Alliance Aviation (ASX:AQZ) Sees 20% Revenue Rise in FY25, Profit Affected by Higher Costs

Highlights

• Alliance Aviation Services reported 19.41% YoY increase in revenue in FY25, driven by fleet expansion and contract flying growth.
• Profit declined by 4.87% YoY in FY25 due to higher maintenance costs, fleet downtime, severe weather, and industrial actions.
• The company appointed Jason Korman as Non-Executive Director as part of its board renewal process.

Alliance Aviation Services Limited (ASX:AQZ), a leading provider of contract, charter, and aviation maintenance services, had witnessed nearly 20% YoY increase in its revenue in the 12 months ended 30 June 2025 (FY25). The company, which employs over 1,450 staff and serves sectors including mining, energy, government, and airlines, posted an increase in revenue driven by operational expansion and efficiency measures.

FY25 Financial Performance

In FY25, the company recorded total revenue of AUD 760.9 million, up from AUD 637.2 million in FY24. This growth, amounting to a 19.4% YoY increase, was supported by fleet expansion, record wet-lease hours with Qantas, aircraft trading, and aviation services sales.

However, statutory net profit after tax (NPAT) declined to AUD 82.1 million in FY25, compared with AUD 86.3 million the previous year. The dip in profit resulted from higher maintenance and aircraft entry costs, fleet downtime, severe weather conditions impacting operations, industrial action, and increased investments. These factors were partially offset by revenue growth and ongoing operational efficiencies.

Business and Board Developments

In December 2025, the company appointed Jason Korman as a Non-Executive Director, completing its board renewal. Mr Korman brings over a decade of private equity experience from Australia, the US, Europe, and Southeast Asia and currently serves on the board of GTN Limited.

Risks and Operational Challenges

Alliance Aviation continues to face risks linked to operational disruptions caused by severe weather events, industrial action, and fleet downtime. Financial pressures from maintenance expenditures, aircraft investments, and market volatility require the company to maintain disciplined management practices to support profitability and sustainable growth.

Outlook for FY26

Looking ahead, the company forecasts EBITDA for FY26 in the range of AUD 190 million to AUD 210 million, with profit before tax (PBT) expected between AUD 46 million and AUD 50 million.

The company has initiated remedial actions, including cost reduction programs, a review of wet-lease arrangements, and plans for non-core asset sales to reinforce its balance sheet. Growing demand for aviation services and wet-lease capacity continues to present opportunities for efficiency improvements and strategic utilisation of the fleet.

Share Performance of AQZ

AQZ shares rose 0.81% to close at AUD 1.250 per share on 23 December 2025. Over the past year, the stock has declined 56.60%. It is down 57.91% year-to-date and has fallen 43.95% quarter-to-date. The shares have retreated 45.65% over six months and 43.18% over the past three months, while the one-month performance shows a marginal decline of 0.40%.

The 52-week high for AQZ stands at AUD 2.980 AND 52-week low stands at AUD 161.64.

Support and Resistance Summary

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 23 December 2025. The reference data in this report has been partly sourced from EODHD/Others.

Technical Indicators Defined:

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Disclaimer

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