Aircastle Announces Third Quarter 2025 Results

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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