BOC Aviation (2588) H1 2026 earnings summary

Executive summary

• Net profit after tax rose 4.4% year-over-year to US$357 million for H1 2026, with EPS at US$0.51 and record core lease rental contribution of US$388 million, up 13% year-over-year.

• Total revenues and other income increased 4.4% to US$1,297 million, driven by higher lease rental and finance lease income.

• Interim dividend declared at US$0.1799 per share, up 22% from the prior year, with payout ratio raised to 35%.

• Fleet utilization remained at 100%, with a young average age of 5.0 years and 86% latest-technology aircraft by NBV.

• Portfolio comprised over 810 aircraft and engines, with 320+ on order and all deliveries through 2027 placed.

Financial highlights

• Lease rental income grew 5.5% to US$988 million; finance lease income up 8.2% to US$141 million.

• Net gain on sale of aircraft increased 13.5% to US$69 million, with margins above long-run average.

• Total assets increased 5.6% to US$27.8 billion; net assets rose 2.7% to US$7.0 billion.

• Gross debt to equity at 2.6x; average cost of funds stable at 4.4%.

• Liquidity at US$6.3 billion (cash and undrawn facilities); operating cash flow net of interest exceeded US$0.8 billion.

Outlook and guidance

• On track for at least 49 aircraft deliveries in 2026, with US$17.6 billion in future committed investments.

• CapEx guidance for 2026 is US$4.5 billion, with US$2.3 billion spent in H1 and US$1.8 billion already committed for H2.

• Targeting US$40 billion in assets by 2030, supported by strong capex and asset quality.

• Dividend policy updated to pay up to 40% of full-year earnings.

• Tight aircraft supply and resilient demand expected to persist, supporting high utilization and lease rates.