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DUBLIN - AerCap Holdings N.V. (NYSE: AER), a leading company in aviation leasing, disclosed its financial outcomes for the fourth quarter and the entire year ending December 31, 2024. The company announced net income of $671 million, or $3.56 per share, for the fourth quarter, and $2.1 billion, or $10.79 per share, for the full year. Adjusted net income stood at $624 million, or $3.31 per share, for the fourth quarter, and $2.3 billion, or $12.01 per share, for the full year. According to InvestingPro data, the company trades at an attractive P/E ratio of 7.8x, suggesting potential undervaluation relative to its earnings power.
AerCap’s CEO Aengus Kelly commented on the strong quarter and year, citing record operating cash flow and earnings per share, buoyed by a positive operating environment and high demand for leased aircraft, engines, and helicopters. The company also reported asset sales of $869 million in the fourth quarter, with a record gain of $260 million.
In light of these robust results and a strong outlook for 2025, AerCap has launched a new $1 billion share repurchase program and increased its quarterly dividend to $0.27 per share. The company’s return on equity was 16% and adjusted return on equity was 15% for the fourth quarter. Operating activities generated cash flow of $1.3 billion for the quarter and $5.4 billion for the full year.
The company’s financial position remains solid, with a book value per share of $94.57 as of December 31, 2024, up approximately 13% from the previous year. AerCap’s adjusted debt-to-equity ratio was 2.35 to 1 at year-end. InvestingPro analysis reveals impressive gross profit margins of 58% and a strong current ratio of 1.98, though the company operates with a significant debt burden as evidenced by its debt-to-equity ratio of 2.9x. For deeper insights into AerCap’s financial health and 12 additional ProTips, consider exploring the comprehensive Pro Research Report available on InvestingPro.
AerCap’s portfolio included 3,525 aircraft, engines, and helicopters as of December 31, 2024. The average age of its owned aircraft fleet was 7.4 years, with an average remaining contracted lease term of the same duration.
The Board of Directors declared a quarterly cash dividend of $0.27 per share, payable on April 3, 2025, to shareholders of record as of March 12, 2025, representing an increase from the 2024 quarterly dividend of $0.25 per share. The stock has demonstrated strong momentum with a 34.7% return over the past year, while maintaining relatively low price volatility. The company’s market capitalization currently stands at $18.7 billion, with analysts setting price targets ranging from $103 to $130 per share.
This article is based on a press release statement from AerCap Holdings N.V.
In other recent news, AerCap Holdings N.V. has successfully priced a $1.5 billion senior notes offering through its subsidiaries, AerCap Ireland Capital Designated Activity Company and AerCap Global Aviation Trust. This offering includes $750 million of 4.875% Senior Notes due 2028 and another $750 million of 5.375% Senior Notes due 2031. The proceeds from this offering are intended for general corporate purposes, including financing or refinancing aircraft assets and repaying existing debts. Citigroup (NYSE:C), Deutsche Bank (ETR:DBKGn) Securities, Barclays (LON:BARC), Credit Agricole (OTC:CRARY) CIB, and TD Securities were involved as joint book-running managers for this offering. Additionally, AerCap has expanded its presence in Saudi Arabia by entering into lease agreements for two Boeing (NYSE:BA) 737-800 aircraft with Aloula Aviation, a subsidiary of Aramco (TADAWUL:2222). This agreement continues AerCap’s ongoing relationship with Aramco, which previously included helicopter leasing. The aircraft will be used to transport Aramco Group passengers within Saudi Arabia, enhancing Aloula Aviation’s service capabilities in the Kingdom (TADAWUL:4280).
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