AerCap (AER) Q3 2024 earnings summary

Executive summary

• Adjusted net income reached $463 million and adjusted EPS was $2.41 for Q3 2024, with record operating cash flow of $5.6 billion over the last 12 months.

• GAAP net income for Q3 was $375 million ($1.95 per share).

• Full-year 2024 adjusted EPS guidance was raised to approximately $10.70, excluding any Q4 gains on sale.

• Announced a $500 million share repurchase authorization in September, bringing total YTD authorizations to $1.5 billion.

• Achieved a 99% utilization rate and 92% extension rate for used aircraft in Q3 2024.

Financial highlights

• Total revenues and other income for Q3 2024 were $1.95 billion, up 3% year-over-year.

• Basic lease rents increased to $1,605 million from $1,568 million sequentially, with a $31 million negative impact from lease premium amortization.

• Net gain on sale of assets was $102 million, with an unlevered gain on sale margin of 27%.

• Operating cash flow for Q3 was approximately $1.4 billion.

• Book value per share rose to $90.66, up 16% year-over-year as of September 30, 2024.

Outlook and guidance

• Full-year 2024 adjusted EPS guidance raised to around $10.70, not including any Q4 gains on sale.

• Key drivers for outperformance include higher lease revenue from strong cash collections and significant gains on asset sales.

• Supply chain delays at Boeing and Airbus have led to aircraft deliveries being pushed into 2025 and 2026.

• The environment for aircraft leasing is expected to remain strong through the end of the decade due to ongoing delivery delays and high demand.

• Management cites strong demand and high utilization as drivers for improved outlook.