Aercap (NYSE:AER) Posts Earnings Results

Aercap (NYSE:AER) released its earnings results on Friday. The financial services provider reported $3.95 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.31 by $0.64, FiscalAI reports. Aercap had a net margin of 45.41% and a return on equity of 15.16%. The firm had revenue of $2.24 billion during the quarter, compared to analyst estimates of $2.07 billion. During the same period last year, the business earned $3.31 earnings per share. The business’s revenue was up 8.3% on a year-over-year basis. Aercap updated its FY 2026 guidance to 12.000-13.000 EPS.

Here are the key takeaways from Aercap’s conference call:

• Record 2025 results: AerCap reported GAAP net income of $3.8 billion and adjusted net income of $2.7 billion on a record $8.5 billion of revenue, returned ~$2.6 billion to shareholders (≈22.1M shares repurchased) and raised the quarterly dividend to $0.40, supported by ~ $3.0 billion of pre‑tax Ukraine-related recoveries.
• More conservative 2026 outlook: Management guided adjusted EPS of $12–$13 excluding gains on asset sales, citing absent 2025 one‑offs (gains on sale and other income), and assumes $2–$3 billion of asset sales and ~$5.2 billion of cash CapEx.
• Strong liquidity and balance sheet: Year‑end metrics include a Fitch upgrade, net debt‑to‑equity of 2.1x, approximately $21 billion of total liquidity and next‑12‑month sources‑to‑uses coverage of ~1.8x (≈$9 billion excess cash coverage).
• Robust commercial execution: AerCap completed 705 transactions in 2025, sold 189 assets with a 27% gain‑on‑sale margin (about 2x book equity), added strategic feedstock (Spirit order book, Virgin Atlantic sale‑leasebacks) and extended 87% of leases.
• Operational headwinds include a Q4 net maintenance contribution of ‑$106 million (driven by Spirit restructuring and timing), higher leasing expenses and expected downtime from Spirit aircraft that will depress lease revenue into 2H‑2026 and spill into 2027.

Aercap Stock Performance

AER stock traded down $3.72 during midday trading on Friday, reaching $140.28. 1,248,804 shares of the company’s stock traded hands, compared to its average volume of 1,092,227. The company has a current ratio of 0.30, a quick ratio of 0.30 and a debt-to-equity ratio of 2.43. Aercap has a 52-week low of $85.57 and a 52-week high of $149.24. The stock has a market cap of $26.20 billion, a P/E ratio of 6.65, a PEG ratio of 0.73 and a beta of 1.05. The stock’s 50-day moving average is $142.75 and its 200 day moving average is $129.22.

Institutional Trading of Aercap

A number of hedge funds and other institutional investors have recently bought and sold shares of AER. Advisory Services Network LLC purchased a new position in shares of Aercap during the 3rd quarter valued at about $35,000. Geneos Wealth Management Inc. lifted its holdings in Aercap by 26.6% during the first quarter. Geneos Wealth Management Inc. now owns 447 shares of the financial services provider’s stock valued at $46,000 after purchasing an additional 94 shares in the last quarter. Johnson Financial Group Inc. bought a new position in shares of Aercap in the third quarter worth approximately $119,000. EverSource Wealth Advisors LLC increased its stake in shares of Aercap by 59.2% in the second quarter. EverSource Wealth Advisors LLC now owns 1,143 shares of the financial services provider’s stock worth $134,000 after purchasing an additional 425 shares in the last quarter. Finally, B. Riley Wealth Advisors Inc. bought a new stake in shares of Aercap during the 2nd quarter valued at $204,000. Hedge funds and other institutional investors own 96.42% of the company’s stock.

Analysts Set New Price Targets

A number of equities analysts recently weighed in on AER shares. Truist Financial assumed coverage on shares of Aercap in a report on Tuesday, December 9th. They issued a “buy” rating and a $159.00 price objective for the company. Weiss Ratings restated a “buy (b+)” rating on shares of Aercap in a research note on Wednesday, January 21st. TD Cowen reaffirmed a “buy” rating on shares of Aercap in a report on Thursday, October 30th. Morgan Stanley lifted their price objective on Aercap from $120.00 to $150.00 and gave the stock an “equal weight” rating in a report on Tuesday, November 11th. Finally, Zacks Research lowered Aercap from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, December 30th. Seven investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $148.86.

About Aercap

AerCap Holdings N.V. (NYSE: AER) is a global aircraft leasing and aviation finance company that acquires, leases, sells and manages commercial aircraft and engines. Its core services include operating leases, finance leases, sale-and-leaseback transactions, aircraft trading and remarketing, and asset management for airline customers. The company also provides related commercial and technical support services designed to optimize fleet utilization and residual values over the life cycle of aircraft and engines.

Operating with a broad global footprint, AerCap serves airlines and other aviation customers across North America, Europe, Asia-Pacific, Latin America, the Middle East and Africa.