DAE Reports Financial Results for Nine Months Ended September 30, 2024

Photo : Dubai government media office

Dubai Aerospace Enterprise (DAE) Ltd today announced its financial results for the nine months ending September 30, 2024. The company reported significant developments across various segments of its operations, highlighting its continued growth and strong financial health. 

DAE signed agreements to acquire 23 aircraft for approximately $1.1 billion, with 91% being narrow-body and 86% featuring next-generation technology. The company acquired a total of 47 aircraft, which includes 11 owned and 36 managed. DAE also sold 47 aircraft, comprising 16 owned and 31 managed. A total of 103 lease agreements, extensions, and amendments were signed, including 85 owned and 18 managed aircraft. The owned portfolio remains robust, contracted at 99.0%. In its engineering division, approximately 1,125,000 man hours were booked, with 212 checks performed.

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Firoz Tarapore, CEO of DAE, commented on the company’s financial performance, stating that profit before tax rose by 57% (13% before exceptional items), driven by revenue growth of 3%. This resulted in pre-tax profitability margins of 23% and a pre-tax return on equity of 11%. Tarapore emphasized the company’s prudent balance sheet management, noting that liquidity and capital adequacy metrics remain exceptionally strong. DAE ended the quarter with $4.0 billion in liquidity and a Liquidity Coverage Ratio of 335%. Furthermore, leverage, as measured by net debt-to-equity, improved to 2.45x, down from 2.53x at the end of 2023.

In 2024, DAE announced agreements to acquire 33 aircraft from multiple counterparties for a total consideration of approximately $1.6 billion. The acquired aircraft portfolios have a weighted average age of 4.4 years and a weighted average remaining lease term of 8.0 years, with leases in place with 17 airlines across 13 countries. The consolidated portfolio consists of 94% narrow-body aircraft by value, with 90% being next-generation technology.

DAE's order book extends until the second quarter of 2026, although there are ongoing delivery uncertainties from Boeing that are impacting near-term deliveries. In the engineering segment, DAE Engineering’s revenue increased by 35% year-on-year to $131 million, while profitability surged by 128% to $27.6 million. The development of new state-of-the-art hangar capacity at DAE’s facility in Amman, Jordan, is on track, with plans to operationalize an additional five hangar lines by the end of 2024.

To discuss the financial results for the nine months ended September 30, 2024, DAE management will host a conference call on Wednesday, October 30, 2024, at 09:00 EDT / 13:00 GMT / 17:00 GST / 21:00 SGT. Participants can access the call live through a link on the DAE website or by dialing in with global numbers, quoting "Dubai Aerospace Enterprise" when prompted. Full details of the call can be found on DAE’s investor relations website.

This announcement includes forward-looking statements, identified by terminology such as “may,” “will,” “should,” and “expect.” These statements reflect DAE’s current expectations and assumptions and involve risks regarding future events and outcomes. Actual results may differ materially due to various factors beyond DAE's control.

The press release may contain non-IFRS financial information, such as Adjusted EBITDA. While useful for supplemental purposes, it should not be viewed as a substitute for IFRS-compliant financial information. DAE primarily relies on IFRS results to provide a comprehensive financial overview.

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