Aircastle Announces First Quarter 2025 Results

Highlights for the Three Months Ended May31, 2025

— Total revenues of $260 million and net income of $49 million

— 13% increase in rental revenue compared to first quarter 2024

— Adjusted EBITDA(1) of $232 million

— Acquired 12 aircraft for $465 million, including 5 B737-MAX9 aircraft on lease to United Airlines

— New technology aircraft comprised 46% of the fleet's net book value as of May 31, 2025

— Sold 14 aircraft with an average age of 19 years for net proceeds of $227 million and gains on sale of $30 million

— Fleet utilization over 99%

Liquidity

— Issued new $600 million unsecured term loan with 18 lenders

— Repaid $392 million secured term financing; 98% of total debt is unsecured as of May 31, 2025

— Adjusted net debt-to-equity of 2.2 times as of May 31, 2025

— Total liquidity as of July 1, 2025, of $2.6 billion includes $2.0 billion of undrawn facilities, $0.5 billion of projected adjusted operating cash flows and sales through July 1, 2026, and $0.1 billion of unrestricted cash

— 260 unencumbered aircraft and other flight equipment with a net book value of $8.0 billion

________________________________________(1) Refer to the selected financial information accompanying this press release for a reconciliation of GAAP to Non-GAAP numbers

MikeInglese, Aircastle's CEO, stated, “We're seeing continued growth across air traffic markets in 2025, especially in Europe, Latin America and Asia Pacific. Demand for extensions and sales remain strong. We sold 14 aircraft netting gains of $30 million in the first quarter. This quarter we also invested approximately $465 million in additional acquisitions, 71% of which was new technology aircraft. Overall, an outstanding effort from our global team of seasoned aviation professionals.”

Mr. Inglese concluded, “We completed a new $600 million unsecured financing this quarter, a demonstration of the expanded access to Asia's capital markets afforded by our shareholders, Marubeni Corporation and Mizuho Leasing. Mindful of current market volatility and the competitive acquisition landscape, we remain confident in our liquidity position and our ability to profitably grow our fleet of the most in-demand narrow-body aircraft”

Aviation Assets

As of May31, 2025, Aircastle owned 264 aircraft and other flight equipment having a net book value of $8.1 billion. We also manage 8 aircraft with a net book value of $241 million on behalf of our joint venture with Mizuho Leasing.

Owned Aircraft Asof Asof May31, 2025 May31, 2024Net Book Value of Flight Equipment (in millions) $ 8,149 $ 7,327Net Book Value of Unencumbered Flight Equipment (in millions) $ 8,029 $ 5,958Number of Aircraft 264 250Number of Unencumbered Aircraft 260 212Number of Lessees 77 76Number of Countries 47 44Weighted Average Age (Years)(1) 8.9 9.6Weighted Average Remaining Lease Term (Years)(1) 5.6 5.2Weighted Average Fleet Utilization during the three months ended May31, 2025 and 2023(2) 99.5% 99.1%Managed Aircraft on behalf of Joint VenturesNet Book Value of Flight Equipment $ 241 $ 268Number of Aircraft 8 9

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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 Thursday, July 10, 2025, 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 May31, 2025, Aircastle owned and managed on behalf of its joint ventures 272 aircraft leased to 78 airline customers located in 47 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 SubsidiariesConsolidated Balance Sheets(Dollars in thousands, except share data) May 31, February 28, 2025 2025 (Unaudited)ASSETSCash and cash equivalents $ 223,230 $ 279,052Accounts receivable 12,134 9,662Flight equipment held for lease, net 7,893,567 7,644,867Net investment in leases, net 255,754 257,249Unconsolidated equity method investment 46,206 45,813Other assets 202,022 273,521Total assets $ 8,632,913 $ 8,510,164LIABILITIES AND SHAREHOLDERS' EQUITYLIABILITIESBorrowings from secured financings, net $ 114,608 $ 502,609Borrowings from unsecured financings, net 4,919,677 4,452,781Accounts payable, accrued expenses and other liabilities 355,684 295,132Lease rentals received in advance 69,660 68,120Security deposits 68,636 82,477Maintenance payments 560,758 583,658Total liabilities 6,089,023 5,984,777Commitments and ContingenciesSHAREHOLDERS' EQUITYPreference shares, $0.01 par value, 50,000,000 shares authorized, 400 (aggregate – -liquidation preference of $400,000) shares issued and outstanding at May 31, 2025and February 28, 2025Common shares, $0.01 par value, 250,000,000 shares authorized, 17,840 shares – -issued and outstanding at May 31, 2025 and February 28, 2025Additional paid-in capital 2,378,774 2,378,774Retained earnings 165,116 146,613Total shareholders' equity 2,543,890 2,525,387Total liabilities and shareholders' equity $ 8,632,913 $ 8,510,164Aircastle Limited and SubsidiariesConsolidated Statements of Income and Comprehensive Income(Dollars in thousands, except per share amounts)(Unaudited) Three Months Ended May 31, 2025 2024Revenues:Lease rental revenue $ 183,043 $ 162,570Direct financing and sales-type lease revenue 5,142 5,457Amortization of lease premiums, discounts and incentives 2,766 (6,649)Maintenance revenue 38,132 42,149Total lease revenue 229,083 203,527Gain on sale or disposition of flight equipment 30,289 1,010Other revenue 472 636Total revenues 259,844 205,173Operating expenses:Depreciation 95,816 89,358Interest, net 68,841 64,813Selling, general and administrative 20,691 22,055Provision for credit losses 142 (145)Impairment of flight equipment 5,066 5,211Maintenance and other costs 4,244 4,443Total operating expenses 194,800 185,735Other expense:Loss on extinguishment of debt (2,973) -Other (456) (304)Total other expense (3,429) (304)Income from continuing operations before income taxes and earnings of unconsolidated equity method investment 61,615 19,134Income tax provision 12,721 3,572Earnings of unconsolidated equity method investment, net of tax 393 519Net income $ 49,287 $ 16,081Net income available to common shareholders $ 49,287 $ 16,081Total comprehensive income available to common shareholders $ 49,287 $ 16,081Aircastle Limited and SubsidiariesConsolidated Statements of Cash Flows(Dollars in thousands)(Unaudited) Three Months Ended May 31, 2025 2024Cash flows from operating activities:Net income $ 49,287 $ 16,081Adjustments to reconcile net income to net cash and cash equivalents provided by operatingactivities:Depreciation 95,816 89,358Amortization of deferred financing costs 4,470 4,343Amortization of lease premiums, discounts and incentives (2,766) 6,649Deferred income taxes 7,979 5,314Collections on net investment in leases 1,517 713Security deposits and maintenance payments included in earnings (27,149) (2,210)Gain on sale or disposition of flight equipment (30,289) (1,010)Loss on extinguishment of debt 2,973 -Impairment of flight equipment 5,066 5,211Provision for credit losses 142 (145)Other (394) (508)Changes in certain assets and liabilities:Accounts receivable (1,720) (1,273)Other assets 1,267 (2,927)Accounts payable, accrued expenses and other liabilities 19,999 17,967Lease rentals received in advance 1,674 9,441Net cash and cash equivalents provided by operating activities 127,872 147,004Cash flows from investing activities:Acquisition and improvement of flight equipment (479,614) (224,935)Proceeds from sale or disposition of flight equipment 226,752 25,379Aircraft purchase deposits and progress payments, net of returned deposits and aircraft sales 2,751 35,181depositsOther 936 (209)Net cash and cash equivalents used in investing activities (249,175) (164,584)Cash flows from financing activities:Proceeds from secured and unsecured debt financings 725,000 550,000Repayments of secured and unsecured debt financings (647,442) (520,118)Deferred financing costs (6,106) (48)Security deposits and maintenance payments received 39,932 34,960Security deposits and maintenance payments returned (24,403) (2,087)Dividends paid (21,500) (10,500)Net cash and cash equivalents provided by financing activities 65,481 52,207Net (decrease) increase in cash and cash equivalents (55,822) 34,627Cash and cash equivalents at beginning of period 279,052 129,977Cash and cash equivalents at end of period $ 223,230 $ 164,604Aircastle Limited and SubsidiariesReconciliation of GAAP to Non-GAAP MeasuresEBITDA and Adjusted EBITDA Reconciliation(Dollars in thousands)(Unaudited) Three Months Ended May 31, 2025 2024Net income $ 49,287 $ 16,081Depreciation 95,816 89,358Amortization of lease premiums, discounts and incentives (2,766) 6,649Interest, net 68,841 64,813Income tax provision 12,721 3,572EBITDA $ 223,899 $ 180,473Adjustments:Impairment of flight equipment 5,066 5,211Loss on extinguishment of debt 2,973 -Adjusted EBITDA $ 231,938 $ 185,684

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 Advisor LLC Jim Connelly, SVP ESG & Corporate Communications Tel: +1-203-504-1871 jconnelly@aircastle.com

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