AerCap (AER) Q4 2024 earnings summary

Executive summary

• Reported GAAP net income of $2.1 billion and adjusted net income of $2.3 billion for 2024, with adjusted EPS of $12.01, a record high, and strong operating cash flows driven by robust demand for leased aircraft, engines, and helicopters.

• Completed 812 asset transactions in 2024, including leasing, purchasing, and selling aircraft, engines, and helicopters.

• Announced a new $1 billion share repurchase program, bringing total buyback authorizations to $5 billion over two years, and increased quarterly dividend to $0.27 per share.

• Returned $1.6 billion to shareholders in 2024 and repurchased 16.8 million shares, reducing share count by 25% over two years.

• Upgraded to BBB+ credit rating by S&P and Moody's, with leverage ratio reduced to 2.35x.

Financial highlights

• Fourth quarter GAAP net income was $671 million ($3.56 per share); adjusted net income was $624 million ($3.31 per share).

• Full-year gain on sale totaled $651 million, with Q4 gain on sale at $260 million and a 43% margin (2.6x book value).

• Book value per share increased 13% year-over-year to $94.57 as of December 31, 2024.

• Operating cash flow reached $5.4 billion for 2024.

• Total revenues and other income rose 5% to $8.0 billion for the full year.

Outlook and guidance

• 2025 adjusted EPS guidance is $8.50–$9.50, excluding gains on sale.

• Projected 2025 lease revenue of $6.6 billion, maintenance revenue of $700 million, and total revenue of $7.5 billion.

• CapEx expected at $5.6 billion, asset sales at $2 billion, and effective tax rate at 16.5%.

• Anticipates continued strong demand for aircraft and engines, with utilization rate at 99%.