Dubai Aerospace Enterprise (DAE) has reported an increase in first-half profit, driven by its recent acquisition of Nordic Aviation Capital (NAC) and cost efficiencies from debt refinancing and integration.
Pre-tax profit for the quarter ended June 30, rose significantly to $506.8 million, up from $154.3 million a year earlier. Revenue rose 24% to $843.6 million, while operating cash flow also increased to $659 million.
The results mark DAE’s first financial disclosure since completing the $2bn acquisition of NAC in May. The deal added 236 aircraft to its portfolio and expanded its owned, managed, and committed fleet by nearly 50% to around 750 aircraft.
The company said it expects full integration of NAC’s operations by the end of the third quarter.
“We have fully integrated the front office functions and are on track to fully integrate all middle- and back-office functions and systems by the end of this quarter,” said Firoz Tarapore, chief executive officer of DAE. “Revenue and profitability rose significantly during this period reflecting the additional revenue from the acquired business and significant savings from refinancing debt and eliminating duplicative expenses. Our capital adequacy, funding, and liquidity metrics remain very strong.”
DAE’s total assets rose to $16bn, up from $13bn at the end of 2024, while net loans and borrowings increased to $9.8bn. Liquidity coverage remained strong at 248%, and the firm’s net-debt-to-equity ratio stood at 2.60x.
DAE also reported 107 lease transactions, including new agreements and extensions, and sold 35 aircraft during the period.
Tarapore stated that in order to manage the increased operational demands from the acquisition of NAC, the company has added 30 new staff to its global workforce, supporting integration and asset management.
The lessor also confirmed it has refinanced all of NAC’s outstanding debt as of the acquisition closing date. The company said cost savings from the refinancing are expected to enhance returns over the next several quarters.
Additionally, Tarapore said during an earnings call for investors that any recently imposed US tariffs on emerging economies are expected to have no immediate impact on the business and are unlikely to significantly affect the industry in the long term.