Highlights for the Three Months Ended November
30, 2025
— Total revenues of $236 million and net income of $31 million
— 22% increase in lease rental revenue compared to third quarter 2024
— Adjusted EBITDA(1) of $221 million
— Acquired 9 aircraft for $355 million; fiscal year-to-date aircraft acquisitions of $1.3 billion with a weighted average age of 4.1 years
— Year-to-date sales proceeds of $369 million
— New technology aircraft comprised 52% of our fleet’s net book value as of November 30, 2025
— Entered into additional insurance settlements totaling $7 million
Liquidity
— Moody’s upgrade to Baa2
— 98% of total debt is unsecured as of November 30, 2025
— Adjusted net debt-to-equity of 2.2 times as of November 30, 2025
— Total liquidity of $2.6 billion as of October 1, 2025 which includes $1.8 billion of undrawn facilities, $0.7 billion of projected adjusted operating cash flows and sales through January 1, 2027, and $0.1 billion of unrestricted cash
— 269 unencumbered aircraft and other flight equipment with a net book value of $8.5 billion
(1) Refer to the selected financial information accompanying this press release for a reconciliation of GAAP to Non-GAAP numbers.
Mike Inglese, Aircastle’s CEO, stated, “Aviation continues its long-term trajectory of growth and aircraft demand is high. While travel numbers continue to increase from 2024, airlines are managing costs amid challenging supply chains by leveraging aircraft leasing solutions. We’re pleased to share that we completed our third fiscal quarter with net income of $31 million. Lease rental revenue increased 22% versus the third quarter of 2024, reflecting our global team’s successful and profitable fleet growth in a very competitive market.”
Mr. Inglese concluded, “For over twenty years, Aircastle has built a reputation as a valued trading partner due to our ability to execute quickly and efficiently. This is primarily due to our liquidity advantages, now further bolstered by recent ratings upgrades. With a proven track record and the shareholder support we receive from Marubeni Corporation and Mizuho Leasing, we look forward to closing out another successful fiscal year.”
Aviation Assets
As of November 30, 2025, Aircastle owned 273 aircraft and other flight equipment having a net book value of $8.6 billion. We also manage 6 aircraft with a net book value of $205 million on behalf of our joint venture with Mizuho Leasing.
Owned Aircraft As As
of of
November November
30,
30,
2025 2024
---
Net Book Value of Flight Equipment (in millions) $8,583 $7,117
Net Book Value of Unencumbered Flight Equipment (in millions) $8,465 $6,064
Number of Aircraft 273 244
Number of Unencumbered Aircraft 269 213
Number of Lessees 73 75
Number of Countries 44 47
Weighted Average Age (years)(1) 8.6 9.7
Weighted Average Remaining Lease Term (years)(1) 5.5 5.2
Weighted Average Fleet Utilization during the three months ended November 30, 2025 and 2024(2) 99.2 % 99.2 %
Managed Aircraft on behalf of Joint Ventures
---
Net Book Value of Flight Equipment $205 $262
Number of Aircraft 6 9
_______________
1.
Weighted by Net Book Value.
2. Aircraft on-lease days as a percentage of total days in period weighted
by Net Book Value.
Conference Call
Following this press release, management will host a conference call on Tuesday, January 13, 2026, at 9:00 A.M. Eastern Time. All interested parties are welcome to participate in the live call. The conference call can be accessed by dialing 1 (800) 836-8184 (from within the U.S. and Canada) or +1 (646) 357-8785 (outside the U.S. and Canada) ten minutes prior to the scheduled start. Please reference our company name “Aircastle” when prompted by the operator.
A simultaneous webcast of the conference call will be available to the public on a listen-only basis at www.aircastle.com. Please allow extra time prior to the call to visit the site and download the necessary software required to listen to the internet broadcast.
For those who are not available to listen to the live call, a replay will be available on Aircastle’s website shortly after the live call.
About Aircastle Limited
Aircastle Limited acquires, leases and sells commercial jet aircraft to airlines throughout the world. As of November 30, 2025, Aircastle owned and managed on behalf of its joint ventures 279 aircraft leased to 73 airline customers located in 44 countries.
Safe Harbor
All statements in this press release, other than characterizations of historical fact, are forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements include, but are not necessarily limited to, statements relating to our proposed public offering of notes and our ability to acquire, sell, lease or finance aircraft, raise capital, pay dividends and increase revenues, earnings, EBITDA and Adjusted EBITDA and the global aviation industry and aircraft leasing sector. Words such as “anticipates,” “expects,” “enables,” “intends,” “plans,” “positions,” “projects,” “believes,” “may,” “will,” “would,” “could,” “should,” “seeks,” “estimates” and variations on these words and similar expressions are intended to identify such forward-looking statements. These statements are based on our historical performance and that of our subsidiaries and on our current plans, estimates and expectations and are subject to a number of factors that could lead to actual results being materially different from those described in the forward-looking statements; Aircastle can give no assurance that its expectations will be attained. Accordingly, you should not place undue reliance on any such forward-looking statements which are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated as of the date of this press release. These risks or uncertainties include, but are not limited to, those described from time to time in Aircastle’s filings with the SEC and previously disclosed under “Risk Factors” in Item 1A of Aircastle’s most recent Form 10-K and any subsequent filings with the SEC. In addition, new risks and uncertainties emerge from time to time, and it is not possible for Aircastle to predict or assess the impact of every factor that may cause its actual results to differ from those contained in any forward-looking statements. Such forward-looking statements speak only as of the date of this press release. Aircastle expressly disclaims any obligation to revise or update publicly any forward-looking statement to reflect future events or circumstances.
Aircastle Limited and Subsidiaries
Consolidated Balance Sheets
(Dollars in thousands, except share data)
November 30, February 28,
2025 2025
(Unaudited)
ASSETS
Cash and cash equivalents $138,649 $279,052
Accounts receivable 9,013 9,662
Flight equipment held for lease, net 8,344,273 7,644,867
Net investment in leases, net 238,746 257,249
Unconsolidated equity method investment 47,996 45,813
Other assets 247,954 273,521
Total assets $9,026,631 $8,510,164
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Borrowings from secured financings, net $113,112 $502,609
Borrowings from unsecured financings, net 5,212,982 4,452,781
Accounts payable, accrued expenses and other liabilities 362,756 295,132
Lease rentals received in advance 58,231 68,120
Security deposits 67,437 82,477
Maintenance payments 590,798 583,658
Total liabilities 6,405,316 5,984,777
Commitments and Contingencies
SHAREHOLDERS' EQUITY
Preference shares, $0.01 par value, 50,000,000 shares authorized, 400 (aggregate -
liquidation preference of $400,000) shares issued and outstanding at November 30,
2025 and February 28, 2025
Common shares, $0.01 par value, 250,000,000 shares authorized, 17,840 shares -
issued and outstanding at November 30, 2025 and February 28, 2025
Additional paid-in capital 2,378,774 2,378,774
Retained earnings 242,541 146,613
Total shareholders' equity 2,621,315 2,525,387
Total liabilities and shareholders' equity $9,026,631 $8,510,164
Aircastle Limited and Subsidiaries
Consolidated Statements of Income and Comprehensive Income
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
November 30,
November 30,
2025 2024 2025 2024
Revenues:
Lease rental revenue $192,563 $158,440 $565,722 $483,389
Direct financing and sales-type lease revenue 5,158 5,294 15,491 16,177
Amortization of lease premiums, discounts and incentives (1,051) (5,288) 202 (18,005)
Maintenance revenue 33,908 14,517 81,748 76,044
Total lease revenue 230,578 172,963 663,163 557,605
Gain on sale or disposition of flight equipment 5,443 20,483 59,621 56,909
Other revenue 401 130 992 903
Total revenues 236,422 193,576 723,776 615,417
Operating expenses:
Depreciation 96,055 87,604 288,633 264,637
Interest, net 71,802 58,752 211,172 185,989
Selling, general and administrative 21,034 18,426 65,972 60,571
Provision for credit losses (66) (40) 281
Impairment of flight equipment 15,710 8,419 51,929 19,391
Maintenance and other costs 4,513 4,872 12,734 13,411
Total operating expenses 209,048 178,073 630,400 544,280
Other (expense) income:
Gain (loss) on extinguishment of debt - (2,973) 285
Other 7,569 6,135 68,154 6,557
Total other income 7,569 6,135 65,181 6,842
Income from continuing operations before income taxes and 34,943 21,638 158,557 77,979
earnings of unconsolidated equity method investment
Income tax provision 5,579 4,281 23,528 16,881
Earnings of unconsolidated equity method investment, net of tax 1,328 738 2,183 1,737
Net income $30,692 $18,095 $137,212 $62,835
Preference share dividends - (10,500) (10,500)
Net income available to common shareholders $30,692 $18,095 $126,712 $52,335
Total comprehensive income available to common shareholders $30,692 $18,095 $126,712 $52,335
Aircastle Limited and Subsidiaries
Consolidated Statements of Cash Flows
(Dollars in thousands)
(Unaudited)
Nine Months Ended November 30,
2025 2024
Cash flows from operating activities
:
---
Net income $137,212 $62,835
Adjustments to reconcile net income to net cash and cash equivalents provided by operating
activities:
Depreciation 288,633 264,637
Amortization of deferred financing costs 13,570 12,722
Amortization of lease premiums, discounts and incentives (202) 18,005
Deferred income taxes 18,926 10,480
Collections on net investment in leases 1,496 5,285
Security deposits and maintenance payments included in earnings (103,868) (9,543)
Gain on sale or disposition of flight equipment (59,621) (56,909)
(Gain) loss on extinguishment of debt 2,973 (285)
Impairment of flight equipment 51,929 19,391
Provision for credit losses (40) 281
Other (2,273) (1,746)
Changes in certain assets and liabilities:
Accounts receivable (763) (4,132)
Other assets 850 (3,661)
Accounts payable, accrued expenses and other liabilities 28,872 35,993
Lease rentals received in advance (10,451) 13,709
Net cash and cash equivalents provided by operating activities 367,243 367,062
Cash flows from investing activities
:
---
Acquisition and improvement of flight equipment (1,328,102) (583,541)
Proceeds from sale or disposition of flight equipment 368,813 474,053
Proceeds from settlement of insurance claim 62,324
Proceeds from sale of investment in debt securities 10,128
Aircraft purchase deposits and progress payments, net of returned deposits and aircraft sales 3,110 (2,269)
deposits
Other (990) (4,796)
Net cash and cash equivalents used in investing activities (884,717) (116,553)
Cash flows from financing activities
:
---
Proceeds from issuance of common shares - 300,000
Proceeds from secured and unsecured debt financings 1,715,489 1,076,193
Repayments of secured and unsecured debt financings (1,349,093) (1,304,352)
Debt extinguishment costs - 285
Deferred financing costs (12,234) (5,361)
Security deposits and maintenance payments received 123,425 109,668
Security deposits and maintenance payments returned (37,732) (12,166)
Dividends paid (62,784) (21,000)
Net cash and cash equivalents provided by financing activities 377,071 143,267
Net (decrease) increase in cash and cash equivalents (140,403) 393,776
Cash and cash equivalents at beginning of period 279,052 129,977
Cash and cash equivalents at end of period $138,649 $523,753
Aircastle Limited and Subsidiaries
Reconciliation of GAAP to Non-GAAP Measures
EBITDA and Adjusted EBITDA Reconciliation
(Dollars in thousands)
(Unaudited)
Three Months Ended Nine Months Ended
November 30, November 30,
2025 2024 2025 2024
Net income $30,692 $18,095 $137,212 $62,835
Depreciation 96,055 87,604 288,633 264,637
Amortization of lease premiums, discounts and incentives 1,051 5,288 (202) 18,005
Interest, net 71,802 58,752 211,172 185,989
Income tax provision 5,579 4,281 23,528 16,881
EBITDA $205,179 $174,020 $660,343 $548,347
Adjustments:
Impairment of flight equipment 15,710 8,419 51,929 19,391
(Gain) loss on extinguishment of debt - 2,973 (285)
Adjusted EBITDA $220,889 $182,439 $715,245 $567,453
We define EBITDA as income (loss) from continuing operations before income taxes, interest expense, and depreciation and amortization. We use EBITDA to assess our consolidated financial and operating performance, and we believe this non-U.S. GAAP measure is helpful in identifying trends in our performance.
This measure provides an assessment of controllable expenses and affords management the ability to make decisions which are expected to facilitate meeting current financial goals, as well as achieving optimal financial performance. It provides an indicator for management to determine if adjustments to current spending decisions are needed.
EBITDA provides us with a measure of operating performance because it assists us in comparing our operating performance on a consistent basis as it removes the impact of our capital structure (primarily interest charges on our outstanding debt) and asset base (primarily depreciation and amortization) from our operating results. Accordingly, this metric measures our financial performance based on operational factors that management can impact in the short-term, namely the cost structure, or expenses, of the organization. EBITDA is one of the metrics used by senior management and the Board of Directors to review the consolidated financial performance of our business.
We define Adjusted EBITDA as EBITDA (as defined above) further adjusted to give effect to adjustments required in calculating covenant ratios and compliance as that term is defined in the indenture governing our senior unsecured notes. Adjusted EBITDA is a material component of these covenants.
Contact:Aircastle LimitedJim Connelly, SVP ESG & Corporate CommunicationsTel: +1-203-504-1871jconnelly@aircastle.com
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SOURCE Aircastle Limited
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