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.
The elephant in the room is the October 2026 maturity of the unsecured notes. Management has refreshed its Global Medium Term Note programme and secured new corporate credit ratings – Moody’s B1 (stable) and Fitch B (stable) – to support a refinancing. Progress so far is sensible, and the early September sale of a Boeing 777-300ER at a “material profit above book value” gives optionality to reduce debt and recycle capital.
One watch-out: the weighted average cost of total debt ticked up to 6.6% and the share of fixed or hedged debt fell to 84.2% from 96.4%. Seven aircraft were refinanced with long-term floating rate debt. Rising rates have moderated, but lower hedging increases sensitivity to interest costs.
Fleet moves, placements and orderbook visibility
At 30 June 2025, Avation owned 33 aircraft across 16 customers in 14 countries, with a weighted average age of 8.5 years and an average remaining lease term of 3.9 years. The fleet was fully utilised. Subsequent to year end, the 777-300ER was sold.
- Acquired an Airbus A320-200 on lease to Etihad Airways.
- Extended an A320-200 lease with easyJet to March 2029.
- Transitioned an ATR 72-600 to a six-year lease with Clic Air, and signed a six-year lease with PNG Air for an aircraft due in Q4 2025.
- Sold two new ATR 72-600 aircraft on delivery for a US$3.5 million gain.
- Placed the first two of 10 ATR 72-600s on order with new customers in South Korea and Cambodia, for delivery in November 2025 and February 2026.
Avation has 10 ATR 72-600s on order and a further 24 purchase rights, giving a clear path to disciplined growth. As at the announcement date, the company had six unencumbered aircraft, which is helpful in managing liquidity and refinancing.
Dividend, NAV and tax incentive
The Board declared an interim dividend of 1.0 US cent per share. Key dates: ex-dividend 16 October 2025, record date 17 October 2025, payment date 30 October 2025.
Net asset value per share nudged up to US$3.66 from US$3.62. On the company’s reported exchange rate basis, that equates to £2.67 per share (
