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ALC Q1 2025 Earnings Report
ALC reported strong first quarter 2025 results, driven by fleet expansion, sales gains, and significant insurance settlements.
Key Takeaways
Air Lease Corporation announced robust financial results for the first quarter ended March 31, 2025, with significant increases in revenue and net income. The company benefited from fleet expansion, strong sales, and substantial insurance settlements related to its former Russian fleet.
Total revenues increased by 11.3% to $738.3 million.
Net income attributable to common stockholders surged by 274.5% to $364.8 million.
Diluted earnings per share increased by 274.7% to $3.26.
The company recognized a net benefit of $331.9 million from recoveries of Russian fleet write-off.
ALC
ALC
ALC Revenue by Segment
ALC Revenue by Geographic Location
Revenue by Segment
Flight Equipment Rental Revenue
CapyFin.comSales & Other Income Revenue
CapyFin.comRevenue by Geographic Location
Europe Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.comLatAm & Mexico Revenue
CapyFin.comMiddle East & Africa Revenue
CapyFin.comU.S. & Canada Revenue
CapyFin.com Forward Guidance
Air Lease Corporation anticipates continued strong global aircraft demand and benefits from its strategic capital allocation, while acknowledging potential risks from market conditions and operational challenges.
Positive Outlook
- Robust global aircraft demand in both leasing and trading is expected to persist.
- Significant aircraft supply constraints continue to benefit the company.
- Achieved target debt to equity ratio, allowing consideration of all capital allocation opportunities.
- No aircraft are delivering to countries with announced reciprocal tariffs applicable to aircraft.
- Increased capacity of syndicated unsecured revolving credit facility to $8.2 billion, extending final maturity to May 5, 2029.
Challenges Ahead
- Inability to obtain additional capital on favorable terms to acquire aircraft or service debt obligations.
- Increases in cost of borrowing, decreases in credit ratings, or changes in interest rates.
- Failure of aircraft or engine manufacturers to meet contractual obligations due to labor strikes, supply chain constraints, or manufacturing flaws.
- Obsolescence of, or changes in overall demand for, aircraft.
- Impaired financial condition and liquidity of lessees, including due to defaults, reorganizations, or bankruptcies.