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- **Record financial performance**: Q2 revenue $732M, EPS $3.33, with $344M Russia insurance proceeds.
- **Sales pipeline strength**: $1.4B pipeline at 16% gain, 100% fleet utilization.
- **Yield improvement**: 150-200bps portfolio yield growth expected over next 2 years.
- **Capital flexibility**: $7.9B liquidity, debt-to-equity near target, buybacks on radar.
- **Production stability**: Boeing on track, Airbus delays in single-aisle deliveries.

**【CEO Summary Section】**
- Q2 2025 revenue: $732 million, diluted EPS: $3.33, driven by new aircraft deliveries, gain on sales, and Russia fleet insurance proceeds.
- Russia insurance recoveries: $344 million in Q2, with an additional $60 million expected in Q3, totaling 104% of initial write-off recovery.
- Aircraft sales: 4 aircraft sold for $126 million (16% gain), with a $1.4 billion sales pipeline at attractive margins.
- Fleet metrics: 100% utilization, weighted average lease term 7.2 years, order book 100% placed through 2026.
- Capital allocation: Cancelled $1 billion in A350 freighter orders, targeting buybacks while maintaining debt-to-equity ratio near 2.5x.

**【CFO Financial Commentary】**
- Total revenue up 9.7% YoY to $732 million, driven by rental revenue (+13.5%) and end-of-lease income.
- Expenses: Interest up $19 million YoY due to higher cost of funds (4.28%), SG&A stable at 6.8% of revenue.
- Liquidity: $7.9 billion cash, $31 billion unencumbered assets, $29 billion contracted rentals.
- Portfolio yield: Expected 150-200bps improvement over next 2 years as COVID-era leases roll off.

**【Q&A Highlights】**
- Lease extensions: 16% gain on sales, 150-200bps yield improvement guidance remains intact.
- Capital deployment: Buybacks under consideration, but prioritizing balance sheet strength.
- Production stability: Boeing meeting delivery targets, Airbus single-aisle production lagging.
- Tariffs impact: No effect on passenger aircraft demand, cargo markets cautious.
- 2025 outlook: $1.5 billion in aircraft sales, Q3 deliveries ~$600 million, Q4 update pending.


Air Lease Corporation (AL) Q2 2025 Earnings Call Transcript

- **Record Q1 Performance**: $738M revenue, $3.26 EPS, $329M insurance recovery.
- **Strong Demand Across Regions**: 100% fleet utilization, 50%+ lease rate increases post-COVID.
- **Financial Flexibility**: Debt-to-equity at target 2.5x, $7.4B liquidity for M&A/buybacks.
- **Supply Constraints**: Airbus/Boeing delays push 2027-28 deliveries by 1 year, tightening supply-demand.

**【CEO Opening Remarks】**
- Q1 2025 revenue: $738M, EPS: $3.26, driven by fleet expansion and $329M insurance proceeds from Russia fleet claims.
- Fleet additions: 14 aircraft ($800M) sold 16 aircraft ($521M), with utilization at 100%.
- Global demand strong: Asia, Europe, Middle East airlines report robust bookings, lease rates rising.
- Tariff impact: 87% of business outside North America; no aircraft deliveries to tariff-imposed regions.
- Supply constraints: Airbus/Boeing delays push 2027-28 deliveries by 1 year, exacerbating fleet replacement shortfall.

**【CFO Financial Breakdown】**
- Rental revenue +5% YoY to $645M, lease yields stable vs. Q1 2024, rising vs. Q4 2024.
- Sales proceeds $521M (16 aircraft), 13% gain margin, pipeline at $741M with 8%-10% target range.
- Interest expense +$28M YoY due to higher debt levels and 23bp rate increase to 4.26%.
- SG&A 6.8% of revenue, down vs. prior year; one-time $17M Steve Hazy retirement costs.
- Debt-to-equity ratio at target 2.5x after $329M insurance recovery; $227M additional recovery received post-quarter.
- Revolving credit facility upsized to $8.2B, 52 bank partners.

**【Q&A Highlights】**
- **Capital Allocation**: Considering buybacks, M&A, dividends; flexibility from $7.4B liquidity and $30B contracted rentals.
- **Tariff Impact**: No airlines asking for tariff relief; Lufthansa, Ryanair, Asian carriers report strong demand despite U.S. tariffs.
- **Lease Extensions**: Recent 50%+ rate increases on COVID-era leases; Q1 2025 extensions supporting 3-4yr ROE expansion.
- **Order Book Delays**: 2027-28 A320/A321neo delays by 1 year; 2025 deliveries expected $3B-$3.5B, $800M Q2.
- **China Exposure**: De minimis; exploring opportunities with Boeing's U.S.-built aircraft for Chinese carriers.

Air Lease (AL)-5 May 25-2025 Q1 Earnings call transcript

- **Record Growth**: Q4 2024 revenue $713M, full-year records set for revenue and fleet value.
- **2025 Outlook**: $3B-$3.5B aircraft deliveries, 80% Boeing; self-funding with $2B debt needs.
- **Lease Rate Surge**: Q4 extensions saw 23 single-aisle aircraft with higher rates than initial terms; 6 wide-body extensions maintained prior rates.
- **ROE Path**: Mid-teens achievable in 2-3 years as $5B low-yield COVID leases roll off.
- **Financial Strength**: $8.1B liquidity, 79% debt fixed-rate; 2025 ROE near '24 levels with long-term lease yield growth.

**【CEO Key Highlights】**
- Q4 2024 revenue reached $713 million, driven by 18 new aircraft purchases ($1.3B) and 14 aircraft sales ($540M). Full-year revenue and fleet net book value set records.
- 2025 aircraft deliveries expected between $3B-$3.5B, with ~80% Boeing. Self-funding through operating cash and sales, reducing debt needs to ~$2B.
- Lease extensions in Q4 saw higher rates than initial terms (e.g., 23 single-aisle aircraft), defying typical post-depreciation declines. 6 Boeing 777-300ER extensions in 2025 maintained or exceeded prior rates.
- 2025 capital priority: reduce debt to target 2.5:1 ratio, enabling future options like buybacks or M&A.

**【CFO Financial Insights】**
- Q4 GAAP net income: $420M; Non-GAAP EPS: $1.08 (vs. expectations). Operating expenses down 5% YoY due to strong cost control.
- Interest expense rose $38M YoY (4.14% composite rate), but 79% of debt fixed-rate. $67M insurance recovery in Q4 '23 boosted margins.
- Liquidity: $8.1B; $30B unencumbered assets; $30B contracted rentals. Debt-to-equity: 2.68x (2.6x net of cash).
- 2025 pretax ROE expected to remain near '24 levels due to elevated interest rates, but lease yield growth to offset over 2-3 years.

**【Q&A Key Takeaways】**
- ROE target of mid-teens achievable in 2-3 years as COVID-era low-yield leases (~$5B net book) roll off. 2025 lease extensions already showing 30%-50% rate improvements.
- 2025 sales pipeline: $1.5B, maintaining balance between fleet growth and shareholder returns.
- Aircraft supply shortage expected to persist through 2026, supporting strong lease rates and asset values. Engine shortages and supply chain constraints limit production increases.
- Stock buybacks on the table once debt target met, but timing and scale dependent on market conditions.

Air Lease (AL)-13 Feb 25-2024 Q4 Earnings call transcript

Air Lease (AL)-7 Nov 24-2024 Q3 Earnings call transcript

Air Lease Corp - Ordinary Shares (AL)-1 Aug 24-2024 Q2 Earnings call transcript

Air Lease Corp - Ordinary Shares (AL)-6 May 24-2024 Q1 Earnings call transcript

Air Lease Corp - Ordinary Shares (AL)-15 Feb 24-2023 Q4 Earnings call transcript

Air Lease (AL)-6 Nov 23-2023 Q3 Earnings call transcript

Air Lease (AL)-3 Aug 23-2023 Q2 Earnings call transcript

Air Lease (AL)-16 Feb 23-2022 Q4 Earnings call transcript

Air Lease (AL)-3 Nov 22-2022 Q3 Earnings call transcript

Air Lease (AL)-5 Aug 22-2022 Q2 Earnings call transcript

Air Lease (AL)-6 May 22-2022 Q1 Earnings call transcript

Air Lease (AL)-18 Feb 22-2021 Q4 Earnings call transcript

Air Lease (AL)-5 Nov 21-2021 Q3 Earnings call transcript

Air Lease (AL)-6 Aug 21-2021 Q2 Earnings call transcript

Air Lease (AL)-7 May 21-2021 Q1 Earnings call transcript

Air Lease (AL)-23 Feb 21-2020 Q4 Earnings call transcript

Air Lease (AL)-9 Nov 20-2020 Q3 Earnings call transcript

Air Lease (AL)-6 Aug 20-2020 Q2 Earnings call transcript

Air Lease (AL)-8 May 20-2020 Q1 Earnings call transcript

Air Lease (AL)-15 Feb 20-2019 Q4 Earnings call transcript

Air Lease (AL)-8 Nov 19-2019 Q3 Earnings call transcript

Air Lease (AL)-8 Aug 19-2019 Q2 Earnings call transcript

Air Lease (AL)-9 May 19-2019 Q1 Earnings call transcript

Air Lease (AL)-21 Feb 19-2018 Q4 Earnings call transcript

Air Lease (AL)-8 Nov 18-2018 Q3 Earnings call transcript

Air Lease (AL)-9 Aug 18-2018 Q2 Earnings call transcript

Air Lease (AL)-10 May 18-2018 Q1 Earnings call transcript

Air Lease (AL)-22 Feb 18-2017 Q4 Earnings call transcript

Air Lease (AL)-9 Nov 17-2017 Q3 Earnings call transcript

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