China Aircraft Leasing Group (1848) H2 2025 earnings summary

Executive summary

• Achieved strong earnings and improved capital position in 2025, marking 20 consecutive years of profitability.

• Total revenue for 2025 was HK$5,015.1 million, down 3.6% year-over-year, while profit attributable to shareholders rose 31.5% to HK$338.5 million and EPS increased 31.2% to HK$0.454.

• Maintained a stable dividend payout of HK$0.30 per share, with a payout ratio of 66.1% and a scrip dividend scheme offered.

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

• Placed an additional order for 30 Airbus A320neo series, bringing the order backlog to 130 aircraft (105 Airbus, 25 COMAC C909).

Financial highlights

• EBITDA for 2025 was HK$4,146.8 million, down 17.7% year-over-year.

• Lease income declined 12.9% to HK$3,787.3 million, while net income from aircraft transactions surged 182.6% to HK$374.8 million.

• Interest expenses fell 20% to HK$2,167.9 million, and depreciation/impairment decreased 13.6% to HK$1,457.5 million.

• Income tax expense dropped to HK$146.0 million from HK$315.7 million.

• Full year dividend per share maintained at HK$0.30, with a payout ratio of 66.1%.

Outlook and guidance

• Orderbook coverage ratio at 87.2%, with 130 aircraft on order and delivery slots secured through 2033.

• 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.

• Continued investment in next-generation, fuel-efficient aircraft and strategic partnerships with Airbus.

• Positioned to benefit from global and China aviation market growth, with APAC leading passenger demand.