Aircastle — Q2 2026 Earnings Summary

Financial Performance

• Total revenues for the three months ended August 31, 2026, were $283 million, compared to $228 million in the prior year period.
• Net income for the quarter was $69 million, up from $57 million in the same period last year.
• Adjusted EBITDA for the quarter was $247 million, down from $262 million in the prior year period.
• Net income available to common shareholders was $64 million for the quarter, compared to $47 million in the prior year period.
• For the six months ended August 31, 2026, total revenues were $518 million, compared to $487 million in the prior year period.
• Net income for the six-month period was $103 million, compared to $107 million in the prior year period.
• Adjusted EBITDA for the six-month period was $456 million, down from $494 million in the prior year period.
• Lease rental revenue for the quarter was $187 million, compared to $190 million in the prior year period.
• Maintenance revenue for the quarter was $43 million, significantly higher than $10 million in the prior year period.
• Gain on sale or disposition of flight equipment for the quarter was $38 million, compared to $24 million in the prior year period.
• Depreciation expense for the quarter was $92 million, compared to $97 million in the prior year period.
• Interest expense, net, for the quarter was $75 million, compared to $71 million in the prior year period.
• Net cash provided by operating activities for the six months ended August 31, 2026, was $238 million, compared to $219 million in the prior year period.
• Net cash used in investing activities for the six months ended August 31, 2026, was $1 million, compared to $630 million used in the prior year period.
• Net cash used in financing activities for the six months ended August 31, 2026, was $246 million, compared to $279 million provided in the prior year period.
• Total assets as of August 31, 2026, were $8.83 billion, compared to $9.0 billion as of February 28, 2026.
• Total liabilities as of August 31, 2026, were $6.55 billion, compared to $6.32 billion as of February 28, 2026.
• Total shareholders' equity as of August 31, 2026, was $2.28 billion, compared to $2.67 billion as of February 28, 2026.
• Cash and cash equivalents were $173 million as of August 31, 2026, compared to $180 million as of February 28, 2026.
• Borrowings from unsecured financings were $5.40 billion as of August 31, 2026, compared to $5.14 billion as of February 28, 2026.
• Flight equipment held for lease, net, was $8.06 billion as of August 31, 2026, compared to $8.27 billion as of February 28, 2026.

Guidance and Future Outlook

• Management expressed confidence in the ability to service customers and source attractive investments in the second half of the fiscal year.
• CEO Mike Inglese noted that strong travel demand and constrained aircraft supply continue to support lease rates and asset values.
• The company stated it has ample liquidity as it moves into the second half of the fiscal year.

Business Segments and Product Lines

• New technology aircraft comprised 54% of the fleet's net book value as of August 31, 2026.
• The company acquired 5 aircraft for $269 million in the quarter, including 3 Airbus A321neo and 1 Boeing 737MAX8.
• The company sold 11 aircraft and other flight equipment for proceeds of $243 million in the quarter.
• Year-to-date aircraft acquisitions totaled $386 million.
• As of August 31, 2026, Aircastle owned 263 aircraft and other flight equipment with a net book value of $8.3 billion and managed an additional 5 aircraft.
• The fleet had a weighted average age of 9.0 years as of August 31, 2026, compared to 8.6 years in the prior year.
• The weighted average remaining lease term was 5.3 years as of August 31, 2026, compared to 5.7 years in the prior year.
• Fleet utilization during the second quarter was 97.4%, down from 99.7% in the prior year period.
• The number of lessees was 67 as of August 31, 2026, compared to 75 in the prior year.
• The number of countries served was 42 as of August 31, 2026, compared to 46 in the prior year.
• Utilization was impacted by aircraft previously leased to a customer that ceased operations, as well as aircraft redeliveries and timing of transitions or sales.

Market and Competitive Landscape

• Strong travel demand and constrained aircraft supply are cited as key market drivers supporting lease rates and asset values.
• The company operates in 42 countries with 67 airline customers as of August 31, 2026.

Risks and Challenges

• Fleet utilization was negatively impacted by an aircraft previously leased to a customer that has ceased operations, which is expected to remain off lease for an extended period.
• Forward-looking statements are subject to risks and uncertainties, including factors that could cause actual results to differ materially from expectations, as detailed in the company's SEC filings.

Management Commentary and Tone

• CEO Mike Inglese stated, "Strong travel demand and constrained aircraft supply continue to support lease rates and asset values."
• Management highlighted a "disciplined, profitability-focused approach to capital deployment" driven by significant gains on sales.
• The tone was confident regarding the company's liquidity position and ability to source investments.

Other Key Points

• The company redeemed all 400 outstanding Series A Preference Shares during the period.
• 98% of total debt was unsecured as of August 31, 2026.
• Adjusted net debt-to-equity ratio was 2.4 times as of August 31, 2026.
• Total liquidity was $2.8 billion as of October 1, 2026, including $2.0 billion of undrawn facilities, $0.7 billion of projected adjusted operating cash flows and sales through October 1, 2027, and $0.1 billion of unrestricted cash.
• The company held 259 unencumbered aircraft and other flight equipment with a net book value of $8.2 billion as of August 31, 2026.
• Net book value of unencumbered flight equipment was $8.19 billion as of August 31, 2026, compared to $8.35 billion as of August 31, 2025.
• Net book value of owned flight equipment decreased to $8.3 billion as of August 31, 2026, from $8.47 billion as of August 31, 2025.
• The number of owned aircraft decreased to 263 as of August 31, 2026, from 270 as of August 31, 2025.
• The number of managed aircraft was 5 as of August 31, 2026, compared to 8 in the prior year; this includes 4 aircraft owned by a joint venture with Mizuho Leasing.
• Dividends paid for the six months ended August 31, 2026, were $102 million, compared to $52 million in the prior year period.
• Proceeds from secured and unsecured debt financings for the six months ended August 31, 2026, were $1.16 billion.
• Repayments of secured and unsecured debt financings for the six months ended August 31, 2026, were $907 million.
• Acquisition and improvement of flight equipment for the six months ended August 31, 2026, was $376 million.
• Proceeds from sale or disposition of flight equipment for the six months ended August 31, 2026, were $357 million.