AerCap (AER) Q2 2024 earnings summary

Executive summary

• Adjusted net income for Q2 2024 was $592 million, with adjusted EPS of $3.01, reflecting strong operational performance and robust demand for aviation assets.

• Full-year 2024 adjusted EPS guidance was raised to approximately $10.25, excluding potential gains on sale in the second half.

• Closed a 36-aircraft transaction with Spirit Airlines, with deliveries in 2027 and 2028, and added over 50 new technology aircraft this year.

• Credit ratings were upgraded to Baa1 by Moody's and BBB+ by S&P, with Fitch revising outlook to positive.

• Returned $345 million to shareholders via repurchase of 3.9 million shares at an average price of $88.66 in Q2 2024.

Financial highlights

• GAAP net income for Q2 2024 was $448 million ($2.28 per share); adjusted net income was $592 million ($3.01 per share).

• Basic lease rents were $1,568 million, with a $32 million negative impact from lease premium amortization.

• Maintenance revenues were $180 million, elevated due to higher end-of-lease payments.

• Net gain on sale of assets was $129 million, with a 20% unlevered gain-on-sale margin.

• Operating cash flow for Q2 2024 was approximately $1.4 billion.

• Book value per share as of June 30, 2024, was $89.47, up 25% year-over-year.

Outlook and guidance

• Full-year 2024 adjusted EPS guidance raised to ~$10.25, not including gains on sale in the second half.

• Key drivers for outperformance include $289 million in 1H 2024 gains on sale, higher lease revenue, and strong cash collections.

• Continued strong environment for leasing and asset sales expected.

• Balance sheet expected to grow in the second half of 2024 due to over $4 billion in planned CapEx.

• Continued focus on capital deployment for growth and shareholder returns.