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Sep 30, 2023
ATSG Q3 2023 Earnings Report
ATSG's Q3 2023 performance was mixed, with revenue increasing slightly but adjusted EBITDA and EPS decreasing.
Key Takeaways
ATSG reported customer revenues of $523 million, a slight increase from the previous year. Adjusted EBITDA was $137 million, and adjusted EPS was $0.32. The company reaffirmed its 2023 capital expenditure guidance at $785 million.
Customer revenues increased to $523 million.
Adjusted EBITDA decreased to $137 million.
Adjusted diluted EPS decreased to $0.32.
Company reaffirmed 2023 Capex guidance of $785M.
Revenue by Segment
Forward Guidance
ATSG provided new 2023 second half guidance, with adjusted EBITDA revised due to several factors including the Mideast conflict affecting passenger requirements, lower leasing, aircraft sales and engine activity for CAM (767-200s), customer deployment delays and revenue deferrals for CAM (767-300s), and lower external maintenance and ground services revenues for Cargo Airlines & Other.
Positive Outlook
- Adjusted EBITDA for 2023 to be $560- $580 million
- Full year 2023 Adjusted EPS to be $1.50 - $1.70
- 2023 capital spending $785 million, including $240 million in sustaining capex and $545 million for growth
- 2024 capital spending lowered to $505 million, from $605 million, including $165 million in sustaining capex and $340 million for growth
- ATSG remains midsize freighter market leader, with superior customer service record and strong balance sheet
Challenges Ahead
- Omni: Mideast conflict affects passenger requirements, service delays and higher operating costs
- CAM (767-200s): lower leasing, aircraft sales and engine activity
Historical Earnings Impact
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Avg. Return Before/After Earnings
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