This article is based on an official press release from Aviation Capital Group.

Aviation Capital Group Reports Record $1.3 Billion Revenue for 2025

On February 25, 2026, Aviation Capital Group (ACG) announced its financial results for the fiscal year ended December 31, 2025, marking a historic year for the aircraft lessor. According to the company’s official statement, ACG achieved its highest-ever annual revenue of $1.3 billion, driven by strong global demand for aircraft and significant recoveries related to insurance claims.

The company reported a total pre-tax net income of $751 million. ACG disclosed that this figure was substantially bolstered by a $551 million net benefit from insurance settlements regarding aircraft stranded in Russia following the 2022 invasion of Ukraine. Excluding these insurance proceeds, the lessor’s core pre-tax net income stood at $200 million, representing a 15% year-over-year increase that reflects the underlying strength of the leasing market.

Financial Highlights and Liquidity

Beyond the headline revenue figures, ACG’s financial report detailed robust growth across several key metrics. Operating cash flow rose by 20% year-over-year to $657 million. The company also strengthened its balance sheet, reporting total assets of $13.7 billion, an increase of $1.6 billion from 2024.

In terms of financial stability, ACG highlighted a liquidity position of $5.1 billion. The lessor also improved its leverage profile, bringing its net debt-to-equity ratio down to 2.0x from 2.1x the previous year. These metrics underscore the support of its parent company, Tokyo Century Corporation, and the lessor’s ability to navigate a capital-intensive market environment.

In the press release, Thomas Baker, CEO and President of Aviation Capital Group, commented on the results:

“2025 marked a record year for ACG… Our strong performance resulted in a 20% increase in operating cash flow… driven by robust operating lease revenue, active portfolio management and sizeable settlements on insurance claims related to our Russia exposure.”

Portfolio Strategy and Fleet Modernization

ACG’s report outlined an aggressive strategy of fleet renewal and expansion throughout 2025. As of December 31, 2025, the company’s portfolio comprised 446 aircraft, including owned, managed, and committed assets. The lessor invested $3.2 billion in aircraft purchases during the year, adding 56 aircraft to its fleet. These additions were primarily focused on new-technology narrowbody aircraft, such as the Airbus A320neo, A220, and Boeing 737 MAX families.

Simultaneously, ACG continued to divest older assets to maintain a young and efficient fleet. The company sold 14 aircraft, three engines, and one airframe in 2025, generating a net gain of $57 million in the fourth quarter alone. As a result of these moves, the weighted average age of the fleet was reduced to 5.4 years, while the average remaining lease term increased to 7.1 years.

CEO Thomas Baker emphasized the forward-looking nature of these moves:

“With aircraft demand remaining strong, continuing to outpace supply… we remain focused on building a strong pipeline of assets and continuing to grow the business profitably and sustainably.”

Strategic Developments in Early 2026

Following the close of the 2025 fiscal year, ACG executed significant strategic transactions in the first quarter of 2026 to secure its long-term growth pipeline. In January 2026, the lessor finalized a major order for 50 Boeing 737 MAX jets, split evenly between 25 MAX 8 and 25 MAX 10 variants. Deliveries for this order are scheduled for the 2032–2033 timeframe. Notably, this agreement positions ACG as the largest lessor customer for the 737 MAX 10.

Additionally, in February 2026, ACG signed definitive agreements to acquire a 24-aircraft portfolio. While the official release focuses on the acquisition itself, industry reports suggest this portfolio was acquired from lessor Avolon, further boosting ACG’s immediate scale.

AirPro News Analysis

The financial results presented by ACG reflect broader trends currently defining the aviation leasing sector. The $551 million recovery related to Russia aligns with similar settlements achieved by major competitors like AerCap and SMBC throughout 2024 and 2025. These settlements have provided lessors with significant one-time capital injections, distorting headline net income figures while simultaneously resolving a major lingering uncertainty from the geopolitical fallout of 2022.

Furthermore, the 15% rise in core pre-tax income validates the “supply constraint” thesis dominating the market. With OEMs facing severe delivery delays, the value of existing “metal” has surged. Lessors with available inventory are benefiting from higher lease rates and strong secondary market values, as evidenced by ACG’s $57 million gain on divestments in Q4 alone.

Sources

• Aviation Capital Group