Avation (AVAP) H2 2025 earnings summary

Executive summary

• Operates a diversified fleet of 33 aircraft with 16 airline customers across 14 countries, focusing on narrow-body commercial aircraft (57% of fleet).

• Achieved significant credit rating upgrades: B1 (Moody’s), B (Fitch), B- (S&P), all with stable outlooks.

• Maintained strong liquidity and cash generation, with total cash balances of $130 million at year-end.

• Diversified customer base, including new leases with Etihad Airways and Clic Air, and reduced customer concentration risk.

• Opportunistically sold two ATR 72-600s and a Boeing 777-300ER, extended several leases, and signed new long-term leases.

Financial highlights

• FY2025 total income reached $112.5 million, up from $96 million year-over-year; EBITDA was $107.1 million, up from $89 million.

• Operating profit declined to $46.4 million from $83.2 million, impacted by non-cash revaluation losses.

• Loss after tax of $7.7 million, compared to a profit of $19.7 million in the prior year.

• Net indebtedness reduced from $651.5 million to $604.2 million; NAV per share increased to $3.66.

• Cash at June 30 was $130 million, rising to $148.5 million by late September after asset sales.

Outlook and guidance

• Plans to address $298 million bond maturity by refinancing or other means between Nov 2025 and Oct 2026.

• Delivery of 2–3 new ATR 72-600s expected in FY2026; ongoing lease transitions and selective fleet growth in narrow-body sector.

• Identifying opportunities to grow the narrowbody fleet in the secondary market.