# Avation Clears the Runway for Growth Following Strong FY25 Results – Zeus Capital

- Link: https://www.directorstalkinterviews.com/avation-clears-the-runway-for-growth-following-strong-fy25-results-zeus-capital/4121219548
- Published: 2025-10-06T12:56:54+01:00
- Author: Anthony Fox

**[Avation plc](https://www.directorstalkinterviews.com/company/avation-plc/avap.l)**(
[LON:AVAP](https://www.directorstalkinterviews.com/company/avation-plc/avap.l)),
the commercial aircraft lessor, has reported an impressive set of results for the
financial year ended 30 June 2025, highlighting its strategic focus on fleet optimisation
and financial resilience. With a fleet of 33 aircraft and a clear commitment to 
maintaining high utilisation rates, Avation has entered FY26 with solid momentum.

In its latest research note, Zeus Capital analysts John Cummins and Charlie Cullen
praised the company’s progress, particularly its strong revenue growth and improving
balance sheet. Revenue for FY25 came in at $110.1 million, marking a 19.2% increase
year-on-year and surpassing Zeus’s expectations of $102.3 million. The boost was
driven by a combination of higher maintenance reserve revenue and improved lease
income, notably through the addition of an A320-200 in March 2025.

EBITDA rose by 20.3% to $107.1 million, despite a decline in adjusted profit before
tax (adj. PBT) to $4.2 million from $40.8 million the previous year, which had included
significant one-off fair value gains. Net debt reduced by $47 million to $604 million,
again beating Zeus’s forecast. These figures reflect Avation’s disciplined approach
to capital allocation, including the sale of two ATR 72-600 aircraft and a strategic
acquisition of a leased A320-200.

Analyst John Cummins of Zeus Capital remarked, _“We continue to view Avation as 
very well placed, with positive market dynamics, balance sheet capacity to rebuild
the fleet with further narrowbody purchases and ATR deliveries from the orderbook,
alongside improving underlying trading.”_

Avation’s active management of its fleet was a standout feature of FY25. The company
acquired an A320-200 already leased to Etihad, took delivery of two ATR 72-600s 
that were immediately sold at a profit, and successfully completed lease transitions.
Looking ahead, two additional ATR aircraft are scheduled for delivery and leasing
in FY26.

Zeus has responded to the results by upgrading its FY26 forecasts, with revenue 
now expected to reach $97.1 million and adj. PBT forecast to climb to $11.2 million–
an 18.2% increase over prior estimates. FY27 estimates have also been introduced,
reflecting a cautious but steady growth trajectory.

### FY25 Financial and Operational Highlights:

 * **Revenue:** $110.1m, up 19.2% year-on-year
 * **EBITDA:** $107.1m, up 20.3%
 * **Adj. PBT:** $4.2m, impacted by prior-year fair value gains
 * **Net Debt:** Reduced by $47m to $604m
 * **Dividend:** Full-year dividend declared at 1.0 cent
 * **Fleet Developments:** Acquired an A320-200; sold four ATR 72-600s; new lease
   placements secured

From a valuation perspective, Avation continues to trade at over a 40% discount 
to its reported NAV of 366 cents per share. Zeus notes that this is materially wider
than peers and does not reflect the premium aircraft market valuations are currently
attracting.

### In Summary

Avation’s FY25 results underscore its strategic clarity and financial discipline.
The business is well positioned to benefit from strengthening market conditions,
with growing lease revenues and reduced leverage providing a strong foundation for
future growth. Zeus Capital remains positive on the company’s prospects, noting 
both its undervaluation and its operational momentum.

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