AerCap (AER) Q1 2025 earnings summary

Executive summary

• Reported Q1 2025 net income of $643 million ($3.48 per share) and adjusted net income of $679 million ($3.68 per share), reflecting strong demand and robust sales market.

• Increased full-year 2025 adjusted EPS guidance to $9.30–$10.30, excluding further gains on sale.

• Announced a new $500 million share repurchase program and returned $558 million to shareholders via buybacks in Q1.

• Upgraded to BBB+ by Fitch, now rated BBB+ by all three major agencies.

• Achieved $683 million in asset sales with a 35% gain-on-sale margin and 2.3x book equity multiple.

Financial highlights

• Total revenues and other income rose 3% year-over-year to $2.08 billion in Q1 2025.

• Net gain on sale of assets was $177 million from selling 35 owned assets, with a 35% unlevered gain on sale margin.

• Cash flow from operating activities was $1.3 billion for Q1 2025.

• Book value per share grew 11% year-over-year to $97.37 as of March 31, 2025.

• Quarterly dividend of $0.27 per share declared, payable June 5, 2025.

Outlook and guidance

• Full-year 2025 adjusted EPS guidance raised to $9.30–$10.30, not including additional gains on sale.

• Expectation to finish in the top half of the guidance range, despite delays in the 777 freighter conversion program.

• Key drivers for guidance increase: $177 million 1Q 2025 gains on sale, higher net maintenance contribution, and higher other income.

• Management cites continued strong demand for aviation assets and a robust sales market.