BOC Aviation Limited (02588.HK) reported a record-high total revenue and other income of USD 2.62 billion for FY 2025, up 2.4% year on year. Net profit after tax fell 14.8% to USD 787 million due to a sharp drop in non-recurring insurance recoveries linked to Russia-detained aircraft; excluding such items, core profit rose 18% to USD 746 million.

The board recommended a final dividend of USD 0.3061 per share, lifting the full-year payout to USD 0.4537 per share—equivalent to 40% of reported earnings and above the prior-year payout ratio of 35%.

Operating cash flow net of interest climbed 17.5% to a record USD 2.18 billion, while total assets grew 5.1% to USD 26.34 billion. Net assets increased 7.5% to USD 6.84 billion, pushing net asset value per share to USD 9.86. Gross and net debt-to-equity ratios both stood at 2.5 times, with total liquidity of USD 6.90 billion (USD 0.40 billion in cash plus USD 6.50 billion undrawn facilities).

The lessor expanded its total portfolio to 815 aircraft and engines, including 462 owned units and an enlarged orderbook of 337 aircraft. Average owned fleet age remained at five years with average remaining lease term of 7.8 years; utilisation held at 100%. During 2025 the company executed 333 transactions, comprising commitments to purchase 160 aircraft, delivery of 51 aircraft, and sale of 36 assets, generating USD 212.87 million net gain on disposals.

Funding activity included USD 4.30 billion of new debt—USD 3.30 billion in loans and USD 1.00 billion in bonds—raised at what management describes as the industry’s lowest margin. Average cost of funds stayed flat at 4.5%.

Looking ahead, BOC Aviation enters 2026 with USD 19.10 billion of committed capital expenditure backed by strong liquidity and renewed USD 3.50 billion revolving credit with Bank of China, maturing February 2031.