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1. Company Snapshot

1.a. Company Description

AerCap Holdings N.V. engages in the lease, financing, sale, and management of commercial flight equipment in China, Hong Kong, Macau, the United States, Ireland, and internationally.The company offers aircraft asset management services, such as remarketing aircraft and engines; collecting rental and maintenance rent payments, monitoring aircraft maintenance, monitoring and enforcing contract compliance, and accepting delivery and redelivery of aircraft and engines; and conducting ongoing lessee financial performance reviews.Its aircraft asset management services also include periodically inspecting the leased aircraft; coordinating technical modifications to aircraft to meet new lessee requirements; conducting restructuring negotiations in connection with lease defaults; repossessing aircraft and engines; arranging and monitoring insurance coverage; registering and de-registering aircraft; arranging for aircraft and engine valuations; and providing market research services.


The company also provides cash management services, including treasury services, such as the financing, refinancing, hedging, and ongoing cash management of vehicles; and administrative services comprising accounting and corporate secretarial services consisting of the preparation of budgets and financial statements.In addition, it offers airframe and engine parts and supply chain solutions to airlines; maintenance, repair, and overhaul service providers; and aircraft parts distributors.As of December 31, 2021, the company had a portfolio of 2,369 owned, managed, or on order aircraft.


AerCap Holdings N.V. was founded in 1995 and is headquartered in Dublin, Ireland.

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1.b. Last Insights on AER

AerCap Holdings N.V.'s recent performance was driven by strong Q3 results, with net income reaching $1,216 million, or $6.98 per share, and record adjusted net income of $865 million, or $4.97 per share. The company's robust lease revenue growth and significant gains on asset sales led to a raise in full-year guidance. Improved liquidity coverage, prudent cash management, and lower average debt costs support ongoing capital expenditures and debt maturities. Additionally, share repurchases continue to add value given asset sale premiums. (Source: AerCap Holdings N.V. Reports Record Financial Results for Third Quarter 2025 and Raises EPS Guidance)

1.c. Company Highlights

2. AerCap's Q3 2025 Earnings: Strong Performance Amidst Industry Headwinds

AerCap reported a robust Q3 2025, with GAAP net income of $1.2 billion and earnings per share (EPS) of $6.98, beating analyst estimates of $3.16. The company's adjusted net income was $865 million, with an adjusted EPS of $4.97. Revenue was not explicitly stated, but the company's sales revenue was $1.5 billion, with an unlevered gain on sale margin of 28%. The strong financial performance was driven by gains on sale and insurance recoveries.

Publication Date: Oct -30

📋 Highlights
  • GAAP Net Income & Earnings Per Share:: Reported $1.2 billion net income and $6.98 EPS, driven by gains on sale and insurance recoveries.
  • Adjusted Net Income Record:: Achieved $865 million adjusted net income with a record $4.97 adjusted EPS.
  • Sales Performance:: Generated $1.5 billion in sales revenue with a 28% unlevered gain on sale margin.
  • Engine Investments:: Committed $10 billion to engines, managing a 1,200-engine portfolio (90% latest technology).
  • Share Buybacks:: Repurchased 5% of market cap ($1 billion) in Q3, a quarterly record for open-market purchases.

Operational Highlights

AerCap's aircraft utilization rates remained high at 99%, driven by strong demand from customers worldwide. The company delivered its first converted 777-300ER Freighter in September, which is expected to sustain historically high utilization rates. The wide-body market is particularly constrained, with OEMs producing fewer aircraft than being retired. AerCap's CEO, Aengus Kelly, noted that "we continue to see very strong demand coming out of the U.S. market that can be driven by longer-term demand for new technology aircraft as the older aircraft have to be retired at some point in the coming 5 or 6 years."

Valuation and Capital Allocation

AerCap's valuation metrics indicate a relatively attractive price. The company's P/E Ratio is 7.77, P/B Ratio is 1.28, and ROE is 17.07%. The company's capital allocation priorities include returning capital to shareholders through buybacks and pursuing accretive transactions. AerCap has committed to purchasing over 200 aircraft in bilateral deals since 2021 without placing a direct OEM order. The company has also executed $10 billion in engine buys on a bilateral basis since 2021.

Outlook and Industry Trends

AerCap expects to continue to benefit from the favorable aircraft supply-demand imbalance, which is expected to last through the decade. The company's acquisition of 52 firm orders and 45 options from Spirit Airlines is a significant transaction that will help drive future growth. Analysts estimate next year's revenue growth at 2.7%, indicating a moderate increase. The industry's positive trend and AerCap's continued presence in M&A discussions are significant positives for the company and its shareholders.

3. NewsRoom

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Aercap Holdings N.V. $AER Stake Lifted by Hsbc Holdings PLC

Dec -03

Source: defenseworld.net

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American Century Companies Inc. Purchases 16,938 Shares of Aercap Holdings N.V. $AER

Dec -03

Source: defenseworld.net

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Aercap Holdings N.V. $AER Position Reduced by Cetera Investment Advisers

Dec -02

Source: defenseworld.net

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AerCap Cargo Delivers First Boeing 777-300ERSF to Fly Meta

Dec -01

Source: prnewswire.com

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Donald Smith & Co's Strategic Moves: Honda Motor Co Ltd Takes Center Stage

Nov -25

Source: gurufocus.com

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Are Transportation Stocks Lagging Aercap (AER) This Year?

Nov -25

Source: zacks.com

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AER or WAB: Which Is the Better Value Stock Right Now?

Nov -24

Source: zacks.com

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AerCap Signs Lease Agreements for Three New Boeing 737 MAX Aircraft and Two Boeing 737NG Aircraft with New Customer FlySafair

Nov -18

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.50%)

6. Segments

Leasing, Financing, Sales and Management of Commercial Flight Equipment

Expected Growth: 10.5%

Strong demand for air travel, increasing aircraft deliveries, and growing need for fleet management services drive AerCap's growth, solidifying its position as a global aviation leader.

7. Detailed Products

Aircraft Leasing

AerCap provides aircraft leasing services to airlines, offering a range of aircraft types and lease terms to meet their fleet requirements.

Aircraft Trading

AerCap buys and sells aircraft, providing airlines and investors with opportunities to acquire or divest aircraft assets.

Aircraft Management

AerCap offers aircraft management services, including technical management, financial management, and administrative support.

Engine Leasing

AerCap provides engine leasing services, offering a range of engine types and lease terms to meet airline and MRO requirements.

Aircraft Financing

AerCap provides financing solutions for aircraft acquisitions, including debt and equity financing options.

8. AerCap Holdings N.V.'s Porter Forces

Forces Ranking

Threat Of Substitutes

AerCap Holdings N.V. operates in the aircraft leasing industry, where substitutes are limited. However, the company faces some threat from alternative financing options, such as debt financing, which could reduce the demand for leasing services.

Bargaining Power Of Customers

AerCap Holdings N.V. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's strong market position and long-term contracts further limit the bargaining power of customers.

Bargaining Power Of Suppliers

AerCap Holdings N.V. relies on a limited number of aircraft manufacturers, which gives them some bargaining power. However, the company's large order book and long-term contracts help to mitigate this risk.

Threat Of New Entrants

The aircraft leasing industry has high barriers to entry, including significant capital requirements and regulatory hurdles. This limits the threat of new entrants and allows AerCap Holdings N.V. to maintain its market position.

Intensity Of Rivalry

The aircraft leasing industry is highly competitive, with several large players competing for market share. AerCap Holdings N.V. faces intense competition from companies such as GECAS and Avolon, which could impact its market share and pricing power.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 73.35%
Debt Cost 4.70%
Equity Weight 26.65%
Equity Cost 13.14%
WACC 6.95%
Leverage 275.22%

11. Quality Control: AerCap Holdings N.V. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Vinci

A-Score: 6.6/10

Value: 6.3

Growth: 6.2

Quality: 4.6

Yield: 6.9

Momentum: 6.0

Volatility: 9.3

1-Year Total Return ->

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Volvo

A-Score: 6.1/10

Value: 4.7

Growth: 6.4

Quality: 4.4

Yield: 9.4

Momentum: 5.0

Volatility: 6.7

1-Year Total Return ->

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BAE Systems

A-Score: 5.7/10

Value: 2.4

Growth: 6.9

Quality: 4.8

Yield: 4.4

Momentum: 9.5

Volatility: 6.3

1-Year Total Return ->

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AerCap

A-Score: 5.4/10

Value: 6.4

Growth: 5.2

Quality: 4.8

Yield: 0.6

Momentum: 7.5

Volatility: 8.0

1-Year Total Return ->

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Saint-Gobain

A-Score: 5.2/10

Value: 4.8

Growth: 5.8

Quality: 4.3

Yield: 4.4

Momentum: 6.5

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Ashtead

A-Score: 4.9/10

Value: 4.3

Growth: 7.9

Quality: 6.6

Yield: 1.9

Momentum: 3.0

Volatility: 5.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

139.99$

Current Price

139.99$

Potential

-0.00%

Expected Cash-Flows