AerCap (AER) Q3 2024 earnings summary

Executive summary

• Adjusted net income was $463 million and adjusted EPS was $2.41 for Q3 2024, with GAAP net income of $375 million ($1.95 per share) and record operating cash flow of $5.6 billion over the last twelve months, reflecting strong demand and supply constraints.

• Full-year 2024 adjusted EPS guidance was raised to approximately $10.70, excluding any Q4 gains on sale.

• Announced a new $500 million share repurchase program in Q3, bringing total authorizations to $1.5 billion for 2024, with 5.5 million shares repurchased for $497 million in Q3.

• Utilization rate reached 99% and extension rates exceeded 90% in Q3 2024.

• Declared a $0.25 per share dividend for Q3 2024.

Financial highlights

• Q3 2024 net income was $375 million ($1.95 per share); adjusted net income was $463 million ($2.41 per share).

• Basic lease rents increased to $1,605 million, with maintenance revenues at $161 million, impacted by $44 million in maintenance rights amortization.

• Net gain on sale of assets was $102 million, with an unlevered gain-on-sale margin of 27%.

• Interest expense was $516 million, including $22 million in non-cash mark-to-market losses on derivatives.

• Book value per share rose to $90.66, up 16% year-over-year as of September 30, 2024.

Outlook and guidance

• Full-year 2024 adjusted EPS guidance raised to $10.70, not including any Q4 gains on sale.

• Strong demand and high utilization rates are expected to persist due to ongoing OEM delivery delays.

• Some aircraft deliveries have been deferred from 2024 and 2025 into 2026 due to Boeing and Airbus delays.

• Key drivers for outperformance include higher lease revenue from strong cash collections and significant gains on asset sales.