Aircastle Limited Reports Robust FY2025 Results: Net Income Surges 57%, Balance Sheet Strengthens

Key Highlights from Q4 and Full Year 2025 Financial Results

• Q4 2025 Net Income: \$57 million on total revenues of \$251 million; Adjusted EBITDA reached \$230 million, marking a substantial increase in profitability.
• Full Year 2025 Net Income: \$194 million, a 57% increase over fiscal 2024’s \$124 million.
• Revenue Growth: Q4 total revenue rose by 22% compared to Q4 2024, demonstrating strong underlying business momentum.
• Aircraft Portfolio Activity: 46 aircraft acquired in FY2025 for \$1.7 billion; 51% of the fleet’s Net Book Value (NBV) is now composed of new technology aircraft.
• Asset Sales: 33 aircraft and other flight equipment sold in FY2025 (average age 17 years) for \$730 million, generating a gain of \$96 million. Q4 alone saw the sale of 13 aircraft including a B777-300ER for \$361 million, with \$36 million gain on sale.
• Insurance Proceeds: \$71 million collected from insurance settlements during the year.
• Transaction Volume: 174 transactions executed in FY2025, including purchases, sales, lease amendments, and extensions.

Liquidity, Credit Ratings, and Balance Sheet Strength

• New Financing Raised: \$1.25 billion in new funding, including \$650 million in unsecured senior notes at 5.000% and a \$600 million unsecured term loan involving 18 lenders.
• Extension of Facilities: \$500 million in shareholder-affiliated revolving credit facilities extended.
• Credit Rating Upgrades: Upgraded to Baa2 by Moody’s and BBB by Standard & Poor’s, reflecting enhanced financial stability and market confidence.
• Liquidity Position: As of April 1, 2026, total liquidity stands at \$2.6 billion, comprised of \$2.0 billion undrawn credit facilities, \$500 million projected adjusted operating cash flows, and \$100 million in unrestricted cash.
• Unencumbered Assets: As of February 28, 2025, Aircastle had 273 unencumbered aircraft and other flight equipment with a net book value of \$8.4 billion.

Fleet and Leasing Metrics

• Total Aircraft Owned (as of Feb 28, 2026): 277 aircraft and other flight equipment with a net book value of \$8.5 billion; an additional 5 managed aircraft.
• Fleet Composition: 51% of NBV in new technology aircraft, signaling a strategic pivot towards more modern and efficient assets.
• Fleet Age and Lease Metrics: Weighted average fleet age is 9.0 years; weighted average remaining lease term is 5.4 years.
• Utilization: Q4 weighted average fleet utilization at 97.7%; full year utilization at 99.1%, demonstrating strong demand and operational efficiency.
• Global Reach: 76 lessees across 45 countries, underlining Aircastle’s diversified customer base.

Operational and Financial Performance

• Revenues: FY2025 total revenues reached \$975 million, up from \$821 million in FY2024. Lease rental revenue was \$760 million.
• Operating Expenses: FY2025 operating expenses totaled \$826 million, including \$384 million in depreciation and \$282 million in net interest expense.
• Cash Flows: Operating activities generated \$483 million in cash; investing activities consumed \$898 million (primarily aircraft acquisitions), while financing activities provided \$315 million in net cash.
• EBITDA and Adjusted EBITDA: FY2025 EBITDA was \$889 million; Adjusted EBITDA was \$945 million, highlighting strong core profitability.

Management Commentary and Market Outlook

CEO Mike Inglese emphasized Aircastle’s improved profitability, strengthened fleet, and recognition by leading credit agencies as key achievements in 2025. He noted the company’s disciplined investment approach and robust trading activity, which included significant portfolio optimization through aircraft sales.

Inglese also addressed the heightened uncertainty due to recent Middle East events, particularly rising fuel costs, but expressed confidence in the resilience of airline customers and sustained global travel demand. Aircastle plans to maintain vigilance while continuing to upgrade its fleet and efficiently tap capital markets.

Potentially Price-Sensitive Information for Shareholders

• Significant Net Income Growth: The 57% year-over-year increase in net income and sizable revenue growth may positively impact investor sentiment and share value.
• Credit Rating Upgrades: Ratings improvements from both Moody’s and S&P are likely to lower borrowing costs and enhance access to capital, supporting future growth and potentially influencing share price.
• Strong Liquidity and Balance Sheet: Enhanced liquidity and a high proportion of unencumbered, new technology aircraft position Aircastle well for future growth and stability.
• Active Portfolio Management: The significant acquisition and sale of aircraft, combined with gains on sale and portfolio renewal, signal effective capital allocation and risk management.

Conference Call Details

Management will host a conference call on Tuesday, April 21, 2026, at 9:00 A.M. Eastern Time. Interested parties can join via phone or webcast. A replay will be available on Aircastle’s website.

About Aircastle Limited

Aircastle Limited acquires, leases, and sells commercial jet aircraft to airlines worldwide. As of February 28, 2026, Aircastle owned and managed 282 aircraft leased to 76 customers in 45 countries.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those anticipated. Investors should review Aircastle’s filings with the SEC, including the most recent Form 10-K, for additional risk disclosures. Aircastle undertakes no obligation to update forward-looking statements as a result of new information or future events.

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