Core Insights - The company reported a 6% year-over-year increase in revenue to US$1.24 billion for 1H25, while net profit decreased by 26% year-over-year to US$342 million, primarily due to non-recurring write-backs related to two aircrafts in Russia in 1H24. Excluding this impact, core net profit grew by 20% year-over-year, aligning with expectations [1] Financial Performance - In 1H25, the company delivered 24 aircrafts, a 6-unit increase year-over-year and a 4-unit increase half-over-half, with 19 being operating leased aircrafts, marking a 12-unit increase year-over-year and half-over-half. This resulted in capital expenditures of US$1.9 billion, a 138% year-over-year increase [2] - The net book value of operating leased aircrafts rose by 1% compared to the beginning of 2025, reaching US$18.2 billion, attributed to accelerated aircraft disposals, which increased by 3 units year-over-year to 18 [2] - The lease rate factor increased by 0.5 percentage points year-over-year to 10.3%, contributing to a net operating lease yield increase of 0.5% year-over-year to 7.5% [2] - Other interest and fee income surged by 80% year-over-year, driven by a significant rise in pre-delivery payment financing income due to global aircraft delivery growth [2] Growth Outlook - The company signed its largest aircraft order in history during 1H25, with the orderbook increasing by 132% year-over-year to 351 aircrafts, implying total capital expenditures of approximately US$20 billion. This robust orderbook supports a solid medium-to-long-term growth outlook [3] - The company targets total assets of US$40 billion by 2030, indicating a compound annual growth rate (CAGR) of 8% from 2024 to 2035 [3] - As of 1H25, the company maintained a 100% aircraft utilization rate, with an average aircraft age of five years and a weighted average remaining lease term of 7.9 years, enhancing visibility in rental income [3] Financing and Valuation - The funding cost remained stable year-over-year at 4.6%, with total debt increasing by 2% year-over-year. The stability in financing costs is attributed to internal cash flow management [4] - A potential 10 basis points decline in financing costs could increase net profit by approximately US$2.5 million, benefiting from easing overseas monetary conditions [4] - The stock is currently trading at 1.0x 2025 estimated price-to-book (P/B) ratio and 0.9x 2026 estimated P/B ratio, with a target price of HK$81.40, suggesting a 13% upside [4]

Disclaimer This presentation contains information about BOC Aviation Limited ("BOC Aviation"), current as at the date hereof or as at such earlier date as may be specified herein. This document does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities of BOC Aviation or any of its subsidiaries or affiliates or any other person in any jurisdiction or an inducement to enter into investment activity and does not co ...

Financial Data and Key Metrics Changes - In Q2 2025, the company generated revenues of $732 million, a 9.7% increase compared to the prior period, driven by a 13.5% increase in rental revenue [20][8] - Diluted earnings per share were reported at $3.33, benefiting from new aircraft deliveries and significant insurance proceeds [8] - The net benefit from Russia insurance settlements was $344 million in Q2, with an additional $60 million expected in Q3, leading to a total recovery of 104% of the initial write-off [9][27] Business Line Data and Key Metrics Changes - The company purchased 12 new aircraft, adding approximately $890 million in flight equipment, and sold four aircraft for $126 million in proceeds [9][22] - The weighted average fleet age increased slightly to 4.8 years, while fleet utilization remained at 100% [9] - The sales pipeline is currently valued at $1.4 billion, with a projected total of $1.5 billion in aircraft sales for 2025 [10][23] Market Data and Key Metrics Changes - Commercial aircraft demand remains robust, with strong lease rates and high extension activity noted [12][19] - The company anticipates around $600 million in aircraft deliveries for Q3 2025, with a total expected delivery range of $3 billion to $3.5 billion for the year [10][11] - Global passenger traffic is expanding at approximately 5% year-to-date, according to IATA data [16] Company Strategy and Development Direction - The company is focused on maintaining a strong balance sheet while considering opportunities to return capital to shareholders [14][29] - The cancellation of the A350 freighter order frees up over $1 billion in future capital commitments, allowing for more disciplined aircraft purchases [13][29] - The company aims to continue maximizing available capital through aircraft sales while maintaining a disciplined approach to new aircraft orders [10][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding airline profitability due to declining fuel prices and a weaker U.S. dollar benefiting international carriers [15][18] - There is a positive outlook for the airline industry despite geopolitical uncertainties, with management noting strong conversations with customers [14][17] - The company expects portfolio yields to trend higher due to strong lease rates and the roll-off of lower-yielding leases [19][20] Other Important Information - The company will now report maintenance revenue as a separate line item for clarity, with maintenance revenue up $16 million in the quarter [20][21] - Interest expense rose by approximately $19 million year-over-year, driven by an increase in the composite cost of funds [24][25] - The company maintains a strong liquidity position with $7.9 billion in cash and $31 billion in unencumbered assets [29] Q&A Session Summary Question: Update on lease expirations and yield improvement - Management confirmed that the guidance for a 150 to 200 basis point improvement in yield remains valid, tracking as expected [35][36] Question: Capital allocation strategy - Management indicated that buybacks are attractive, but maintaining a strong balance sheet is a priority [39] Question: Demand from airline customers and tariff impacts - Management noted no significant change in passenger aircraft demand, but some caution in the cargo markets due to tariffs [80] Question: Production stability from OEMs - Management reported reasonable production stability from Boeing and Airbus, with no significant changes in delivery projections [72][73] Question: Expectations for end of lease revenue - Management expects similar levels of end of lease revenue in 2026 as in 2025, depending on market conditions [55] Question: Aircraft sales expectations for 2026 - Management targets $1.5 billion in aircraft sales for 2025 and anticipates maintaining that level in subsequent years [51][52]

Core Insights - Air Lease reported a significant increase in GAAP net income for Q2 2025, primarily due to a special insurance recovery related to aircraft losses in Russia [1][5] - The company's GAAP revenue reached $731.7 million, exceeding analyst expectations by $18.2 million, while adjusted earnings per share were $1.40, surpassing the $0.81 non-GAAP estimate [1][2] Financial Performance - Diluted earnings per share were $3.33, reflecting one-time gains, with a year-over-year increase of 311.1% [2] - Revenue increased by 9.7% from Q2 2024, rising from $667.3 million to $731.7 million [2] - Net income attributable to common stockholders surged to $374.1 million, a 313.8% increase compared to $90.4 million in Q2 2024 [2] Business Operations - Air Lease specializes in leasing modern, fuel-efficient aircraft, maintaining a fleet of 495 aircraft with an average age of 4.8 years and an average remaining lease term of 7.2 years as of June 30, 2025 [3] - The company recognized a $344 million net benefit from insurance settlements for its Russian fleet, which had been written off during the Russia-Ukraine conflict [5] - The owned fleet grew from 489 aircraft at the end of 2024 to 495 aircraft by mid-2025, with $892 million invested in 12 new deliveries [6] Market Dynamics - Strong global demand for leased aircraft continues, with 100% of planes scheduled for delivery through the end of 2026 already leased, and 87% of 2027's order book placed [6][9] - Rental revenue from airplane leases rose 11% year-over-year to $679 million, supported by fleet growth and higher lease rates for larger "widebody" planes [6] Cost Management - Operating costs increased by 9.2%, primarily due to rising depreciation charges and higher interest costs, with interest expenses reaching $222.3 million [8] - Despite increased expenses, adjusted pre-tax margins improved slightly to 21.5%, reflecting core profitability before the unusual insurance settlement [8] Future Outlook - Management anticipates sustained momentum in fleet leasing, driven by strong global travel demand and ongoing aircraft supply shortages [9] - An additional one-time insurance benefit of approximately $60 million is expected in Q3 2025 [9] - No explicit guidance was provided for full-year revenue or earnings, but management expressed no change in profitability expectations for the year [10]

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]