AerCap (AER) Q4 2025 earnings summary

Executive summary

• Achieved record GAAP net income of $3.8 billion ($21.30/share) and adjusted net income of $2.7 billion ($15.37/share) for 2025, with revenues at an all-time high of $8.5 billion and sales volumes of $3.9 billion.

• Returned $2.6 billion to shareholders via share repurchases and dividends, repurchasing 22.1 million shares and increasing the quarterly dividend to $0.40 per share.

• Book value per share rose 19% year-over-year to $112.59 at year-end 2025, a 68% increase since 2022.

• Sold $3.9 billion of assets for $819 million in gains and reinvested $5.4 billion in new assets, adding 103 aircraft to the order book.

• Received $1.5 billion in insurance and other recoveries related to the Ukraine conflict in 2025, bringing total pre-tax recoveries to $3 billion since 2023.

Financial highlights

• Q4 2025 GAAP net income was $633 million ($3.79/share); adjusted net income was $660 million ($3.95/share).

• Full-year operating cash flow reached $5.4 billion; liquidity at year-end was $21 billion, with a sources-to-uses coverage ratio of 1.8x.

• Book value per share increased by 19% year-over-year and 68% since 2022.

• Q4 sales of 55 owned assets generated $1.3 billion in revenue and a 24% unlevered gain-on-sale margin.

• Full-year gain-on-sale margin was 27%, or 2x book equity.

Outlook and guidance

• 2026 adjusted EPS projected at $12–$13, not including gains on sale.

• Lease rents expected to be $6.7 billion, maintenance revenues $700 million, and other income $200 million for total revenue of $7.6 billion.

• Depreciation/amortization forecasted at $2.6 billion, interest expense at $2 billion, and total expenses (leasing, SG&A, other) at $1.2 billion.

• Cash CapEx for 2026 estimated at $5.2 billion; asset sales forecasted at $2–$3 billion.

• Effective tax rate for 2026 projected at 15.5%.