Aercap (NYSE:AER) Posts Earnings Results, Beats Estimates By $1.00 EPS

Aercap (NYSE:AER) announced its earnings results on Wednesday. The financial services provider reported $5.14 EPS for the quarter, beating the consensus estimate of $4.14 by $1.00, FiscalAI reports. The business had revenue of $2.22 billion for the quarter, compared to analysts’ expectations of $2.10 billion. Aercap had a return on equity of 16.01% and a net margin of 45.22%.The firm’s revenue was up 14.9% on a year-over-year basis. During the same period in the prior year, the business posted $2.83 earnings per share. Aercap updated its FY 2026 guidance to 16.800-16.800 EPS.

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

• Strong quarterly results and higher guidance: Adjusted EPS was $5.14, adjusted ROE was 18%, and operating cash flow reached $1.5 billion. AerCap raised its full-year 2026 adjusted EPS outlook to approximately $16.80, including $2.80 per share of first-half asset-sale gains.
• Robust leasing and asset-sale environment: Passenger aircraft lease extensions reached 85%, while $1.4 billion of assets were sold in the quarter at a 20% gain-on-sale margin. Management expects full-year asset sales of approximately $4 billion to $5 billion, supported by strong buyer demand.
• Capital returns and financial flexibility remain significant: AerCap repurchased $691 million of shares in the quarter and more than $1.4 billion in the first half, while maintaining approximately $3.5 billion of excess capital and a 2.05-to-1 leverage ratio. Management said share repurchases should continue and that leverage could gradually move toward the mid-2x range.
• Expanded wide-body commitments: AerCap ordered 15 Boeing 787s for delivery from 2030 through 2033, citing scarce delivery positions and long-term demand driven by the aging wide-body fleet. The company also added 131 aircraft to its order book this year, including Airbus narrow-body aircraft obtained through airline-related transactions.
• Some risks and uncertainties remain: Net maintenance contribution was unusually high in the first half and is expected to normalize in the second half, while fleet growth is expected to be modest. AerCap is also evaluating aerospace-engine-derived power systems for data centers but remains cautious because of operational, reliability, partner, and long-term demand risks.

Aercap Stock Up 2.7%

Shares of AER traded up $4.08 during trading hours on Thursday, reaching $152.71. The stock had a trading volume of 265,239 shares, compared to its average volume of 1,278,859. The firm has a 50-day simple moving average of $144.57 and a 200 day simple moving average of $143.42. Aercap has a 12 month low of $105.65 and a 12 month high of $156.33. The company has a current ratio of 0.24, a quick ratio of 0.24 and a debt-to-equity ratio of 2.34. The company has a market capitalization of $25.48 billion, a price-to-earnings ratio of 6.70, a P/E/G ratio of 1.07 and a beta of 0.94.

Aercap Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 3rd. Stockholders of record on Wednesday, August 12th will be given a dividend of $0.40 per share. This represents a $1.60 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date of this dividend is Wednesday, August 12th. Aercap’s dividend payout ratio is presently 7.01%.

Analysts Set New Price Targets

AER has been the topic of a number of analyst reports. Barclays upped their price objective on shares of Aercap from $164.00 to $179.00 and gave the company an “overweight” rating in a research note on Tuesday, July 7th. Morgan Stanley decreased their price target on Aercap from $160.00 to $155.00 and set an “equal weight” rating for the company in a report on Thursday, April 30th. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and issued a $190.00 price objective on shares of Aercap in a research note on Thursday. Susquehanna lifted their target price on Aercap from $170.00 to $176.00 and gave the stock a “positive” rating in a report on Tuesday, July 7th. Finally, JPMorgan Chase & Co. raised their price objective on shares of Aercap from $150.00 to $155.00 and gave the stock an “overweight” rating in a research report on Thursday, April 30th. Two analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating and one has given a Hold rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Buy” and a consensus price target of $170.33.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the business. Integrated Wealth Concepts LLC increased its position in shares of Aercap by 19.0% during the first quarter. Integrated Wealth Concepts LLC now owns 2,649 shares of the financial services provider’s stock worth $271,000 after acquiring an additional 423 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in Aercap by 282.7% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 6,659 shares of the financial services provider’s stock valued at $680,000 after purchasing an additional 4,919 shares during the last quarter. Geneos Wealth Management Inc. boosted its stake in Aercap by 26.6% during the 1st 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 during the last quarter. Invesco Ltd. increased its holdings in Aercap by 43.3% during the 2nd quarter. Invesco Ltd. now owns 459,459 shares of the financial services provider’s stock worth $53,757,000 after purchasing an additional 138,843 shares in the last quarter. Finally, EverSource Wealth Advisors LLC increased its holdings in Aercap by 59.2% during the 2nd 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. Institutional investors and hedge funds own 96.42% of the company’s stock.

More Aercap News

Here are the key news stories impacting Aercap this week:

• Positive Sentiment: Strong Q2 earnings beat: AerCap reported adjusted net income of $811 million, or $5.14 per share, versus analyst expectations of approximately $4.14. Revenue rose 14.9% year over year to $2.22 billion, exceeding the $2.10 billion consensus estimate. AerCap Q2 2026 results
• Positive Sentiment: Continued aircraft demand supported results: Industry demand and favorable leasing conditions helped drive AerCap’s quarterly performance, reinforcing the outlook for its aircraft-leasing business. Continued Demand Drives AerCap Figures
• Positive Sentiment: New 52-week high after the earnings release: AER reached $156.33 during Wednesday’s session as investors initially responded favorably to the earnings beat. AerCap reaches new one-year high
• Neutral Sentiment: Dividend maintained: AerCap declared a quarterly dividend of $0.40 per share, payable September 3 to shareholders of record August 12, representing an annualized yield of roughly 1.1%.
• Negative Sentiment: Guidance may have disappointed investors: AerCap set 2026 EPS guidance at $16.80, below the approximately $17.20 analyst consensus. Although management raised its outlook, the lower-than-expected forecast may be prompting profit-taking after the recent rally. AerCap tops Q2 estimates

Aercap declared that its Board of Directors has authorized a share repurchase program on Wednesday, April 29th that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits the financial services provider to purchase up to 4.3% of its shares through open market purchases. Shares buyback programs are typically a sign that the company’s leadership believes its shares are undervalued.

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.