Aercap (NYSE:AER) management highlighted a “record year” in 2025, driven by aircraft sales activity, leasing demand, and insurance recoveries related to the Ukraine conflict, while also outlining an adjusted EPS outlook of $12 to $13 for 2026 excluding gains on asset sales.
Record 2025 results and shareholder returns
Chief Executive Officer Aengus Kelly said 2025 delivered “exceptional financial and operating performance” across AerCap’s businesses. The company reported record GAAP net income of $3.8 billion, or $21.30 per share, and adjusted net income of $2.7 billion, or $15.37 per share. Full-year revenue reached $8.5 billion, and sales volumes totaled a record $3.9 billion.
Ukraine-related insurance and other recoveries were a major contributor in 2025. Kelly said AerCap received $1.5 billion of recoveries during the year, largely due to a court judgment in June, bringing total pre-tax recoveries since 2023 to roughly $3 billion. He added that this exceeded the net charge of $2.7 billion recognized in 2022.
Fourth-quarter performance and operating items
Chief Financial Officer Pete Juhas said fourth-quarter GAAP net income was $633 million, or $3.79 per share. After purchase accounting adjustments and Ukraine-related recoveries, adjusted net income for the quarter was $660 million, or $3.95 per share.
For the fourth quarter, basic lease rents were $1.688 billion, roughly flat sequentially, and maintenance revenues were $225 million. Net gain on sale of assets was $253 million. AerCap sold 55 owned assets during the quarter for total sales revenue of just over $1.3 billion, producing an unlevered gain-on-sale margin of 24%.
Juhas said leasing expenses were higher than usual due to restructuring costs related to the Spirit Airlines bankruptcy. He noted the company typically expects net maintenance contribution—maintenance revenue less leasing expenses (excluding maintenance rights amortization)—to average $30 million to $50 million per quarter, though it can fluctuate. In the fourth quarter, net maintenance contribution was negative $106 million, which he said was about $130 million to $150 million lower than normal due to the Spirit restructuring, other unusual items, and timing of maintenance activity.
Other fourth-quarter line items included interest expense of $474 million, income tax expense of $78 million, and equity-method earnings of $80 million, driven primarily by “continued strong earnings and gains on sale” from the Shannon Engine Support joint venture.
Market conditions and fleet activity
Kelly said aviation demand remains robust, citing record-high industry load factors, while supply is constrained due to delivery delays and maintenance backlogs. Although he acknowledged recent increases in OEM production rates, he said AerCap does not expect normalization of supply-demand dynamics until sustained higher monthly production rates are achieved, adding that “production surprises to the upside simply do not occur.” He said the company believes the structural shortage of aircraft will persist at least through the end of the decade.
Against that backdrop, AerCap executed 705 transactions in 2025. The company sold 189 assets for the year and reported a gain-on-sale margin of 27%, which management described as translating to approximately 2x book equity on owned assets. Kelly said aircraft sales were particularly elevated, with 108 owned aircraft sold at an average age of 15 years, which he said generated strong gains and improved portfolio quality.
AerCap also extended 87% of its leased aircraft in 2025, up from 79% in 2024, which management attributed to strong customer demand. Airlines and lessors accounted for more than 80% of aircraft sales revenues during the year, according to Kelly.
On growth, Kelly pointed to bilateral transactions as a way to access high-demand aircraft with more delivery certainty. He cited AerCap’s acquisition of Spirit’s order book of 52 Airbus A320neo-family aircraft along with 45 Airbus options, and a January sale-leaseback announcement for six new Airbus A330neos with Virgin Atlantic, with deliveries expected to begin in the coming months.
Engines, cargo conversions, and helicopters
Kelly said AerCap expanded its existing partnership with GE Aerospace in 2025 to provide support for the GE9X engine, describing engine support and spare engines as being in “exceptionally high demand.” He said AerCap had about 100 engines on order at year-end.
In cargo, Kelly said AerCap received certification for its 777-300ERSF passenger-to-freighter conversion program, enabling delivery of the first eight converted 777 aircraft in 2025. He said the cargo market showed resilience despite tariffs and geopolitical challenges. AerCap expects to deliver another 15 cargo aircraft from conversion programs in 2026, including five 777 conversions.
At Milestone, AerCap’s helicopter business, Kelly said demand across multiple segments remained strong, reflected in a 99% full-year utilization rate. He said Milestone had no Sikorsky S-92 helicopters available for lease and contrasted that with 18 S-92s on the ground in 2020. Milestone signed 71 lease agreements with 23 customers during 2025, including an agreement with Bristow Group for five new Airbus H160s in the fourth quarter.
2026 guidance and capital allocation themes
AerCap issued 2026 adjusted EPS guidance of $12 to $13, excluding gains on sale. Juhas said the bridge from 2025 adjusted EPS of $15.37 includes the absence of $3.95 of gains on sale in the 2026 forecast, lower other income, and a projected effective tax rate increase to 15.5% from 13.6% in 2025.
For 2026, management projected the following major items:
- Lease rents: about $6.7 billion
- Maintenance revenues: about $700 million
- Other income: about $200 million (total revenue about $7.6 billion)
- Depreciation and amortization: about $2.6 billion
- Interest expense: about $2.0 billion
- Leasing expenses, SG&A, and other: about $1.2 billion
- Cash CapEx: about $5.2 billion
- Asset sales: $2 billion to $3 billion
- Equity-method earnings: about $200 million, primarily from SES
Juhas said the company’s 2026 forecast reflects downtime for aircraft taken back from Spirit, with the first aircraft expected to start returning to service in the second half of 2026 and some returning in early 2027. He also noted that most Spirit restructuring-related leasing costs were recognized in the fourth quarter of 2025.
On capital return, AerCap repurchased 3.5 million shares in the fourth quarter at an average price of $127.63 for $444 million. Management reiterated the $1 billion share repurchase program announced in December and said the quarterly dividend was increased to $0.40 per share.
In the Q&A, Kelly said AerCap added 103 aircraft to its order book in 2025, including options, without placing direct OEM orders, and also ordered 22 helicopters. He also said that over the last two years the company committed to purchase 281 new engines through its engine business and the SES joint venture. Kelly emphasized AerCap’s preference for disciplined deployment of capital and discussed the company’s “barbell” portfolio approach—favoring older aircraft within prior-generation types while investing in newer “assets of the future,” such as the A321neo, A320neo, 737 MAX 8, 787-9, A330-900, and A350-900.
About Aercap (NYSE:AER)
AerCap Holdings N.V. (NYSE: AER) is a global aircraft leasing and aviation finance company that acquires, leases, sells and manages commercial aircraft and engines. Its core services include operating leases, finance leases, sale-and-leaseback transactions, aircraft trading and remarketing, and asset management for airline customers. The company also provides related commercial and technical support services designed to optimize fleet utilization and residual values over the life cycle of aircraft and engines.
Operating with a broad global footprint, AerCap serves airlines and other aviation customers across North America, Europe, Asia-Pacific, Latin America, the Middle East and Africa.
