Avation (AVAP) H1 2025 earnings summary

Executive summary

• Fleet of 32 aircraft as of December 31, 2024, fully utilized, diversified across 15 customers in 13 countries, with a weighted average age of 7.7–7.9 years.

• Significant year-over-year growth in revenue and EBITDA, with improved operating profit and reduced leverage, supporting future fleet expansion.

• Portfolio diversified with recent expansion, including the first Etihad A320 acquisition and strong Asia-Pacific market focus.

• Order book includes 11 ATR 72-600s on order and 24 purchase rights, supporting long-term growth.

• Fleet utilization was 100% during the period, with aircraft sales generating profits and new customer additions improving credit quality.

Financial highlights

• Total income rose to $55.4 million for the half-year, up 19.8% year-over-year; EBITDA increased by 45.1% to $55.6 million; operating profit up to $18.8 million.

• Profit after tax was $0.87–$0.9 million, reversing a prior loss; net debt reduced by $45.2–$45.3 million to $606.3 million.

• Net asset value per share increased to GBP 2.94; total cash balances at $125.6 million.

• Lease yield improved to 11.4% due to full fleet utilization.

• Maintenance reserve revenue contributed $9.3 million.

Outlook and guidance

• Strong demand for new and secondary market aircraft, especially in Asia-Pacific, with order book and purchase rights providing embedded growth through 2034.

• Focus on placing ATR aircraft from the orderbook, managing lease expiries, and growing the asset base in 2025.

• Plans to access debt or term loan markets for refinancing on improved terms.

• Board considering move to Main Market to increase visibility and capital access.