LOS ANGELES – (BUSINESS WIRE) – Air Lease (NYSE: AL) announces financial results for the three months and year ended December 31, 2025.
Fourth Quarter and Fiscal Year 2025 Results
The following table summarizes our operating results for the three months and year ended December 31, 2025 and 2024 (in millions, except per share amounts and percentages):
Operating Results
| Three Months Ended Dec 31, 2025 | Three Months Ended Dec 31, 2024 | $ Change | % Change | Year Ended Dec 31, 2025 | Year Ended Dec 31, 2024 | $ Change | % Change | |
|---|---|---|---|---|---|---|---|---|
| Revenues | $820.4 | $712.9 | $107.5 | 15.1% | $3,015.7 | $2,733.7 | $282.0 | 10.3% |
| Operating expenses | (593.9) | (572.9) | (21.0) | 3.7% | (2,382.5) | (2,200.4) | (182.1) | 8.3% |
| Recoveries of Russian fleet write-off | — | — | — | — | 736.4 | — | 736.4 | — |
| Income before taxes | 226.5 | 140.0 | 86.5 | 61.8% | 1,369.7 | 533.3 | 836.4 | 156.8% |
| Net income attributable to common stockholders | $169.9 | $92.5 | $77.4 | 83.7% | $1,044.1 | $372.1 | $672.0 | 180.6% |
| Diluted earnings per share | $1.51 | $0.83 | $0.68 | 81.9% | $9.29 | $3.33 | $5.96 | 179.0% |
| Adjusted net income before income taxes(1) | $247.0 | $150.4 | $96.6 | 64.2% | $718.4 | $574.2 | $144.2 | 25.1% |
| Adjusted diluted earnings per share before income taxes(1) | $2.20 | $1.34 | $0.86 | 64.2% | $6.40 | $5.13 | $1.27 | 24.8% |
Key Financial Ratios
| Three Months Ended Dec 31, 2025 | Three Months Ended Dec 31, 2024 | Year Ended Dec 31, 2025 | Year Ended Dec 31, 2024 | |
|---|---|---|---|---|
| Pre-tax margin | 27.6% | 19.6% | 45.4% | 19.5% |
| Adjusted pre-tax margin(1) | 30.1% | 21.1% | 23.8% | 21.0% |
| Pre-tax return on common equity (trailing twelve months) | 18.7% | 7.4% | 18.7% | 7.4% |
| Adjusted pre-tax return on common equity (trailing twelve months)(1) | 10.1% | 8.9% | 10.1% | 8.9% |
- Adjusted net income before income taxes, adjusted diluted earnings per share before income taxes, adjusted pre-tax margin and adjusted pre-tax return on common equity have been adjusted to exclude the effects of certain non-cash items, such as non-cash deemed dividends upon redemption of our Series A preferred stock, one-time or non-recurring items that are not expected to continue in the future, such as retirement compensation, merger related costs and recoveries related to our former Russian fleet, and certain other items. See note 1 under the Consolidated Statements of Operations included in this earnings release for a discussion of the non-GAAP measures and a reconciliation to their most comparable GAAP financial measures.
Highlights
- Generated the highest total revenues achieved in any individual quarter or year in the Company’s history with total revenues of $820 million and $3.0 billion for the three and twelve months ended December 31, 2025, respectively.
- During the fourth quarter, we took delivery of 10 aircraft from our orderbook, representing $926 million in aircraft investments, ending the period with 490 aircraft in our owned fleet and approximately $33 billion in total assets.
- Sold 23 aircraft during the fourth quarter for a record of $1.0 billion in sales proceeds.
- We have $1.2 billion of aircraft in our sales pipeline 1, which includes approximately $529 million in flight equipment held for sale as of December 31, 2025 and approximately $692 million of aircraft subject to letters of intent.
- Placed 99% and 82% of our orderbook on long-term leases for aircraft delivering through the end of 2027 and 2028, respectively, and placed approximately 64% of our entire orderbook delivering through 2031.
- Ended the quarter with $28.9 billion in committed minimum future rental payments consisting of $19.6 billion in contracted minimum rental payments on the aircraft in our existing fleet and $9.3 billion in minimum future rental payments related to aircraft which will deliver between 2026 through 2031.
- On December 18, 2025, our Class A common stockholders approved the adoption of the Agreement and Plan of Merger (the “Merger Agreement”), with Sumisho Air Lease Corporation Designated Activity Company (formerly known as Gladiatora Designated Activity Company), an Irish private limited company (“Parent”) and Takeoff Merger Sub Inc., a Delaware corporation and an indirect wholly owned subsidiary of Parent (“Merger Sub”), pursuant to which, among other things and subject to the conditions contained in the Merger Agreement, Merger Sub will merge with and into the Company, with the Company surviving as an indirect wholly owned subsidiary of Parent. We currently anticipate that the Merger will close in the first half of 2026, subject to the satisfaction or waiver of remaining customary closing conditions and required regulatory approvals.
- On February 10, 2025, our board of directors approved a quarterly cash dividend of $0.22 per share on our outstanding Class A common stock. This quarterly dividend of $0.22 per share will be paid on April 7, 2026, to holders of record of our Class A common stock as of March 2, 2026.
Financial Overview
Fourth Quarter 2025 vs. Fourth Quarter 2024
Our total rental of flight equipment revenue for the three months ended December 31, 2025 increased by approximately 6%, to $680 million, as compared to the three months ended December 31, 2024. The increase is primarily due to the continued growth of our fleet by net book value and an increase in our portfolio lease yield.
Our gain on aircraft sales and trading and other income for the three months ended December 31, 2025 increased by 90%, to $141 million, as compared to the three months ended December 31, 2024, driven by increased sales activity. We recorded $132 million in gains from the sale of 23 aircraft for the three months ended December 31, 2025, compared to $65 million in gains from the sale of 14 aircraft and $3 million from one sales-type lease for the three months ended December 31, 2024.
Our net income attributable to common stockholders for the three months ended December 31, 2025 increased to $170 million, or $1.51 per diluted share, from $93 million, or $0.83 per diluted share, for the three months ended December 31, 2024. Net income attributable to common stockholders increased due to higher revenues, as discussed above, partially offset by an increase in depreciation expense due to the growth of our fleet by net book value and $9.9 million in costs associated with the merger.
Adjusted net income before income taxes during the three months ended December 31, 2025 was $247 million, or $2.20 per adjusted diluted share, as compared to $150 million, or $1.34 per adjusted diluted share, for the three months ended December 31, 2024. Adjusted net income before income taxes increased due to higher revenues partially offset by an increase in depreciation expense, as discussed above.
1Aircraft in our sales pipeline is as of December 31, 2025, and includes letters of intent and sale agreements signed through February 12, 2026.
Full Year 2025 vs. Full Year 2024
Our total rental of flight equipment revenues for the year ended December 31, 2025 increased by 8%, to $2.7 billion, as compared to the year ended December 31, 2024. The increase is primarily due to the continued growth of our fleet by net book value and an increase in our portfolio lease yield.
Our aircraft sales, trading and other revenues for the year ended December 31, 2025 increased by 35%, to $331 million, as compared to the year ended December 31, 2024, driven by increased sales activity. We recorded $244 million in gains from the sale of 48 aircraft and $8 million from one sales-type lease, compared to $170 million in gains from the sale of 39 aircraft and $17 million from four sales-type leases for the year ended December 31, 2024.
Our net income attributable to common stockholders for the year ended December 31, 2025, was $1.0 billion, or $9.29 per diluted share, as compared to $372 million, or $3.33 per diluted share, for the year ended December 31, 2024. Net income attributable to common stockholders increased primarily due to a net benefit of $736 million from the settlement of insurance claims with certain insurers related to aircraft detained in Russia, and higher revenues, as discussed above, partially offset by increases in depreciation expense due to the growth of our fleet, interest expense due to higher average cost of funds throughout the year, $18.8 million compensation expense related to the retirement of our Chairman from his executive role, $18.5 million in costs associated with the merger and $9.5 million in costs associated with litigation involving our Russian fleet.
Adjusted net income before income taxes during the year ended December 31, 2025, was $718.4 million, or $6.40 per adjusted diluted share, as compared to $574.2 million, or $5.13 per adjusted diluted share, for the year ended December 31, 2024. Adjusted net income before income taxes increased primarily due to higher revenues partially offset by increases in depreciation expense and interest expense, as discussed above.
Flight Equipment Portfolio
As of December 31, 2025, the net book value of our fleet increased to $29.1 billion, compared to $28.2 billion as of December 31, 2024. As of December 31, 2025, we owned 490 aircraft in our aircraft portfolio, comprised of 352 narrowbody aircraft and 138 widebody aircraft, and we managed 45 aircraft. The weighted average fleet age and weighted average remaining lease term of flight equipment subject to operating lease as of December 31, 2025 was 4.9 years and 7.2 years, respectively. We had a globally diversified customer base comprised of 102 airlines in 53 countries as of December 31, 2025.
The following table summarizes the key portfolio metrics of our fleet as of December 31, 2025 and December 31, 2024:
| December 31, 2025 | December 31, 2024 | |
|---|---|---|
| Net book value of flight equipment subject to operating lease | $29.1 billion | $28.2 billion |
| Weighted-average fleet age(1) | 4.9 years | 4.6 years |
| Weighted-average remaining lease term(1) | 7.2 years | 7.2 years |
| Owned fleet(2) | 490 | 489 |
| Managed fleet | 45 | 60 |
| Aircraft on order(3) | 218 | 269 |
| Total | 753 | 818 |
| Current fleet contracted rentals | $19.6 billion | $18.3 billion |
| Committed fleet rentals(3) | $9.3 billion | $11.2 billion |
| Total committed rentals | $28.9 billion | $29.5 billion |
- Weighted-average fleet age and remaining lease term calculated based on net book value of our flight equipment subject to operating lease.
- As of December 31, 2025 and December 31, 2024, our owned fleet count included 12 and 30 aircraft classified as flight equipment held for sale, respectively, and 16 and 15 aircraft classified as net investments in sales-type leases, respectively.
- See section “Proposed Merger” under “Part I — Item 1 Business” in our Annual Report on Form 10-K for the year ended December 31, 2025, for more information on the Orderbook Transfer (as defined in the Merger Agreement) and its impact on future committed fleet rentals for aircraft that deliver after the effective time of the Merger.
The following table details the regional concentration of our flight equipment subject to operating leases:
| Region | December 31, 2025
% of Net Book Value |
December 31, 2024
% of Net Book Value |
|---|---|---|
| Europe | 39.1% | 41.4% |
| Asia Pacific | 36.5% | 35.8% |
| Central America, South America, and Mexico | 10.7% | 9.5% |
| The Middle East and Africa | 7.8% | 7.0% |
| U.S. and Canada | 5.9% | 6.3% |
| Total | 100.0% | 100.0% |
The following table details the composition of our owned fleet by aircraft type:
| Aircraft Type | December 31, 2025
Number of Aircraft |
% of Total (2025) | December 31, 2024
Number of Aircraft |
% of Total (2024) |
|---|---|---|---|---|
| Airbus A220-100 | 8 | 1.6% | 7 | 1.4% |
| Airbus A220-300 | 33 | 6.7% | 22 | 4.5% |
| Airbus A320-200 | 17 | 3.5% | 23 | 4.7% |
| Airbus A320-200neo | 23 | 4.7% | 23 | 4.7% |
| Airbus A321-200 | 17 | 3.5% | 19 | 3.9% |
| Airbus A321-200neo | 109 | 22.2% | 108 | 22.1% |
| Airbus A330-200(1) | 13 | 2.7% | 13 | 2.7% |
| Airbus A330-300 | 5 | 1.0% | 5 | 1.0% |
| Airbus A330-900neo | 28 | 5.7% | 28 | 5.7% |
| Airbus A350-900 | 17 | 3.5% | 17 | 3.5% |
| Airbus A350-1000 | 8 | 1.6% | 8 | 1.6% |
| Boeing 737-700 | — | 0.0% | 2 | 0.4% |
| Boeing 737-800 | 38 | 7.8% | 61 | 12.5% |
| Boeing 737-8 MAX | 71 | 14.5% | 59 | 12.1% |
| Boeing 737-9 MAX | 35 | 7.1% | 30 | 6.1% |
| Boeing 777-200ER | 1 | 0.2% | 1 | 0.2% |
| Boeing 777-300ER | 23 | 4.7% | 24 | 4.9% |
| Boeing 787-9 | 26 | 5.3% | 26 | 5.3% |
| Boeing 787-10 | 17 | 3.5% | 12 | 2.5% |
| Embraer E190 | 1 | 0.2% | 1 | 0.2% |
| Total(2) | 490 | 100.0% | 489 | 100.0% |
- As of December 31, 2025 and December 31, 2024, aircraft count includes three and two Airbus A330-200 aircraft classified as freighters, respectively.
- As of December 31, 2025 and December 31, 2024, our owned fleet count included 12 and 30 aircraft classified as flight equipment held for sale, respectively, and 16 and 15 aircraft classified as net investments in sales-type leases, respectively.
Debt Financing Activities
We ended the fourth quarter of 2025 with total debt financing, net of discounts and issuance costs, of $19.7 billion. As of December 31, 2025, 76.8% of our total debt financing was at a fixed rate and 97.5% was unsecured. As of December 31, 2025, our composite cost of funds was 4.15%. We ended the quarter with total liquidity of $7.5 billion.
As of the end of the periods presented, our debt portfolio was comprised of the following components (dollars in millions, except percentages):
| December 31, 2025 | December 31, 2024 | |
|---|---|---|
| Unsecured | ||
| Senior unsecured securities | $13,861 | $16,047 |
| Term financings | 3,847 | 3,629 |
| Commercial paper | 1,361 | — |
| Revolving credit facility | — | 170 |
| Other revolving credit facilities | 300 | — |
| Total unsecured debt financing | 19,369 | 19,846 |
| Secured | ||
| Term financings | 318 | 354 |
| Export credit financing | 175 | 190 |
| Total secured debt financing | 493 | 544 |
| Total debt financing | 19,862 | 20,390 |
| Less: Debt discounts & issuance costs | (132) | (180) |
| Debt financing, net of discounts and issuance costs | $19,730 | $20,210 |
Selected Interest Rates & Ratios
| December 31, 2025 | December 31, 2024 | |
|---|---|---|
| Composite interest rate(1) | 4.15% | 4.14% |
| Composite interest rate on fixed-rate debt(1) | 3.91% | 3.74% |
| Percentage of total debt at a fixed rate | 76.85% | 79.00% |
- This rate does not include the effect of upfront fees, facility fees, undrawn fees or amortization of debt discounts and issuance costs.
Conference Call
As is customary during the pendency of an acquisition transaction, we will not be hosting a conference call or providing guidance in conjunction with our fourth quarter 2025 earnings release. For further detail and discussion of our financial performance please refer to our annual report on Form 10-K for the year ended December 31, 2025.
