Avation PLC Reports 19% Revenue Growth in FY 2025 Amid Net Loss and Dividend Declaration

Avation FY2025: robust revenue growth, a headline loss, and a small dividend back on the menu

Avation PLC has posted a mixed set of audited results for the year to 30 June 2025. Revenue rose 19.2% to US$110.1 million and EBITDA grew 20.3% to US$107.1 million, supported by full fleet utilisation and firmer lease yields. Cash generation remained strong with operating cash flow up 12.2% to US$91.5 million.

Against that, Avation reported an operating profit of US$46.4 million (down from US$83.2 million) and a loss after tax of US$7.7 million, largely due to non-cash mark-to-market items. The Board declared a 1.0 US cent per share dividend.

Key metric	FY2025	FY2024
Revenue	US$110.1 million	US$92.4 million
Lease yield	11.3%	10.7%
EBITDA	US$107.1 million	US$89.0 million
Operating profit	US$46.4 million	US$83.2 million
Operating cash flow	US$91.5 million	US$81.6 million
Funds from operations (FFO)	US$62.2 million	US$37.4 million
(Loss)/profit after tax	(US$7.7 million)	US$19.7 million
Basic EPS	(11.22) cents	27.85 cents
Net indebtedness	US$604.2 million	US$651.5 million
Net debt to EBITDA	5.6x	7.3x
Net debt to total assets	54.8%	57.0%
Total cash and bank balances	US$130.0 million	US$117.9 million
NAV per share	US$3.66	US$3.62
Dividend declared	1.0 US cent per share	Not disclosed

Why revenue climbed while profit fell

The quality of growth matters. Lease rental revenue – the core rent from customers – increased 2.5% to US$89.9 million. The bulk of the headline revenue jump came from maintenance reserves income, which rose to US$22.1 million from US$5.4 million due to a timing change in expected heavy maintenance events. Maintenance reserves are cash paid by airlines that the lessor recognises as income if it expects not to reimburse during the current lease term. Helpful for this year’s revenue, but not a structural step-up.

The swing to a net loss was driven by non-cash items, notably a US$21.6 million unrealised loss on aircraft purchase rights, reversing a US$46.9 million gain last year. Management cites lower risk-free rates and a shorter time to expiry for the rights as the drivers. There were also foreign exchange losses of US$2.3 million and higher non-cash amortisation related to past debt modifications.

Lease yield and utilisation are supportive

Lease yield improved to 11.3% from 10.7%, and the fleet was fully utilised throughout the year. In plain English, Avation is squeezing a bit more rent per dollar of aircraft value while keeping its planes working.

Debt, cash and the 2026 refinancing

Deleveraging continues. Net indebtedness fell 7.3% to US$604.2 million, net debt to EBITDA improved to 5.6x, and total cash and bank balances were US$130.0 million at year end and US$148.5 million unaudited at 26 September 2025. Avation repurchased part of its unsecured notes, reducing the face value to US$310.0 million at 30 June 2025 and US$298.0 million as of the announcement date.