Air Transport Services Group (ATSG) has reported consolidated financial results for the fourth quarter (Q4) and full year ended 31 December 2024.
Those results, as compared with the same period in 2023, were as follows:
Q4 2024 results
Revenues of $517 million, consistent with $517 million in prior year period
GAAP Earnings per Share (diluted) from Continuing Operations of $0.21, versus a Loss per Share of ($0.24)
GAAP Pretax Earnings from Continuing Operations of $24.3 million, versus a Pretax Loss of ($15.6) million
Adjusted Pretax* Earnings of $39.8 million, versus $19.8 million
Adjusted EPS* of $0.40, versus $0.18
Adjusted EBITDA* of $162.2 million, versus $129.9 million
Free Cash Flow* was $34.7 million, versus negative ($65.5) million
Full Year 2024 results
Revenues of $2.0 billion, versus $2.1 billion
GAAP Earnings per Share (diluted) from Continuing Operations of $0.40, versus $0.82 per share
GAAP Pretax Earnings from Continuing Operations of $42.3 million, versus $84.2 million
Adjusted Pretax* Earnings of $83.0 million, versus $146.7 million
Adjusted EPS* of $0.87, versus $1.46
Adjusted EBITDA* of $549.4 million, versus $561.6 million
Free Cash Flow* was $228.1 million, versus negative ($111.8) million
As previously announced on 3 November 2024, ATSG entered into a definitive agreement to be acquired by Stonepeak, a leading alternative investment firm specialising in infrastructure and real assets.
In light of the pending transaction, ATSG will not hold an earnings conference call or provide forward-looking guidance this quarter.
The company is working to complete the transaction in the first half of 2025 and continues to make progress toward completing all conditions to closing.
On 10 February 2025, ATSG received stockholder approval to be acquired by Stonepeak.
At this time, ATSG is working to obtain approval from the US Department of Transportation.
Mike Berger, chief executive officer of ATSG, said: “I’m proud of the entire ATSG team for their focus and dedication as we delivered strong fourth quarter results, as well as safe and reliable service.
“We saw continued momentum in our CAM leasing business, placing our ninth converted 767-300 freighter this year with an external customer in November.
“In ACMI services, we saw improved profitability in the quarter, operating all 10 of the additional aircraft recently provided by Amazon with sequential quarter improvements in both passenger and freighter hours flown.
“We once again generated significant free cash flow, with a total of $228 million for the year.
“We remain excited about our future with Stonepeak, and we are on track for closing in the first half of this year.
“We are enthusiastic about the opportunities we see ahead of us in 2025, including the delivery of our first four converted A330 freighters.”
2024 operating highlights
CAM added nine Boeing 767-300 freighter aircraft and placed all nine of these aircraft with external customers under long-term leases
11 more customer-provided 767-300 freighters were subleased to and operated by an ATSG cargo airline during 2024, for a total of 27 such aircraft in the fleet at the end of the year
Segment results – Cargo Aircraft Management (CAM)
Aircraft leasing and related revenues decreased 12% for the fourth quarter and 6% for the year.
While revenue benefited from nine additional 767-300 freighter leases since the end of December 2023, these lease revenues were more than offset by the scheduled return of nine 767-200 and four 767-300 aircraft and lower lease-related maintenance revenue over that same period.
CAM’s fourth quarter pretax earnings decreased $9 million, or 44%, to $12 million versus $21 million for the prior-year quarter, and decreased by $51 million, or 46% to $59 million for the full year.
Segment depreciation expense increased by $34 million and interest expense by $12 million versus the prior year.
At the end of the fourth quarter, 91 CAM-owned aircraft were leased to external customers, one more than a year ago.
During 2024, five 767-200 freighters were removed from service. Six 767-200s and three 767-300s were sold during the year.
14 CAM-owned aircraft were in or awaiting conversion to freighters at the end of the fourth quarter, nine fewer than at the end of the prior-year quarter. This included seven 767s, one A321 and six A330s.