Air Lease Corporation Reports Strong Q3 2025 Results, Announces Merger With Sumisho Air Lease Corporation

Published on November 4, 2025

In a caller announcement, Air Lease Corporation revealed its financial results for nan 3rd 4th of 2025, marking a important milestone successful nan company’s continued maturation and success. With a robust portfolio, nan institution has made notable strides successful its craft leasing operations, achieving beardown gross and maintaining high-value assets. Additionally, Air Lease Corporation has entered into a merger statement that will further style its early trajectory. The transaction, which is expected to adjacent successful nan first half of 2026, is poised to beryllium a transformative measurement successful nan company’s ongoing description .

Third Quarter 2025 Financial Highlights

Air Lease Corporation’s financial results for nan 3 and 9 months ended September 30, 2025, show dependable maturation and important accomplishments crossed cardinal financial metrics. The company’s full rental of formation instrumentality gross for nan 3rd 4th accrued by astir 9%, reaching $681 million, compared to nan aforesaid play successful 2024. This maturation tin mostly beryllium attributed to nan continued description of Air Lease’s fleet and an summation successful portfolio lease yields. The company’s beardown rental gross capacity is simply a nonstop consequence of its expanding portfolio of leased aircraft.

Aircraft Deliveries and Fleet Expansion

During nan 3rd 4th of 2025, Air Lease Corporation received 13 aircraft from its orderbook, representing an finance of $685 million. This brings nan company’s full owned fleet to 503 aircraft, pinch complete $33 billion successful full assets. The continuous transportation of caller craft and investments successful their increasing fleet show Air Lease’s committedness to expanding its scope successful nan world aviation leasing market.

Settlement of Insurance Claims

In summation to craft deliveries, Air Lease Corporation recognized a net use of astir $60 million from nan colony of security claims related to its erstwhile Russian fleet. This improvement is peculiarly noteworthy arsenic nan institution has now recovered 104% of its Russian fleet write-off that was recorded successful March 2022 owed to nan effect of nan Russian-Ukraine War. This betterment demonstrates nan company’s expertise to accommodate and successfully resoluteness challenges stemming from outer geopolitical factors.

Aircraft Sales and Sales Pipeline

The institution besides recorded a $220 million successful proceeds from nan waste of 5 craft during nan 3rd quarter. This is portion of Air Lease’s ongoing efforts to optimize its fleet and heighten liquidity. In total, Air Lease has an estimated $1.6 billion successful its craft income pipeline, which includes $342 million worthy of flight equipment held for waste arsenic of September 30, 2025. The income pipeline besides consists of astir $1.3 billion successful craft taxable to letters of intent, showcasing Air Lease’s beardown position successful nan craft leasing market.

Strong Leasing Activity

As of nan extremity of nan 3rd quarter, Air Lease Corporation placed 100% and 96% of its expected orderbook for craft deliveries done nan extremity of 2026 and 2027, respectively. The institution has successfully secured semipermanent leases for its aircraft, ensuring unchangeable early rental income. In total, astir 64% of nan full orderbook delivering done 2031 has been placed connected semipermanent leases. This precocious percent of leased craft solidifies Air Lease’s financial outlook and demonstrates nan continued request for its assets.

Merger Agreement pinch Sumisho Air Lease Corporation

On September 2, 2025, Air Lease Corporation entered into an agreement and scheme of merger pinch Sumisho Air Lease Corporation Designated Activity Company, a recently formed holding company. The merger is scheduled to adjacent successful nan first half of 2026 and is contingent connected respective factors, including support from Air Lease’s Class A communal stockholders and definite regulatory approvals.

Under nan position of nan merger agreement, Air Lease’s Class A communal stockholders will person $65.00 per stock successful rate for each stock of Class A communal banal they own, taxable to definite withholding taxes. This represents a full valuation of $7.4 billion for Air Lease, aliases astir $28.2 billion erstwhile including nan indebtedness obligations that will beryllium assumed aliases refinanced. The merger besides involves important partnerships pinch Sumitomo Corporation, SMBC Aviation Capital Limited, Apollo Capital Management, and Brookfield Asset Management Ltd..

This merger statement signals a transformative displacement for Air Lease Corporation, positioning it for early maturation done enhanced financial stableness and expanded partnerships successful nan craft leasing industry.

Dividends and Financial Overview

In statement pinch its beardown financial performance, Air Lease Corporation’s committee of board approved a quarterly rate dividend of $0.22 per share connected its outstanding Class A communal stock. This dividend will beryllium paid connected January 8, 2026, to shareholders of grounds arsenic of December 4, 2025. The determination to support and administer dividends reflects nan company’s beardown rate travel procreation and committedness to returning worth to its shareholders.

Net income attributable to communal stockholders for nan 3rd 4th of 2025 was $135 million, aliases $1.21 per diluted share, compared to $92 million, aliases $0.82 per diluted share, for nan 3rd 4th of 2024. This summation successful nett income is chiefly owed to higher rental revenues and nan colony of security claims related to nan Russian fleet. However, nan institution besides faced higher liking expenses and accrued selling, general, and administrative expenses, partially owed to merger-related costs.

Debt Financing and Liquidity

As of September 30, 2025, Air Lease Corporation’s full debt financing was $20.2 billion, pinch 75.7% of nan indebtedness astatine a fixed complaint and 97.5% unsecured. The company’s composite costs of funds was 4.29%, and it ended nan 4th pinch $7.4 billion successful liquidity. The coagulated liquidity position and favorable indebtedness building put Air Lease successful a beardown position to proceed its craft acquisitions and meet its financial obligations.

Conclusion

Air Lease Corporation’s third-quarter financial results bespeak beardown maturation crossed aggregate areas of its business. The company’s ongoing fleet description , coagulated leasing activity, and beardown income pipeline position it for continued occurrence successful nan world craft leasing market. Additionally, nan projected merger pinch Sumisho Air Lease Corporation Designated Activity Company offers important strategical opportunities for nan company’s future. With its robust financial position, high-quality fleet, and beardown relationships pinch cardinal stakeholders, Air Lease Corporation is well-positioned for semipermanent maturation and occurrence successful nan ever-evolving aviation industry.