Financial Data and Key Metrics Changes - AerCap 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 for 2025 [5][19] - Full-year revenues reached an all-time high of $8.5 billion, with sales volumes totaling a record $3.9 billion [5][19] - Operating cash flow for the full year was $5.4 billion, and the company returned $2.6 billion to shareholders through share repurchases and dividends [5][26] - The net debt-to-equity ratio was 2.1x at year-end, and the company received $1.5 billion in recoveries related to the Ukraine conflict [6][20] Business Line Data and Key Metrics Changes - AerCap executed 705 transactions in 2025, including the sale of 189 assets with a gain-on-sale margin of 27% [9][10] - The company extended 87% of its leased aircraft in 2025, up from 79% in 2024, indicating strong customer demand [9] - The engine leasing business expanded through a partnership with GE Aerospace, enhancing AerCap's value proposition [11] - The cargo business received certification for the 777-300ERSF passenger-to-freighter conversion program, delivering eight converted aircraft [12] Market Data and Key Metrics Changes - Demand for aviation assets remains robust, with industry-wide load factors at record highs, while supply is constrained due to delivery delays and maintenance backlogs [8] - Airlines and lessors accounted for over 80% of aircraft sales revenues in 2025 [10] - The cargo market showed resilience despite global trade tariffs and geopolitical challenges, with a strong pipeline for future deliveries [12] Company Strategy and Development Direction - AerCap's strategy focuses on capitalizing on favorable market conditions, with a strong outlook for 2026 projected adjusted EPS of $12-$13 per share [7][25] - The company plans to continue executing strategic transactions, leveraging its scale and market intelligence [10][15] - AerCap aims to maintain a disciplined approach to capital allocation, balancing share repurchases, asset acquisitions, and dividends [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the structural shortage of aircraft persisting through the end of the decade, despite potential demand fluctuations [8][9] - The company highlighted the importance of operational efficiency and asset management in driving long-term value [43] - Management acknowledged the need for ongoing focus on internal operations to mitigate risks associated with high-value assets [43][44] Other Important Information - AerCap's book value per share increased by over 68% since the end of 2022, reflecting strong capital generation capabilities [21][22] - The company has over $3 billion of excess capital to deploy, with 95% of its order book placed for the next two years [15] Q&A Session Summary Question: On the order book and potential future orders - Management indicated that while they prefer to order at the bottom of the cycle, they added 103 aircraft to their order book last year without direct orders from OEMs [30][31] Question: Concerns about the size of lessors - Management noted that as long as they can maintain price discipline and not be price takers, they believe they can grow significantly [34] Question: Thoughts on the A220-500 aircraft - Management expressed skepticism about the need for the A220-500, suggesting it could cannibalize Airbus's own market share [38] Question: Transition from selling aircraft to traditional leasing - Management emphasized that the majority of earnings come from the operating business, and they have consistently sold assets at a gain [39][40] Question: Systemic risks to aircraft lessors - Management acknowledged the importance of operational efficiency and asset management to mitigate risks associated with high maintenance costs [85]

Financial Data and Key Metrics Changes - AerCap 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 for 2025 [4][19] - Full-year revenues reached an all-time high of $8.5 billion, with cash CapEx of $6.1 billion and operating cash flow of $5.4 billion [4][19] - The company returned $2.6 billion of capital to shareholders, the highest annual amount ever, through share repurchases and dividends [4][26] - The net debt-to-equity ratio was 2.1x at year-end, and the company received a credit rating upgrade from Fitch [5][19] Business Line Data and Key Metrics Changes - AerCap executed 705 transactions in 2025, including the sale of 189 assets with a gain-on-sale margin of 27% [7][8] - The company extended 87% of its leased aircraft in 2025, up from 79% in 2024, indicating strong customer demand [8] - The engine leasing business expanded through a partnership with GE Aerospace, enhancing AerCap's value proposition [10] - The cargo business received certification for the 777-300ERSF passenger-to-freighter conversion program, delivering eight converted aircraft [11] Market Data and Key Metrics Changes - Demand for aviation assets remains robust, with industry-wide load factors at record highs, while supply is constrained due to delivery delays and maintenance backlogs [6] - Airlines and lessors accounted for over 80% of aircraft sales revenues in 2025 [8] - The cargo market showed resilience despite global trade tariffs and geopolitical challenges, with a strong utilization rate in the helicopter business reaching 99% [11][12] Company Strategy and Development Direction - AerCap's strategy focuses on capitalizing on favorable market conditions and maintaining a disciplined approach to capital allocation [6][13] - The company plans to continue executing strategic transactions, leveraging its scale and market intelligence [9][13] - AerCap aims to maintain a strong outlook for 2026, projecting adjusted EPS of $12-$13 per share, excluding gains on asset sales [5][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the structural shortage of aircraft persisting through the end of the decade, despite potential demand fluctuations [6][7] - The company highlighted the importance of operational efficiency and asset management in driving long-term value [42][86] - Management acknowledged the potential risks from financially weaker airlines but emphasized AerCap's ability to provide alternatives and manage such situations [86] Other Important Information - AerCap's book value per share increased by over 68% since the end of 2022, reflecting the company's ability to generate significant capital [20][21] - The company has over $3 billion of excess capital to deploy, with 95% of its order book placed for the next two years [13] Q&A Session Summary Question: On the order book and potential downturns - Management indicated that the structural supply shortage in the market would persist, and they would consider ordering with OEMs if the terms are favorable [29][30] Question: Concerns about the size of lessors - Management noted that as long as they can maintain price discipline and not be forced into every transaction, growth is feasible [34] Question: Thoughts on the A220-500 aircraft - Management expressed skepticism about the need for the A220-500, suggesting it could cannibalize Airbus's existing market share [38] Question: Transition from selling aircraft to traditional leasing - Management emphasized that the majority of earnings come from the operating business, and they have consistently sold assets at a gain [40][41] Question: Risk mitigation concerns - Management highlighted the importance of day-to-day operations and internal processes to manage high-value assets effectively [43][44] Question: Deployment of excess capital - Management stated that they would focus on attractive opportunities for capital deployment, whether through buybacks or asset acquisitions [48][49] Question: Timing of Spirit aircraft returns - Management confirmed that some Spirit aircraft would return in 2026, with others potentially extending into 2027 [56][58] Question: Systemic risks to aircraft lessors - Management acknowledged that financially weaker airlines may struggle to meet return conditions, but AerCap can provide alternatives [86]

FOURTH QUARTER 2025 FINANCIAL RESULTS AERCAP HOLDINGS N.V . This presentation contains certain statements, estimates and forecasts with respect to future performance and events . These statements, estimates and forecasts are "forward -looking statements" . In some cases, forward -looking statements can be identified by the use of forward - looking terminology such as "may," "might," "should," "expect," "plan," "intend," "will," "aim," "estimate," "anticipate," "believe," "predict," "potential" or "continue" ...

PRESS RELEASE For Investors: Norah Morgan Director, Investor Relations InvestorRelations@aercap.com; +353 1 810 2010 For Media: Gillian Culhane Head of Corporate Communications and Marketing gculhane@aercap.com; +353 1 636 0945 AerCap Holdings N.V. Reports Record Financial Results for the Full Year 2025 DUBLIN – February 6, 2026 – AerCap Holdings N.V. (NYSE: AER), the industry leader across all areas of aviation leasing, today reported strong financial results for the fourth quarter and full year ended Dece ...

Core Viewpoint - AerCap Holdings N.V. reported strong financial results for Q4 and the full year 2025, highlighting record net income and earnings per share, alongside significant asset sales and reinvestments in the business [2][6]. Financial Performance - For Q4 2025, AerCap achieved a net income of $633 million, or $3.79 per share, and for the full year, net income reached $3.8 billion, or $21.30 per share [6][24]. - Adjusted net income for Q4 was $660 million, or $3.95 per share, while for the full year, it was $2.7 billion, or $15.37 per share [6][24]. - Total revenues for Q4 were $2.244 billion, an 8% increase from $2.072 billion in Q4 2024, and for the full year, revenues were $8.517 billion, a 7% increase from $7.997 billion in 2024 [5][6]. Revenue Breakdown - Basic lease rents for Q4 2025 were $1.688 billion, a 4% increase from $1.619 billion in Q4 2024, while for the full year, they were $6.679 billion, up 5% from $6.377 billion in 2024 [5][11]. - Maintenance rents and other receipts for Q4 2025 were $225 million, a 112% increase from $106 million in Q4 2024, and for the full year, they were $690 million, a 10% increase from $627 million in 2024 [5][9]. Asset Management - The company sold $3.9 billion in assets during 2025, realizing gains of $819 million, with a net gain on sale of assets for Q4 at $253 million from 55 assets sold for $1.3 billion [2][10]. - AerCap added 103 aircraft firm orders and options to its order book in 2025, reflecting ongoing growth in its portfolio [2][19]. Shareholder Returns - AerCap returned $2.6 billion to shareholders in 2025 through share repurchases and dividends, with a new $1 billion share repurchase program announced and a quarterly dividend increase to $0.40 per share [3][6]. Financial Ratios and Guidance - The company reported a GAAP return on equity of 21% and an adjusted return on equity of 15% for the full year 2025 [7][25]. - The book value per share increased by 19% to $112.59 as of December 31, 2025, compared to $94.57 a year earlier [17][18]. - For 2026, AerCap provided adjusted EPS guidance of $12.00 to $13.00, excluding any gains on sale [6][27].

Core Viewpoint - Harris Associates L.P. emphasizes a consistent investment philosophy focused on value investing, aiming for long-term capital appreciation through fundamental research and client service [1] Group 1: Investment Philosophy - The company believes that stock prices will eventually reflect the underlying value of the companies [1] - It seeks to identify companies trading at significant discounts to their intrinsic value, which must also demonstrate substantial profit potential [1] - The investment approach is framed as owning a piece of a business for the long term, highlighting the importance of intensive, fundamental research [1] Group 2: Research Process - The research process is characterized by a disciplined quantitative and qualitative screening method [1] - Analysts at the company are independent thinkers who do not rely on Wall Street for insights [1] - The team consists of generalists who evaluate companies based on their fundamental characteristics [1]

Core Viewpoint - The company has exceeded high expectations for performance entering 2025, with an initial target set at $10 per share in core valuation [1]. Group 1 - The individual investor and family office principal has over 20 years of investment experience, focusing on fundamental analysis and identifying undervalued asset classes that offer a favorable risk/reward trade-off [1]. - The investment strategy includes employing options strategies, such as covered calls on overvalued companies and writing puts on stocks that are desired at lower prices [1]. - The educational background includes an MBA in Finance from NYU Stern and an undergraduate degree in Computer Science [1]. Group 2 - The analyst has a beneficial long position in the shares of AER, which may include stock ownership, options, or other derivatives [2]. - The article reflects the analyst's personal opinions and is not influenced by compensation from any company mentioned [2].

Core Viewpoint - The head of AerCap, the world's largest aircraft leasing company, advised against overreacting to recent geopolitical and economic uncertainties, emphasizing the resilience of the aviation financing industry [1] Group 1: Company Insights - AerCap is positioned as the largest aircraft leasing company globally, indicating its significant influence in the aviation financing sector [1] - The leadership at AerCap is focused on maintaining a balanced perspective amidst current market volatility, suggesting a strategic approach to navigating challenges [1] Group 2: Industry Context - The aviation financing industry is characterized by its ability to withstand geopolitical and economic fluctuations, highlighting its robustness [1] - Recent uncertainties in the market have prompted discussions about the future of aviation financing, but industry leaders advocate for a measured response rather than panic [1]

Investment Rating - The industry rating is "Outperform" [1][51] Core Insights - Aircraft manufacturers are slowly recovering their production capacity, but delivery delays persist due to supply chain and labor shortages. Boeing is expected to deliver 600 aircraft in 2025, averaging about 50 per month, while Airbus is projected to deliver 793 aircraft, averaging about 66 per month. The backlog of aircraft orders remains at historically high levels [2][5][7]. - Global civil aviation passenger traffic growth has slowed down, with all regions except Africa experiencing a decrease in year-on-year growth rates compared to October. Africa's airlines saw an increase of 12.6%. Europe accounted for the largest share of international passenger traffic, with a year-on-year growth of 6.8% in November, while Asia's international passenger traffic grew by 9.3% [2][11][15][18]. - Overall, while aircraft manufacturers' production capacity is recovering, it still cannot meet the continuously expanding demand for aircraft. The aircraft leasing market remains strong, benefiting from the tight supply-demand situation. The Asia-Pacific aviation market has significant growth potential, providing broader development space for Chinese aircraft leasing companies, which are currently undervalued compared to global leader AerCap [2][3][4]. Summary by Sections 1. Aircraft Supply Continues to be Tight - Boeing's monthly delivery volume has significantly improved compared to last year, while Airbus's delivery volume is slightly better than the same period last year. However, both manufacturers' delivery levels are still far from previous highs [5]. - The backlog of aircraft orders remains at historical highs, with Boeing and Airbus accumulating new orders of 1,175 and 1,000 aircraft respectively in 2025 [7]. 2. Update on Civil Aviation Passenger Demand - In November 2025, global aviation revenue passenger kilometers (RPK) grew by 5.7% year-on-year, down from 6.6% in October. The global passenger load factor (PLF) reached 83.7%, the highest for November on record [11][15]. - The international passenger traffic in November showed robust growth, with Asia-Pacific and Europe regions maintaining strong performance, while North America saw a growth of 4.0% [18]. 3. Tracking Aircraft Leasing Companies - As of June 30, 2025, Bohai Leasing has the largest number of owned aircraft (628), while China Aircraft Leasing has the least (151). In terms of aircraft orders, Bohai Leasing also leads with 442 orders [39][44]. - The average remaining lease term for China Aircraft Leasing is relatively long at 7.9 years, ensuring long-term stability for the company's leases [47].

Core Viewpoint - AerCap (AER) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which have a strong correlation with near-term stock price movements [4][6]. - Rising earnings estimates for AerCap suggest an improvement in the company's underlying business, likely leading to an increase in stock price [5][10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of generating significant returns, particularly for Zacks Rank 1 stocks [7][9]. - AerCap's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns [10]. Earnings Estimate Revisions - AerCap is projected to earn $14.79 per share for the fiscal year ending December 2025, with no year-over-year change expected [8]. - Over the past three months, the Zacks Consensus Estimate for AerCap has increased by 12.2%, reflecting a positive trend in earnings estimates [8].