AerCap (AER) Q3 2026 earnings summary

Executive summary

• Record Q3 adjusted EPS of $6.56 and adjusted ROE of 22%; FY2026 adjusted EPS guidance rose to ~$20.70 before additional Q4 gains on sale.

• GAAP net income was $949M, or $6.17 per diluted share; adjusted net income reached a record $1.009B.

• Strong demand for aviation assets amid constrained supply; the order book was fully placed through 2027 and 80% placed through 2028.

Financial highlights

• Q3 revenue and other income increased 5% YoY to $2.415B; lease revenue rose 4% to $1.965B.

• Basic lease rents were $1.698B; maintenance rents and other receipts were $267M before purchase-accounting adjustments, with $184M net maintenance contribution.

• Net gains on asset sales were $353M; 70 owned assets generated $1.1B in proceeds at a 45% unlevered gain-on-sale margin and 2.6x book value on an equity basis.

• Operating cash flow was $1.8B; capex was $1.9B, including purchases of 32 aircraft.

• Other income was $97M; interest expense was $475M and leasing expenses were $131M.

Outlook and guidance

• FY2026 adjusted EPS guidance rose to ~$20.70, including gains on sale through 9M and excluding additional Q4 gains.

• FY2026 asset sales are expected to exceed $5B; typical guidance is $2.5B–$3B, with future levels dependent on opportunities and market conditions.

• 9M guidance outperformance included $866M of gains on sale, $453M net maintenance contribution and $266M other income; projected FY2026 net income was $3.0B.

• Net maintenance contribution is expected to normalize to ~$50M per quarter in 2027; FY2026 effective tax rate is expected to be ~15%, excluding discrete items.

• Q3 net spread was 8.1%; it is expected to stay near current levels for the next couple of quarters, then gradually rise.