BOC Aviation (2588) H1 2025 earnings summary

Executive summary

• Net profit after tax for H1 2025 was US$342 million, down 26% year-over-year due to non-recurring 2024 items, but up 20% compared to core NPAT in 1H 2024, with EPS of US$0.49.

• Total revenues and other income rose 6% year-over-year to US$1.24 billion, with all business lines showing improvement.

• Interim dividend of US$0.1476 per share declared, representing a 30% payout ratio, consistent with prior years.

• Record first-half operating cash flow net of interest reached US$1.0 billion, reflecting strong liquidity and a collection rate above 100%.

• Maintained 100% aircraft utilisation and a record orderbook of 351 aircraft, supporting future growth.

Financial highlights

• Lease rental income grew 1% to US$937 million; finance lease revenue up 36% to US$130 million.

• Net gain on sale of aircraft increased 8% to US$60 million from 18 aircraft sales, with an 8.7% margin.

• Other interest and fee income surged 80% to US$65 million, mainly from pre-delivery payment financing.

• Total assets reached US$25.6 billion, with net assets of US$6.5 billion as of June 2025.

• Gross debt to equity stable at 2.6x; net debt to equity at 2.5x; average cost of debt 4.6%.

Outlook and guidance

• Growth target of US$40 billion in assets by 2030, requiring 8% annual growth, underpinned by a record orderbook.

• All new aircraft scheduled for delivery and those with leases expiring before Q2 2027 have been placed, extended, or contracted for sale.

• Future committed revenue for delivered and yet-to-be-delivered aircraft stands at US$16.9 billion.

• Aircraft delivery value expected to exceed US$100 billion in 2025, the highest since 2019.

• Pre-delivery payment financing expected to grow in line with increased aircraft deliveries.