BOC Aviation (2588) H2 2024 earnings summary

Executive summary

• Achieved record net profit after tax of US$924 million in 2024, up 21% year-over-year, with EPS of US$1.33 and all aircraft on lease at a utilisation rate above 99%.

• Total revenues and other income rose 4% to US$2.6 billion, driven by strong lease rental income, aircraft sales, and successful Russia-related recoveries.

• Maintained 31 years of unbroken profitability, robust portfolio quality, and a collection rate exceeding 100%.

• Board recommended a record total dividend of US$0.4658 per share, up 21% year-over-year, representing 35% of net profit after tax.

• Operating cash flow net of interest reached a record US$1.9 billion.

Financial highlights

• Profit before tax increased 21% to US$1.039 billion; earnings per share up 20.9% to US$1.33.

• Core net profit after tax (excluding Russia-related items) rose 16% to US$633 million.

• Total assets reached a record US$25.1 billion, up 4% year-over-year; total equity increased 11% to US$6.4 billion.

• Lease rental income was US$1.85 billion, with a stable lease rate factor of 10%; finance lease revenue surged 214.5% to US$217 million.

• Net gain on sale of aircraft increased over 50% to US$180 million, with 29 aircraft sold.

Outlook and guidance

• 47 aircraft contracted for delivery in 2025, all placed with customers at favorable rates; orderbook of 232 aircraft represents US$12.1 billion in future capex commitments.

• CAPEX guidance for 2025 maintained at similar levels to 2024, targeting around US$4 billion.

• Industry expects near-record aircraft delivery values in 2025, with strong demand for leased aircraft amid tight supply.

• Net lease yield expected to improve as higher-rate leases replace pandemic-era contracts and as interest rates decline.

• Manufacturer delivery delays continue to constrain near-term growth, but robust demand supports long-term expansion.