million at 30 June 2025, down from $425.5 million at December 2024.

• Net tangible assets per share increased from $2.39 to $2.70, a 14% year-on-year rise in net assets.

• Operating cash flow strong at $105.6 million, up 23.6% year-over-year, with closing cash up $65 million from June 2024.

• Depreciation and amortisation increased 26% to $92 million, reflecting increased aircraft in operation.

Outlook and guidance

• FY26 outlook remains strong, with growth in wet lease services and stable contract charter operations expected.

• First full year of Qantas wet lease operations in FY26 anticipated to boost revenue and crew utilisation.

• Ten E190 aircraft to be settled before June 2026; two to enter service, remainder to be sold.

• D&A forecast to increase to $100–$105 million; net interest expected to drop slightly to $28–$30 million.

• Net debt target for end of FY 2026 remains $315–$360 million, likely to be at the higher end.