What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-07-31 compared with 2026-05-01 · 157 added, 92 removed, 304 unchanged (45% of the section changed)

9 unchanged sentences

We expect our primary investment activities to be through our Strategic Capital Initiative going forward.

As of March 31, 2026, we had total consolidated assets of $4.5 billion and total equity of $431.7 million.

As of June 30, 2026, we had total consolidated assets of $4.5 billion and total equity of $404.0 million.

Internalization of Management

13 unchanged sentences

The 2025 Partnership completed its fundraise in October 2025 with $2.0 billion of equity commitments.

The 2025 Partnership, and follow-on partnerships, is the primary buyer of all future on-lease 737NG and A320ceo aircraft.

The 2025 Partnership, and follow-on partnerships, is the primary buyer of on-lease 737NG and A320ceo aircraft.

The Company, as the Servicer, provides aircraft management services to the 2025 Partnership, and the Company receives customary, market-based compensation for providing such services.

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.

The Company made minority capital commitments to the 2025 Partnership in the same proportion relative to additional third-party institutional investors.

Operating Segments

13 unchanged sentences

Results of Operations

Comparison of the three months ended months ended March 31, 2026 and 2025

Comparison of the three and six months ended June 30, 2026 and 2025

The following table presents our consolidated results of operations:

Three Months Ended March 31, Change

Three Months Ended June 30, Change Six Months Ended

June 30, Change

(in thousands) 2026 2025 2026 2025

15 unchanged sentences

Interest expense (64,102) (63,965) (137) (125,509) (126,005) 496

Equity in losses of unconsolidated entities (2)

Equity in earnings (losses) of unconsolidated entities (2)

9,970 (5,003) 14,973 7,607 (12,617) 20,224

11 unchanged sentences

$ 117,585 $ 161,689 $ (44,104) $ 251,775 $ 251,633 $ 142

(1) Includes servicing fees of $5,861 and $0 for the three months ended March 31, 2026 and 2025, respectively, from the 2025 Partnership.

(2) Includes the profit elimination of $(10,000) and $(6,950) for the three months ended March 31, 2026 and 2025, respectively, for sales to the 2025 Partnership.

(1) Includes servicing fees of $6,988 and $12,849 for the three and six months ended June 30, 2026, respectively (2025 - $2,052 and $2,600, respectively), from the 2025 Partnership.

(2) Includes the profit elimination of $(6,597) and $(16,597) for the three and six months ended June 30, 2026, respectively (2025 - $(4,935) and $(11,885), respectively), for sales to the 2025 Partnership.

The following table sets forth a reconciliation of net income (loss) attributable to shareholders to Adjusted EBITDA:

Three Months Ended March 31, Change

Three Months Ended

June 30, Change Six Months Ended

June 30, Change

(in thousands) 2026 2025 2026 2025

17 unchanged sentences

Adjusted EBITDA (non-GAAP) $ 291,444 $ 347,805 $ (56,361) $ 617,021 $ 616,363 $ 658

(1) Includes the following items for the three months ended March 31, 2026 and 2025:

(i) depreciation and amortization expense of $52,289 and $59,562, (ii) lease intangible amortization of $337 and $3,206 and (iii) amortization for lease incentives of $6,887 and $5,619, respectively.

(2) Includes the following items for the three months ended March 31, 2026 and 2025:

(i) net income of $7,637 and net loss of $664, (ii) interest expense of $3,496 and $0, (iii) depreciation and amortization expense of $9,067 and $158, (iv) acquisition and transaction expenses of $0 and $547, and (v) tax expense of $27 and $0, respectively.

(3) Excludes the profit elimination of $10,000 and $6,950 for the three months ended March 31, 2026 and 2025, respectively, for sales to the 2025 Partnership.

Comparison of the three months ended March 31, 2026 and 2025

(1) Includes the following items for the three months ended June 30, 2026:

(i) depreciation and amortization expense of $46,986 (2025 - $55,236), (ii) lease intangible amortization of $(89) (2025 - $2,153) and (iii) amortization for lease incentives of $5,221 (2025 - $8,288).

Includes the following items for the six months ended June 30, 2026:

(i) depreciation and amortization expense of $99,275 (2025 - $114,798), (ii) lease intangible amortization of $248 (2025 - $5,359) and (iii) amortization for lease incentives of $12,108 (2025 - $13,907).

(2) Includes the following items for the three months ended June 30, 2026:

(i) net income of $16,567 (2025 - net loss of $68), (ii) interest expense of $5,771 (2025 - $1,490), (iii) depreciation and amortization expense of $5,680 (2025 - $3,470), (iv) acquisition and transaction expenses of $0 (2025 - $(77)), and (v) tax expense of $28 (2025 - $0).

Includes the following items for the six months ended June 30, 2026:

(i) net income of $24,204 (2025 - net loss of $732), (ii) interest expense of $9,267 (2025 - $1,490), (iii) depreciation and amortization expense of $14,747 (2025 - $3,628), (iv) acquisition and transaction expenses of $0 (2025 - $470), and (v) tax expense of $55 (2025 - $0).

(3) Excludes the profit elimination of $6,597 and $16,597 for the three and six months ended June 30, 2026, respectively (2025 - $4,935 and $11,885, respectively), for sales to the 2025 Partnership.

Comparison of the three months ended June 30, 2026 and 2025

Total revenues increased by $276.8 million, driven by the following:

1 unchanged sentence

• MRE Contract revenue increased by $113.2 million, primarily due to an increase in engine and module sales made to the 2025 Partnership.

• Lease income decreased by $28.5 million, primarily due to decreases in aircraft lease revenue of $24.9 million, driven by the sale of Seed Assets to the 2025 Partnership.

• Lease income decreased by $34.7 million, due to decreases in aircraft lease revenue of $19.5 million, driven by the sale of Seed Assets to the 2025 Partnership, and decreases in engine lease revenue of $15.2 million, driven by a decrease in revenue generating assets on lease.

• Maintenance revenue decreased by $47.3 million, due to decreases in aircraft maintenance revenue of $31.0 million and engine maintenance revenue of $16.3 million, both driven by a decrease in revenue generating assets on lease.

Comparison of the three months ended March 31, 2026 and 2025

• Asset sales revenue decreased by $31.0 million, primarily due to an overall decrease in the number of sales transactions of commercial aircraft and engines in the current period as compared to the prior period.

Comparison of the six months ended June 30, 2026 and 2025

Total revenues increased by $605.5 million, driven by the following:

• Aerospace Products revenue increased by $529.7 million, primarily due to a $509.4 million increase in CFM56-5B, CFM56-7B and V2500 engine and module sales.

• MRE Contract revenue increased by $233.8 million, primarily due to an increase in engine and module sales made to the 2025 Partnership.

• Maintenance revenue decreased by $66.3 million, primarily due to a decrease in aircraft maintenance revenue of $39.1 million and a decrease in engine maintenance revenue of $27.2 million, both driven by a decrease in revenue generating assets on lease.

• Lease income decreased by $63.2 million, primarily due to a decrease in aircraft lease revenue of $44.2 million, and a decrease in engine lease revenue of $19.0 million, both driven by a decrease in revenue generating assets on lease.

• Asset sales revenue decreased by $39.7 million, primarily due to an overall decrease in the number of sales transactions of commercial aircraft and engines in the current period as compared to the prior period.

Comparison of the three months ended June 30, 2026 and 2025

Total expenses increased by $292.5 million, driven by the following:

• Cost of sales increased by $266.5 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.

• Operating expenses increased by $32.5 million, primarily due to increases in compensation and benefits expense and shipping and logistics expense across our operating segments, as well as increased technology development costs and general operating expense resulting from acquisitions in the second half of 2025.

• Operating expenses increased by $33.2 million, primarily due to increases in compensation and benefits expense and shipping and logistics expense across our operating segments, as well as increased technology development costs and general corporate expenses.

Comparison of the six months ended June 30, 2026 and 2025

Total expenses increased by $601.7 million, driven by the following:

• Cost of sales increased by $542.1 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.

• Operating expenses increased by $65.8 million, primarily due to an increase in compensation and benefits expense due to an increase in employee headcount and increased overall compensation, technology development costs and general corporate expenses.

Other (expense) income

Comparison of the three months ended March 31, 2026 and 2025

Total other expense decreased by $24.7 million driven by the following:

• Other income increased $14.5 million, driven by an increase in insurance proceeds in the current period.

• Equity in losses of unconsolidated entities increased by $5.3 million, driven by net income realized by the 2025 Partnership.

• Gain on sale to the 2025 Partnership increased by $4.3 million, resulting from the sale of 9 aircraft to the 2025 Partnership within the Aviation Leasing Segment.

Comparison of the three months ended June 30, 2026 and 2025

Total other expense increased by $36.9 million driven by the following:

• Gain on sale to the 2025 Partnership decreased by $32.1 million, driven by the lower number of Seed Assets sold to the 2025 Partnership in the current period as compared to the prior period.

• Other income decreased $19.6 million, driven by a decrease in insurance settlements in the current period as compared to the prior period.

• Equity in earnings of unconsolidated entities increased by $15.0 million, driven by net income earned by the 2025 Partnership in the current period, compared to losses in the prior period.

Comparison of the six months ended June 30, 2026 and 2025

Total other expense increased by $12.2 million driven by the following:

• Gain on sale to the 2025 Partnership decreased by $27.8 million, driven by the lower number of Seed Assets sold to the 2025 Partnership in the current period as compared to the prior period.

• Other income decreased by $5.1 million, primarily due a decrease in insurance settlements in the current period as compared to the prior period.

• Equity in earnings of unconsolidated entities increased by $20.2 million, driven by net income earned by the 2025 Partnership in the current period, compared to losses in the prior period.

Provision for income taxes

The provision for income taxes increased $8.6 million for the three months ended March 31, 2026, as compared to the prior period, primarily driven by higher income generated in the Aerospace Products segment within taxable jurisdictions.

Net income increased by $35.5 million for the three months ended March 31, 2026, as compared to the prior period, primarily due to the changes noted above.

The provision for income taxes decreased $12.3 million and $3.7 million for the three and six months ended June 30, 2026, as compared to the prior period, primarily driven by lower income generated in the Aviation Leasing segment within taxable jurisdictions.

Net income decreased by $40.3 million and $4.8 million for the three and six months ended June 30, 2026, as compared to the prior period, primarily due to the changes noted above.

Adjusted EBITDA (Non-GAAP)

Adjusted EBITDA increased by $57.0 million for the three months ended March 31, 2026, as compared to the prior period, primarily due to the changes noted above.

Adjusted EBITDA decreased by $56.4 million and increased by $0.7 million for the three and six months ended June 30, 2026, as compared to the prior period, primarily due to the changes noted above.

Aerospace Products Segment

9 unchanged sentences

The following table presents our results of operations:

Three Months Ended March 31, Change

Three Months Ended June 30, Change Six Months Ended

June 30, Change

(in thousands) 2026 2025 2026 2025

10 unchanged sentences

(182) 714 (896) (222) 827 (1,049)

(59) — (59) 112 — 112

Total other income

(241) 714 (955) (110) 827 (937)

Income before income taxes 244,214 159,409 84,805 461,646 285,427 176,219

2 unchanged sentences

The following table sets forth a reconciliation of net income attributable to shareholders to Adjusted EBITDA:

Three Months Ended March 31, Change

Three Months Ended June 30, Change Six Months Ended

June 30, Change

(in thousands) 2026 2025 2026 2025

12 unchanged sentences

Pro-rata share of Adjusted EBITDA from unconsolidated entities (1)

50 883 (833) 464 1,052 (588)

Equity in losses (earnings) of unconsolidated entities

182 (714) 896 222 (827) 1,049

Adjusted EBITDA (non-GAAP) $ 249,716 $ 164,864 $ 84,852 $ 472,292 $ 295,809 $ 176,483

(1) Includes the following items for the three months ended March 31, 2026 and 2025:

(i) net loss of $40 and net income of $113, (ii) depreciation and amortization expense of $427 and $56, and (iii) tax expense of $27 and $0, respectively.

Comparison of the three months ended March 31, 2026 and 2025

(1) Includes the following items for the three months ended June 30, 2026:

(i) net loss of $182 (2025 - net income of $714), (ii) depreciation and amortization expense of $204 (2025 - $169), and (iii) tax expense of $28 (2025 - $0).

Includes the following items for the six months ended June 30, 2026:

(i) net loss of $222 (2025 - net income of $827), (ii) depreciation and amortization expense of $631 (2025 - $225), and (iii) tax expense of $55 (2025 - $0).

Comparison of the three months ended June 30, 2026 and 2025

Total revenues increased by $384.8 million, due to the following:

1 unchanged sentence

• MRE Contract revenue increased by $113.2 million, primarily due to an increase in engine and module sales made to the 2025 Partnership.

Comparison of the three months ended March 31, 2026 and 2025

Tota l expenses increased by $287.4 million, due to the following:

Comparison of the six months ended June 30, 2026 and 2025

Tot al revenues increased by $763.5 million, due to the following:

• Aerospace products revenue increased by $529.7 million, primarily due to a $509.4 million increase in CFM56-5B, CFM56-7B and V2500 engine and module sales.

• MRE Contract revenue increased by $233.8 million, primarily due to an increase in engine and module sales made to the 2025 Partnership.

Comparison of the three months ended June 30, 2026 and 2025

Tota l expens es increased by $299.0 million, due to the following:

• Cost of sales increased by $297.1 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.

• Operating expenses increased by $5.2 million, primarily due to higher operating expenses due to the acquisition of ATOPS, compensation and benefits expense due to increased headcount at the Company’s maintenance facilities, as well as an increase in shipping and logistics expense.

Comparison of the six months ended June 30, 2026 and 2025

Tota l expen ses increased by $586.4 million, due to the following:

• Cost of sales increased by $579.3 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.

Provision for income taxes

The provision for income taxes increased by $14.3 million for the three months ended March 31, 2026, as compared to the prior period, primarily due to the increase in income discussed above from Aerospace Products activities in jurisdictions subject to taxes.

Net income increased $77.1 million for the three months ended March 31, 2026, as compared to the prior period, primarily due to the changes noted above.

The provision for income taxes increased by $24.1 million and $38.5 million for the three and six months ended June 30, 2026, as compared to the prior period, primarily due to the increase in income discussed above from Aerospace Products activities in jurisdictions subject to taxes.

Net income increased $60.7 million and $137.8 million for the three and six months ended June 30, 2026, respectively, as compared to the prior period, primarily due to the changes noted above.

Adjusted EBITDA (Non-GAAP)

Adjusted EBITD A increased $91.6 million for the three months ended March 31, 2026, as compared to the prior period, primarily due to the changes noted above.

Adjusted EBITD A increased $84.9 million and $176.5 million for the three and six months ended June 30, 2026, respectively, as compared to the prior period, primarily due to the changes noted above.

Aviation Leasing Segment

As of March 31, 2026, in our Aviation Leasing segment, we own and manage 230 aviation assets, consisting of 29 commercial aircraft and 201 engines.

As of March 31, 2026, 26 of our commercial aircraft and 114 of our engines were leased to operators or other third parties.

As of June 30, 2026, in our Aviation Leasing segment, we own and manage 198 aviation assets, consisting of 22 commercial aircraft and 176 engines.

As of June 30, 2026, 19 of our commercial aircraft and 93 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.

Our aviation equipment was approximately 73% utilized during the three months ended March 31, 2026, 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 aviation equipment was approximately 68% utilized during the three months ended June 30, 2026, 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 37 months, and our engines currently on-lease have an average remaining lease term of 29 months.

6 unchanged sentences

Insurance settlement - Russia assets

Assets at March 31, 2026

Assets at June 30, 2026

Assets at January 1, 2026 18 225 243

4 unchanged sentences

(10) (7) (17)

Assets at March 31, 2026 8 193 201

Assets at June 30, 2026 8 168 176

The following table presents our results of operations for our Aviation Leasing segment:

Three Months Ended March 31, Change

Three Months Ended June 30, Change Six Months Ended

June 30, Change

(in thousands) 2026 2025 2026 2025

19 unchanged sentences

Net income attributable to shareholders $ 20,866 $ 106,431 $ (85,565) $ 85,304 $ 183,457 $ (98,153)

(1) Includes servicing fees of $5,861 and $0 for the three months ended March 31, 2026 and 2025, respectively, from the 2025 Partnership.

(1) Includes servicing fees of $6,988 and $12,849 for the three and six months ended June 30, 2026, respectively (2025 - $2,052 and $2,600, respectively), from the 2025 Partnership.

The following table sets forth a reconciliation of net income attributable to shareholders to Adjusted EBITDA:

Three Months Ended March 31, Change

Three Months Ended June 30, Change Six Months Ended

June 30, Change

(in thousands) 2026 2025 2026 2025

17 unchanged sentences

Adjusted EBITDA (non-GAAP) $ 88,210 $ 199,303 $ (111,093) $ 241,169 $ 361,292 $ (120,123)

(1) Includes the following items for the three months ended March 31, 2026 and 2025:

(i) depreciation expense of $46,485 and $55,061, (ii) lease intangible amortization of $337 and $3,206 and (iii) amortization for lease incentives of $6,887 and $5,619, respectively.

(2) Includes the following items for the three months ended March 31, 2026 and 2025:

(i) net income of $7,677 and net loss of $777, (ii) interest expense of $3,496 and $0, (iii) depreciation and amortization of $8,640 and $102, and (iv) acquisition and transaction expense of $0 and $547, respectively.

Comparison of the three months ended March 31, 2026 and 2025

(1) Includes the following items for the three months ended June 30, 2026:

(i) depreciation expense of $40,985 (2025 - $50,423), (ii) lease intangible amortization of $(89) (2025 - $2,153) and (iii) amortization for lease incentives of $5,221 (2025 - $8,288).

Includes the following items for the six months ended June 30, 2026:

(i) depreciation expense of $87,470 (2025 - $105,484), (ii) lease intangible amortization of $248 (2025 - $5,359) and (iii) amortization for lease incentives of $12,108 (2025 - $13,907).

(2) Includes the following items for the three months ended June 30, 2026:

(i) net income of $16,749 (2025 - net loss of $782), (ii) interest expense of $5,771 (2025 - $1,490), (iii) depreciation and amortization of $5,476 (2025 - $3,301), and (iv) acquisition and transaction expense of $0 (2025 - $(77)).

Includes the following items for the six months ended June 30, 2026:

(i) net income of $24,426 (2025 - net loss of $1,559), (ii) interest expense of $9,267 (2025 - $1,490), (iii) depreciation and amortization of $14,116 (2025 - $3,403) and (iv) acquisition and transactions expenses of $0 (2025 - $470).

Comparison of the three months ended June 30, 2026 and 2025

Total reven ue decreased by $107.9 million, driven by the following:

• Lease income decreased by $28.5 million, primarily due to decreases in aircraft lease revenue of $24.9 million, driven by the sale of Seed Assets to the 2025 Partnership.

1 unchanged sentence

• Other revenue increased by $5.1 million, primarily as a result of servicing fees earned in our capacity as the Servicer to the 2025 Partnership.

Comparison of the three months ended March 31, 2026 and 2025

Comparison of the six months ended June 30, 2026 and 2025

Total revenue decreased by $158.0 million, driven by the following:

• Other revenue increased by $11.2 million as a result of servicing fees earned in our capacity as the Servicer to the 2025 Partnership.

Comparison of the three months ended June 30, 2026 and 2025

Total expenses decreased by $38.0 million, driven by the following:

• Cost of sales decreased by $30.5 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.

• Depreciation and amortization expense decreased by $9.4 million, primarily driven by the sale of Seed Assets to the 2025 Partnership.

• Cost of sales decreased by $6.7 million, primarily due to the decrease in asset sales noted above.

• Operating expense increased by $2.8 million, primarily driven by increases in compensation and benefits, equipment leases, and shipping and logistics expenses.

Comparison of the six months ended June 30, 2026 and 2025

Total expenses decreased by $49.2 million, driven by the following:

• Cost of sales decreased by $37.2 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.

• Depreciation and amortization expense decreased by $18.0 million, primarily driven by the sale of Seed Assets to the 2025 Partnership.

• Operating expense increased by $3.5 million, primarily driven by an increase in equipment lease expense in the current period.

• Acquisition and transaction expense increased by $2.6 million, primarily driven by higher professional fees associated with the 2025 Partnership in the current period.

Other income (expense)

Comparison of the three months ended March 31, 2026 and 2025

Total other income increased by $27.4 million, primarily due (i) a $14.5 million increase in insurance settlements, (ii) an $8.5 million increase in equity in earnings of unconsolidated entities as a result of net income earned by the 2025 Partnership, and (iii) a $4.3 million increase in gain on sale to the 2025 Partnership, driven by the sale of Seed Assets to the 2025 Partnership.

Comparison of the three months ended June 30, 2026 and 2025

Total other income decreased by $34.3 million, primarily due (i) a $32.1 million decrease in gain on sale to the 2025 Partnership, driven by the lower number of Seed Assets sold to the 2025 Partnership as compared to the prior period, and (ii) a $19.7 million decrease in other income driven by a decrease in insurance settlements in the current period;

partially offset by (iii) a $17.5 million increase in equity in earnings of unconsolidated entities as a result of net income earned by the 2025 Partnership.

Comparison of the six months ended June 30, 2026 and 2025

Total other income decreased by $7.0 million, primarily due (i) a $27.8 million decrease in gain on sale to the 2025 Partnership, driven by the lower number of Seed Assets sold to the 2025 Partnership as compared to the prior period;

partially offset by (ii) a $26.0 million increase in equity in earnings of unconsolidated entities as a result of net income earned by the 2025 Partnership.

Provision for income taxes

The provision for income taxes decreased by $1.0 million for the three months ended March 31, 2026, as compared to the prior period, primarily due to the respective changes in income discussed above from leasing activities in jurisdictions subject to taxes.

Net income decreased by $12.6 million for the three months ended March 31, 2026, as compared to the prior period, primarily due to the changes noted above.

The provision for income taxes decreased by $18.7 million and $17.7 million for the three and six months ended June 30, 2026, 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.

Net income decreased by $85.6 million and $98.2 million for the three and six months ended June 30, 2026, respectively, as compared to the prior period, primarily due to the changes noted above.

Adjusted EBITDA (Non-GAAP)

Adjusted EBITD A decreased by $9.0 million for the three months ended March 31, 2026, as compared to the prior period, primarily due to the changes noted above.

Adjusted EBITD A decreased by $111.1 million and $120.1 million for the three and six months ended June 30, 2026, 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:

Three Months Ended March 31, Change

Three Months Ended

June 30, Change Six Months Ended

June 30, Change

(in thousands) 2026 2025 2026 2025

17 unchanged sentences

The following table sets forth a reconciliation of net loss attributable to shareholders to Adjusted EBITDA:

Three Months Ended March 31, Change

Three Months Ended June 30, Change Six Months Ended

June 30, Change

(in thousands) 2026 2025 2026 2025

15 unchanged sentences

Adjusted EBITDA (non-GAAP) $ (39,885) $ (11,427) $ (28,458) $ (79,843) $ (28,853) $ (50,990)

Comparison of the three months ended March 31, 2026 and 2025

Comparison of the three months ended June 30, 2026 and 2025

Total expens es increased by $31.5 million, primarily due to the following:

• Operating expenses increased $30.5 million, primarily due to an increase in compensation and benefits expense due to an increase in employee headcount and increased overall compensation, technology development costs and general corporate expenses.

• Acquisition and transaction expense increased $8.9 million, primarily due to higher professional fees associated with acquisitions and transactions.

Comparison of the six months ended June 30, 2026 and 2025

Total expenses increased by $64.5 million, primarily due to the following:

• Operating expenses increased $55.1 million, primarily due to an increase in compensation and benefits expense due to an increase in employee headcount and increased overall compensation, technology development costs and general corporate expenses.

• Acquisition and transaction expense increased $10.1 million, primarily due to higher professional fees associated with acquisitions and transactions in the current period.

Benefit from income taxes

The benefit from income taxes increased by $6.7 million for the three months ended March 31, 2026, as compared to the prior period.

The benefit from income taxes increased by $17.7 million and $24.4 million for the three and six months ended June 30, 2026, respectively, as compared to the prior period.

The increase was mainly driven by higher corporate overhead expenses deductible for 2026 tax purposes.

Net loss increased by $25.9 million during the three months ended March 31, 2026, respectively, as compared to the prior period, primarily due to the changes noted above.

Net loss increased by $13.7 million and $39.7 million during the three and six months ended June 30, 2026, respectively, as compared to the prior period, primarily due to the changes noted above.

Adjusted EBITDA (Non-GAAP)

Adjusted EBITDA decreased by $22.5 million during the three months ended March 31, 2026, respectively, as compared to the prior period, primarily due to the changes noted above.

Adjusted EBITDA decreased by $28.5 million and $51.0 million during the three and six months ended June 30, 2026, respectively, as compared to the prior period, primarily due to the changes noted above.

Liquidity and Capital Resources

5 unchanged sentences

The 2025 Partnership completed its fundraise in October 2025 with $2.0 billion of equity commitments.

The 2025 Partnership, and follow-on partnerships, is the primary buyer of all future on-lease 737NG and A320ceo aircraft.

The Company, as the Servicer, manages the aircraft in the 2025 Partnership, and the Company receives customary, market-based compensation for providing such services.

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

The 2025 Partnership, and follow on partnerships, is the primary buyer of on-lease 737NG and A320ceo aircraft.

The Company, as the Servicer, provides aircraft management services to the 2025 Partnership, and the Company receives customary, market-based compensation for providing such services.

The Company made minority capital commitments to the 2025 Partnership in the same proportion relative to additional third-party institutional investors.

Our principal uses of liquidity have been and continue to be (i) acquisitions of aircraft and engines, (ii) dividends to our ordinary and preferred shareholders, (iii) expenses associated with our operating activities, and (iv) debt service obligations associated with our investments.

• Cash used for the purpose of making investments was $133.6 million and $339.4 million during the three months ended March 31, 2026 and 2025, respectively.

• Distributions to shareholders, including cash dividends, were $44.7 million and $36.9 million during the three months ended March 31, 2026 and 2025, respectively.

• Cash used for the purpose of making investments was $352.6 million during the six months ended June 30, 2026 (2025 - $594.9 million).

• Distributions to shareholders, including cash dividends and preferred stock redemptions, were $200.1 million during the six months ended June 30, 2026 (2025 - $71.4 million).

• Uses of liquidity associated with our operating expenses are captured on a net basis in our cash flows from operating activities.

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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.

• Cash flows from operating activities, plus the principal collections on finance leases and maintenance reserve collections were $152.6 million and $11.0 million during the three months ended March 31, 2026 and 2025, respectively.

• During the three months ended March 31, 2026, additional borrowings and total principal repayments in connection with the Revolving Credit Facility were $125.0 million and $125.0 million, respectively.

During the three months ended March 31, 2025, additional borrowings and total principal repayments in connection with the Revolving Credit Facility were $290.0 million and $90.0 million, respectively.

• Proceeds from the sale of assets were $409.6 million and $263.1 million during the three months ended March 31, 2026 and 2025, respectively.

• Cash flows from operating activities, plus the principal collections on finance leases and maintenance reserve collections, were $(252.7) million during the six months ended June 30, 2026 (2025 - $(107.2) million).

• During the six months ended June 30, 2026, additional borrowings and total principal repayments in connection with the Revolving Credit Facility were $625.0 million and $625.0 million, respectively (2025 - $430.0 million and $430.0 million, respectively).

• Proceeds from the sale of assets were $793.0 million during the six months ended June 30, 2026 (2025 - $(986.5) million).

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.

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Historical Cash Flow

Comparison of the three months ended March 31, 2026 and 2025

The following table compares the historical cash flow for the three months ended March 31, 2026 and 2025:

Three Months Ended March 31,

Comparison of the six months ended June 30, 2026 and 2025

The following table compares the historical cash flow for the six months ended June 30, 2026 and 2025:

Six Months Ended June 30,

(in thousands) 2026 2025

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Net cash used in operating activities $ (265,303) $ (136,284)

Net cash provided by (used in) investing activities 317,018 (27,627)

Net cash (used in) provided by financing activities (45,178) 50,610

Net cash used in operating activities increased $134.1 million, primarily reflecting an increase in our Net income of $35.5 million and certain adjustments to reconcile net income to cash used in operating activities, including an:

• increase in Gain on sale of assets of $84.0 million

• decrease in Changes in net working capital of $49.3 million,

• increase in Gain on insurance recoveries of $14.5 million,

Net cash provided by investing activities 515,714 496,148

Net cash used in financing activities (213,692) (173,069)

Net cash used in operating activities increased $129.0 million, primarily reflecting a decrease in our Net income of $4.8 million and certain adjustments to reconcile net income to cash used in operating activities, including a:

• increase in Changes in net working capital of $160.8 million,

• decrease in Deferred income taxes of $32.6 million,

• decrease in Depreciation and amortization of $7.3 million, and

• increase in Gain on sale of assets to the 2025 Partnership of $4.3 million.

• decrease in Equity in losses of unconsolidated entities of $20.2 million;

partially offset by

• decrease in Gain on sale of assets of $48.2 million, and

• decrease in Gain on sale of assets to the 2025 Partnership of $27.8 million.

Net cash provided by investing activities increased $19.6 million, primarily due to an:

• decrease in Acquisition of leasing equipment of $249.1 million,

• increase in Proceeds from the sale of assets of $118.2 million,

• increase in Proceeds from the sale of assets to the 2025 partnership of $58.5 million, and

• decrease in Investment in unconsolidated entities of $19.5 million,

• decrease in Deposits for acquisition of leasing equipment of $9.2 million;

• increase in Return of capital from unconsolidated entities of $19.2 million;

partially offset by

• decrease in Proceeds from the sale of assets to the 2025 partnership of $221.5 million, and

• decrease in Return of deposits for acquisition of leasing equipment of $38.9 million.

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• increase in Repayment of debt of $195.0 million,

• increase in cash dividends on ordinary shares of $10.3 million, and

• increase in Cash dividends on ordinary shares of $25.7 million,

• decrease in receipt of maintenance deposits under operating lease agreements of $15.6 million,

• increase in Payment of deferred financing costs of $11.5 million,

• Increase in Settlement of equity-based compensation of $7.5 million;

partially offset by

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Our material cash requirements include the following contractual and other obligations:

Debt Obligations — As of March 31, 2026, we had outstanding principal and interest payment obligations of $3.5 billion and $1.1 billion, respectively, of which only interest payments of $228.8 million are due in the next twelve months.

Debt Obligations — As of June 30, 2026, we had outstanding principal and interest payment obligations of $3.5 billion and $1.0 billion, respectively, of which only interest payments of $228.8 million are due in the next twelve months.

Refer to Note 6, “Debt” in our “Notes to Consolidated Financial Statements” for additional information about our debt obligations.

Lease Obligations —As of March 31, 2026, we had outstanding operating and finance lease obligations of $45.4 million, of which $8.2 million is due in the next twelve months.

Lease Obligations —As of June 30, 2026, we had outstanding operating and finance lease obligations of $43.0 million, of which $6.0 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.

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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.

What changed 10-Q

Item 2. Management’s Discussion and Analysis