Avation (AVAP) H1 2026 earnings summary

Executive summary

• Owned a diversified fleet of 33 aircraft leased to 16 airlines across 15 countries as of December 31, 2025, with a focus on narrow-body and turboprop aircraft and a fully utilized fleet.

• Achieved 100% fleet utilization, consistent income, and strong cash flow, supported by contracted lease revenue and disciplined capital management.

• Management focused on refinancing, including redemption and reissue of a $300 million unsecured bond due May 2031, and improved credit ratings from Fitch, S&P, and Moody’s.

• Continued share buybacks and dividend payments, with net asset value per share rising to $3.70 (US$) and £2.74 (GBP).

• Growth strategy centers on new ATR deliveries, secondary market acquisitions, and lease extensions.

Financial highlights

• Total income for the six months ended December 31, 2025, increased to $56.0 million year-over-year.

• Operating profit rose to $29.3 million from $18.8 million year-over-year.

• EBITDA was $55.6 million, up from $54.0 million year-over-year.

• Loss after tax of $4.9 million, mainly due to non-recurring non-cash bond redemption expenses.

• Net indebtedness reduced by $61.5 million to $542.7 million since June 30, 2025.

Outlook and guidance

• Nine ATR 72-600 aircraft scheduled for delivery by Q2 2028, with two delivering in 2026 on 12-year leases and 24 additional purchase rights through June 2034.

• Fleet projected to grow from 33 to up to 45 aircraft by FY2028, with further expansion possible via secondary acquisitions.

• Lease yield expected to remain above 11% in the near term.

• Focus on portfolio optimization, disciplined capital allocation, and maintaining financial flexibility.

• Maintenance reserve revenue expected to remain a consistent profit contributor.