Air Lease Q4 Earnings & Revenues Top Estimates, Decline Y/Y

Core Insights - Air Lease Corporation (AL) reported strong fourth-quarter 2024 results, with earnings per share (EPS) of $1.34 exceeding the Zacks Consensus Estimate of$1.14, although the EPS declined year over year due to increased interest expenses [1][2] - Total revenues reached $712.9 million, surpassing the Zacks Consensus Estimate of$706.4 million, but showed a slight decline of 0.5% year over year [2] Financial Performance - AL's rental revenues from flight equipment decreased by 1% year over year to $638.9 million, attributed to lower end-of-lease revenues of approximately$54 million due to fewer aircraft returns [4] - Revenues from aircraft sales and trading activities grew by 2% year over year to $73.9 million, driven by a profit of$65 million from the sale of 14 aircraft during the quarter [5] - Operating expenses increased by 10.8% year over year to $572.9 million [5] Strategic Outlook - The CEO and executive chairman highlighted that AL generated record revenues in 2024, supported by$5 billion in aircraft purchases and $1.7 billion in aircraft sales, with expectations for rising lease rates and aircraft valuations due to anticipated aircraft shortages [3] - As of December 31, 2024, AL owned 489 aircraft with a net book value of$28.2 billion, contributing to a total fleet size of 818 [6] Cash and Debt Position - At the end of the fourth quarter, AL had $472.55 million in cash and cash equivalents, an increase from$460.78 million in the previous quarter [7] - The company's debt financing amounted to $20.20 billion, slightly up from$20.16 billion in the prior quarter [7]