7 unchanged sentences
Refurbishing our own engines, modules and parts at significant scale incentivizes us to conduct repairs as efficiently as possible, which we believe creates a large opportunity to provide a low-cost, flexible, customer-driven alternative to engine maintenance for airlines and lessors worldwide.
−Removed: As of June 30, 2025, we had total consolidated assets of $4.1 billion and total equity of $164.9 million.
+Added: As of September 30, 2025, we had total consolidated assets of $4.2 billion and total equity of $252.5 million.
Internalization of Management
13 unchanged sentences
As a result, we recognized an impairment charge totaling $120.0 million, net of maintenance deposits for the year ended December 31, 2022, to write-off the entire carrying value of leasing equipment assets that we did not expect to recover from Ukraine and Russia.
−Removed: As of June 30, 2025, eight aircraft and seventeen engines were still located in Russia.
+Added: As of September 30, 2025, eight aircraft and seventeen engines were still located in Russia.
Our lessees are required to provide insurance coverage with respect to leased aircraft and engines, and we are named as insureds under those policies in the event of a total loss of an aircraft or engine.
8 unchanged sentences
The Strategic Capital Initiative, and its related partnerships, will allow the Company to maintain an asset-light business model while the partnerships actively acquire on-lease narrowbody aircraft at scale.
−Removed: The Company has agreed that the 2025 Partnership, and follow-on partnerships, will be the primary buyer of on-lease 737NG and A320ceo aircraft.
+Added: The 2025 Partnership, and follow-on partnerships, will be the primary buyer of on-lease 737NG and A320ceo aircraft.
The Company, as the Servicer, will manage the aircraft in the 2025 Partnership, and the Company will receive customary, market-based compensation.
−Removed: The Company has also made a minority investment and will make future investments in the 2025 Partnership.
−Removed: The Company expects to manage the aircraft for and make minority investments in, future partnerships.
+Added: The Company also made a minority capital commitment and will make additional commitments to the 2025 Partnership in the same proportion relative to additional third-party institutional investors.
Operating Segments
5 unchanged sentences
Additionally, Corporate and Other also includes offshore energy related assets, which consist of equipment that support offshore oil and gas activities and production.
−Removed: Results of Operations
Adjusted EBITDA (Non-GAAP)
5 unchanged sentences
Adjusted EBITDA is defined as net income (loss) attributable to shareholders from continuing operations, adjusted (a) to exclude the impact of provision for (benefit from) income taxes, equity-based compensation expense, acquisition and transaction expenses, losses on the modification or extinguishment of debt and preferred shares and capital lease obligations, changes in fair value of non-hedge derivative instruments, asset impairment charges, incentive allocations, depreciation and amortization expense, dividends on preferred shares and interest expense, internalization fee to affiliate, (b) to include the impact of our pro-rata share of Adjusted EBITDA from unconsolidated entities and (c) to exclude the impact of equity in earnings (losses) of unconsolidated entities and the non-controlling share of Adjusted EBITDA, if any.
−Removed: Comparison of the three and six months ended June 30, 2025 and 2024
+Added: Results of Operations
+Added: Comparison of the three and nine months ended September 30, 2025 and 2024
The following table presents our consolidated results of operations:
−Removed: Three Months Ended June 30, Change Six Months Ended
−Removed: June 30, Change
+Added: Three Months Ended September 30, Change Nine Months Ended
+Added: September 30, Change
(in thousands) 2025 2024 2025 2024
22 unchanged sentences
Gain on sale to the 2025 Partnership 4,609 — 4,609 50,083 — 50,083
−Removed: Other income (expense) 27,156 (498) 27,654 60,227 136 60,091
+Added: Other income 3,570 2,909 661 63,797 3,045 60,752
Total other expense (56,829) (55,466) (1,363) (89,750) (173,514) 83,764
6 unchanged sentences
______________________________________________________
−Removed: (1) Includes servicing fees of $2,052 and $2,600 for the three and six months ended June 30, 2025, respectively, from the 2025 Partnership
−Removed: (2) Includes the profit elimination of $(4,935) and $(11,885) for the three and six months ended June 30, 2025, respectively, and $0 and $0 for the three and six months ended June 30, 2024, respectively, for sales to the 2025 Partnership.
+Added: (1) Includes servicing fees of $3,035 and $5,635 for the three and nine months ended September 30, 2025, respectively, from the 2025 Partnership.
+Added: (2) Includes the profit elimination of $(3,908) and $(15,793) for the three and nine months ended September 30, 2025, respectively, for sales to the 2025 Partnership.
The following table sets forth a reconciliation of net income (loss) attributable to shareholders to Adjusted EBITDA:
−Removed: Three Months Ended June 30, Change Six Months Ended
−Removed: June 30, Change
+Added: Three Months Ended September 30, Change Nine Months Ended
+Added: September 30, Change
(in thousands) 2025 2024 2025 2024
13 unchanged sentences
11,657 (382) 12,039 16,513 (1,547) 18,060
−Removed: Equity in losses of unconsolidated entities (3)
+Added: Equity in losses (earnings) of unconsolidated entities (3)
316 438 (122) 1,048 1,799 (751)
2 unchanged sentences
________________________________________________________
−Removed: (1) Includes the following items for the three months ended June 30, 2025 and 2024:
+Added: (1) Includes the following items for the three months ended September 30, 2025 and 2024:
(i) depreciation and amortization expense of $55,278 and $56,775, (ii) lease intangible amortization of $534 and $3,720 and (iii) amortization for lease incentives of $12,043 and $8,958, respectively.
−Removed: Includes the following items for the six months ended June 30, 2025 and 2024:
+Added: Includes the following items for the nine months ended September 30, 2025 and 2024:
(i) depreciation and amortization expense of $170,076 and $163,386, (ii) lease intangible amortization of $5,893 and $11,482 and (iii) amortization for lease incentives of $25,950 and $19,516, respectively.
−Removed: (2) Includes the following items for the three months ended June 30, 2025 and 2024:
−Removed: (i) net loss of $68 and $694, (ii) interest expense of $1,490 and $0, (iii) depreciation and amortization expense of $3,470 and $77, and (iv) acquisition and transaction expenses of $(77) and $0, respectively.
−Removed: Includes the following items for the six months ended June 30, 2025 and 2024:
−Removed: (i) net loss of $732 and $1,361, (ii) interest expense of $1,490 and $0, (iii) depreciation and amortization expense of $3,628 and $196, and (iv) acquisition and transaction expenses of $470 and $0, respectively.
−Removed: (3) Excludes the profit elimination of $4,935 and $11,885 for the three and six months ended June 30, 2025, respectively, and $0 and $0 for the three and six months ended June 30, 2024, respectively, for sales to the 2025 Partnership.
−Removed: Comparison of the three months ended June 30, 2025 and 2024
+Added: (2) Includes the following items for the three months ended September 30, 2025 and 2024:
+Added: (i) net loss of $316 and $438, (ii) interest expense of $2,629 and $0, (iii) depreciation and amortization expense of $9,449 and $56, and (iv) tax benefit of $105 and $0, respectively.
+Added: Includes the following items for the nine months ended September 30, 2025 and 2024:
+Added: (i) net loss of $1,048 and $1,799, (ii) interest expense of $4,119 and $0, (iii) depreciation and amortization expense of $13,077 and $252, (iv) acquisition and transaction expenses of $470 and $0, and (v) tax benefit of $105 and $0 respectively.
+Added: (3) Excludes the profit elimination of $3,908 and $15,793 for the three and nine months ended September 30, 2025, for sales to the 2025 Partnership.
+Added: Comparison of the three months ended September 30, 2025 and 2024
Total revenues increased by $201.3 million, driven by the following:
• Aerospace products revenue increased by $155.7 million, primarily due to a $145.7 million increase in CFM56-5B, CFM56-7B and V2500 engine and module sales, as well as a $7.4 million increase in other maintenance service revenues.
−Removed: • MRE Contract revenue increased by $69.6 million, primarily due to an increase in CFM56-5B and CFM56-7B engine and module sales made to the 2025 Partnership.
−Removed: • Maintenance revenue increased by $21.9 million, primarily due to an increase in aircraft maintenance revenue of $23.1 million driven by an increase in utilization and higher maintenance reserves taken into revenue, partially offset by the sale of Seed Assets to the 2025 Partnership.
−Removed: • Asset sales revenue decreased by $24.5 million, primarily due to an overall decrease in the number of sales transactions of commercial aircraft and engines.
−Removed: Specifically, one engine sold in Q2 2025 as compared to six engines sold in Q2 2024.
+Added: • MRE Contract revenue increased by $58.7 million, primarily due to an increase in engine and module sales made to the 2025 Partnership.
• Lease income decreased by $10.4 million, primarily due to a decrease of $8.1 million in the Offshore Energy business driven by the sale of the two vessels during Q4 2024 and a decrease in aircraft lease revenue of $9.0 million driven by the sale of Seed Assets to the 2025 Partnership.
This was partially offset by an increase in engine lease revenue of $6.6 million.
−Removed: • Other revenue decreased by $1.5 million, primarily due to the sale of the two vessels during Q4 2024 in the Offshore Energy business.
−Removed: Comparison of the six months ended June 30, 2025 and 2024
+Added: Comparison of the nine months ended September 30, 2025 and 2024
Total revenues increased by $609.3 million, driven by the following:
• Aerospace products revenue increased $406.6 million, primarily due to a $382.7 million increase in CFM56-5B, CFM56-7B and V2500 engine and module sales, as well as a $19.3 million increase in other maintenance service revenues.
−Removed: • MRE Contract revenue increased by $170.2 million, primarily due to an increase in CFM56-5B and CFM56-7B engine and module sales made to the 2025 Partnership.
−Removed: • Maintenance reve nue increased by $25.7 million, primarily due to an increase in aircraft maintenance revenue of $24.7 million driven by an increase in utilization and higher maintenance reserves taken into revenue, partially offset by the sale of Seed Assets to the 2025 Partnership.
−Removed: • Lease income increased by $7.0 million, primarily due to an increase in aircraft lease revenue of $9.2 million and an increase in engine lease revenue of $10.1 million, driven by an increased number of aircraft and engines on lease in addition to higher rental rates.
−Removed: This was partially offset by a decrease of $12.3 million in the Offshore Energy business driven by the sale of the two vessels during Q4 2024.
−Removed: • Asset sales revenue decreased by $44.2 million, primarily due to an overall decrease in the number of sales transactions of commercial aircraft and engines.
−Removed: Specifically, one engine sold in 2025 as compared to 10 engines sold in the prior-year period.
−Removed: • Other revenue decreased by $1.6 million, primarily due to the sale of the two vessels during Q4 2024 in the Offshore Energy business.
−Removed: Comparison of the three months ended June 30, 2025 and 2024
−Removed: Total expenses decreased by $140.4 million, driven by the following:
−Removed: • Internalization fee to affiliate decreased by $300.0 million relating to the Internalization effective May 28, 2024.
−Removed: • Depreciation and amortization decreased by $1.5 million, primarily driven by the increase of assets held-for-sale and the sale of Seed Assets to the 2025 Partnership.
−Removed: • Acquisition and transaction expenses decreased by $3.5 million primarily due to lower professional fees associated with the Internalization and the sale of the Offshore Energy vessels.
−Removed: • Management fees and incentive allocation to affiliate decreased by $3.6 million, due to no management and incentive fees paid to the Former Manager during 2025, with the Internalization effective May 28, 2024 .
+Added: • MRE Contract revenue increased by $228.9 million, primarily due to an increase in engine and module sales made to the 2025 Partnership.
+Added: • Maintenance reve nue increased by $18.2 million, primarily due to an increase in aircraft maintenance revenue of $17.7 million driven by higher end-of-lease return compensation and an increase in the recognition of maintenance deposits due to aircraft redelivery, partially offset by a decrease in utilization and number of aircraft on lease.
+Added: • Asset sales revenue decreased by $40.7 million, primarily due to change in product mix of assets sold in the current period as compared to the prior period.
+Added: Specifically, while the number of total assets sold in the current period was higher than prior period, the number of engines sold in the prior period was higher than the current period.
+Added: Comparison of the three months ended September 30, 2025 and 2024
+Added: Total expenses increased by $149.7 million, driven by the following:
• Cost of sales increased by $143.4 million, primarily due to increases in CFM56-5B, CFM56-7B and V2500 engine and module sales, and parts inventory sales, which directly corresponds to components of increases in Aerospace products revenue over the same period.
−Removed: This was partially offset by a decrease of $7.2 million, primarily due to an overall decrease in the number of sales transactions of commercial aircraft and engines, which is in line with an overall decrease in the corresponding asset sales revenue.
−Removed: • Operating expenses increased by $5.2 million, primarily due to higher compensation and benefits expense due to an increase in employee headcount and increased overall compensation.
−Removed: Comparison of the six months ended June 30, 2025 and 2024
−Removed: Total expenses decreased by $23.1 million, driven by the following:
−Removed: • Internalization fee to affiliate decreased by $300.0 million relating to the Internalization effective May 28, 2024.
−Removed: • Management fees and incentive allocation to affiliate decreased by $8.4 million, due to no management and incentive fees paid to the Former Manager during 2025, with the Internalization effective May 28, 2024 .
−Removed: • Acquisition and transaction expenses decreased by $2.4 million, primarily due to lower professional fees associated with the Internalization and the sale of the Offshore Energy vessels.
+Added: Comparison of the nine months ended September 30, 2025 and 2024
+Added: Total expenses increased by $126.6 million, driven by the following:
• Cost of sales increased by $412.7 million, primarily due to increases in CFM56-5B, CFM56-7B and V2500 engine and module sales, and parts inventory sales, which directly corresponds to components of increases in Aerospace products revenue over the same period.
−Removed: This was partially offset by a decrease of $19.1 million, primarily due to an overall decrease in the number of sales transactions of commercial aircraft and engines, which is in line with an overall decrease in the corresponding asset sales revenue.
−Removed: • Operating expenses increased by $12.4 million, primarily due to higher compensation and benefits expense due to an increase in employee headcount and increased overall compensation.
−Removed: • Depreciation and amortization increased by $8.2 million, primarily driven by an increase in the number of assets owned and on lease during the period, partially offset by an increase of assets held-for-sale and the sale of Seed Assets to the 2025 Partnership.
+Added: • Internalization fee to affiliate decreased by $300.0 million relating to the Internalization effective May 28, 2024.
Other (expense) income
−Removed: Total other expense decreased by $63.1 million during the three months ended June 30, 2025 due to the following:
−Removed: • Gain on sale to the 2025 Partnership increased by $34.6 million, primarily driven by the sale of 33 aircraft to the 2025 Partnership within the Aviation Leasing Segment.
−Removed: • Other income increased by $27.7 million, primarily due to a $24.2 million insurance settlement and a $2.2 million increase in interest income earned on financing receivables within the Aviation Leasing Segment.
−Removed: • Loss on debt extinguishment decreased by $13.9 million driven by the 2024 redemption of Senior Notes due 2025 and partial redemption of Senior Notes due 2027.
−Removed: • Interest expense increased by $8.8 million, reflecting an increase in the average debt outstanding of approximately $657.4 million, primarily due to increases in (i) the Senior Notes due 2032 of $533.3 million, which were issued in June 2024, (ii) the Senior Notes due 2033 of $497.7 million, which were issued in October 2024, partially offset by decreases in (iii) the Senior Notes due 2027 of $310.3 million, which were redeemed in October 2024, and (iv) the Revolving Credit Facility of $63.3 million.
+Added: Comparison of the three months ended September 30, 2025 and 2024
+Added: Total other expense increased by $1.4 million driven by the following:
+Added: • Gain on sale to the 2025 Partnership increased by $4.6 million, resulting from the sale of 8 aircraft to the 2025 Partnership within the Aviation Leasing Segment.
+Added: • Interest expense increased by $2.8 million, reflecting an increase in interest expense of $7.3 million on the 5.875% Senior Notes due 2033, which were issued in October 2024, partially offset by decreases in interest expense in (i) the 9.75% Senior Notes due 2027, which were redeemed in October 2024, of $3.2 million and (ii) the Revolving Credit Facility of $1.5 million, driven by the increase in average debt outstanding of $66.7 million.
• Equity in losses of unconsolidated entities increased by $3.8 million, primarily driven by the profit elimination of $3.9 million for sales to the 2025 Partnership.
−Removed: Total other expense decreased by $85.1 million during the six months ended June 30, 2025 due to the following:
+Added: Comparison of the nine months ended September 30, 2025 and 2024
+Added: Total other expense decreased by $83.8 million driven by the following:
• Other income increased by $60.8 million, primarily due to a $54.3 million insurance settlement and a $5.3 million increase in interest income earned on financing receivables within our Aviation Leasing Segment.
−Removed: • Gain on sale to the 2025 Partnership increased by $45.5 million, primarily driven by the sale of 37 aircraft to the 2025 Partnership within the Aviation Leasing Segment.
+Added: • Gain on sale to the 2025 Partnership increased by $50.1 million, resulting from the sale of 45 aircraft to the 2025 Partnership within the Aviation Leasing Segment.
• Loss on debt extinguishment decreased by $13.9 million driven by the 2024 redemption of Senior Notes due 2025 and partial redemption of Senior Notes due 2027.
−Removed: • Interest expense increased $23.1 million, reflecting an increase in the average debt outstanding of approximately $806.5 million, primarily due to increases in (i) the Senior Notes due 2032 of $666.7 million, which were issued in June 2024, (ii) the Senior Notes due 2033 of $497.7 million, which were issued in October 2024, and (iii) the Senior Notes due 2031 of $350.0 million, which were issued in April 2024, partially offset by decreases in (iv) the Senior Notes due 2027 of $355.2 million, which were redeemed in October 2024, (v) the Senior Notes due 2025 of $325.9 million, which were redeemed in April 2024, and (vi) the Revolving Credit Facility of $26.7 million.
+Added: • Interest expense increased by $25.9 million, reflecting increases in interest expense in (i) the 7.00% Senior Notes due 2032 of $26.0 million, (ii) the 5.875% Senior Notes due 2033 of $22.0 million, and (iii) the 7.00% Senior Notes due 2031 of $13.8 million.
+Added: These were partially offset by decreases in interest expense in (i) the 9.75% senior notes due 2027 of $22.0 million, and (ii) the 6.5% senior notes due 2025 of 13.0 million.
• Equity in losses of unconsolidated entities increased by $15.0 million, primarily driven by the profit elimination of $15.8 million for sales to the 2025 Partnership.
Provision for (benefit from) income taxes
−Removed: The provision for income taxes increased $50.9 million and $68.2 million during the three and six months ended June 30, 2025, respectively, primarily driven by higher income discussed above generated in the Aircraft Leasing and Aerospace Products segments within taxable jurisdictions.
+Added: The provision for income taxes increased $19.0 million and $87.2 million for the three and nine months ended September 30, 2025, respectively, as compared to the prior period, primarily driven by the higher income generated in the Aerospace Products segment within taxable jurisdictions for both the three and nine months ended September 30, 2025, and the higher income generated in the Aviation Leasing segment within taxable jurisdictions for the nine months ended September 30, 2025.
Net income (loss)
−Removed: Net income increased by $385.3 million and $448.0 million for the three and six months ended June 30, 2025 as compared to prior years primarily due to the changes noted above.
+Added: Net income increased by $31.2 million and $479.3 million for the three and nine months ended September 30, 2025, respectively, as compared to the prior period, primarily due to the changes noted above.
Adjusted EBITDA (Non-GAAP)
−Removed: Adjusted EBITDA increased by $133.9 million and $238.4 million during the three and six months ended June 30, 2025 as compared to prior years primarily due to the changes noted above.
+Added: Adjusted EBITDA increased by $65.4 million and $303.7 million for the three and nine months ended September 30, 2025, respectively, as compared to the prior period, primarily due to the changes noted above.
Aviation Leasing Segment
−Removed: As of June 30, 2025, in our Aviation Leasing segment, we own and manage 375 aviation assets, consisting of 63 commercial aircraft and 312 engines, including eight aircraft and seventeen engines that were still located in Russia.
−Removed: As of June 30, 2025, 53 of our commercial aircraft and 166 of our engines were leased to operators or other third parties.
+Added: As of September 30, 2025, in our Aviation Leasing segment, we own and manage 323 aviation assets, consisting of 48 commercial aircraft and 275 engines, including eight aircraft and seventeen engines that were still located in Russia.
+Added: As of September 30, 2025, 39 of our commercial aircraft and 167 of our engines were leased to operators or other third parties.
Aviation assets currently off lease are either undergoing repair and/or maintenance, being prepared to go on lease or held in short term storage awaiting a future lease.
−Removed: Our aviation equipment was approximately 70% utilized during the three months ended June 30, 2025, based on the percent of days on-lease in the quarter weighted by the monthly average equity value of our aviation leasing equipment, excluding airframes.
+Added: Our aviation equipment was approximately 76% utilized during the three months ended September 30, 2025, based on the percent of days on-lease in the quarter weighted by the monthly average equity value of our aviation leasing equipment, excluding airframes.
Our aircraft currently have a weighted average remaining lease term of 47 months, and our engines currently on-lease have an average remaining lease term of 35 months.
5 unchanged sentences
Transfers — (33) (33)
−Removed: Assets at June 30, 2025 5 58 63
+Added: Assets at September 30, 2025
Assets at January 1, 2025 23 289 312
2 unchanged sentences
Transfers — (102) (102)
−Removed: Assets at June 30, 2025 22 290 312
+Added: Assets at September 30, 2025 18 257 275
The following table presents our results of operations for our Aviation Leasing segment:
−Removed: Three Months Ended June 30, Change Six Months Ended
−Removed: June 30, Change
+Added: Three Months Ended September 30, Change Nine Months Ended
+Added: September 30, Change
(in thousands) 2025 2024 2025 2024
14 unchanged sentences
Gain on sale to the 2025 Partnership 4,609 — 4,609 50,083 — 50,083
−Removed: Other income (expense) 26,974 (911) 27,885 59,593 (542) 60,135
−Removed: Total other income (expense) 60,796 (972) 61,768 103,508 (749) 104,257
+Added: Other income 2,103 1,982 121 61,696 1,440 60,256
+Added: Total other income 5,629 1,982 3,647 109,137 1,233 107,904
Income before income taxes 56,112 68,494 (12,382) 283,370 175,197 108,173
2 unchanged sentences
______________________________________________________
−Removed: (1) Includes servicing fees of $2,052 and $2,600 for the three and six months ended June 30, 2025, respectively, from the 2025 Partnership.
+Added: (1) Includes servicing fees of $3,035 and $5,635 for the three and nine months ended September 30, 2025, respectively, from the 2025 Partnership.
The following table sets forth a reconciliation of net income attributable to shareholders to Adjusted EBITDA:
−Removed: Three Months Ended June 30, Change Six Months Ended
−Removed: June 30, Change
+Added: Three Months Ended September 30, Change Nine Months Ended
+Added: September 30, Change
(in thousands) 2025 2024 2025 2024
17 unchanged sentences
________________________________________________________
−Removed: (1) Includes the following items for the three months ended June 30, 2025 and 2024:
+Added: (1) Includes the following items for the three months ended September 30, 2025 and 2024:
(i) depreciation expense of $50,226 and $52,455, (ii) lease intangible amortization of $534 and $3,720 and (iii) amortization for lease incentives of $12,043 and $8,958, respectively.
−Removed: Includes the following items for the six months ended June 30, 2025 and 2024:
+Added: Includes the following items for the nine months ended September 30, 2025 and 2024:
(i) depreciation expense of $155,710 and $151,211, (ii) lease intangible amortization of $5,893 and $11,482 and (iii) amortization for lease incentives of $25,950 and $19,516, respectively.
−Removed: (2) Includes the following items for the three months ended June 30, 2025 and 2024:
−Removed: (i) net loss of $782 and $61, (ii) interest expense of $1,490 and $0, (iii) depreciation and amortization of $3,301 and $21 and (iv) acquisition and transaction expenses of $(77) and $0, respectively.
−Removed: Includes the following items for the six months ended June 30, 2025 and 2024:
+Added: (2) Includes the following items for the three months ended September 30, 2025 and 2024:
+Added: (i) net loss of $1,083 and $0, (ii) interest expense of $2,629 and $0, and (iii) depreciation and amortization of $9,029 and $0, respectively.
+Added: Includes the following items for the nine months ended September 30, 2025 and 2024:
(i) net loss of $2,642 and $207, (ii) interest expense of $4,119 and $0, (iii) depreciation and amortization of $12,432 and $84 and (iv) acquisition and transaction expenses of $470 and $0, respectively.
−Removed: Comparison of the three months ended June 30, 2025 and 2024
−Removed: Total reven ue increased by $1.5 million, driven by the following:
−Removed: • Maintenance revenue increased by $21.9 million, primarily due to an increase in aircraft maintenance revenue of $23.1 million driven by an increase in utilization and higher maintenance reserves taken into revenue, partially offset by the sale of Seed Assets to the 2025 Partnership.
+Added: Comparison of the three months ended September 30, 2025 and 2024
+Added: Total reven ue decreased by $3.1 million, driven by the following:
+Added: • Maintenance revenue decreased by $7.5 million, primarily due to a decrease in aircraft maintenance revenue of $7.0 million, driven by the sale of Seed Assets to the 2025 Partnership, as well as a decrease in utilization.
+Added: • Lease income decreased by $2.3 million due to a decrease in aircraft lease revenue of $9.0 million, driven by the sale of Seed Assets to the 2025 Partnership, partially offset by an increase in engine lease revenue of $6.6 million.
+Added: • Asset sales revenue increased by $3.5 million, primarily due to an overall increase in the number of sales transactions of commercial aircraft and engines in the current period as compared to the prior period.
• Other revenue increased by $3.2 million as a result of servicing fees earned in our capacity as the Servicer to the 2025 Partnership.
−Removed: • Lease income increased by $1.7 million due to an increase in engine lease revenue of $4.1 million, partially offset by a decrease in aircraft lease revenue of $2.4 million driven by the sale of Seed Assets to the 2025 Partnership.
−Removed: • Asset sales revenue decreased by $24.5 million, primarily due to an overall decrease in the number of sales transactions of commercial aircraft and engines.
−Removed: Specifically, one engine sold in Q2 2025 as compared to six engines sold in Q2 2024.
−Removed: Comparison of the six months ended June 30, 2025 and 2024
+Added: Comparison of the nine months ended September 30, 2025 and 2024
Total revenue increased $0.2 million, driven by the following:
−Removed: • Maintenance revenue increased by $25.7 million, primarily due to an increase in aircraft maintenance revenue of $24.7 million driven by an increase in utilization and higher maintenance reserves taken into revenue, partially offset by the sale of Seed Assets to the 2025 Partnership.
−Removed: • Lease income increased by $19.3 million, due to an increase in aircraft lease revenue of $9.2 million and an increase in engine lease revenue of $10.1 million, driven by an increased number of aircraft and engines on lease in addition to higher rental rates.
+Added: • Maintenance revenue increased by $18.2 million, primarily due to an increase in aircraft maintenance revenue of $17.7 million driven by higher end-of-lease return compensation and an increase in the recognition of maintenance deposits due to aircraft redelivery, partially offset by the sale of Seed Assets to the 2025 Partnership, as well as a decrease in utilization.
+Added: • Lease income increased by $17.0 million, primarily due to an increase in engine lease revenue of $16.9 million, driven by an increased number of engines on lease in addition to higher rental rates.
• Other revenue increased by $5.6 million as a result of servicing fees earned in our capacity as the Servicer to the 2025 Partnership.
−Removed: • Asset sales revenue decreased by $44.2 million, primarily due to an overall decrease in the number of sales transactions of commercial aircraft and engines.
−Removed: Specifically, one engine sold in 2025 as compared to 10 engines sold in the prior-year period.
−Removed: Comparison of the three months ended June 30, 2025 and 2024
−Removed: Total expenses decreased by $8.5 million, driven by the following:
−Removed: • Cost of sales decreased by $7.2 million, primarily due to an overall decrease in the number of sales transactions of commercial aircraft and engines, which is in line with an overall decrease in the corresponding asset sales revenue.
−Removed: • Depreciation and amortization expense decreased by $2.2 million, primarily driven by the increase of assets held-for-sale and the sale of Seed Assets to the 2025 Partnership.
−Removed: Comparison of the six months ended June 30, 2025 and 2024
+Added: • Asset sales revenue decreased by $40.7 million, primarily due to change in product mix of assets sold in the current period as compared to the prior period.
+Added: Specifically, while the number of total assets sold in the current period was higher than prior period, the number of engines sold in the prior period was higher than the current period.
+Added: Comparison of the three months ended September 30, 2025 and 2024
+Added: Total expenses increased by $13.0 million, driven by the following:
+Added: • Cost of sales increased by $14.1 million, primarily due to an increase in asset sales as compared to the prior period.
+Added: • Depreciation and amortization expense decreased by $2.2 million, primarily driven by the sale of Seed Assets to the 2025 Partnership.
+Added: Comparison of the nine months ended September 30, 2025 and 2024
Total expenses decreased by $0.1 million, driven by the following:
• Cost of sales decreased by $5.0 million, primarily due to an overall decrease in the number of sales transactions of commercial aircraft and engines, which is in line with an overall decrease in the corresponding asset sales revenue.
−Removed: • Depreciation and amortization expense increased by $6.7 million, primarily driven by an increase in the number of assets owned and on lease during the period, partially offset by an increase of assets held-for-sale and the sale of Seed Assets to the 2025 Partnership.
+Added: • Depreciation and amortization expense increased by $4.5 million, primarily driven by a higher average book value of engines on lease, partially offset by the sale of Seed Assets to the 2025 Partnership during the period.
Other income (expense)
−Removed: Total other income increased by $61.8 million and $104.3 million during the three and six months ended June 30, 2025, primarily due to (i) an insurance settlement of $24.2 million and $54.3 million, respectively, (ii) gains on sale to the 2025 Partnership of $34.6 million and $45.5 million, respectively, and (iii) a $2.2 million and $4.5 million increase in interest income earned on financing receivables during 2025, respectively.
+Added: Total other income increased by $3.6 million and $107.9 million for the three and nine months ended September 30, 2025, respectively, as compared to the prior period, primarily due to (i) gains on sale to the 2025 Partnership of $4.6 million and $50.1 million, respectively, (ii) a $0.8 million and $5.3 million increase in interest income earned on financing receivables during 2025, respectively, and (iii) an insurance settlement of $54.3 million in the nine months ended September 30, 2025.
Provision for income taxes
−Removed: The provision for income taxes increased by $18.2 million and $32.5 million during the three and six months ended June 30, 2025, respectively, primarily due to the increase in income discussed above from leasing activities in jurisdictions subject to taxes.
−Removed: Net income increased by $53.7 million and $88.1 million during the three and six months ended June 30, 2025, respectively, primarily due to the changes noted above.
+Added: The provision for income taxes increased by $5.6 million and $38.1 million for the three and nine months ended September 30, 2025, respectively, as compared to the prior period, primarily due to the respective changes in income discussed above from leasing activities in jurisdictions subject to taxes.
+Added: Net income decreased by $18.0 million and increased by $70.1 million for the three and nine months ended September 30, 2025, respectively, as compared to the prior period, primarily due to the changes noted above.
Adjusted EBITDA (Non-GAAP)
−Removed: Adjusted EBITD A increased by $74.3 million and $131.5 million during the three and six months ended June 30, 2025, respectively, primarily due to the changes noted above.
+Added: Adjusted EBITD A decreased by $2.0 million and increased by $129.5 million for the three and nine months ended September 30, 2025, respectively, as compared to the prior period, primarily due to the changes noted above.
Aerospace Products Segment
1 unchanged sentence
Our engine, module, and parts sales are facilitated through a dedicated commercial maintenance program designed to focus on modular and parts repair and refurbishment of these engines.
−Removed: We entered into an agreement with our MRE business to supply replacement aircraft engines and modules for the life of the 2025 Partnership.
To further enhance this business and establish permanent engine and module manufacturing capabilities, we acquired Lockheed Martin Commercial Engine Solutions (LMCES).
−Removed: Refer to Note 3, “Acquisition of Lockheed Martin Commercial Engine Solutions,” for additional information.
+Added: Refer to Note 3, “Acquisition of Lockheed Martin Commercial Engine Solutions” in our “Notes to Consolidated Financial Statements” for additional information.
+Added: We entered into an agreement within our MRE business to supply replacement aircraft engines and modules for the life of the 2025 Partnership.
Other serviceable used modules and parts are sold through our exclusive partnership, which is responsible for the teardown, repair, marketing, and sales of parts from our CFM56-5B and CFM56-7B engine pool.
3 unchanged sentences
The following table presents our results of operations:
−Removed: Three Months Ended June 30, Change Six Months Ended
−Removed: June 30, Change
+Added: Three Months Ended September 30, Change Nine Months Ended
+Added: September 30, Change
(in thousands) 2025 2024 2025 2024
14 unchanged sentences
The following table sets forth a reconciliation of net income attributable to shareholders to Adjusted EBITDA:
−Removed: Three Months Ended June 30, Change Six Months Ended
−Removed: June 30, Change
+Added: Three Months Ended September 30, Change Nine Months Ended
+Added: September 30, Change
(in thousands) 2025 2024 2025 2024
16 unchanged sentences
________________________________________________________
−Removed: (1) Includes the following items for the three months ended June 30, 2025 and 2024:
−Removed: (i) net income of $714 and net loss of $633 and (ii) depreciation and amortization expense of $169 and $56, respectively.
−Removed: Includes the following items for the six months ended June 30, 2025 and 2024:
−Removed: (i) net income of $827 and net loss of $1,154 and (ii) depreciation and amortization expense of $225 and $112, respectively.
−Removed: Comparison of the three months ended June 30, 2025 and 2024
+Added: (1) Includes the following items for the three months ended September 30, 2025 and 2024:
+Added: (i) net income of $767 and net loss of $438, (ii) depreciation and amortization expense of $420 and $56, and (iii) tax benefit of $105 and $0, respectively.
+Added: Includes the following items for the nine months ended September 30, 2025 and 2024:
+Added: (i) net income of $1,594 and net loss of $1,592, (ii) depreciation and amortization expense of $645 and $168, and (iii) tax benefit of $105 and $0, respectively.
+Added: Comparison of the three months ended September 30, 2025 and 2024
Total revenues increased by $214.4 million, due to the following:
• Aerospace Products revenue increased by $155.7 million, primarily due to a $145.7 million increase in CFM56-5B, CFM56-7B and V2500 engine and module sales, as well as a $7.4 million increase in other maintenance service revenues.
−Removed: • MRE Contract revenue increased by $69.6 million, primarily due to an increase in CFM56-5B and CFM56-7B engine and module sales made to the 2025 Partnership.
−Removed: Comparison of the six months ended June 30, 2025 and 2024
+Added: • MRE Contract revenue increased by $58.7 million, primarily due to an increase in engine and module sales made to the 2025 Partnership.
+Added: Comparison of the nine months ended September 30, 2025 and 2024
Total revenues increased by $635.5 million, due to the following:
• Aerospace Products revenue increased by $406.6 million, primarily due to a $382.7 million increase in CFM56-5B, CFM56-7B and V2500 engine and module sales, as well as a $19.3 million increase in other maintenance service revenues.
−Removed: • MRE Contract revenue increased by $170.2 million, primarily due to an increase in CFM56-5B and CFM56-7B engine and module sales made to the 2025 Partnership.
−Removed: Comparison of the three months ended June 30, 2025 and 2024
+Added: • MRE Contract revenue increased by $228.9 million, primarily due to an increase in engine and module sales made to the 2025 Partnership.
+Added: Comparison of the three months ended September 30, 2025 and 2024
Tota l expenses increased by $138.4 million, due to the following:
1 unchanged sentence
• Operating expenses increased by $7.9 million, primarily due to higher compensation and benefits expense due to the acquisition of LMCES and an increase in shipping and logistics expense.
−Removed: Comparison of the six months ended June 30, 2025 and 2024
+Added: Comparison of the nine months ended September 30, 2025 and 2024
Tota l expenses increased by $434.8 million, due to the following:
• Cost of sale s increased by $417.8 million, primarily due to increases in CFM56-5B, CFM56-7B and V2500 engine and module sales and parts inventory sales, which directly corresponds to components of increases in Aerospace products revenue over the same period.
−Removed: • Operating expenses increased by $0.8 million, primarily due to higher compensation and benefits expense due to the acquisitions of LMCES.
+Added: • Operating expenses increased by $8.7 million, primarily due to higher compensation and benefits expense due to the acquisition of LMCES.
• Depreciation and amortization increased by $8.0 million due to the acquisition of LMCES in the third quarter of 2024.
Provision for income taxes
−Removed: The provision for income taxes increased by $20.9 million and $37.7 million during the three and six months ended June 30, 2025, respectively, primarily due to the increase in income discussed above from Aerospace Products activities in jurisdictions subject to taxes.
−Removed: Net income increased $48.7 million and $88.9 million during the three and six months ended June 30, 2025, respectively, primarily due to the changes noted above.
+Added: The provision for income taxes increased by $22.4 million and $60.2 million for the three and nine months ended September 30, 2025, respectively, as compared to the prior period, primarily due to the increase in income discussed above from Aerospace Products activities in jurisdictions subject to taxes.
+Added: Net income increased $54.8 million and $143.7 million for the three and nine months ended September 30, 2025, respectively, as compared to the prior period, primarily due to the changes noted above.
Adjusted EBITDA (Non-GAAP)
−Removed: Adjusted EBITD A increased $73.6 million and $134.3 million during the three and six months ended June 30, 2025, respectively, primarily due to the changes noted above.
+Added: Adjusted EBITD A increased $78.6 million and $212.9 million for the three and nine months ended September 30, 2025, respectively, as compared to the prior period, primarily due to the changes noted above.
Corporate and Other
The following table presents our results of operations:
−Removed: Three Months Ended June 30, Change Six Months Ended
−Removed: June 30, Change
+Added: Three Months Ended September 30, Change Nine Months Ended
+Added: September 30, Change
(in thousands) 2025 2024 2025 2024
21 unchanged sentences
The following table sets forth a reconciliation of net loss attributable to shareholders to Adjusted EBITDA:
−Removed: Three Months Ended June 30, Change Six Months Ended
−Removed: June 30, Change
+Added: Three Months Ended September 30, Change Nine Months Ended
+Added: September 30, Change
(in thousands) 2025 2024 2025 2024
14 unchanged sentences
Adjusted EBITDA (non-GAAP) $ (13,540) $ (6,207) $ (7,333) $ (42,393) $ (19,507) $ (22,886)
−Removed: Total revenues decreased $14.0 million and $16.3 million during the three and six months ended June 30, 2025 primarily due to the sale of the two vessels within the Offshore Energy business during the fourth quarter of 2024.
−Removed: Comparison of the three months ended June 30, 2025 and 2024
+Added: Total revenues decreased $10.1 million and $26.3 million for the three and nine months ended September 30, 2025, respectively, as compared to the prior period, primarily due to the sale of the two vessels within the Offshore Energy business during the fourth quarter of 2024.
+Added: Comparison of the three months ended September 30, 2025 and 2024
Total expens es decreased by $1.7 million, due to the following:
−Removed: • Internalization fee to affiliate decreased $300.0 million relating to the Internalization effective May 28, 2024.
−Removed: • Management fees and incentive allocation to affiliate decreased by $3.6 million, due no management and incentive fees paid to the Former Manager during 2025, with the Internalization effective May 28, 2024.
• Acquisition and transaction expense decreased $1.7 million, primarily due to lower professional fees associated with the Internalization.
• Depreciation and amortization decreased by $1.9 million, due to the sale of the two vessels within the Offshore Energy business during the fourth quarter of 2024.
−Removed: • Operating expenses increased $0.4 million primarily due to higher compensation and benefits expense due to an increase in employee headcount and increased overall compensation.
−Removed: Comparison of the six months ended June 30, 2025 and 2024
−Removed: Total expenses decreased by $306.4 million, due to the following:
−Removed: • Internalization fee to affiliate decreased $300.0 million relating to the Internalization effective May 28, 2024.
−Removed: • Management fees and incentive allocation to affiliate decreased by $8.4 million, due to no management and incentive fees paid to the Former Manager during 2025, with the Internalization effective May 28, 2024.
−Removed: • Depreciation and amortization decreased by $4.0 million, due to the sale of the two vessels within the Offshore Energy business during the fourth quarter of 2024.
−Removed: • Acquisition and transaction expense decreased $2.9 million primarily due to lower professional fees associated with the Internalization and the sale of the Offshore Energy vessels.
+Added: • General and administrative decreased by $2.2 million, primarily due higher expenses in the comparative period related to the Internalization effective May 28, 2024.
• Operating expenses increased $4.2 million, primarily due to higher compensation and benefits expense due to an increase in employee headcount and increased overall compensation.
+Added: Comparison of the nine months ended September 30, 2025 and 2024
+Added: Total expenses decreased by $308.1 million, primarily due to the Internalization effective May 28, 2024, which resulted in an internalization fee to affiliate of $300.0 million in the comparative period.
Other income (expense)
−Removed: Total other expense decreased by $4.9 million during the three months ended June 30, 2025, due to the following:
−Removed: • Loss on extinguishment of debt decreased by $13.9 million, driven by the 2024 redemption of Senior Notes due 2025 and partial redemption of Senior Notes due 2027.
−Removed: • Interest expense increased by $8.8 million, reflecting an increase in the average debt outstanding of approximately $657.4 million, primarily due to increases in (i) the Senior Notes due 2032 of $533.3 million, which were issued in June 2024, (ii) the Senior Notes due 2033 of $497.7 million, which were issued in October 2024, partially offset by decreases in (iii) the Senior Notes due 2027 of $310.3 million, which were redeemed in October 2024, and (iv) the Revolving Credit Facility of $63.3 million.
−Removed: Total other expense increased by $9.2 million during the six months ended June 30, 2025, due to the following:
−Removed: • Interest expense increased by $23.1 million, reflecting an increase in the average debt outstanding of approximately $806.5 million, primarily due to increases in (i) the Senior Notes due 2032 of $666.7 million, which were issued in June 2024, (ii) the Senior Notes due 2033 of $497.7 million, which were issued in October 2024, and (iii) the Senior Notes due 2031 of $350.0 million, which were issued in April 2024, partially offset by decreases in (iv) the Senior Notes due 2027 of $355.2 million, which were redeemed in October 2024, (v) the Senior Notes due 2025 of $325.9 million, which were redeemed in April 2024, and (vi) the Revolving Credit Facility of $26.7 million.
+Added: Total other expense increased by $2.3 million for the three months ended September 30, 2025, as compared to the prior period, due to the following:
+Added: • Interest expense increased by $2.8 million, reflecting an increase in interest expense of $7.3 million on the 5.875% Senior Notes due 2033, which were issued in October 2024, partially offset by decreases in interest expense in (i) the 9.75% Senior Notes due 2027, which were redeemed in October 2024, of $3.2 million and (ii) the Revolving Credit Facility of $1.5 million, driven by the decrease in average debt outstanding of $66.7 million.
+Added: Total other expense increased by $11.5 million for the nine months ended September 30, 2025, as compared to the prior period, due to the following:
+Added: • Interest expense increased by $25.9 million, reflecting increases in interest expense in (i) the 7.00% Senior Notes due 2032 of $26.0 million, (ii) the 5.875% Senior Notes due 2033 of $22.0 million, and (iii) the 7.00% Senior Notes due 2031 of $13.8 million.
+Added: These were partially offset by decreases in interest expense in (i) the 9.75% senior notes due 2027 of $22.0 million, and (ii) the 6.5% senior notes due 2025 of $13.0 million.
• Loss on extinguishment of debt decreased by $13.9 million, driven by the 2024 redemption of Senior Notes due 2025 and partial redemption of Senior Notes due 2027.
Benefit from income taxes
−Removed: The benefit from income taxes decreased by $11.8 million for the three months ended June 30,2026, and increased by $2.0 million during the six months ended June 30, 2025.
−Removed: The decrease in the three-month period was primarily attributable to a tax benefit recognized in connection with the internalization fee paid to affiliate, which was deductible for tax purposes.
−Removed: The increase in the six-month period was mainly driven by higher corporate overhead expenses deductible for 2025 tax purposes.
−Removed: Net loss decreased by $287.8 million and $282.9 million during the three and six months ended June 30, 2025, respectively, primarily due to the changes noted above.
+Added: The benefit from income taxes increased by $9.0 million and $11.0 million for the three and nine months ended September 30, 2025, as compared to the prior period.
+Added: The increase was mainly driven by higher corporate overhead expenses deductible for 2025 tax purposes.
+Added: Net loss increased by $1.7 million and decreased by $281.2 million during the three and nine months ended September 30, 2025, respectively, as compared to the prior period, primarily due to the changes noted above.
Adjusted EBITDA (Non-GAAP)
−Removed: Adjusted EBITDA decreased by $9.1 million and decreased $15.6 million during the three and six months ended June 30, 2025, respectively, primarily due to the changes noted above.
+Added: Adjusted EBITDA decreased by $7.3 million and $22.9 million during the three and nine months ended September 30, 2025, respectively, as compared to the prior period, primarily due to the changes noted above.
Liquidity and Capital Resources
2 unchanged sentences
On December 30, 2024, the Company announced the launch of a Strategic Capital Initiative in collaboration with third-party institutional investors.
−Removed: The first partnership under the initiative, the 2025 Partnership, will focus on acquiring 737NG and A320ceo aircraft.
−Removed: The Strategic Capital Initiative, and its related partnerships, will allow the Company to maintain an asset-light business model while the partnerships actively acquire on-lease narrowbody aircraft at scale.
+Added: The first partnership under the initiative, the 2025 Partnership, focuses on acquiring 737NG and A320ceo aircraft.
+Added: The Strategic Capital Initiative, and its related partnerships, allows the Company to maintain an asset-light business model while the partnerships actively acquire on-lease narrowbody aircraft at scale.
The Company has agreed that the 2025 Partnership, and follow-on partnerships, will be the primary buyer of on-lease 737NG and A320ceo aircraft.
4 unchanged sentences
In the future, instead of acquiring on-lease aircraft directly, as part of the Strategic Capital Initiative, we will invest in the related partnerships and such partnerships will acquire on-lease aircraft.
−Removed: • Cash used for the purpose of making investments was $594.9 million and $563.1 million during the six months ended June 30, 2025 and 2024, respectively.
−Removed: • Distributions to shareholders, including cash dividends, were $71.4 million and $76.8 million during the six months ended June 30, 2025 and 2024, respectively.
+Added: • Cash used for the purpose of making investments was $757.4 million and $1.0 billion during the nine months ended September 30, 2025 and 2024, respectively.
+Added: • Distributions to shareholders, including cash dividends, were $105.8 million and $115.8 million during the nine months ended September 30, 2025 and 2024, respectively.
• Uses of liquidity associated with our operating expenses are captured on a net basis in our cash flows from operating activities.
1 unchanged sentence
Our principal sources of liquidity to fund these uses have been and continue to be (i) revenues from our aviation assets (including finance lease collections and maintenance reserve collections) net of operating expenses, (ii) proceeds from borrowings or the issuance of securities and (iii) proceeds from asset sales.
−Removed: • Cash flows used in operating activities, plus the principal collections on finance leases and maintenance reserve collections were $107.2 million and $165.3 million during the six months ended June 30, 2025 and 2024, respectively.
−Removed: • During the six months ended June 30, 2025, additional borrowings and total principal repayments in connection with the Revolving Credit Facility were $430.0 million and $430.0 million, respectively.
−Removed: During the six months ended June 30, 2024, additional borrowings were obtained in connection with the (i) Senior Notes due 2032 of $800.0 million, (ii) Senior Notes due 2031 of $700.0 million and (iii) Revolving Credit Facility of $360.0 million and made total principal repayments of (i) $650.0 million related to the Senior Notes due 2025, (ii) $360.0 million relating to the Revolving Credit Facility and (iii) $269.1 million related to the Senior Notes due 2027.
−Removed: • Proceeds from the sale of assets were $986.5 million and $333.7 million during the six months ended June 30, 2025 and 2024, respectively.
−Removed: • In February 2025, the Company redeemed in full the outstanding Series B preferred shares at a redemption price equal to $25.00 per share in cash, plus $2.4 million of accumulated and unpaid distributions thereon to, but not including, the redemption date of February 16, 2025.
+Added: • Cash flows used in operating activities, plus the principal collections on finance leases and maintenance reserve collections were $89.8 million and $108.7 million during the nine months ended September 30, 2025 and 2024, respectively.
+Added: • During the nine months ended September 30, 2025, additional borrowings and total principal repayments in connection with the Revolving Credit Facility were $430.0 million and $430.0 million, respectively.
+Added: During the nine months ended September 30, 2024, additional borrowings were obtained in connection with the (i) Senior Notes due 2032 of $800.0 million, (ii) Senior Notes due 2031 of $700.0 million and (iii) Revolving Credit Facility of $590.0 million and total principal repayments were made of (i) $650.0 million related to the Senior Notes due 2025, (ii) $440.0 million relating to the Revolving Credit Facility and (iii) $269.5 million related to the Senior Notes due 2027.
+Added: • Proceeds from the sale of assets were $1,375.5 million and $542.9 million during the nine months ended September 30, 2025 and 2024, respectively.
We are currently evaluating several potential transactions and related financings, including, but not limited to, certain additional debt and equity financings, which could occur within the next 12 months.
2 unchanged sentences
Historical Cash Flow
−Removed: Comparison of the six months ended June 30, 2025 and 2024
−Removed: The following table compares the historical cash flow for the six months ended June 30, 2025 and 2024:
−Removed: Six Months Ended June 30,
+Added: Comparison of the nine months ended September 30, 2025 and 2024
+Added: The following table compares the historical cash flow for the nine months ended September 30, 2025 and 2024:
+Added: Nine Months Ended September 30,
(in thousands) 2025 2024
3 unchanged sentences
Net cash (used in) provided by financing activities (196,173) 610,016
−Removed: Net cash used in operating activities decreased $51.4 million, which primarily reflects (i) an increase in our Net income of $448.0 million and certain adjustments to reconcile net income to cash used in operating activities including increases in (ii) Deferred income taxes of $57.5 million, (iii) Equity in losses of unconsolidated entities of $11.3 million, (iv) Equity-based compensation of $9.3 million and (v) Depreciation and amortization of $8.2 million partially offset by decreases in (vi) Non-cash termination fee to affiliate of $150.0 million, (vii) Gain on sale of assets of $80.0 million, (viii) Gain on insurance recoveries of $54.3 million, (ix) Gain on sale of assets to the 2025 Partnership of $45.5 million,(x) Security deposits and maintenance claims included in earnings of $25.9 million, (xi) Loss on extinguishment of debt of $13.9 million, and (xii) Changes in net working capital of $117.3 million.
−Removed: Net cash provided by investing activities increased $715.5 million, primarily due to increases in (i) Proceeds from the sale of assets to the 2025 Partnership of $397.1 million, (ii) Proceeds from the sale of assets of $255.7 million, (iii) Proceeds from settlement of insurance claims of $54.3 million, and (iv) Return of deposits for acquisition of leasing equipment of $43.8 million, as well as a decrease in (v) Deposits for acquisition of leasing equipment of $54.4 million.
−Removed: These were partially offset by decreases related to (vi) Acquisitions of leasing equipment of $24.0 million and (vii) Investments in financing receivables of $17.0 million, and by increases in (viii) Investment in unconsolidated entities of $118.7 million and (ix) Acquisition of property, plant and equipment of $8.6 million.
−Removed: Net cash used in financing activities increased $658.8 million, primarily due to a decrease in (i) Proceeds from debt of $1.4 billion and an increase in (ii) Redemption of preferred shares of $124.2 million, partially offset by decreases in (iii) Repayment of debt of $857.4 million and (iv) Payment of deferred financing costs of $9.7 million and an increase in (v) Receipt of maintenance deposits under operating lease agreements of $6.7 million.
+Added: Net cash used in operating activities decreased $14.5 million, primarily reflecting an increase in our Net income of $479.3 million and certain adjustments to reconcile net income to cash used in operating activities, including an:
+Added: • increase in Deferred income taxes of $80.0 million;
+Added: partially offset by
+Added: • decrease in Changes in net working capital of $249.9 million,
+Added: • decrease in Non-cash termination fee to affiliate of $150.0 million,
+Added: • increase in Gain on insurance recoveries of $54.3 million,
+Added: • increase in Gain on sale of assets of $50.4 million,
+Added: • increase in Gain on sale of assets to the 2025 Partnership of $50.1 million.
+Added: Net cash provided by investing activities increased $1.2 billion, primarily due to an:
+Added: • increase in Proceeds from the sale of assets to the 2025 partnership of $485.1 million,
+Added: • increase in Proceeds from the sale of assets of $347.5 million,
+Added: • decrease in Acquisition of leasing equipment of $132.6 million,
+Added: • decrease in Acquisition of business, net of cash acquired of $106.5 million,
+Added: • decrease in Deposits for acquisition of leasing equipment of $104.1 million;
+Added: partially offset by
+Added: • increase in Investment in unconsolidated entities of $188.7 million.
+Added: Net cash used in financing activities increased $806.2 million, primarily due to a:
+Added: • decrease in Proceeds from debt of $1.6 billion, and
+Added: • increase in Redemption of preferred shares of $124.2 million;
+Added: partially offset by
+Added: • decrease in Repayment of debt of $937.3 million.
Contractual Obligations
Our material cash requirements include the following contractual and other obligations:
−Removed: Debt Obligations — As of June 30, 2025, we had outstanding principal and interest payment obligations of $3.5 billion and $1.3 billion, respectively, of which only interest payments of $228.8 million are due in the next twelve months.
−Removed: See Note 7 to the consolidated financial statements for additional information about our debt obligations.
−Removed: Lease Obligations —As of June 30, 2025, we had outstanding operating and finance lease obligations of $37.0 million, of which $3.6 million is due in the next twelve months.
+Added: Debt Obligations — As of September 30, 2025, we had outstanding principal and interest payment obligations of $3.5 billion and $1.2 billion, respectively, of which only interest payments of $228.8 million are due in the next twelve months.
+Added: Refer to Note 7, “Debt” in our “Notes to Consolidated Financial Statements” for additional information about our debt obligations.
+Added: Lease Obligations —As of September 30, 2025, we had outstanding operating and finance lease obligations of $41.0 million, of which $4.4 million is due in the next twelve months.
Other Cash Requirements —In addition to our contractual obligations, we pay quarterly cash dividends on our ordinary shares and preferred shares, which are subject to change at the discretion of our Board of Directors.
2 unchanged sentences
We expect that our operating subsidiaries will generate sufficient cash flow to cover operating expenses and the payment of principal and interest on our indebtedness as they become due.
−Removed: We may elect to meet certain long-term liquidity requirements or to continue to pursue strategic opportunities through utilizing cash on hand, cash generated from our current operations and the issuance of securities in the future.
+Added: We may elect to meet certain long-term liquidity requirements or to continue to pursue strategic opportunities through utilizing cash
+Added: on hand, cash generated from our current operations and the issuance of securities in the future.
Management believes adequate capital and borrowings are available from various sources to fund our commitments to the extent required.
2 unchanged sentences
Recent Accounting Pronouncements
−Removed: See Note 2 to our Consolidated Financial Statements for recent accounting pronouncements.
+Added: See Note 2, “Summary of Significant Accounting Policies” in our “Notes to Consolidated Financial Statements” for recent accounting pronouncements.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.