BOC Aviation (2588) H2 2025 earnings summary

Executive summary

• Net profit after tax for 2025 was $787 million, down from 2024, but underlying profit rose 18% to a record $746 million, marking 32 years of unbroken profitability and cumulative net profit of $8.0 billion.

• Total revenues and other income increased 2.4% to $2.62 billion, driven by higher lease rental income, finance lease interest, and gains on aircraft sales.

• Operating cash flow net of interest reached a record $2.2 billion, up over 17% year-over-year.

• Board recommended a final dividend of $0.3061 per share, bringing total 2025 dividend to $0.4537 per share, or 40% of net profit, the highest on record.

• Maintained 100% aircraft utilisation and collection rates above 100% for the fourth consecutive year.

Financial highlights

• Lease rental income rose to $1.89 billion, with lease rate factor improving to 10.3% and core lease rental contribution up 21%.

• Finance lease revenue up nearly 25% to $271 million, with finance lease receivables over $4.1 billion.

• Gains on aircraft sales surged 81% to $213 million, driven by strong demand and higher margins.

• Other income fell 63% due to lower Russia-related insurance settlements.

• Depreciation steady at $782 million; finance expenses up 4% to $738 million, with cost of debt unchanged at 4.5%.

Outlook and guidance

• Orderbook expanded to 337 aircraft, representing over $19 billion in future capital expenditure.

• Aircraft supply shortages expected to persist until decade’s end, supporting strong lease demand and projected 16% growth in delivered aircraft value in 2026.

• Entering 2026 with robust liquidity, a strong balance sheet, and a clear long-term growth strategy.

• Focused on delivering 42 aircraft in 2026 and expanding through purchase and leaseback financings.

• Confident in funding CapEx and debt obligations with over $8 billion in committed liquidity.