Air Transport Services Group ( (ATSG) ) has released its Q3 earnings. Here is a breakdown of the information Air Transport Services Group presented to its investors.
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Air Transport Services Group, Inc. (ATSG) is a leading provider of aircraft leasing and air transportation solutions, specializing in medium wide-body freighter aircraft. It operates in the aviation sector, offering a unique Lease+Plus aircraft leasing opportunity through its diverse subsidiaries.
In its third quarter of 2024, ATSG reported a decline in revenue and earnings compared to the same period in 2023. The company’s revenue was $471 million, down from $523 million, and it experienced a GAAP loss per share of $0.05 compared to earnings of $0.24 per share the previous year. Despite these declines, ATSG generated strong free cash flow and continued to expand its leasing operations.
Key financial metrics showed a decrease in adjusted pretax earnings to $10.7 million from $31.1 million, and adjusted EBITDA fell slightly to $129.5 million from $136.6 million. ATSG’s free cash flow improved significantly, reaching $86.4 million from a negative $51.6 million. The company also announced a definitive agreement to be acquired by Stonepeak, an alternative investment firm, in an all-cash transaction valued at approximately $3.1 billion.
ATSG’s leasing business benefited from high demand, with four Boeing 767-300 freighter leases added in the third quarter. However, fewer block hours flown and increased expenses affected third-quarter results. Looking forward, the company anticipates strong improvements in its ACMI Services segment due to contractual price increases and plans to execute three new leases for CAM-owned freighters by year-end 2024.
As ATSG transitions to a private company following its acquisition by Stonepeak, management remains optimistic about future growth and operational improvements, driven by strategic pricing adjustments and expanded leasing activities.
