Avation (AVAP) Noble Capital Markets Virtual Equity Investor Conference summary

Market backdrop

• Earnings come from lease rental yields over funding costs, plus aircraft trading gains and residual-value exposure.

• Boeing and Airbus delivery shortfalls, strong travel demand, engine and certification delays, and component constraints expected to persist at least through decade-end.

• Lease rates and aircraft values remain firm; Airbus/Boeing backlogs are 10 years and ATR's is nearing five years; higher interest rates feed into lease rates with a 3–6 month lag.

Fleet and growth

• Fleet totaled 33 aircraft across 16 airline customers in 16 countries at June 30; customer count rose to 17 after the Finnair transition. Mix: ~30% turboprop, ~60% narrow-body, 10% wide-body.

• ATR orderbook includes 13 firm aircraft and 19 purchase options; contracted flows support at least 10% fleet CAGR through decade-end, with options extending to 2034.

• Plan calls for about four deliveries this year and a return to the pre-COVID 48-aircraft fleet; two secondary-market purchases annually would reach that size by mid-2029, or by 2030 without them.

• ATR is the sole regional turboprop manufacturer; limited lessor competition supports higher yields, with turboprops near 12% versus 8%–9% for 737s and A320s.

Results and funding

• FY2025 operating profit rose 38%, results returned to profitability despite non-cash items, and the dividend increased 50%; NAV per share rose 20%, including 12% from buybacks and 8% from profitability and other factors.

• Debt was 97% fixed; unrestricted cash rose ~9%, while net debt declined from $604 million to $523 million.

• A new $100 million undrawn Japanese bank warehouse facility can be upsized to $150 million; $300 million notes pushed the liquidity wall to 2031.

• In the year to June 2026, nine transactions included two deliveries and five transitions to three new customers; the 777 sale generated a $4 million accounting gain and ~$30 million cash gain after debt repayment.