Alliance Aviation Services Limited (AQZ) AI Stock Analysis

• Market Cap: AU$362.31M
• Dividend Yield: 1.32%
• Average Volume (3M): 56.67K
• Price to Earnings (P/E): 6.3
• Beta (1Y): 0.61
• Revenue Growth: 19.82%
• EPS Growth: -5.32%
• Country: AU
• Employees: 1,430
• Sector: Industrials
• Sector Strength: 72
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 0.18
• Shares Outstanding: 161,027,080
• 10 Day Avg. Volume: 75,447
• 30 Day Avg. Volume: 56,666
• PEG Ratio: -1.40
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 0.56
• P/FCF Ratio: -6.04
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$3.12
• Price Target Upside: 38.67% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 62 Neutral
• Price Target: AU$2.50 ▲(11.11% Upside)

The overall stock score of 62 reflects a mixed outlook for Alliance Aviation Services Limited. The company's strong valuation suggests potential upside, but technical indicators point to bearish momentum. Financial performance is solid, but cash flow management and leverage are areas of concern. Investors should weigh the attractive valuation against the technical and financial challenges.

Alliance Aviation Services Limited Business Overview & Revenue Model

Company Description

Alliance Aviation Services Limited (AQZ) is an Australian-based company primarily engaged in the provision of contract aviation and aviation services, including charter flight services, wet leasing, and aircraft maintenance. The company operates a fleet of aircraft serving various sectors such as resource and mining, tourism, and government, providing tailored aviation solutions across Australia and internationally.

How the Company Makes Money

Alliance Aviation Services Limited generates revenue through multiple streams, primarily from its charter flight services and wet leasing operations. The company offers contracted air transportation services to the mining and resource industries, where it provides regular and ad-hoc flights for personnel movement to remote sites. Wet leasing, which involves leasing aircraft along with crew, maintenance, and insurance, also contributes significantly to their revenue. Additionally, Alliance Aviation offers maintenance services to other aviation operators, enhancing its revenue through long-term maintenance contracts. Strategic partnerships with key clients and a diversified service offering are critical factors contributing to the company's earnings.

Alliance Aviation Services Limited Financial Statement Overview

Summary

Alliance Aviation Services Limited shows strong revenue growth and operational efficiency, but faces challenges with increased leverage and cash flow management. While profitability metrics are solid, the company needs to focus on improving its cash flow position and managing debt levels to ensure long-term financial stability.

Income Statement

Alliance Aviation Services Limited has demonstrated strong revenue growth of 12.85% in the latest year, with a significant improvement in gross profit margin to 64.83%. However, the net profit margin decreased slightly to 7.53%, indicating some pressure on profitability. The EBIT and EBITDA margins remain healthy at 14.94% and 27.04% respectively, showcasing operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has increased to 1.10, indicating higher leverage, which could pose risks if not managed carefully. Return on equity is solid at 12.23%, reflecting effective use of equity to generate profits. The equity ratio stands at 38.88%, suggesting a balanced capital structure but with room for improvement in reducing debt levels.

Cash Flow

The cash flow situation is challenging, with a significant decline in free cash flow growth at -60.78%. The operating cash flow to net income ratio is 0.85, indicating adequate cash generation relative to net income. However, the negative free cash flow to net income ratio of -0.66 highlights cash flow management issues that need addressing.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	766.83M	760.87M	637.19M	506.42M	365.45M	307.28M
Gross Profit	180.76M	493.29M	192.76M	75.81M	23.42M	60.46M
EBITDA	207.41M	205.74M	177.53M	122.27M	47.61M	86.55M
Net Income	57.32M	57.32M	60.45M	36.46M	-5.21M	33.67M
Balance Sheet
Total Assets	1.21B	1.21B	998.79M	779.78M	666.49M	605.73M
Cash, Cash Equivalents and Short-Term Investments	96.49M	96.49M	31.23M	22.32M	20.89M	36.22M
Total Debt	513.47M	513.47M	366.84M	263.37M	219.50M	185.42M
Total Liabilities	736.57M	736.57M	588.05M	430.01M	353.04M	287.59M
Stockholders Equity	468.54M	468.54M	410.74M	349.77M	313.45M	318.14M
Cash Flow
Free Cash Flow	-70.04M	-70.04M	-90.41M	-56.06M	-46.86M	-165.88M
Operating Cash Flow	105.64M	105.64M	24.74M	40.88M	52.45M	39.80M
Investing Cash Flow	-175.67M	-175.67M	-115.09M	-81.91M	-99.31M	-205.68M
Financing Cash Flow	135.28M	135.28M	99.26M	42.45M	31.53M	103.30M

Alliance Aviation Services Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AQZ, the sentiment is Negative. The current price of 2.25 is below the 20-day moving average (MA) of 2.36, below the 50-day MA of 2.51, and below the 200-day MA of 2.59, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 32.76 is Neutral, neither overbought nor oversold. The STOCH value of 14.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:AQZ.

Alliance Aviation Services Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AQZ	62 Neutral	AU$362.31M	6.32	13.04%	1.32%	19.82%	-5.32%
QAN	60 Neutral	16.66B	10.51	206.30%	4.67%	8.29%	38.28%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Alliance Aviation Services Limited Corporate Events

Alliance Aviation to Release FY25 Financial Results

Alliance Aviation Services Limited has announced the release of its Appendix 4E and Full Year Financial Report for the fiscal year ending 30 June 2025, scheduled for 20 August 2025. The company will hold an investor webcast on 21 August 2025, featuring key executives to discuss the results, indicating a commitment to transparency and stakeholder engagement.

The most recent analyst rating on (AU:AQZ) stock is a Buy with a A$4.22 price target. To see the full list of analyst forecasts on Alliance Aviation Services Limited stock, see the AU:AQZ Stock Forecast page.

Alliance Aviation Announces AGM Date and Director Elections

Alliance Aviation Services Limited has announced the date for its Annual General Meeting, which will take place on October 9, 2025, at Ballymore Stadium in Queensland, Australia. A key agenda item will be the election of directors, with nominations due by August 20, 2025. Further details will be provided in the Notice of Annual General Meeting, available on the company’s website and the ASX Market Announcements Platform.

The most recent analyst rating on (AU:AQZ) stock is a Buy with a A$4.22 price target. To see the full list of analyst forecasts on Alliance Aviation Services Limited stock, see the AU:AQZ Stock Forecast page.

Alliance Aviation Forms Strategic Partnership with AVIAN to Boost E190 Fleet Support

Alliance Aviation Services Limited has entered into a strategic agreement to sell the majority of its Embraer E190-E1 spare parts inventory to AVIAN Inventory Management for USD32.5 million. This move is part of Alliance’s strategy to enhance its operational support for the E190 fleet and reduce its net debt. The partnership with AVIAN, a leading supplier of Embraer spare parts, will establish a significant inventory presence at Brisbane Airport, benefiting both Alliance and other operators in the Asia-Pacific region. This transaction, along with a recent engine sale, aims to strengthen Alliance’s balance sheet and improve fleet reliability and service delivery.

The most recent analyst rating on (AU:AQZ) stock is a Buy with a A$4.22 price target. To see the full list of analyst forecasts on Alliance Aviation Services Limited stock, see the AU:AQZ Stock Forecast page.

Alliance Aviation Secures USD 40.2 Million from Engine Sale to Beautech

Alliance Aviation Services Limited has entered into a binding agreement with Beautech Power Systems for the sale of twelve General Electric CF34-10 engines, realizing approximately USD 40.2 million. This transaction will significantly reduce Alliance’s inventory value and net debt, aligning with the company’s objectives of unlocking surplus value and retiring debt, while strengthening its relationship with Beautech, a leading trader and lessor of aircraft engines.

The most recent analyst rating on (AU:AQZ) stock is a Buy with a A$4.22 price target. To see the full list of analyst forecasts on Alliance Aviation Services Limited stock, see the AU:AQZ Stock Forecast page.

Alliance Aviation Hosts Investor Day with Key Updates

Alliance Aviation Services Limited hosted an Investor Day on May 14, 2025, featuring presentations from key executives including the Chief Financial Officer and Managing Director. The event included a financial update and discussions on aviation services, providing stakeholders with insights into the company’s operational strategies and future plans.

The most recent analyst rating on (AU:AQZ) stock is a Buy with a A$4.47 price target. To see the full list of analyst forecasts on Alliance Aviation Services Limited stock, see the AU:AQZ Stock Forecast page.