Engine lessor BeauTech Power Systems signed 38 new leases and extensions in the first half of the year, the company shared on July 10, 2025. The company is exploring financing opportunities such as the aviation asset backed securities (ABS) market in the future as it continues to scale up its business.
“The first half of the year was exceptionally strong,” said BeauTech COO Tobias Konrad in an interview with Airline Economics.
The company welcomed five new customers during the first half including Avianca, Alliance Airlines, Royal Air Maroc, Thai VietJet Air, and Turkish Airlines. During the period, the company added 32 engines to its portfolio, and sold 12 engines across global markets. In addition, in May, the company acquired four E175 aircraft on lease to LOT Polish Airlines from Altavair.
“A major milestone was the launch of our LEAP engine platform, marked by the signing of our first LEAP engine leases,” continued Konrad. The company acquired its first LEAP engine in October last year – a LEAP-1B28. This was the first of two LEAP engines that were to enter its fleet in 2024.
“The addition of the LEAP platform was a natural evolution and strengthens our position for the next generation of narrowbody aircraft,” he said. “This will be a key focus area for growth over the next decade.”
The company also launched a joint venture with JALUX to support its first Pratt & Whitney engine program, beginning with the V2500.”
More recently, the company acquired 12 CF34-10E engines from Alliance Aviation Services earlier in July. At the time, the company’s CEO and founder Lee Beaumont said the transaction “underscores” its leadership in the CF34 segment.
“As a market leader in the CF34 segment, we see more acquisition opportunities on this platform than with CFM56 or LEAP engines,” said Konrad.
The ongoing fleet transitions with E-Jets and CRJs are generating strong deal flow, he said, which has partly driven the acquisition opportunities.
The 12-engine acquisition was financed through its syndicated revolving credit facility. Konrad said the facility continues to provide “ample liquidity” and the company has “significant dry powder” to pursue other acquisitions and opportunities in the market.
“Looking ahead, we plan to upsize our revolver as the portfolio grows,” he said. “We’re also evaluating entry into the ABS market, though only when timing and structure align with our long-term financial strategy. Our focus remains on maintaining flexibility and cost efficiency as we scale.”
The company remains active in acquiring CFM56 and LEAP engines and is focused on expanding its portfolio in these areas. However, with the shortage of legacy CFM56-7B and -5B engines, pricing has risen “significantly”.
“Given our conservative investment approach, rooted in a self-funded capital structure with no external equity, we evaluate each opportunity with a long-term perspective and maintain strict discipline in our underwriting,” said Konrad.
BeauTech’s broader strategy is to build a “robust and diversified engine pool” – one that supports the global regional and narrowbody fleet. The first half’s strong activity will no doubt support this goal, particularly with the company expecting larger transactions in the second half of 2025.
“We’re currently tracking several significant opportunities that align well with our strategy,” said Konrad. “We’re still below our budgeted CAPEX for the year and expect to close and announce meaningful deals in the coming months. This outlook is further supported by the expansion of our acquisition team earlier this year, which positions us well to execute on a strong pipeline in the second half.”
With no crystal ball at hand to predict the current economic outlook, there has been growing economic uncertainties noted by companies across the industry. Despite this, the company has seen continued strong demand for its legacy fleet engines and expects this to remain steady in the near term.
Furthermore, Konrad said the company’s more disciplined investment approach and careful portfolio size is the “key to staying resilient” in these more turbulent economic environments. He added that this approach has positioned Beautech well over the years to navigate downturns.