Aviation Capital Group Reports Financial Results for Q1 2025
Aviation Capital Group LLC (“ACG”), a premier global full-service aircraft asset manager, has announced its financial results for the first quarter of 2025, showcasing continued resilience and strategic growth in a dynamic aviation market.
Financial Performance Overview
For the three months ended March 31, 2025, ACG reported total revenues of $280.6 million. The company achieved a pre-tax net income of $27.0 million during the same period, reflecting stable operational performance and disciplined financial management.
ACG’s liquidity position remained robust at $4.5 billion as of March 31, 2025. This included $4.3 billion available through its unsecured revolving credit facilities, in addition to $200 million in unrestricted cash. The net debt to equity ratio stood at 2.3x, indicating a balanced capital structure and the company’s prudent approach to leverage.
Operational cash flows remained strong, with $124.6 million generated from operating activities during the first quarter. On the investing side, the company recorded $868.1 million in cash outflows, driven primarily by the acquisition of nearly $1.0 billion in aircraft assets. These outflows were partially offset by $131.0 million in proceeds from asset sales. As of the end of the quarter, ACG had a robust sales pipeline with $336.6 million in aircraft held for sale.
Aircraft Portfolio Developments
ACG continued to modernize and expand its fleet with the addition of fifteen new technology aircraft during the first quarter. These additions included twelve Boeing 737 MAX family aircraft, two Airbus A350-900 aircraft, and one Airbus A320neo family aircraft. These acquisitions were a mix of original equipment manufacturer (OEM) orderbook deliveries and sale-leaseback transactions with airline customers.
During the quarter, ACG also sold five aircraft, two engines, and one airframe. These transactions resulted in a net gain of approximately $31.4 million, which includes $4.1 million in other income from the gain on the sale of one aircraft under finance lease.
As of March 31, 2025, the weighted average age of ACG’s owned fleet stood at 5.9 years, and the weighted average remaining lease term was 6.9 years. These metrics underscore the company’s commitment to maintaining a young, fuel-efficient, and market-relevant fleet to meet the evolving needs of global airline operators.
Capital Markets and Financing Activities
In support of its fleet growth strategy and to further strengthen its liquidity position, ACG successfully issued $800 million in senior unsecured notes during the quarter. This issuance comprised $300 million of notes due in April 2027, bearing a coupon of 4.75%, and $500 million of notes due in April 2030, with a coupon of 5.125%. The offering was well received by the investor community and reflects confidence in ACG’s creditworthiness and long-term business outlook.
Additionally, the company maintained a solid unencumbered asset coverage ratio of 1.5x as of March 31, 2025. This level of coverage provides meaningful financial flexibility and positions ACG well for future capital needs or market opportunities.
Significant Events Following Quarter-End
Subsequent to the end of the first quarter, ACG entered into settlement agreements with certain of its insurers related to the company’s aircraft previously confiscated and remaining in Russia. These settlements resulted in cash proceeds totaling approximately $398 million, which will contribute to improving the company’s capital position and mitigate the financial impact of the asset impairments.
In another strategic move, ACG signed a definitive agreement with Avolon Aerospace Leasing Limited (Avolon) to acquire a portfolio of twenty aircraft. This portfolio includes sixteen narrowbody and four widebody aircraft, with a weighted average Aviation age of approximately 4.1 years and an average remaining lease term of 8.4 years. This acquisition is expected to further enhance ACG’s fleet diversity and income-generating capacity.
Clarification on Financial Metrics and Methodology
It is important to note that the financial information provided in ACG’s press release is unaudited. Additionally, certain non-GAAP metrics, such as the net debt to equity ratio, are referenced to offer enhanced insight into the company’s financial condition.
Net debt is calculated as total outstanding debt less cash and cash equivalents, while equity reflects total shareholders’ equity under U.S. GAAP. While ACG believes that these measures offer useful context for Aviation investors, such non-GAAP metrics should not be interpreted in isolation or as a substitute for audited U.S. GAAP financial statements. Moreover, as definitions and calculations of such metrics may vary across the industry, direct comparisons with similarly labeled metrics from other companies may not always be meaningful.
ACG is well-positioned to continue executing its strategic objectives. The company is focused on enhancing portfolio quality, maintaining financial flexibility, and delivering sustainable returns to its stakeholders. The aviation leasing Aviation industry continues to experience Aviation strong demand, particularly for next-generation, fuel-efficient aircraft. ACG’s investments during the first quarter, including both fleet expansion and the pending acquisition from Avolon, support this trend and align with long-term growth opportunities.
With its extensive global customer base, access to capital markets, and disciplined asset management approach, ACG remains Aviation a trusted partner to airlines and investors alike. The company’s first quarter 2025 performance reflects its ability to adapt to market conditions, pursue strategic transactions, and generate consistent financial results in a competitive environment.