#United States #Stamford #Aviation #Aircastle #Leasing

Aircastle Reports Second Quarter 2025 Results

On October 9, 2025, Aircastle Limited, a major player in the aviation leasing sector, published its financial results for the second quarter ended August 31, 2025. The company reported total revenues reaching $228 million, complemented by a net income of $57 million, marking a robust 17% increase in lease rental revenue compared to the same period in 2024.

Aircastle's performance highlights the company's strategic focus on fleet expansion and optimizing operational efficiencies. The adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at $262 million for the quarter. The growth was largely fueled by favorable lease rates and the ongoing efforts of a dedicated global team of seasoned aviation professionals.

Strategic Acquisitions and Fleet Growth

During this quarter, Aircastle made significant investments by acquiring 11 aircraft for $503 million. These newly added aircraft, which are three years old on average, now account for half of the fleet's net book value. The company's strategic decision to continue incorporating new technology aircraft is aimed at reducing emissions and improving fuel efficiency for its airline customers.

As of August 31, 2025, Aircastle owned a total of 270 aircraft, representing a net book value of $8.5 billion. This net book value reflects an increase from the previous year, where it stood at $7.1 billion. Furthermore, Aircastle has successfully managed and leased 278 aircraft to 75 airline customers across 46 countries, ensuring a robust and diversified asset base.

In a noteworthy move, Aircastle also sold four older aircraft with an average age of 18 years for net proceeds of $73 million, garnering substantial gains of $24 million from these sales. This reflects a proactive strategy to maintain a modern fleet while capitalizing on asset values through sales.

Credit Ratings and Liquidity

Aircastle's financial stability has been recognized through upgrades in its credit ratings, with a Standard & Poor's upgrade to BBB on August 14, 2025, followed by a Moody's upgrade to Baa2 on October 3, 2025. These upgrades underline the company’s solid profitability and its increasing scale of operations.

In terms of liquidity, as of October 1, 2025, Aircastle reported total liquidity of $2.5 billion, which includes $1.8 billion in undrawn facilities and $0.2 billion in unrestricted cash. The strategic issuance of $650 million in unsecured senior notes at a competitive interest rate of 5.000% has further enhanced its financial positioning. With 98% of the total debt being unsecured, the company maintains a favorable leverage ratio with an adjusted net debt-to-equity of 2.2 times.

Future Outlook

Looking ahead, CEO Mike Inglese expressed optimism regarding Aircastle's growth trajectory. He noted that the company is poised to continue benefiting from favorable market conditions, increased demand for commercial aircraft, and the sustained support from shareholders like Marubeni Corporation and Mizuho Leasing. This momentum is expected to carry forward into the latter half of the fiscal year, with Aircastle remaining committed to leveraging its strong liquidity to foster profitable fleet growth.

Conclusion

In conclusion, Aircastle’s second quarter results for 2025 illustrate a well-executed strategy focused on fleet expansion, modernization, and strong operational performance. With a clear vision for sustainable growth and leveraging technological advancements, Aircastle is set to continue its upward trajectory in the aviation leasing industry.