Aircastle Announces Fourth Quarter and Full Year 2025 Results (Form 8-K)

April 21, 2026

FOR IMMEDIATE RELEASE

Contact:

Aircastle (Ireland) DAC (US Branch)

Jim Connelly, SVP ESG & Corporate Communications

Tel: +1-203-504-1871

[email protected]

Aircastle Announces Fourth Quarter and Full Year 2025 Results

Three Months Ended February 28, 2026

•Net income of $57 million on total revenues of $251 million and Adjusted EBITDA(2) of $230 million;

•22% increase to total revenue compared to fourth quarter 2024;

•Acquired 14 aircraft for $395 million; and

•Sold 13 aircraft and other flight equipment, including one B777-300ER, for proceeds of $361 million and gains on sale or disposition of $36 million;

Full Year Ended February 28, 2026

•Net income of $194 million, up 57% compared to $124 million in fiscal 2024;(1)

•Acquired 46 aircraft during fiscal year 2025 for $1.7 billion; 51% of NBV as of February 28, 2026 composed of new technology aircraft;

•Sold 33 aircraft and other flight equipment with an average age of 17 years for proceeds of $730 million and a gain on sale or disposition of $96 million;

•Collected insurance settlement proceeds of $71 million; and

•Executed 174 transactions for fiscal year 2025, largely comprised of purchases, sales, lease amendments, and extensions.

Liquidity & Credit Ratings

•Raised $1.25 billion in new financings from $650 million of unsecured senior notes at 5.000% and a $600 million unsecured term loan with 18 lenders;

•Extended $500 million of shareholder-affiliated revolving credit facilities;

•Ratings upgrades to Baa2 and BBB by Moody's and Standard & Poor's respectively;

•As of April 1, 2026, total liquidity of $2.6 billion includes $2.0 billion of undrawn credit facilities, $0.5 billion of projected adjusted operating cash flows through April 1, 2025, and $0.1 billion of unrestricted cash;

•As of February 28, 2025, we have 273 unencumbered aircraft and other flight equipment with a net book value of $8.4 billion.

Mike Inglese, Aircastle's Chief Executive Officer, commented, "During fiscal 2025, Aircastle's improved profitability and a strengthened fleet were recognized by ratings upgrades from both S&P and Moody's. We completed the year with 46 aircraft acquisitions, adding $1.7 billion in NBV. New technology aircraft accounted for 51% of our fleet NBV at the end of the fiscal year. Robust trading activity during the year also included the sale of 33 aircraft which generated gains of $96 million. Net income for fiscal 2025 improved 57% reflecting an outstanding year for our unique business."

Mr. Inglese concluded, "Recent events in the Middle East bring new uncertainties for airlines, most notably surging fuel costs. However, airlines have proven adept at managing through disruptions and global demand for travel is sustaining. As we move into 2026 with heightened vigilance, we plan to continue enhancing our fleet through our disciplined investment approach while efficiently accessing capital markets."

Aviation Assets

As of February 28, 2026, Aircastle owned 277 aircraft and other flight equipment having a net book value of $8.5 billion. In addition we managed 5 aircraft.

			As of February 28,
Owned Aircraft			2026						2025
Net Book Value of Flight Equipment ($ mils.)			$	8,534					$	7,902
Net Book Value of Unencumbered Flight Equipment ($ mils.)			$	8,417					$	7,127
Number of Aircraft			277						265
Number of Unencumbered Aircraft			273						244
Number of Lessees			76						77
Number of Countries			45						47
Weighted Average Fleet Age (years)(1)			9.0						9.1
Weighted Average Remaining Lease Term (years)(1)			5.4						5.4
Weighted Average Fleet Utilization for the fourth quarter(2)			97.7		%				99.3		%
Weighted Average Fleet Utilization for the year ended(2)			99.1		%				99.2		%
Managed Aircraft
Number of Managed Aircraft(3)			5						8

_______________

(1)Weighted by Net Book Value.

(2)Aircraft on lease as a percentage of total days in period weighted by net book value.

(3)Number of managed aircraft as of February 28, 2026 includes 4 aircraft owned by our joint venture with Mizuho Leasing.

Conference Call

In connection with this press release, management will host a conference call on Tuesday, April 21, 2026, at 9:00 A.M. Eastern Time. All interested parties are welcome to participate on the live call. The conference call can be accessed by dialing +1 (800) 836-8184 (from within the U.S. and Canada) or +1 (646) 357-8785 (outside the U.S. and Canada) ten minutes prior to the scheduled start. Please reference our company name "Aircastle" when prompted by the operator.

A simultaneous webcast of the conference call will be available to the public on a listen-only basis at www.aircastle.com. Please allow extra time prior to the call to visit the site and download the necessary software required to listen to the internet broadcast.

For those who are not available to listen to the live call, a replay will be available on Aircastle's website shortly after the live call.

About Aircastle Limited

Aircastle Limited acquires, leases, and sells commercial jet aircraft to airlines worldwide. As of February 28, 2026, Aircastle owned and managed 282 aircraft leased to 76 customers located in 45 countries.

Safe Harbor

All statements in this press release, other than characterizations of historical fact, are forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements include, but are not necessarily limited to, statements relating to our proposed public offering of notes and our ability to acquire, sell, lease or finance aircraft, raise capital, pay dividends, and increase revenues, earnings, EBITDA and Adjusted EBITDA and the global aviation industry and aircraft leasing sector. Words such as "anticipates," "expects," "intends," "plans," "projects," "believes," "may," "will," "would," "could," "should," "seeks," "estimates" and variations on these words and similar expressions are intended to identify such forward-looking statements. These statements are based on our historical performance and that of our subsidiaries and on our current plans, estimates and expectations and are subject to a number of factors that could lead to actual results materially different from those described in the forward-looking statements; Aircastle can give no assurance that its expectations will be attained. Accordingly, you should not place undue reliance on any such forward-looking statements which are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated as of the date of this press release. These risks or uncertainties include, but are not limited to, those described from time to time in Aircastle's filings with the SEC and previously disclosed under "Risk Factors" in Item 1A of Aircastle's most recent Form 10-K and any subsequent filings with the SEC. In addition, new risks and uncertainties emerge from time to time, and it is not possible for Aircastle to predict or assess the impact of every factor that may cause its actual results to differ from those contained in any forward-looking statements. Such forward-looking statements speak only as of the date of this press release. Aircastle expressly disclaims any obligation to revise or update publicly any forward-looking statement to reflect future events or circumstances.

Aircastle Limited and Subsidiaries

Consolidated Balance Sheets

(Dollars in thousands, except share data)

			February 28/29,
			2026						2025
ASSETS
Cash and cash equivalents			$	179,889					$	279,052
Accounts receivable			18,239						9,662
Flight equipment held for lease, net			8,267,353						7,644,867
Net investment in leases, net			267,085						257,249
Unconsolidated equity method investment			47,540						45,813
Other assets			209,680						273,521
Total assets			$	8,989,786					$	8,510,164
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Borrowings from secured financings, net			$	112,355					$	502,609
Borrowings from unsecured financings, net			5,139,411						4,452,781
Accounts payable, accrued expenses and other liabilities			381,274						295,132
Lease rentals received in advance			63,514						68,120
Security deposits			65,424						82,477
Maintenance payments			560,157						583,658
Total liabilities			6,322,135						5,984,777
Commitments and Contingencies
SHAREHOLDERS' EQUITY
Preference shares, $0.01 par value, 50,000,000 shares authorized, 400 (aggregate liquidation preference of $400,000) shares issued and outstanding at February 28, 2026 and 2025			-						-
Common shares, $0.01 par value, 250,000,000 shares authorized, 17,840 shares issued and outstanding at February 28, 2026 and 2025			-						-
Additional paid-in capital			2,378,774						2,378,774
Retained earnings			288,877						146,613
Total shareholders' equity			2,667,651						2,525,387
Total liabilities and shareholders' equity			$	8,989,786					$	8,510,164

Aircastle Limited and Subsidiaries

Consolidated Statements of Income and Comprehensive Income

(Dollars in thousands)

			Three Months Ended February 28,												Year Ended February 28,
			2026						2025						2026						2025
			(Unaudited)
Revenues:
Lease rental revenue			$	193,979					$	168,990					$	759,701					$	652,379
Direct financing and sales-type lease revenue			5,454						5,118						20,945						21,295
Amortization of lease premiums, discounts and incentives			78						(3,677)						280						(21,682)
Maintenance revenue			13,906						14,446						95,654						90,490
Total lease revenue			213,417						184,877						876,580						742,482
Gain on sale or disposition of flight equipment			36,268						20,282						95,889						77,191
Other revenue			1,659						399						2,650						1,302
Total revenues			251,344						205,558						975,119						820,975
Operating expenses:
Depreciation			95,395						91,029						384,028						355,666
Interest, net			70,967						61,934						282,139						247,923
Selling, general and administrative			23,512						25,845						89,483						86,416
Provision (benefit) for credit losses			(17)						8,434						(57)						8,715
Impairment of flight equipment			1,394						-						53,323						19,391
Maintenance and other costs			4,367						3,527						17,101						16,938
Total operating expenses			195,618						190,769						826,017						735,049
Other income (expense):
Gain (loss) on extinguishment of debt			-						-						(2,973)						285
Other			5,966						49,690						74,120						56,247
Total other income			5,966						49,690						71,147						56,532
Income from continuing operations before income taxes and earnings of unconsolidated equity method investments			61,692						64,479						220,249						142,458
Income tax provision			5,335						5,067						28,863						21,948
Earnings of unconsolidated equity method investment, net of tax			479						1,366						2,662						3,103
Net income			$	56,836					$	60,778					$	194,048					$	123,613
Preference share dividends			(10,500)						(10,500)						(21,000)						(21,000)
Net income available to common shareholders			$	46,336					$	50,278					$	173,048					$	102,613
Total comprehensive income available to common shareholders			$	46,336					$	50,278					$	173,048					$	102,613

Aircastle Limited and Subsidiaries

Consolidated Statements of Cash Flows

(Dollars in thousands)

			Year Ended February 28,
			2026						2025
Cash flows from operating activities:
Net income			$	194,048					$	123,613
Adjustments to reconcile net loss to net cash and restricted cash provided by operating activities:
Depreciation			384,028						355,666
Amortization of deferred financing costs			18,032						17,033
Amortization of lease premiums, discounts and incentives			(280)						21,682
Deferred income taxes			21,193						17,550
Collections on net investments in leases			5,352						7,628
Security deposits, maintenance payments and insurance settlements included in earnings			(119,410)						(59,959)
Gain on sale or disposition of flight equipment			(95,889)						(77,191)
(Gain) loss on extinguishment of debt			2,973						(285)
Impairment of flight equipment			53,323						19,391
Provision (benefit) for credit losses			(57)						8,715
Other			(1,822)						(3,188)
Changes on certain assets and liabilities:
Accounts receivable			(8,207)						(6,984)
Other assets			7,950						13,532
Accounts payable, accrued expenses and other liabilities			25,462						7,475
Lease rentals received in advance			(3,643)						19,343
Net cash and cash equivalents provided by operating activities			483,053						464,021
Cash flows from investing activities:
Acquisition and improvement of flight equipment			(1,710,760)						(1,588,197)
Proceeds from sale or disposition of flight equipment			729,500						565,921
Proceeds from settlement of insurance claims			70,824						49,500
Proceeds from sale of investment in debt securities			10,128						-
Aircraft purchase deposits and progress payments, net of returned deposits and aircraft sales deposits			2,713						4,157
Other			9						(1,613)
Net cash and cash equivalents used in investing activities			(897,586)						(970,232)
Cash flows from financing activities:
Proceeds from issuance of common shares			-						300,000
Proceeds from secured and unsecured debt financings			1,915,489						1,702,048
Repayments of secured and unsecured debt financings			(1,624,927)						(1,452,340)
Deferred financing costs			(15,190)						(9,849)
Debt extinguishment costs			-						285
Security deposits and maintenance payments received			153,390						152,521
Security deposits and maintenance payments returned			(50,608)						(16,379)
Dividends paid			(62,784)						(21,000)
Net cash and cash equivalents provided by financing activities			315,370						655,286
Net (decrease) increase in cash and cash equivalents:			(99,163)						149,075
Cash and cash equivalents at beginning of year			279,052						129,977
Cash and cash equivalents at end of year			$	179,889					$	279,052

Aircastle Limited and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

EBITDA and Adjusted EBITDA Reconciliation

(Dollars in thousands)

			Three Months Ended February 28,												Year Ended February 28,
			2026						2025						2026						2025
			(Unaudited)
Net income			$	56,836					$	60,778					$	194,048					$	123,613
Depreciation			95,395						91,029						384,028						355,666
Amortization of lease premiums, discounts and incentives			(78)						3,677						(280)						21,682
Interest, net			70,967						61,934						282,139						247,923
Income tax provision			5,335						5,067						28,863						21,948
EBITDA			228,455						222,485						888,798						770,832
Adjustments:
Impairment of flight equipment			1,394						-						53,323						19,391
(Gain) loss on extinguishment of debt			-						-						2,973						(285)
Adjusted EBITDA			$	229,849					$	222,485					$	945,094					$	789,938

______________

We define EBITDA as income (loss) from continuing operations before income taxes, interest expense, and depreciation and amortization. We use EBITDA to assess our consolidated financial and operating performance, and we believe this non-U.S. GAAP measure is helpful in identifying trends in our performance.

This measure provides an assessment of controllable expenses and affords management the ability to make decisions which are expected to facilitate meeting current financial goals, as well as achieving optimal financial performance. It provides an indicator for management to determine if adjustments to current spending decisions are needed.

EBITDA provides us with a measure of operating performance because it assists us in comparing our operating performance on a consistent basis as it removes the impact of our capital structure (primarily interest charges on our outstanding debt) and asset base (primarily depreciation and amortization) from our operating results. Accordingly, this metric measures our financial performance based on operational factors that management can impact in the short-term, namely the cost structure, or expenses, of the organization. EBITDA is one of the metrics used by senior management and the Board of Directors to review the consolidated financial performance of our business.

We define Adjusted EBITDA as EBITDA (as defined above) further adjusted to give effect to adjustments required in calculating covenant ratios and compliance as that term is defined in the indenture governing our senior unsecured notes. Adjusted EBITDA is a material component of these covenants.