SMBC Aviation Capital has reported a profit before tax of $563 million for the financial year ending March 31, 2025, up 22% on the year prior. Additionally, including Russian insurance settlement proceeds of $630 million, the company recorded a $1.2bn profit before tax.
Total recoveries from Russian insurance settlements to date total $1.41bn. The company said it will “continue our efforts” to further mitigate its losses in respect to aircraft lost in Russia.
The company generated an operating cash flow — adjusted for insurance settlements — of $1.9bn, up $48 million compared to a year prior.
“These very strong results demonstrate our continued ability to perform through the cycle and deliver for our customers and shareholders," said SMBC Aviation Capital CEO Peter Barrett. "Despite recent volatility, leading airlines continue to turn to SMBC Aviation Capital in even greater numbers and we are strongly positioned to drive further profit growth from our strategically timed asset purchases.”
SMBC Aviation Capital CFO Aisling Kenny said: “This success is the direct result of our long-term strategy to build a leading, in-demand portfolio of scale, underpinned by our disciplined approach to investment and portfolio management, coupled with significant balance sheet strength.”
The company noted in its earnings report that its focus on liquid aircraft will “reduce earnings volatility and maximise risk adjusted returns over the longer term”. As of the end of March, the company had a portfolio comprised of “almost entirely” A220s, A320ceo/neo family, A350s, 737-800/MAX 8s, and 787 aircraft.
In addition, SMBC said it continues to benefit from the rising demand of aircraft and the lack of available new inventory from OEMs. As of the end of March, the company had an orderbook comprising of 261 A320neo and 737 MAX family aircraft, with deliveries ranging out to 2031. This comprises of direct orders for 107 A320neo and 49 A321neo aircraft, as well as 81 737 MAX 8 jets on direct order. In addition, this also includes sale and leaseback commitments for nine Boeing and 15 Airbus aircraft.
In addition, the company had forward-placed over $6.5bn of aircraft from its orderbook including aircraft delivering as far out as 2028.
Core lease rental rose to $2bn, up $59 million compared to the previous financial year, driven by the company's continued incorporation of “higher yielding aircraft” into its fleet. The company had a record year for sales, trading 48 aircraft with $1.9bn of total asset sales.
SMBC executed over 196 aircraft transactions during the financial year for the purchase, sale, and lease of aircraft across its delivered and committed fleet.
The lessor signed $4bn in new long-term leases over the past financial year. In addition, the company had $3.3bn of aircraft delivered, growing its fleet to 510 jets as of March 31, 2025.
As of the end of the period, the company had a total net leverage and third-party net leverage of 2.46x and 1.43x, respectively. The company has an available liquidity of $14bn.