Alliance Aviation Services (AQZ) H2 2025 earnings summary

Executive summary

• Achieved fifth consecutive year of record flight hours, reaching 113,621 hours, driven by wet lease operations and fleet expansion, despite disruptions from severe weather, industrial action, and aircraft damage.

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

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

• Returned to paying fully franked dividends ($0.03 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 and revenue at $769.7 million for the year.

• Net debt at 30 June 2025 was $378.1 million, mainly due to aircraft purchases and related costs.

• Net tangible assets per share increased to $2.70, a 13–14% year-on-year rise in net assets.

• Operating cash flow was $105.6 million, supported by aviation services sales and increased receipts from customers.

• 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.

• Fleet size expected to remain stable around 79 aircraft after retiring two F100s and adding two E190s in FY26.

• Focus on cost control, optimising cash flow, and reducing debt as E190 fleet expansion concludes.

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