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Avation boosts operating profit, cuts leverage as new bond deal extends debt maturity

Story Highlights
  • Avation increased operating profit, cut net debt and extended unsecured funding to 2031, strengthening its capital structure.
  • The lessor maintained a 33-aircraft fleet, secured new and extended leases, and positioned for growth through ATR deliveries amid strong leasing demand.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Avation boosts operating profit, cuts leverage as new bond deal extends debt maturity

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Avation ( (GB:AVAP) ) has provided an update.

Avation reported a modest rise in revenue to US$56.0 million and a sharply higher operating profit for the six months to 31 December 2025, while remaining loss-making after tax as non-cash bond-related expenses weighed on earnings. The lessor reduced net debt, increased the number of unencumbered aircraft to 10, refinanced US$300 million of unsecured notes out to 2031, and lifted net asset value per share, signaling a stronger capital structure and improved leverage.

Operationally, Avation maintained a 33-strong fleet, reshaping its portfolio through the sale of a Boeing 777-300ER, a four-year lease extension on its remaining widebody with EVA Air, and the delivery of a new ATR 72-600 on a 12-year lease to Sum Air. The group is set for incremental growth via nine ATR 72-600s on order, while managing lease transitions, an airline customer administration, and an insured total loss of an Airbus A220-300, against a backdrop of rising global passenger traffic and tight new-aircraft supply that supports leasing demand.

The most recent analyst rating on (GB:AVAP) stock is a Hold with a £134.00 price target. To see the full list of analyst forecasts on Avation stock, see the GB:AVAP Stock Forecast page.

Spark’s Take on GB:AVAP Stock

According to Spark, TipRanks’ AI Analyst, GB:AVAP is a Neutral.

Avation’s overall stock score is primarily impacted by its financial challenges, including high leverage and negative profitability. Technical indicators also suggest bearish momentum. While recent corporate events are positive, they do not offset the fundamental financial concerns.

To see Spark’s full report on GB:AVAP stock, click here.

More about Avation

Avation PLC is a London-listed commercial passenger aircraft lessor focused on modern, fuel-efficient narrowbody and regional aircraft. The company generates most of its income from fixed-rate operating leases and maintenance reserves, pursuing high fleet utilisation, long-term leases with creditworthy airlines, and disciplined balance-sheet management to support stable cash flows and portfolio growth.

Average Trading Volume: 159,325

Technical Sentiment Signal: Hold

Current Market Cap: £87.88M

See more data about AVAP stock on TipRanks’ Stock Analysis page.

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