China Aircraft Leasing Group (1848) H2 2025 earnings summary

Executive summary

• Achieved strong profitability and capital strength for the full year 2025, with adjusted net profit up 31.5% year-over-year and stable revenue performance.

• Maintained a leading position in the Chinese aircraft leasing market, with 20 consecutive years of profitability.

• The fleet comprised 176 aircraft (149 owned, 27 managed) at year-end, with a 100% utilization rate (excluding two aircraft mandated for sale).

• Optimized fleet and customer mix, with high order reserves and robust global expansion.

• Strategic focus on narrow-body aircraft assets, leveraging industry trends of rising aircraft and engine values.

Financial highlights

• Total revenue for 2025 was HK$5,015.1 million, down 3.6% year-over-year; adjusted net profit attributable to shareholders rose 31.5% to HK$338.5 million.

• Basic EPS increased 31.2% to HK$0.454; full-year dividend maintained at HK$0.30 per share, with a payout ratio of 66.1%.

• Leasing income declined 12.9%, while aircraft and component trading income surged 182.6%.

• Major operating expenses decreased, with interest expenses down 20% and depreciation down 13.6%.

• Leasing gross margin improved to 42.76% from 37.68% year-over-year.

Outlook and guidance

• Continued investment in new-generation, fuel-efficient aircraft, with 30 additional Airbus A320neo orders and a total order book of 282 aircraft.

• Order coverage extends to 2033, supporting long-term sustainable growth.

• The global aviation industry is expected to maintain positive growth in 2026, with IATA projecting passenger traffic to rise 4.4% and industry revenue to exceed US$1 trillion.

• Aircraft supply chain bottlenecks are expected to persist, supporting asset values and lease rates.

• Focus on maintaining high fleet liquidity and asset quality, with a young average fleet age and high narrow-body proportion.