Earnings release
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________________________________________ (1) Refer to the selected financial information accompanying this press release for a reconciliation of GAAP to Non-GAAP numbers. October 14, 2026 FOR IMMEDIATE RELEASE Contact: Aircastle (Ireland) DAC (US) Jim Connelly, SVP ESG & Corporate Communications Tel: +1-203-504-1871 jconnelly@aircastle.com Aircastle Announces Second Quarter 2026 Results Highlights for the Three Months Ended August 31, 2026 • Total revenues of $283 million and net income of $69 million • Adjusted EBITDA (1) of $247 million • Acquired 5 aircraft for $269 million, including 3 Airbus A321neo and 1 Boeing 737MAX8 • Sold 11 aircraft and other flight equipment for proceeds of $243 million and gains on sales of $38 million • New technology aircraft comprised 54% of our fleet's net book value as of August 31, 2026 Liquidity • Redeemed all 400 outstanding Series A Preference Shares • 98% of total debt is unsecured as of August 31, 2026 • Adjusted net debt-to-equity of 2.4 times as of August 31, 2026 • Total liquidity of $2.8 billion as of October 1, 2026, which includes $2.0 billion of undrawn facilities, $0.7 billion of projected adjusted operating cash flows and sales through October 1, 2027, and $0.1 billion of unrestricted cash • 259 unencumbered aircraft and other flight equipment with a net book value of $8.2 billion
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2 Mike Inglese, Aircastle’s CEO stated, “Strong travel demand and constrained aircraft supply continue to support lease rates and asset values. Significant gains on sale contributed to second quarter net income of $69 million, reinforcing a disciplined, profitability- focused approach to capital deployment. Year-to-date, we’ve invested $386 million in aircraft acquisitions and we’re moving into the second half of our fiscal year with ample liquidity and confidence in our ability to service our customers and source attractive investments.” Aviation Assets As of August 31, 2026, Aircastle owned 263 aircraft and other flight equipment having a net book value of $8.3 billion and managed an additional 5 aircraft. Owned Aircraft As of August 31, 2026 As of August 31, 2025 (Dollars in millions) Net Book Value of Flight Equipment $ 8,300 $ 8,470 Net Book Value of Unencumbered Flight Equipment $ 8,185 $ 8,351 Number of Aircraft 263 270 Number of Unencumbered Aircraft 259 266 Number of Lessees 67 75 Number of Countries 42 46 Weighted Average Age (years)(1) 9.0 8.6 Weighted Average Remaining Lease Term (years)(1) 5.3 5.7 Weighted Average Fleet Utilization during the Second Quarter(2) 97.4 % 99.7 % 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. Utilization was impacted by certain ai rcraft previously leased to a customer that has ceased operations which are expected to remain off lease for an extended period, as well as aircraft redeliveries during the period and the timing of related transitions or sales. 3. Number of managed aircraft as of August 31, 2026 includes 4 aircraft owned by our joint venture with Mizuho Leasing. Conference Call Following this press release, management will host a conference call on Wednesday, October 14, 2026, at 9:00 A.M. Eastern Time. All interested parties are welcome to participate in 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.
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3 About Aircastle Limited Aircastle Limited acquires, leases and sells commercial jet aircraft to airlines throughout the world. As of August 31, 2026, Aircastle owned and managed 268 aircraft leased to 67 airline customers located in 42 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,” “enables,” “intends,” “plans,” “positions,” “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 s ubject to a number of factors that could lead to actual results being 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.
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4 Aircastle Limited and Subsidiaries Consolidated Balance Sheets (Dollars in thousands, except share data) August 31, 2026 February 28, 2026 (Unaudited) ASSETS Cash and cash equivalents $ 173,080 $ 179,889 Accounts receivable 24,083 18,239 Flight equipment held for lease, net 8,057,814 8,267,353 Net investment in leases, net 242,197 267,085 Unconsolidated equity method investment 32,010 47,540 Other assets 302,957 209,680 Total assets $ 8,832,141 $ 8,989,786 LIABILITIES AND SHAREHOLDERS’ EQUITY LIABILITIES Borrowings from secured financings, net $ 110,823 $ 112,355 Borrowings from unsecured financings, net 5,397,989 5,139,411 Accounts payable, accrued expenses and other liabilities 392,300 381,274 Lease rentals received in advance 52,281 63,514 Security deposits 67,277 65,424 Maintenance payments 532,764 560,157 Total liabilities 6,553,434 6,322,135 Commitments and Contingencies SHAREHOLDERS’ EQUITY Preference shares, $0.01 par value, 50,000,000 shares authorized, no shares issued and outstanding at August 31, 2026 and 400 (aggregate liquidation preference of $400,000) shares issued and outstanding at February 28, 2026 — — Common shares, $0.01 par value, 250,000,000 shares authorized, 17,840 shares issued and outstanding at August 31, 2026 and February 28, 2026 — — Additional paid-in capital 1,978,774 2,378,774 Retained earnings 299,933 288,877 Total shareholders’ equity 2,278,707 2,667,651 Total liabilities and shareholders’ equity $ 8,832,141 $ 8,989,786
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5 Aircastle Limited and Subsidiaries Consolidated Statements of Income and Comprehensive Income (Dollars in thousands, except per share amounts) (Unaudited) Three Months Ended August 31, Six Months Ended August 31, 2026 2025 2026 2025 Revenues: Lease rental revenue $ 186,858 $ 190,116 $ 381,438 $ 373,159 Direct financing and sales-type lease revenue 5,389 5,191 10,827 10,333 Amortization of lease premiums, discounts and incentives 7,871 (1,513) 8,262 1,253 Maintenance revenue 43,004 9,708 67,162 47,840 Total lease revenue 243,122 203,502 467,689 432,585 Gain on sale or disposition of flight equipment 38,162 23,889 49,028 54,178 Other revenue 1,669 119 1,766 591 Total revenues 282,953 227,510 518,483 487,354 Operating expenses: Depreciation 91,728 96,762 184,556 192,578 Interest, net 75,387 70,529 146,603 139,370 Selling, general and administrative 20,331 24,247 41,907 44,938 Provision for credit losses (92) (116) (275) 26 Impairment of flight equipment 7,730 31,153 11,091 36,219 Maintenance and other costs 8,108 3,977 13,400 8,221 Total operating expenses 203,192 226,552 397,282 421,352 Other income (expense): Loss on extinguishment of debt — — — (2,973) Other 358 61,041 (136) 60,585 Total other income (expense) 358 61,041 (136) 57,612 Income from continuing operations before income taxes and earnings of unconsolidated equity method investment 80,119 61,999 121,065 123,614 Income tax provision 11,163 5,228 18,689 17,949 Earnings of unconsolidated equity method investment, net of tax 372 462 570 855 Net income $ 69,328 $ 57,233 $ 102,946 $ 106,520 Preference share dividends (5,367) (10,500) (5,367) (10,500) Net income available to common shareholders $ 63,961 $ 46,733 $ 97,579 $ 96,020 Total comprehensive income available to common shareholders $ 63,961 $ 46,733 $ 97,579 $ 96,020
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6 Aircastle Limited and Subsidiaries Consolidated Statements of Cash Flows (Dollars in thousands) (Unaudited) Six Months Ended August 31, 2026 2025 Cash flows from operating activities: Net income $ 102,946 $ 106,520 Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities: Depreciation 184,556 192,578 Amortization of deferred financing costs 9,483 9,129 Amortization of lease premiums, discounts and incentives (8,262) (1,253) Deferred income taxes 14,997 13,329 Change in net investment in leases (2,156) 2,983 Security deposits and maintenance payments included in earnings (21,822) (88,490) Gain on sale or disposition of flight equipment (49,028) (54,178) Loss on extinguishment of debt — 2,973 Impairment of flight equipment 11,091 36,219 Provision for credit losses (275) 26 Distributions from unconsolidated equity method investment 10,055 — Other — (859) Changes in certain assets and liabilities: Accounts receivable 2,880 (745) Other assets 3,515 1,950 Accounts payable, accrued expenses and other liabilities (11,559) 1,113 Lease rentals received in advance (8,127) (2,648) Net cash and cash equivalents provided by operating activities 238,294 218,647 Cash flows from investing activities: Acquisition and improvement of flight equipment (376,435) (980,225) Proceeds from sale or disposition of flight equipment 357,134 299,523 Proceeds from settlement of insurance claim — 40,926 Proceeds from sale of investment in debt securities — 10,128 Aircraft purchase deposits and progress payments, net of returned deposits and aircraft sales deposits 15,365 (584) Distributions from unconsolidated equity method investment in excess of earnings 5,475 — Other (759) 588 Net cash and cash equivalents provided by (used in) investing activities 780 (629,644) Cash flows from financing activities: Redemption of preference shares (400,000) — Proceeds from secured and unsecured debt financings 1,162,634 1,590,489 Repayments of secured and unsecured debt financings (906,687) (1,298,264) Deferred financing costs (8,384) (12,005) Security deposits and maintenance payments received 57,680 84,842 Security deposits and maintenance payments returned (48,736) (33,490) Dividends paid (102,390) (52,284) Net cash and cash equivalents (used in) provided by financing activities (245,883) 279,288 Net decrease in cash and cash equivalents (6,809) (131,709) Cash and cash equivalents at beginning of period 179,889 279,052 Cash and cash equivalents at end of period $ 173,080 $ 147,343
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7 Aircastle Limited and Subsidiaries Reconciliation of GAAP to Non-GAAP Measures EBITDA and Adjusted EBITDA Reconciliation (Dollars in thousands) (Unaudited) Three Months Ended August 31, Six Months Ended August 31, 2026 2025 2026 2025 Net income $ 69,328 $ 57,233 $ 102,946 $ 106,520 Depreciation 91,728 96,762 184,556 192,578 Amortization of lease premiums, discounts and incentives (7,871) 1,513 (8,262) (1,253) Interest, net 75,387 70,529 146,603 139,370 Income tax provision 11,163 5,228 18,689 17,949 EBITDA $ 239,735 $ 231,265 $ 444,532 $ 455,164 Adjustments: Impairment of flight equipment 7,730 31,153 11,091 36,219 Loss on extinguishment of debt — — — 2,973 Adjusted EBITDA $ 247,465 $ 262,418 $ 455,623 $ 494,356 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.