In This Article:
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GAAP Net Income: $643 million.
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GAAP Earnings Per Share (EPS): $3.48.
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Adjusted Net Income: $679 million.
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Adjusted Earnings Per Share (EPS): $3.68.
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Net Maintenance Contribution: $82 million.
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Net Gain on Sale of Assets: $177 million.
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Total Sales Revenue from Asset Sales: $683 million.
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Unlevered Gain on Sale Margin: 35%.
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Other Income: $105 million.
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Total Sources of Liquidity: Approximately $20 billion.
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Leverage Ratio: 2.4:1.
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Operating Cash Flow: Approximately $1.3 billion.
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Share Repurchases in Q1: 5.7 million shares for $558 million.
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Additional Share Repurchases in April: 4.7 million shares for $445 million.
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Full-Year 2025 Adjusted EPS Guidance: $9.30 to $10.30.
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New Share Repurchase Program: $500 million.
Release Date: April 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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AerCap Holdings NV (NYSE:AER) reported a strong quarter with GAAP net income of $643 million and adjusted net income of $679 million.
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The company announced a new $500 million share repurchase program, reflecting confidence in its financial position.
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AerCap achieved a high utilization rate of 99% and an 84% extension rate, indicating strong demand for its aircraft.
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Successful execution of a 787 sale leaseback at attractive pricing with a new customer, showcasing AerCap's market validation.
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The company has a strong liquidity position with approximately $20 billion in total sources of liquidity, including over $1 billion in cash.
Negative Points
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There are ongoing uncertainties regarding tariffs and trade, which could impact future operations and demand.
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Delays in the 777 freighter conversion program have been noted, affecting the company's operational timeline.
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The macroeconomic environment remains uncertain, which could impact future financial performance.
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The company faces potential challenges from tariff implementations on aircraft, which could affect global operations.
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There is a noted softness in domestic bookings in the US, which could impact future demand from US airlines.
Q & A Highlights
Q: Gus, do you expect more bilateral transactions given the current tariff uncertainty, and how does this compare to opportunities in helicopters and engines? A: Aengus Kelly, CEO: Given AerCap's global scale, we anticipate more bilateral negotiations. The engine opportunities arise from our industrial infrastructure and experience with OEMs. We also executed a 787 sale leaseback on a bilateral basis, indicating potential for more such opportunities.