AerCap raises 2025 earnings forecast, announces $500M buyback

DUBLIN - AerCap Holdings N.V. (NYSE: AER), a prominent aviation leasing company, has reported a robust financial performance for the first quarter of 2025. The company announced an increase in its full-year earnings per share (EPS) guidance to a range of $9.30 to $10.30 and unveiled a new $500 million share repurchase program. Trading near its 52-week high of $107.36, AerCap has demonstrated strong momentum with a 26.5% return over the past year. According to InvestingPro data, analysts maintain a bullish stance, with three analysts recently revising earnings estimates upward.

For the first quarter ended March 31, 2025, AerCap’s net income stood at $643 million, translating to $3.48 per share. The adjusted net income, which excludes certain accounting adjustments, reached $679 million or $3.68 per share. These figures mark a continuation of the company’s strong performance, attributed to high demand for its aviation assets and a robust sales market. The company maintains impressive gross profit margins of 57.6% and trades at an attractive P/E ratio of 9.55x, significantly below many industry peers.

The company’s return on equity was reported at 15%, with an adjusted return on equity of 16%. AerCap generated $1.3 billion in cash flow from operating activities and achieved an unlevered gain-on-sale margin of 35% for assets sold during the quarter. InvestingPro analysis reveals the company’s strong financial health with a "GOOD" overall rating, supported by particularly strong price momentum and profitability scores. Discover 8 more exclusive ProTips and comprehensive financial metrics with an InvestingPro subscription. This equates to 2.3 times the book value on an equity basis. Capital expenditure for the quarter amounted to $1.5 billion, which included the acquisition of 13 aircraft, 35 engines, and one helicopter.

AerCap has also signed financing transactions totaling approximately $1.5 billion in the first quarter. The company’s adjusted debt-to-equity ratio was 2.4 to 1 as of March 31, 2025. Furthermore, AerCap’s book value per share has increased by approximately 11% to $97.37 from the previous year.

The company’s lease revenue for the first quarter was $1,649 million, a 4% increase compared to the same period in 2024. However, maintenance rents and other receipts saw an 18% decrease to $146 million. The net gain on the sale of assets was $177 million, an 11% increase from the previous year, primarily due to the composition of asset sales and the strong sales environment.

AerCap’s Board of Directors has declared a quarterly cash dividend of $0.27 per share, payable on June 5, 2025, to shareholders of record as of May 14, 2025.

The company’s portfolio as of March 31, 2025, comprised 3,508 aircraft, engines, and helicopters. AerCap’s CEO, Aengus Kelly, expressed confidence in the company’s continued strong performance, citing robust demand for aviation assets and a strong sales market as key drivers. With a market capitalization of $19.06 billion and analyst price targets reaching up to $130, AerCap continues to attract investor attention. For detailed insights and access to the comprehensive Pro Research Report covering AerCap and 1,400+ other top stocks, visit InvestingPro.

This news article is based on a press release statement from AerCap Holdings N.V. and does not contain any opinion or endorsement of the reported facts.

In other recent news, AerCap Holdings N.V. has reported a dynamic first quarter in 2025, with significant transactions, including 112 lease agreements and the purchase of 49 assets, enhancing its aircraft and engine portfolios. The company also completed 42 sale transactions, involving aircraft and engines, and signed financing deals worth approximately $1.5 billion. AerCap declared a quarterly cash dividend of $0.27 per share and repurchased about 5.7 million shares, totaling around $558 million. Furthermore, AerCap has priced a $500 million offering of junior subordinated notes, with proceeds earmarked for general corporate purposes, possibly including the redemption of existing notes. Fitch Ratings upgraded AerCap’s Long-Term Issuer Default Rating to ’BBB+’ from ’BBB’, citing its solid asset quality and strong management team. Additionally, TD Cowen reiterated a Buy rating on AerCap, setting a price target of $130, highlighting the company’s strategic advantage in a constrained aircraft supply market. AerCap also filed its annual report with the SEC, detailing its financial performance for 2024, and making it available to the public. These developments underscore AerCap’s ongoing strategic and financial initiatives in the aviation leasing sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.