AerCap (AER) Q2 2025 earnings summary

Executive summary

• Achieved record GAAP net income of $1.3 billion ($7.09 per share) in Q2 2025, driven by strong asset demand and a favorable $1 billion insurance award related to the Ukraine conflict.

• Adjusted net income was $502 million ($2.83 per share); full-year adjusted EPS guidance raised to ~$11.60, excluding further gains on sale.

• Repurchased over $1 billion in stock year-to-date, including $445 million in Q2 2025.

• Announced new engine leasing partnership with Air France-KLM and a framework agreement with Leonardo S.p.A. for helicopter maintenance.

• Maintained high aircraft utilization (99%) and lease extension rates (97%), reflecting robust global demand.

Financial highlights

• GAAP net income for Q2 was $1.259 billion, including $973 million in net recoveries from the Ukraine conflict insurance award.

• Adjusted net income for Q2 was $502 million; adjusted EPS $2.83.

• Net gain on sale of assets was $57 million, with 18 assets sold for $374 million and an 18% unlevered gain on sale margin.

• Operating cash flow for Q2 was approximately $1.3 billion; average cost of debt remained at 4.1%.

• Book value per share as of June 30, 2025, was $102.99, up 15% year-over-year.

Outlook and guidance

• Full-year 2025 adjusted EPS guidance raised to ~$11.60, reflecting strong year-to-date performance and positive outlook, excluding additional gains on sale.

• Lease revenue expected to remain strong in the second half; sales guidance for the year is $2.5 billion.

• CapEx of $3 billion planned for new equipment through end of 2025, with potential for additional deployment if opportunities arise.