Financial Data and Key Metrics Changes - The company reported record revenues of $193.6 million for Q4 2025, a 27% increase year over year, and full-year revenues of $730.2 million, up 28% from 2024 [3][4] - Earnings before tax for the year reached $160.6 million, with adjusted EBITDA of $459 million, reflecting a 16.6% increase from $393.7 million in the prior year [4][16] - Average lease portfolio utilization increased to 85% from 83% in 2024, with an average lease rental factor exceeding 1% per month [5] Business Line Data and Key Metrics Changes - Core lease rent revenues were $291.6 million, and interest revenues were $14.1 million, driven by an increased total portfolio size of $3 billion at year-end 2025 [16] - Maintenance reserve revenues for the year were $232 million, an increase of 8.4% from 2024, with long-term maintenance reserves associated with engines coming off long-term lease rising to $44.5 million [18] - Spare parts and equipment sales to third parties increased significantly to $95.5 million from $27.1 million in 2024, driven by a 44.4% increase in spare parts sales [19] Market Data and Key Metrics Changes - The aviation market remains engine-centric, with over 600 aircraft powered by GTF engines grounded due to technical issues, while the outlook for engine shop visits remains strong through the mid-2030s [6] - The company noted robust demand for maintenance checks in the European market during the winter season, with a focus on supporting leasing companies and airlines during the summer [14] Company Strategy and Development Direction - The establishment of Willis Aviation Capital aims to accelerate growth in assets under management and services businesses, with a focus on deploying capital into discretionary funds [7][10] - The company has formed partnerships with Liberty Mutual and Blackstone to support its fund business, which will enhance competitiveness in financing aircraft engines [8][9] - The decision to cease the sustainable aviation fuel project reflects a strategic focus on areas where the company has a stronger competitive advantage [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term demand environment for the business model, citing the need for engine leasing and repair services as critical to maintaining operational fleets [6][11] - The company anticipates continued growth in maintenance reserve revenues as the portfolio expands, despite the lumpiness of long-term maintenance revenue [50] - Management highlighted the importance of maintaining a strong cash flow while returning capital to shareholders through dividends [5][34] Other Important Information - The company reported a maintenance-adjusted market value of its portfolio exceeding book value by approximately $700 million, excluding potential future end-of-lease payments [24] - General and administrative expenses increased to $194.7 million, primarily due to personnel costs and share-based compensation [25][26] - The company recognized a $43 million gain from the sale of its subsidiary, Bridgend Asset Management Limited, to its joint venture [29] Q&A Session Summary Question: Plans for seeding the Blackstone portfolio - The company has a small seed portfolio intended for both Blackstone and Liberty Mutual, with most assets expected to come from market origination [37] Question: Competitive advantages in sourcing engines - The company maintains strong relationships with OEMs and has a successful track record in acquiring high-volume, low-price assets through various programs [41] Question: Leveraging the Blackstone investment - The company indicated that the $1 billion figure includes leverage on assets, and it plans to structure debt financing similarly to past practices [46] Question: Maintenance reserve liability and long-term maintenance revenue - Management acknowledged the lumpiness of long-term maintenance revenue and noted that the increase in maintenance reserve liability reflects future earnings potential [50] Question: Share repurchases and asset-light model - The company clarified its position as "asset-medium" rather than asset-light, emphasizing the continued importance of owning assets on the balance sheet [54] Question: Insurance claims related to Russia - The company confirmed ongoing insurance claims related to assets in Russia, expressing confidence in recovery outcomes [56]

Industry Trend - India's growing importance as a significant aviation market is highlighted [1] Procurement Strategy - Safran SA plans to increase component procurement from India fivefold by 2030 [1] - The procurement target from India is €500 million, equivalent to $579 million [1]