AerCap (AER) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Mon, May 4, 2026 astatine 12:08 PM CDT 35 min read

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DATE

Wednesday, April 29, 2026 astatine 8:30 a.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Aengus Kelly

• Chief Financial Officer — Peter Juhas

Full Conference Call Transcript

Aengus Kelly: Thank you for joining america for our archetypal 4th 2026 net call. I'll statesman contiguous with an overview of show for the 4th earlier turning to sermon the marketplace situation successful airy of existent geopolitical events. I'll past interaction connected our outlook and strategical priorities for the remainder of the twelvemonth earlier handing the telephone implicit to Pete to reappraisal the financials successful much detail. Starting with performance. I americium pleased to study that this was different grounds 4th of net for AerCap. The institution generated GAAP nett income of $818 cardinal oregon $4.96 per share, and grounds adjusted nett income of $889 cardinal oregon $5.39 per share.

This represents an 18% GAAP instrumentality connected equity oregon 19% adjusted instrumentality connected equity for the quarter. Despite the macro backdrop, we proceed to spot robust request for aviation assets, supported by persistent proviso challenges and sustained user request for aerial travel. The archetypal 4th serves arsenic a wide reminder and reinforcement of the semipermanent and durable quality of this business. Our multiyear fleet readying discussions with customers continued during the quarter, resulting successful an 87% lease hold complaint and the closing of 286 transactions. This included the signing of 202 lease agreements and the merchantability of 41 owned assets, generating income gross of $1.5 billion.

Importantly, 57% of the lease agreements were signed successful March, suggesting small alteration successful hose behaviour contempt the geopolitical uncertainties. Given our beardown results successful the archetypal quarter, including the repurchase of $745 cardinal of our outstanding shares, we are expanding our afloat twelvemonth adjusted EPS guidance to $14.50 per share, not including immoderate further gains connected sale. I americium besides pleased to denote contiguous the authorization of a caller $1 cardinal stock repurchase program. Now turning to the broader marketplace environment. We proceed to spot beardown request for our assets contempt caller geopolitical events.

That being said, if pitchy substance prices persist astatine existent levels for the adjacent 3 to 6 months, it volition spot unit connected the hose industry. The grade of the interaction connected idiosyncratic airlines volition alteration depending connected factors specified arsenic region, concern model, equilibrium expanse spot and substance hedging practices. To date, the manufacture has been capable to walk connected a important information of higher substance bills to consumers. Looking beyond 6 months, elevated substance costs volition unit hose profitability and spot greater accent connected airlines' equilibrium expanse resilience and fiscal flexibility. Over clip this could lend to an acceleration successful the status of older exertion aircraft.