[Second Quarter 2025 Financial Results](index=1&type=section&id=Air%20Lease%20Announces%20Second%20Quarter%202025%20Results) Air Lease reported robust Q2 2025 performance, marked by significant revenue growth and a substantial increase in net income driven by a Russian fleet recovery [Operating Results](index=1&type=section&id=Operating%20Results) Air Lease achieved strong Q2 2025 results with revenues up 9.7% to $731.7 million, and net income attributable to common stockholders surging 313.8% to $374.1 million, largely due to a $344.0 million recovery from its former Russian fleet write-off - The CEO highlighted a strong quarter driven by new aircraft deliveries, healthy gains on sales, increasing portfolio yield, and significant Russia insurance recoveries, noting robust demand for aircraft leasing and sales[1](index=1&type=chunk) Q2 2025 Operating Results (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $731.7 million | $667.3 million | 9.7% | | Recoveries of Russian fleet write-off | $344.0 million | $0 million | N/A | | Income before taxes | $486.6 million | $127.7 million | 281.0% | | Net income attributable to common stockholders | $374.1 million | $90.4 million | 313.8% | | Diluted earnings per share | **$3.33** | $0.81 | 311.1% | | Adjusted net income before income taxes | $157.4 million | $137.4 million | 14.6% | | Adjusted diluted EPS before income taxes | **$1.40** | $1.23 | 13.8% | [Key Financial Ratios](index=1&type=section&id=Key%20Financial%20Ratios) The company's pre-tax margin significantly improved to 66.5% in Q2 2025, primarily due to a one-time insurance recovery, while the adjusted pre-tax margin showed a modest increase to 21.5% Key Financial Ratios Comparison | Ratio | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Pre-tax margin | **66.5%** | 19.1% | | Adjusted pre-tax margin | **21.5%** | 20.6% | | Pre-tax return on common equity (TTM) | **17.0%** | 10.4% | | Adjusted pre-tax return on common equity (TTM) | 9.0% | 10.8% | [Highlights](index=2&type=section&id=Highlights) Key highlights include an 11% increase in rental revenue, a significant $344 million insurance settlement for Russian aircraft, and the expansion of the owned fleet to 495 aircraft [Financial Overview](index=2&type=section&id=Financial%20Overview) In Q2 2025, total rental of flight equipment revenue grew by 11% to $679 million, driven by fleet expansion and increased end-of-lease revenue, while net income surged to $374 million primarily due to a $344 million insurance settlement for aircraft in Russia - Total rental of flight equipment revenue increased by approximately **11% to $679 million**, largely due to fleet growth and a substantial rise in end-of-lease revenue from **$2 million in Q2 2024 to $20 million in Q2 2025**[5](index=5&type=chunk) - Net income attributable to common stockholders increased significantly from the prior year, primarily due to a **$344 million net benefit** from the settlement of insurance claims related to aircraft detained in Russia[7](index=7&type=chunk) - Gain on aircraft sales decreased by **8% to $53 million** due to lower sales volume (4 aircraft sold in Q2 2025 vs. 11 in Q2 2024), though this was partially offset by higher management fee revenue[6](index=6&type=chunk) [Operational Highlights](index=2&type=section&id=Operational%20Highlights) The company expanded its owned fleet to 495 aircraft with 12 new deliveries, achieved a 104% recovery of its Russian fleet write-off through insurance settlements, and maintains a strong sales pipeline and orderbook placement - Took delivery of **12 aircraft**, representing **$892 million in investments**, ending the quarter with **495 aircraft** in the owned fleet[9](index=9&type=chunk) - Recognized a **$344 million net benefit** from Russian fleet insurance settlements in Q2 and expects an additional **$60 million in Q3**, bringing total recovery agreements to **104% of the March 2022 write-off**[9](index=9&type=chunk) - The company has a **$1.4 billion aircraft sales pipeline** and has placed **100% of its orderbook delivering through 2026** and **87% through 2027** on long-term leases[9](index=9&type=chunk) - The board of directors approved a quarterly cash dividend of **$0.22 per share**, payable on October 8, 2025[9](index=9&type=chunk) [Flight Equipment Portfolio](index=3&type=section&id=Flight%20Equipment%20Portfolio) The flight equipment portfolio grew to a net book value of $29.1 billion, comprising 495 owned aircraft with a weighted average age of 4.8 years and a remaining lease term of 7.2 years, serving 109 airlines globally [Portfolio Metrics](index=3&type=section&id=Portfolio%20Metrics) As of June 30, 2025, the net book value of the fleet increased to $29.1 billion, with the owned fleet consisting of 495 aircraft, maintaining a weighted-average age of 4.8 years and a remaining lease term of 7.2 years Fleet Portfolio Metrics (as of June 30, 2025 vs. Dec 31, 2024) | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Net book value of flight equipment | **$29.1 billion** | $28.2 billion | | Weighted-average fleet age | **4.8 years** | 4.6 years | | Weighted-average remaining lease term | **7.2 years** | 7.2 years | | Owned fleet | **495** | 489 | | Managed fleet | 53 | 60 | | Aircraft on order | 241 | 269 | | Total committed rentals | $28.8 billion | $29.5 billion | [Regional Concentration and Fleet Composition](index=4&type=section&id=Regional%20Concentration%20and%20Fleet%20Composition) The company's fleet maintains geographical diversification, with Europe and Asia Pacific representing the largest regions by net book value, and the owned fleet primarily composed of narrowbody aircraft, notably Airbus A321-200neo and Boeing 737-8 MAX models Regional Concentration by Net Book Value (June 30, 2025) | Region | % of Net Book Value | | :--- | :--- | | Europe | **40.5%** | | Asia Pacific | **36.1%** | | Central America, South America, and Mexico | 9.5% | | The Middle East and Africa | 7.7% | | U.S. and Canada | 6.2% | - As of June 30, 2025, the owned fleet consisted of **495 aircraft**, with the most common types being the **Airbus A321-200neo (109 aircraft)** and the **Boeing 737-8 MAX (69 aircraft)**[14](index=14&type=chunk) [Debt Financing Activities](index=5&type=section&id=Debt%20Financing%20Activities) Air Lease's debt financing totaled $20.3 billion with $7.9 billion in liquidity, characterized by a predominantly unsecured and fixed-rate profile, and a composite cost of funds of 4.28% [Debt Portfolio Summary](index=5&type=section&id=Debt%20Portfolio%20Summary) At the end of Q2 2025, Air Lease reported total debt financing of $20.3 billion and total liquidity of $7.9 billion, with 97.4% of debt being unsecured and 76.7% fixed-rate, resulting in a composite cost of funds of 4.28% Debt Profile (as of June 30, 2025) | Metric | Value | | :--- | :--- | | Total debt financing, net | **$20.3 billion** | | Total liquidity | **$7.9 billion** | | Composite cost of funds | **4.28%** | | Percentage of total debt at a fixed-rate | **76.7%** | | Percentage of total debt unsecured | **97.4%** | [Corporate Information and Disclosures](index=6&type=section&id=Corporate%20Information%20and%20Disclosures) This section provides details on the upcoming conference call for Q2 2025 financial results and outlines the forward-looking statements and key risk factors affecting the company's operations and financial performance [Conference Call Information](index=6&type=section&id=Conference%20Call) Air Lease will host a conference call on August 4, 2025, at 4:30 PM Eastern Time to discuss its second quarter 2025 financial results, with details provided for participation via phone and webcast - A conference call to discuss Q2 2025 financial results is scheduled for **August 4, 2025, at 4:30 PM Eastern Time**[18](index=18&type=chunk) [Forward-Looking Statements and Risk Factors](index=7&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements regarding the airline industry, capital access, the Russia-Ukraine conflict's impact, and aircraft delivery delays, which are subject to various risks and uncertainties detailed in the company's SEC filings - The report contains forward-looking statements regarding industry state, capital access, Russia-Ukraine war impact, and aircraft delivery delays[23](index=23&type=chunk) - Key risk factors include the inability to obtain capital, rising borrowing costs, manufacturer failures, ability to recover losses from aircraft in Russia, and lessee financial condition[25](index=25&type=chunk) [Consolidated Financial Statements](index=8&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's consolidated balance sheets, statements of income, and statements of cash flows, offering a comprehensive view of its financial position, performance, and liquidity [Consolidated Balance Sheets](index=8&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) As of June 30, 2025, Air Lease reported total assets of $33.3 billion, an increase from $32.3 billion at year-end 2024, primarily driven by growth in flight equipment, with total liabilities at $25.1 billion and shareholders' equity rising to $8.2 billion Balance Sheet Summary (in billions) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Assets | **$33.30** | $32.28 | | Flight equipment subject to operating leases, net | **$29.13** | $28.17 | | Total Liabilities | **$25.07** | $24.75 | | Debt financing, net | **$20.32** | $20.21 | | Total Shareholders' Equity | **$8.22** | $7.53 | [Consolidated Statements of Income](index=9&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20INCOME) For the three months ended June 30, 2025, total revenues reached $731.7 million, with a significant $344.0 million recovery of the Russian fleet write-off contributing to an income before taxes of $486.6 million and net income attributable to common stockholders of $374.1 million Income Statement Summary - Three Months Ended June 30 | Account (in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Total rental of flight equipment revenue | $678.7 | $609.5 | | Total revenues and other income | **$731.7** | $667.3 | | Recoveries of Russian fleet write-off | **($344.0)** | $0 | | Income before taxes | **$486.6** | $127.7 | | Net income attributable to common stockholders | **$374.1** | $90.4 | [Non-GAAP Reconciliations](index=10&type=section&id=Non-GAAP%20Reconciliations) The company provides reconciliations for non-GAAP measures, such as adjusted net income before income taxes, which for Q2 2025, adjusted net income of $374.1 million for items like the $344.0 million Russian fleet recovery and income tax expense, resulting in an adjusted net income before income taxes of $157.4 million - Management uses non-GAAP measures like adjusted net income before income taxes to assess ongoing operational performance by removing the effects of certain non-cash, one-time, or non-recurring items[31](index=31&type=chunk)[32](index=32&type=chunk) Reconciliation to Adjusted Net Income Before Income Taxes (Q2 2025) | Item (in millions) | Amount | | :--- | :--- | | Net income attributable to common stockholders | $374.1 | | Recoveries of Russian fleet write-off | ($344.0) | | Income tax expense | $101.4 | | Other adjustments (amortization, stock comp.) | $25.9 | | **Adjusted net income before income taxes** | **$157.4** | [Consolidated Statements of Cash Flows](index=12&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) For the six months ended June 30, 2025, net cash provided by operating activities was $862.0 million, while net cash used in investing activities totaled $972.4 million, partially offset by $611.7 million from insurance claim settlements, resulting in a net decrease in cash of $17.1 million Cash Flow Summary - Six Months Ended June 30, 2025 | Cash Flow Activity (in millions) | Amount | | :--- | :--- | | Net cash provided by operating activities | **$862.0** | | Net cash used in investing activities | **($972.4)** | | Net cash provided by financing activities | **$93.3** | | **Net decrease in cash** | **($17.1)** |

Core Insights - Air Lease Corporation (AL) provided an update on its aircraft investments, sales, and financing activities for Q2 2025, highlighting a strong fleet growth and sales activity driving top-line growth [1][3]. Fleet and Aircraft Investments - As of June 30, 2025, Air Lease's fleet comprised 495 owned aircraft and 53 managed aircraft, with commitments to purchase 241 additional aircraft from Boeing and Airbus, scheduled for delivery through 2031 [1][6]. - In Q2 2025, AL delivered 12 new aircraft, including six Airbus A220s, one A321neo, two Boeing 737-8s, one Boeing 787-9, and two Boeing 787-10s, and sold four aircraft to third-party buyers [2][6]. - Total aircraft investments in Q2 2025 reached $890 million, primarily occurring in the latter half of the June quarter [2][6]. - AL gained $344 million from settlements with insurers related to claims on its former Russian fleet [2][6]. Financial Performance and Market Position - Air Lease's stock has performed well, gaining 32% over the past three months, outperforming the Zacks Transportation - Equipment and Leasing industry's increase of 21.6% [4]. - The company is expected to release its Q2 2025 earnings report on August 4, which is anticipated to reflect the positive trends in fleet growth and sales activity [3].

Company Overview - ALC is a premier aircraft lessor and one of the largest customers for new commercial jet aircraft[9] - The company has a globally diversified customer base[9] - ALC has strong funding profile and credit metrics with two investment grade credit ratings[9] Market Outlook - Global airline traffic has historically doubled every 15 years and is projected to grow 5% annually over the next 5 years[17] - Airline load factors are approximately 80% globally[18] - Deliveries for 2016 through 2020 are expected to represent 7% of the in-service fleet each year[23] Financial Performance - ALC's assets have grown consistently, reaching $12.4 billion in 2015[29] - Unencumbered assets have grown to $10.6 billion in 2015[31] - Revenue has grown consistently, reaching $1.223 billion in 2015[34] - Adjusted net income reached $507 million in 2015, with an adjusted net income margin of 41.7%[36, 67] Portfolio and Order Book - ALC has $8.9 billion in contracted minimum rentals from its existing fleet[56] - The company has $12.0 billion in committed rentals on its order book, totaling $20.9 billion in committed cash flows[67] - ALC has 389 new aircraft on order through 2023, totaling approximately $30.7 billion[59] Capital Structure - ALC has raised over $13 billion in total capital since inception[62] - The company's debt to equity ratio is 2.55:1[63, 67] - Contracted cash flows cover 115% of the company's debt[63, 67]

Financial Performance - Air Lease Corporation (ALC) reported total revenues of $1,419 million in 2016, a 16% increase compared to 2015[11] - The company's adjusted net income before income taxes was $623 million, up 23% from the previous year[11] - Adjusted diluted earnings per share before income taxes reached $5.67, reflecting a 22% growth[11] - ALC's adjusted margin before income taxes for the full year 2016 was 44.1%[69] Fleet and Portfolio - ALC's owned fleet consisted of 237 aircraft, with an additional 30 managed aircraft[11] - The weighted average fleet age was 3.8 years, with a weighted average remaining lease term of 6.9 years[12, 69] - The company had $9.4 billion in contracted minimum rentals from its existing fleet[57, 69] - ALC increased its minimum future contracted rentals to $23.8 billion, including future fleet[12, 69, 71] - The company sold 46 aircraft for proceeds of $1.2 billion[12] Capital Structure - ALC's total debt stood at $8,714 million, with shareholders' equity at $3,382 million[62] - The company's debt to equity ratio was 2.58x[62, 69] - Contracted cash flows covered 108% of the company's debt[62, 69] - Fixed rate debt accounted for 83.5% of the total debt[62, 69, 71] - Unencumbered assets grew to $12.3 billion[32, 71] Market Outlook - Global airline traffic is projected to grow 5% annually over the next 5 years[19] - Deliveries for 2016 through 2020 are expected to represent 7% of the in-service fleet each year[25]

Company Overview - Air Lease Corporation (ALC) is a premier aircraft lessor with a globally diversified customer base [10] - ALC has total assets of $156 billion [12] - ALC has $15 billion in total revenues [12] - ALC has $234 billion in committed minimum future fleet rentals [12] Portfolio and Fleet - ALC's owned fleet consists of 244 aircraft with a weighted average age of 38 years and a weighted average remaining lease term of 68 years [12] - ALC manages 50 aircraft [12] - ALC has 368 aircraft on order, with 97% of the order book placed through 2019 [12] - The fleet is geographically diverse, with Europe accounting for 32%, China for 21%, and Asia (excluding China) for 22% [55] Financial Performance - ALC's adjusted pre-tax ROE is 175% [12] - ALC has $32 billion in available liquidity [12] - The company's debt-to-equity ratio is 235x [12] - The adjusted margin before income taxes for fiscal year 2017 was 434% [73]

Company Overview - Air Lease Corporation (ALC) has $185 billion in total assets[12] - ALC has $257 billion in committed minimum future fleet rentals[12] - ALC's order book is 91% placed through 2020[12] - ALC has $43 billion in available liquidity[12] Financial Performance - ALC's adjusted pre-tax ROE is 155%[12] - The adjusted net income before income taxes was $690322 million in 2018[76] - The adjusted diluted EPS before income taxes was $620 in 2018[76] Fleet and Portfolio - ALC owns 275 aircraft with a weighted average age of 38 years[12,57] - ALC manages 61 aircraft[12,57] - The weighted average lease term remaining is 68 years[12,57] Capital Structure - ALC's debt to equity ratio is 240x[12,62] - Unsecured debt accounts for 69% of the total capitalization[62] - Fixed rate debt accounts for 864% of the total debt[62,71]

Company Overview - Air Lease Corporation (ALC) is a significant aircraft leasing platform with over $55 billion in assets and commitments [10] - The company has a strong order book of 430 aircraft [11, 12] with an estimated aggregate commitment of $276 billion [12] - ALC boasts $76 billion in liquidity, comprising $1 billion in unrestricted cash and $66 billion in available borrowing capacity [11, 12] - Approximately 72% of ALC's fleet NBV is with flag carriers or airlines with government ownership [11] Financial Performance and Market Position - ALC's revenue increased from $2 billion in 2020 to $23 billion in the trailing twelve months (TTM) ending June 30, 2022 [14] - The company's orderbook placement rate rose from 47% in 2020 to 58% in Q2 2022 (TTM) [14] - Operating cash flow increased from $11 billion in 2020 to $15 billion in Q2 2022 (TTM) [14] - Adjusted Pre-tax Return on Common Equity is 122% [11, 42] Industry Trends and Outlook - International passenger volumes are recovering, reaching -29% of 2019 levels [14, 23] - The industry experienced a 658% decline in passenger traffic during the COVID-19 pandemic [27] - ALC has $10 billion in orderbook placements since June 2021 [38]

Company Overview - Air Lease Corporation (ALC) operates as an aircraft leasing platform with approximately $55 billion in assets [9, 11, 133] - The company's aircraft utilization rate was 99.7% in Q4 2022 [10, 14] - ALC maintains investment-grade credit ratings from S&P (BBB), Fitch (BBB), and Kroll (A-) [10, 133] - The company has $6.9 billion in total available liquidity [10, 14, 108] - ALC has a diversified customer base, serving 117 airlines in 62 countries [14, 61, 133] Financial Performance - ALC's adjusted pre-tax return on common equity was 11.0% [10, 137] - The company's total assets amounted to $28.4 billion [10, 77, 133] - ALC's unsecured debt represents 99% of its debt portfolio [10, 96, 105] - The company's fixed-rate debt accounts for 91% of its total debt [10, 98, 105] - Adjusted net income before income taxes was $659.9 million in 2022 [135, 137] Portfolio and Order Book - ALC has commitments to purchase 398 aircraft from Boeing and Airbus for delivery through 2029, with an estimated aggregate commitment of $25.5 billion [10, 11] - The company has $31.4 billion in committed minimum future rentals [10, 61] - 90% of ALC's order book through 2024 is placed on long-term leases [10, 14, 70, 71]

Company Overview - Air Lease Corporation (ALC) operates as a significant aircraft leasing platform with over $50 billion in assets [9, 119] - The company's fleet has a young average age of 46 years, positioning it favorably within the industry [10] - ALC maintains a high aircraft utilization rate, reporting 999% in 2023 [10] Financial Performance & Structure - ALC possesses substantial liquidity, with $68 billion available as of December 31, 2023 [10] - The company's capital structure targets a debt-to-equity ratio of 25:1 and a high percentage of unsecured debt [91] - ALC's adjusted pre-tax return on common equity was 121% in 2023 [10, 121] Market Trends & Strategy - The company is benefiting from the growing middle class, which is expected to account for 68% of total worldwide spending by 2030 [16] - ALC's order book includes 334 aircraft for delivery through 2028, with an estimated commitment of $217 billion [10, 11] - The company has a diversified customer base, serving 119 airlines across 62 countries [49, 119]

Company Overview - Air Lease Corporation (ALC) operates as a significant aircraft leasing platform with over $50 billion in assets[9] - The company maintains a young fleet with an average age of 4.7 years[10] - ALC boasts a high aircraft utilization rate of 100% in 1Q 2024[10] - The company has $6.5 billion in liquidity, comprising $0.6 billion in unrestricted cash and $6.0 billion available under a revolving credit facility as of March 31, 2024[10, 11] Financial Performance - ALC has $30.6 billion in committed rentals, including $16.6 billion from the existing fleet and $14.0 billion from aircraft to be delivered from the remainder of 2024 through 2028[10, 11] - As of March 31, 2024, ALC's total assets amounted to $30.9 billion[10, 11] - The adjusted pre-tax return on common equity is 11.6%[10] - The company's debt-to-equity ratio is 2.69x, with secured debt accounting for 1.0% of total assets as of March 31, 2024[86] Fleet and Order Book - ALC's fleet includes 472 owned aircraft and 73 managed aircraft[49] - The net book value of flight equipment subject to operating lease is $26.5 billion[49] - The company has commitments to purchase 320 aircraft from Boeing and Airbus for delivery through 2029, with an estimated aggregate commitment of $20.9 billion[11] - ALC is 100% placed through 2025 on long-term leases[10, 60]