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Avation
(LSE:AVAP)
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Rating:55Neutral
Price Target:
146.00 p
â–²(5.80% Upside)
Action:Reiterated
Date:10/01/26
The score is held back primarily by financial risk—high leverage and a negative FY2026 free-cash-flow result despite a return to profitability. Technicals are supportive with price above key moving averages and positive MACD, while valuation is broadly moderate but not strongly compelling given the low dividend yield.
Positive Factors
Return to Profitability
FY2026's return to positive earnings and a 7.6% net margin restores current profitability after FY2025's loss. If maintained, this provides a base for balance-sheet repair and investment, although the wider earnings record remains uneven.
Negative Factors
High Leverage
Debt of approximately £579m against £265m of equity leaves the company highly levered, increasing financial risk and limiting flexibility. This capital structure can constrain investment and make future cash generation more important for servicing obligations and reducing debt.
Read all positive and negative factors
Positive Factors
Negative Factors
Return to Profitability
FY2026's return to positive earnings and a 7.6% net margin restores current profitability after FY2025's loss. If maintained, this provides a base for balance-sheet repair and investment, although the wider earnings record remains uneven.
Read all positive factors
Avation (AVAP) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£82.53M
Dividend Yield0.54%
Average Volume (3M)116.11K
Price to Earnings (P/E)14.6
Beta (1Y)0.62
Revenue Growth-3.60%
EPS GrowthN/A
CountryUK
Employees23
SectorIndustrials
Sector Strength72
IndustryRental & Leasing Services
Share Statistics
EPS (TTM)0.13
Shares Outstanding59,370,800
10 Day Avg. Volume66,998
30 Day Avg. Volume116,106
Financial Highlights & Ratios
PEG Ratio-0.06
Price to Book (P/B)0.42
Price to Sales (P/S)1.01
P/FCF Ratio-13.18
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£310.00Price Target Upside124.64% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.16
Revenue Forecast (FY)£100.20M
Avation Business Overview & Revenue Model
Company Description
Avation Plc operates as an aircraft leasing company. It owns and manages a fleet of commercial passenger aircraft which it leases to international airlines including airBaltic, EVA Air, easyJet, Philippine Airlines, Air France, Air India, Flybe, F...
Avation Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
38
Negative
Cash Flow
45
Neutral
| Breakdown | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 110.37M | 112.55M | 89.48M | 92.69M | 109.84M |
| Gross Profit | 72.35M | 112.55M | -3.83M | -14.31M | 3.05M |
| EBITDA | 92.44M | 98.94M | 29.70M | 20.48M | 40.80M |
| Net Income | 8.44M | -7.72M | 19.73M | 12.19M | 17.13M |
Balance Sheet | |||||
| Total Assets | 1.01B | 1.10B | 1.14B | 1.18B | 1.22B |
| Cash, Cash Equivalents and Short-Term Investments | 110.96M | 58.26M | 34.31M | 37.28M | 122.89M |
| Total Debt | 579.12M | 652.34M | 675.50M | 755.98M | 828.13M |
| Total Liabilities | 742.39M | 858.09M | 885.92M | 937.96M | 989.93M |
| Stockholders Equity | 264.64M | 243.84M | 256.39M | 243.93M | 227.09M |
Cash Flow | |||||
| Free Cash Flow | -8.50M | 67.81M | 81.56M | 48.38M | 54.46M |
| Operating Cash Flow | 31.80M | 91.50M | 81.57M | 48.39M | 54.48M |
| Investing Cash Flow | 49.77M | -24.73M | 13.21M | 38.52M | 65.62M |
| Financing Cash Flow | -105.59M | -42.23M | -96.03M | -97.36M | -109.90M |
Avation Technical Analysis
Positive
138.00
Price Trends
138.62
Positive
137.11
Positive
137.01
Positive
Market Momentum
0.47
Negative
50.32
Neutral
79.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:AVAP, the sentiment is Positive. The current price of 138 is below the 20-day moving average (MA) of 138.61, below the 50-day MA of 138.62, and above the 200-day MA of 137.01, indicating a bullish trend. The MACD of 0.47 indicates Negative momentum. The RSI at 50.32 is Neutral, neither overbought nor oversold. The STOCH value of 79.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:AVAP.
Avation Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | £699.95M | 17.29 | 32.45% | 2.82% | 2.98% | 23.78% | |
73 Outperform | £2.24B | 14.79 | 24.09% | 2.43% | 9.58% | 14.74% | |
65 Neutral | £1.29B | 22.27 | 11.95% | 3.38% | 6.75% | 11.01% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | £559.01M | 40.84 | 10.50% | 0.98% | 4.62% | 170.53% | |
55 Neutral | £82.53M | 14.59 | 3.29% | 0.54% | -3.60% | ― |
* Industrials Sector Average
GB:AVAP
Avation
139.00
-23.26
-14.33%
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Avation Corporate Events
DividendsFinancial Disclosures
Avation PLC Sets Interim Dividend for 2026 Financial Year
Positive
Sep 30, 2026
Avation PLC, a London-listed commercial passenger aircraft leasing company, leases passenger jets to airline customers worldwide and derives revenue from long-term rental contracts. Its specialised focus on aircraft leasing ties its fortunes close...
Business Operations and StrategyDividendsFinancial Disclosures
Avation Swings Back to Profit as ATR Fleet Strategy and Lower Debt Strengthen Position
Positive
Sep 30, 2026
Avation reported stable annual revenue of US$110.1 million for the year to 30 June 2026 but delivered a sharp turnaround in profitability, posting US$8.4 million profit after tax versus a loss in the prior year. Operating profit rose 38.4% to US$6...
Business Operations and StrategyFinancial Disclosures
Avation Plans Global Investor Call on FY2026 Results
Positive
Sep 29, 2026
Avation PLC has scheduled an investor update call on 30 September 2026 to discuss its full-year 2026 results with shareholders and other stakeholders. The presentation will be hosted on the LSEG SparkLive platform, with advance registration requir...
Business Operations and Strategy
Avation to Court Investors at Noble Emerging Growth Conference
Positive
Sep 25, 2026
Avation PLC said that senior executives Tim Bacchus, director of investor relations, and Ashley Nicholas, director of corporate finance, will present at Noble Capital Markets’ Emerging Growth Virtual Equity Conference on 2 October 2026. The ...
Business Operations and StrategyFinancial Disclosures
Avation Sets Date for FY2026 Results and Investor Presentation
Neutral
Sep 23, 2026
Avation PLC plans to publish its results for the financial year ended 30 June 2026 on 30 September, offering investors a detailed view of the aircraft lessor’s recent performance. The disclosure will be accompanied by an investor presentatio...
Business Operations and StrategyLegal ProceedingsPrivate Placements and Financing
Avation Sees Limited Near-Term Impact From Air Baltic’s Chapter 11 Move
Neutral
Sep 14, 2026
Avation PLC has responded to Air Baltic Corporation AS’s voluntary filing for U.S. Chapter 11 protection, noting that the Latvian carrier has stated it will continue operating flights as scheduled and maintain normal business activities duri...
Business Operations and StrategyStock Buyback
Avation Continues Share Buyback With Treasury Share Repurchase
Positive
Aug 28, 2026
Avation PLC has repurchased 44,500 ordinary shares on the market at 139.80 pence per share, with the shares to be held in treasury, reducing total voting rights to 59,370,801. The transaction forms part of the company’s ongoing share buyback...
Financial Disclosures
Avation Sets Date for Release of 2026 Financial Results
Neutral
Aug 25, 2026
Avation PLC has announced it will release its financial results for the year ended 30 June 2026 on 30 September 2026, setting expectations for investors and lenders who closely track the lessor’s balance sheet and lease performance. The sche...
Business Operations and StrategyStock Buyback
Avation Repurchases Shares Under Ongoing Buyback Programme
Positive
Aug 24, 2026
Avation PLC has repurchased 245,000 ordinary shares on the market at 138 pence per share as part of its ongoing share buyback programme, and the repurchased shares will be held in treasury. Following this transaction, the company now has 60,825,36...
Business Operations and StrategyStock Buyback
Avation Continues Share Buyback Under Capital Management Programme
Positive
Aug 21, 2026
Avation PLC has repurchased 10,000 ordinary shares at 140 pence each, with the shares to be held in treasury, reducing total voting rights to 59,660,301. The move marginally lowers the free float and can be seen as a capital management tool that m...
Business Operations and StrategyStock Buyback
Avation Adds to Treasury Stock with Targeted Share Buyback
Positive
Aug 20, 2026
Avation PLC has repurchased 10,000 ordinary shares on the market at 140 pence per share, with the bought-back stock to be held in treasury, reducing total voting rights to 59,670,301. The transaction marginally increases treasury holdings to 1,155...
Business Operations and Strategy
Avation PLC Cancels Treasury Shares, Adjusts Voting Rights
Positive
Aug 20, 2026
Avation PLC has cancelled 600,000 ordinary shares previously held in treasury, reducing its overall share count and adjusting its capital structure. Following the move, the company now has 60,825,369 ordinary shares in issue, with 1,145,068 remain...
Business Operations and Strategy
Avation Delivers First ATR 72-600 to Finnair Under Six-Year Lease
Positive
Aug 19, 2026
Avation PLC, a Singapore-based commercial passenger aircraft leasing company listed in London, owns and manages a global fleet of passenger aircraft that it leases to airlines around the world. The lessor pursues a diversified customer base and ca...
Business Operations and StrategyStock Buyback
Avation PLC Continues Share Buyback Under Approved Capital Management Programme
Positive
Aug 19, 2026
Avation PLC has repurchased 10,000 ordinary shares on the market at 140 pence per share, with the shares to be held in treasury, reducing total voting rights to 59,680,301. The transaction forms part of the company’s approved share buyback p...
Business Operations and StrategyStock Buyback
Avation Adds to Treasury Stock Under Ongoing Share Buyback Programme
Positive
Aug 18, 2026
Avation PLC, a Singapore-based lessor of commercial passenger aircraft to airlines worldwide, operates a globally diversified fleet and is listed on the London Stock Exchange. The company’s strategy combines fleet management with capital str...
Business Operations and Strategy
Avation to Court Micro-Cap Investors at Sidoti Virtual Conference
Positive
Aug 13, 2026
Avation PLC said its investor relations and corporate finance directors will present at Sidoti’s Micro-Cap Virtual Investor Conference on August 19, 2026, including a group presentation and limited one-on-one investor meetings. Participation...
Business Operations and StrategyExecutive/Board Changes
Avation Names Industry Veteran Tony Romano as Chief Commercial Officer
Positive
Aug 6, 2026
Avation PLC has appointed industry veteran Tony Romano as Chief Commercial Officer, tasking him with leading and mentoring the company’s global airline marketing team. Romano joins with more than three decades of international aviation exper...
Business Operations and StrategyStock Buyback
Avation Boosts Treasury Stock with Share Buyback Under Ongoing Programme
Positive
Aug 4, 2026
Avation PLC has repurchased 100,000 ordinary shares on the market at 137 pence per share, with the shares to be held in treasury, reducing total voting rights to 59,700,301. The buyback is part of an approved programme allowing the company to buy ...
Business Operations and StrategyStock Buyback
Avation Advances Share Buyback with Treasury Share Purchase
Positive
Jul 24, 2026
Avation PLC said it has repurchased 15,000 ordinary shares on the market at 136.5 pence each, with the shares to be held in treasury, leaving 61,425,369 shares in issue and 59,800,301 voting shares outstanding. The move forms part of an authorised...
Business Operations and StrategyStock Buyback
Avation Repurchases Shares Under Ongoing Buyback Programme
Positive
Jul 23, 2026
Avation PLC has repurchased 10,000 ordinary shares at 135 pence each under its approved share buyback programme, and the acquired shares will be held in treasury. Following this transaction, the company now has 61,425,369 ordinary shares in issue,...
Business Operations and StrategyStock Buyback
Avation Continues Share Buyback, Tightening Free Float and Voting Rights
Positive
Jul 17, 2026
Avation PLC has repurchased 20,000 ordinary shares on the market at 137.5 pence each under its existing share buyback programme, with the shares to be held in treasury rather than cancelled. Following this transaction, the company now has 61,425,3...
Business Operations and StrategyStock Buyback
Avation Tightens Free Float With Treasury Share Buyback
Positive
Jul 15, 2026
Avation PLC has repurchased 10,000 of its own ordinary shares on the market at 137.5 pence per share and will hold the stock in treasury, reducing the free float and total voting rights to 59,845,301. The transaction slightly tightens the company&...
Business Operations and StrategyStock BuybackFinancial DisclosuresPrivate Placements and Financing
Avation Marks 20 Years With Fully Utilised Fleet and Expanded ATR Orderbook
Positive
Jul 13, 2026
Avation PLC, the Singapore-based aircraft leasing company, marked its twentieth anniversary with a fully utilised fleet of 33 aircraft leased to 17 airlines across 17 countries and a diversified mix of narrowbody jets, ATR turboprops and a widebod...
Business Operations and StrategyFinancial Disclosures
Avation Updates Market on Outstanding 2031 Notes and Treasury Holdings
Neutral
Jul 9, 2026
Avation PLC has reported that its wholly owned subsidiary, Avation Group (S) Pte. Ltd., has provided a quarterly update on its Senior 8.5% Notes due 2031 under its US$1 billion global medium term note programme. As of 9 July 2026, US$300 million o...
Business Operations and StrategyStock Buyback
Avation boosts treasury stock with latest share buyback
Positive
Jul 9, 2026
Avation PLC, a commercial passenger aircraft lessor, has repurchased 75,369 ordinary shares on the market at 134.67 pence per share and will hold these shares in treasury. Following this transaction, the company has 61,425,369 ordinary shares in i...
Business Operations and StrategyStock Buyback
Avation adjusts capital structure with buyback and warrant settlement
Neutral
Jul 8, 2026
Avation PLC has repurchased 15,000 ordinary shares at 137 pence per share, placing them into treasury under its approved share buyback programme, and has transferred 14,300 treasury shares to a former employee in settlement of warrant rights tied ...
Business Operations and Strategy
Avation Adds Finnair as Lessee as Regional Aircraft Demand Rises
Positive
Jul 8, 2026
Avation PLC has secured long-term leases with new customer Finnair for two ATR 72-600 turboprop aircraft, to be placed on six-year terms starting in July and September 2026 following a transition from a previous lessee. The deal brings a high-prof...
Business Operations and StrategyStock Buyback
Avation PLC Continues Share Buyback, Updates Voting Rights
Positive
Jul 3, 2026
Avation PLC has repurchased 10,000 of its ordinary shares in the market at 133.5 pence per share, with the shares to be held in treasury. Following this transaction, the company has 61,425,369 ordinary shares in issue, of which 1,493,999 are held ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.