AerCap (AER) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 2026 net income of $818 million ($4.96/share) and adjusted net income of $889 million ($5.39/share), with adjusted ROE of 19% and robust demand for aviation assets despite geopolitical challenges.

• Completed 286 transactions, including 202 lease agreements and sale of 41 owned assets for $1.5 billion, with an 87% lease extension rate.

• Announced a new $1 billion share-repurchase program, repurchased $745 million in shares during Q1, and raised full-year adjusted EPS guidance to $14.50.

• Added 110 Airbus A320neo Family aircraft to the order book for delivery from 2028, including exercised options.

• Board declared a quarterly cash dividend of $0.40 per share, payable June 4, 2026.

Financial highlights

• Basic lease rents were $1,682 million, slightly lower sequentially due to aircraft sales and downtime from repossessions; maintenance revenues were $190 million, with net maintenance contribution at $138 million.

• Net gain on sale of assets was $291 million, with a 24% unlevered gain-on-sale margin and 1.9x book value.

• Interest expense was $467 million; leasing expenses dropped to $110 million; effective tax rate was 15.5%.

• Total revenues and other income rose 8% year-over-year to $2.24 billion for Q1 2026.

• Book value per share rose 20% year-over-year to $116.67 as of March 31, 2026.

Outlook and guidance

• Raised full-year 2026 adjusted EPS guidance to $14.50, excluding additional gains on sale; EPS excluding gains on sale at $13, the top end of previous range.

• Asset sales for 2026 expected to exceed $3 billion, weighted toward the first half of the year.

• Net maintenance contribution expected to normalize in the second half of the year.

• Management remains optimistic due to sustained consumer demand and ongoing supply constraints in aviation.