AerCap Holdings N.V. Reports Record Financial Results for Third Quarter 2025 and Raises EPS Guidance

DUBLIN, Oct. 29, 2025 /PRNewswire/ -- AerCap Holdings N.V. (NYSE: AER), the industry leader across all areas of aviation leasing, today reported strong financial results for the third quarter of 2025.

"AerCap produced excellent results in the third quarter. We generated record adjusted net income and adjusted EPS and sold $1.5 billion of assets, producing gains on sale of $332 million, our highest amount ever for a quarter. This strong performance is indicative of the continued favorable environment for leasing and sales and of AerCap's industry-leading position. In addition, during the third quarter we recovered another $475 million related to assets lost in the Ukraine Conflict, bringing total recoveries since 2023 to $2.9 billion. On the back of these strong results and our positive outlook for the future, we are raising our full-year 2025 adjusted EPS guidance to approximately $13.70," said Aengus Kelly, Chief Executive Officer of AerCap.

Highlights:

Revenue and Net Spread

Three Months Ended September 30,

Nine Months Ended September 30,

2025

2024

% increase/

(decrease)

2025

2024

% increase/

(decrease)

(U.S. Dollars in millions)

Lease revenue:

Basic lease rents

$1,690

$1,605

5 %

$4,992

$4,758

5 %

Maintenance rents and other receipts

204

161

26 %

465

521

(11 %)

Total lease revenue

1,894

1,767

7 %

5,457

5,279

3 %

Net gain on sale of assets

332

102

225 %

566

391

45 %

Other income

5 %

250

254

(2 %)

Total Revenues and other income

$2,309

$1,948

19 %

$6,272

$5,924

6 %

Basic lease rents were $1,690 million for the third quarter of 2025, compared with $1,605 million for the same period in 2024. Basic lease rents for the third quarter of 2025 were negatively impacted by $26 million of lease premium amortization.

Maintenance rents and other receipts were $204 million for the third quarter of 2025, compared with $161 million for the same period in 2024. Maintenance rents for the third quarter of 2025 were negatively impacted by $14 million as a result of maintenance rights assets that were amortized to revenue.

Net gain on sale of assets for the third quarter of 2025 was $332 million, relating to 32 assets sold for $1.5 billion, compared with $102 million for the same period in 2024, relating to 22 assets sold for $479 million.

Other income for the third quarter of 2025 was $83 million, compared with $79 million for the same period in 2024.

Three Months Ended September 30,

Nine Months Ended September 30,

2025

2024

% increase/

(decrease)

2025

2024

% increase/

(decrease)

(U.S. Dollars in millions)

Basic lease rents

$1,690

$1,605

5 %

$4,992

$4,758

5 %

Adjusted for:

Amortization of lease premium/deficiency

(19 %)

(20 %)

Basic lease rents excluding amortization of lease premium/

deficiency

$1,715

$1,637

5 %

$5,070

$4,856

4 %

Interest expense

486

516

(6 %)

1,508

1,486

1 %

Adjusted for:

Mark-to-market of interest rate derivatives

(9)

(22)

(59 %)

(24)

(30)

(19 %)

Interest expense excluding mark-to-market of interest rate derivatives

477

494

(4 %)

1,483

1,456

2 %

Adjusted net interest margin (*)

$1,239

$1,142

8 %

$3,587

$3,400

6 %

Depreciation and amortization

(665)

(653)

2 %

(1,994)

(1,923)

4 %

Adjusted net interest margin, less depreciation and amortization

$573

$489

17 %

$1,593

$1,477

8 %

Average lease assets (*)

$61,694

$61,131

1 %

$61,926

$60,609

2 %

Annualized net spread (*)

8.0 %

7.5 %

7.7 %

7.5 %

Annualized net spread less depreciation and amortization (*)

3.7 %

3.2 %

3.4 %

3.2 %

(*) Refer to "Notes Regarding Financial Information Presented in This Press Release" for details relating to these non-GAAP measures and metrics

Interest expense excluding mark-to-market of interest rate derivatives was $477 million for the third quarter of 2025, compared with $494 million for the same period in 2024. AerCap's average cost of debt was 4.0% for the third quarter of 2025 and 4.0% for the same period in 2024, excluding debt issuance costs, upfront fees and other impacts.

Recoveries Related to Ukraine Conflict

During the third quarter of 2025, we recognized recoveries of $475 million primarily related to cash insurance settlement proceeds and an interest award on the June 11, 2025 judgment from the London Commercial Court, in respect of assets lost in Russia in 2022.

Selling, General and Administrative Expenses

Three Months Ended September 30,

Nine Months Ended September 30,

2025

2024

increase/

(decrease)

2025

2024

increase/

(decrease)

(U.S. Dollars in millions)

Selling, general and administrative expenses (excluding share-based

compensation expenses)

$99

$97

2 %

$282

$284

(1 %)

Share-based compensation expenses

26 %

130

60 %

Selling, general and administrative expenses

$129

$121

7 %

$413

$366

13 %

Selling, general and administrative expenses were $129 million for the third quarter of 2025, compared with $121 million for the same period in 2024.

Other Expenses

Leasing expenses were $93 million for the third quarter of 2025, compared with $275 million for the same period in 2024. The decrease was primarily due to a $140 million credit loss provision taken in the third quarter of 2024. Leasing expenses for the third quarter of 2025 were negatively impacted by $22 million of maintenance rights amortization.

Effective Tax Rate

AerCap's effective tax rate was 14.5% for the third quarter of 2025, compared to an effective tax rate of 15.5% for the third quarter of 2024. The effective tax rate is impacted by the source and amount of earnings among our different tax jurisdictions as well as the amount of permanent tax differences relative to pre-tax income or loss, and certain other discrete items.

Book Value Per Share

September 30, 2025

September 30, 2024

(U.S. Dollars in millions,

except share and per share data)

Total AerCap Holdings N.V. shareholders' equity

$18,149

$16,752

Ordinary shares outstanding

170,211,910

189,731,024

Unvested restricted stock

(4,046,913)

(4,948,175)

Ordinary shares outstanding (excl. unvested restricted stock)

166,164,997

184,782,849

Book value per ordinary share outstanding (excl. unvested restricted stock)

$109.22

$90.66

Cumulative dividends declared per ordinary share

$1.56

$0.50

Financial Position

September 30, 2025

December 31, 2024

% increase/

(decrease) over

December 31, 2024

(U.S. Dollars in millions)

Total cash, cash equivalents and restricted cash

$1,912

$1,402

36 %

Total assets

71,938

71,442

1 %

Debt

44,029

45,295

(3 %)

Total liabilities

53,789

54,257

(1 %)

Total AerCap Holdings N.V. shareholders' equity

18,149

17,185

6 %

Flight Equipment

As of September 30, 2025, AerCap's portfolio consisted of 3,536 aircraft, engines and helicopters that were owned, on order or managed. The average age of the company's owned aircraft fleet as of September 30, 2025 was 7.8 years (5.3 years for new technology aircraft, 15.7 years for current technology aircraft) and the average remaining contracted lease term was 7.1 years.

Dividend

In October 2025, AerCap's Board of Directors declared a quarterly cash dividend of $0.27 per share, with a payment date of December 4, 2025, to shareholders of record of AerCap ordinary shares as of the close of business on November 12, 2025.

Notes Regarding Financial Information Presented in This Press Release

The financial information presented in this press release is not audited.

Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.

The following are definitions of non-GAAP measures and metrics used in this press release. We believe these measures and metrics may further assist investors in their understanding of our performance. These measures and metrics should not be viewed in isolation and should only be used in conjunction with and as a supplement to our U.S. GAAP financial measures. Non-GAAP measures and metrics are not uniformly defined by all companies, including those in our industry, and so this additional information may not be comparable with similarly-titled measures and metrics and disclosures by other companies.

Adjusted net income / earnings per share, adjusted return on equity and adjusted earnings per share guidance

Adjusted net income is calculated as net income excluding the after-tax impact of the amortization of maintenance rights and lease premium assets recognized under purchase accounting and net recoveries related to the Ukraine Conflict. Adjusted earnings per share is calculated by dividing adjusted net income by the weighted average of our ordinary shares outstanding. Adjusted return on equity is calculated by dividing adjusted net income by average shareholders' equity. Given the relative significance of these items during 2025, we have chosen to present this measure in order to assist investors in their understanding of the changes and trends related to our earnings.

Three Months Ended September 30, 2025

Nine Months Ended September 30, 2025

Net income

Earnings

per share

Net income

Earnings

per share

(U.S. Dollars in millions,

except per share data)

Net income / earnings per share

$1,216

$6.98

$3,118

$17.43

Adjusted for:

Net recoveries related to Ukraine Conflict

(475)

(2.73)

(1,448)

(8.09)

Amortization of maintenance rights and lease premium

assets recognized under purchase accounting (*)

0.36

187

1.05

Income tax effect of above adjustments

0.36

189

1.06

Adjusted net income / earnings per share

$865

$4.97

$2,047

$11.44

Average AerCap Holdings N.V. shareholders' equity

$18,048

$17,618

Return on equity

27 %

24 %

Adjusted return on equity

19 %

15 %

(*) Includes $26 million adjustment to basic lease rents, $14 million adjustment to maintenance revenues and $22 million adjustment to leasing expenses for the three months ended September 30, 2025 and $78 million adjustment to basic lease rents, $51 million adjustment to maintenance revenues and $58 million adjustment to leasing expenses for the nine months ended September 30, 2025

Adjusted earnings per share guidance for full-year 2025 is calculated as projected net income excluding the after-tax impact of the amortization of maintenance rights and lease premium assets recognized under purchase accounting divided by the weighted average of our projected ordinary shares outstanding.

Projected FY 2025

Net income / Earnings

per Share

(U.S. Dollars in billions,

except per share data)

Net income

$3.4

Amortization of maintenance rights and lease premium assets recognized under purchase accounting

0.3

Net recoveries related to Ukraine Conflict

(1.4)

Income tax effect of above adjustments

0.2

Adjusted net income

$2.4

Adjusted earnings per share

~$13.70

Adjusted debt/equity ratio

This measure is the ratio obtained by dividing adjusted debt by adjusted equity.

Adjusted debt and adjusted equity are adjusted by the 50% equity credit to reflect the equity nature of those financing arrangements and to provide information that is consistent with definitions under certain of our debt covenants. We believe this measure may further assist investors in their understanding of our capital structure and leverage.

September 30, 2025

December 31, 2024

(U.S. Dollars in millions,

except debt/equity ratio)

Debt

$44,029

$45,295

Adjusted for:

Unrestricted cash and cash equivalents

(1,814)

(1,209)

50% equity credit for long-term subordinated debt

(1,125)

Adjusted debt

$41,089

$42,960

Equity

$18,149

$17,185

Adjusted for:

50% equity credit for long-term subordinated debt

1,125

Adjusted equity

$19,274

$18,310

Adjusted debt/equity ratio

2.13 to 1

2.35 to 1

Adjusted net interest margin, annualized net spread, annualized net spread less depreciation and amortization and average cost of debt

Adjusted net interest margin is calculated as the difference between basic lease rents, excluding the impact of the amortization of lease premium/deficiency recognized under purchase accounting, and interest expense, excluding the impact of the mark-to-market of interest rate derivatives. Annualized net spread is adjusted net interest margin expressed as a percentage of average lease assets. Annualized net spread less depreciation and amortization is adjusted net interest margin less depreciation and amortization, expressed as a percentage of average lease assets.

Average cost of debt is calculated as interest expense, excluding mark-to-market on interest rate derivatives, debt issuance costs, upfront fees and other impacts, divided by average debt balance.

Three Months Ended September 30,

2025

2024

(U.S. Dollars in millions)

Interest expense

$486

$516

Adjusted for:

Mark-to-market on interest rate derivatives

(9)

(22)

Debt issuance costs, upfront fees and other impacts

(26)

(29)

Interest expense, excluding mark-to-market on interest rate derivatives, debt issuance

costs, upfront fees and other impacts

$450

$466

Average debt balance

$44,873

$46,937

Average cost of debt

4.0 %

Lease assets

Lease assets include flight equipment held for operating leases, flight equipment held for sale, net investment in finance leases and maintenance rights assets.

Aviation assets

Aviation assets include aircraft, engines and helicopters.

Conference Call

In connection with its report of third quarter 2025 results, management will host a conference call with members of the investment community today, Wednesday, October 29, 2025, at 8:30 am Eastern Time. The call can be accessed live via webcast by AerCap's website at www.aercap.com under "Investors", or by dialing (U.S./Canada) +1 646 769 9200 or (International) +353 1 553 8798 and referencing code 3828911 at least 5 minutes before start time.

The webcast replay will be archived in the "Investors" section of the company's website for one year.

For further information, contact Joseph McGinley: +353 1 418 0428 ( jmcginley@aercap.com).

About AerCap

AerCap is the global leader in aviation leasing with one of the most attractive order books in the industry. AerCap serves approximately 300 customers around the world with comprehensive fleet solutions. AerCap is listed on the New York Stock Exchange (AER) and is based in Dublin with offices in Shannon, Memphis, Miami, Singapore, London, Dubai, Shanghai, Amsterdam and other locations around the world.

Forward-Looking Statements

This press release contains certain statements, estimates and forecasts with respect to future performance and events. These statements, estimates and forecasts are "forward-looking statements". In some cases, forward-looking statements can be identified by the use of forward-looking terminology such as "may," "might," "should," "expect," "plan," "intend," "will," "aim," "estimate," "anticipate," "believe," "predict," "potential" or "continue" or the negatives thereof or variations thereon or similar terminology. All statements other than statements of historical fact included in this press release are forward-looking statements and are based on various underlying assumptions and expectations and are subject to known and unknown risks, uncertainties and assumptions, and may include projections of our future financial performance based on our growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied in the forward-looking statements, including but not limited to the availability of capital to us and to our customers and changes in interest rates; the ability of our lessees and potential lessees to make lease payments to us; our ability to successfully negotiate flight equipment (which includes aircraft, engines and helicopters) purchases, sales and leases, to collect outstanding amounts due and to repossess flight equipment under defaulted leases, and to control costs and expenses; changes in the overall demand for commercial aviation leasing and aviation asset management services; the continued impacts of the Ukraine Conflict, including the resulting sanctions by the United States, the European Union, the United Kingdom and other countries, on our business and results of operations, financial condition and cash flows; the effects of terrorist attacks on the aviation industry and on our operations; the economic condition of the global airline and cargo industry and economic and political conditions; the impact of hostilities in the Middle East, or any escalation thereof, on the aviation industry or our business; trade tensions, including U.S. tariffs and retaliatory measures by some countries, and the resulting geopolitical uncertainty; development of increased government regulation, including travel restrictions, sanctions, regulation of trade and the imposition of import and export controls, tariffs and other trade barriers; a downgrade in any of our credit ratings; competitive pressures within the industry; regulatory changes affecting commercial flight equipment operators, flight equipment maintenance, engine standards, accounting standards and taxes; and disruptions and security breaches affecting our information systems or the information systems of our third-party providers.

As a result, we cannot assure you that the forward-looking statements included in this press release will prove to be accurate or correct. These and other important factors and risks are discussed in AerCap's annual report on Form 20-F and other filings with the United States Securities and Exchange Commission. In light of these risks, uncertainties and assumptions, the future performance or events described in the forward-looking statements in this press release might not occur. Accordingly, you should not rely upon forward-looking statements as a prediction of actual results and we do not assume any responsibility for the accuracy or completeness of any of these forward-looking statements. Except as required by applicable law, we do not undertake any obligation to, and will not, update any forward-looking statements, whether as a result of new information, future events or otherwise.

For more information regarding AerCap and to be added to our email distribution list, please visit www.aercap.com.

AerCap Holdings N.V.

Unaudited Consolidated Balance Sheets

(U.S. Dollars in thousands, except share data)

September 30,

2025

December 31,

2024

Assets

Cash and cash equivalents

$1,814,283

$1,209,226

Restricted cash

98,167

192,356

Trade receivables

62,366

68,073

Flight equipment held for operating leases, net

58,190,817

58,575,672

Investment in finance leases, net

1,670,431

1,208,585

Flight equipment held for sale

562,015

466,173

Maintenance rights and lease premium, net

1,765,787

2,129,993

Prepayments on flight equipment

4,063,932

3,460,296

Other intangibles, net

123,258

139,666

Deferred tax assets

262,150

261,004

Associated companies

1,233,913

1,128,894

Other assets

2,091,176

2,602,038

Total Assets

$71,938,295

$71,441,976

Liabilities and Equity

Accounts payable, accrued expenses and other liabilities

$1,900,978

$1,774,827

Accrued maintenance liability

3,488,958

3,327,347

Lessee deposit liability

1,154,384

1,092,585

Debt

44,028,771

45,294,511

Deferred tax liabilities

3,215,760

2,767,874

Total Liabilities

53,788,851

54,257,144

Ordinary share capital, €0.01 par value, 450,000,000 ordinary shares authorized as of September 30, 2025 and December

31, 2024; 186,043,739 and 204,543,739 ordinary shares issued and 170,211,910 and 186,783,225 ordinary shares

outstanding (including 4,046,913 and 5,072,382 shares of unvested restricted stock) as of September 30, 2025 and

December 31, 2024, respectively

2,349

2,558

Additional paid-in capital

4,187,736

5,809,276

Treasury shares, at cost (15,831,829 and 17,760,514 ordinary shares as of September 30, 2025 and December 31, 2024,

respectively)

(1,717,510)

(1,425,652)

Accumulated other comprehensive (loss) income

(54,014)

42,683

Accumulated retained earnings

15,730,682

12,755,758

Total AerCap Holdings N.V. shareholders' equity

18,149,243

17,184,623

Non-controlling interest

201

209

Total Equity

18,149,444

17,184,832

Total Liabilities and Equity

$71,938,295

$71,441,976

AerCap Holdings N.V.

Unaudited Consolidated Income Statements

(U.S. Dollars in thousands, except share and per share data)

Three Months Ended September 30,

Nine Months Ended September 30,

2025

2024

2025

2024

Revenues and other income

Lease revenue:

Basic lease rents

$1,689,930

$1,605,340

$4,991,660

$4,758,497

Maintenance rents and other receipts

203,589

161,376

465,049

520,872

Total lease revenue

1,893,519

1,766,716

5,456,709

5,279,369

Net gain on sale of assets

332,019

102,135

566,035

391,174

Other income

83,033

79,278

249,611

253,819

Total Revenues and other income

2,308,571

1,948,129

6,272,355

5,924,362

Expenses

Depreciation and amortization

665,479

652,994

1,994,146

1,922,891

Net recoveries related to Ukraine Conflict

(474,879)

(3,934)

(1,447,701)

(26,683)

Asset impairment

41,726

2,446

47,335

32,802

Interest expense

485,915

516,265

1,507,641

1,486,062

Loss on debt extinguishment

658

462

2,640

7,482

Leasing expenses

92,547

274,833

267,831

596,238

Selling, general and administrative expenses

128,887

121,307

412,818

365,932

Total Expenses

940,333

1,564,373

2,784,710

4,384,724

(Loss) gain on investments at fair value

(1,734)

8,252

(25,662)

3,568

Income before income taxes and income of investments

accounted for under the equity method

1,366,504

392,008

3,461,983

1,543,206

Income tax expense

(198,246)

(60,742)

(477,585)

(231,197)

Equity in net earnings of investments accounted for under

the equity method

47,480

43,763

133,410

115,397

Net income

$1,215,738

$375,029

$3,117,808

$1,427,406

Net loss attributable to non-controlling interest

Net income attributable to AerCap Holdings N.V.

$1,215,747

$375,034

$3,117,816

$1,427,414

Basic earnings per share

$7.09

$2.00

$17.82

$7.44

Diluted earnings per share

$6.98

$1.95

$17.43

$7.27

Weighted average shares outstanding - basic

171,483,556

187,510,161

174,959,115

191,917,111

Weighted average shares outstanding - diluted

174,066,926

191,886,520

178,853,682

196,309,483

AerCap Holdings N.V.

Unaudited Consolidated Statements of Cash Flows

(U.S. Dollars in thousands)

Nine Months Ended September 30,

2025

2024

Net income

$3,117,808

$1,427,406

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

1,994,146

1,922,891

Net recoveries related to Ukraine Conflict

(1,447,701)

(26,683)

Asset impairment

47,335

32,802

Amortization of debt issuance costs, debt discount, debt premium and lease premium

132,702

171,287

Maintenance rights write-off

109,137

260,107

Maintenance liability release to income

(148,601)

(144,115)

Net gain on sale of assets

(566,035)

(391,174)

Deferred tax expense

462,329

184,588

Share-based compensation

130,488

81,723

Collections of finance leases

175,819

313,570

Loss (gain) on investments at fair value

25,662

(3,568)

Loss on debt extinguishment

2,640

7,482

Other

(162,288)

140,207

Changes in operating assets and liabilities:

Trade receivables

9,662

9,232

Other assets

294,544

189,281

Accounts payable, accrued expenses and other liabilities

(5,032)

(22,729)

Net cash provided by operating activities

4,172,615

4,152,307

Purchase of flight equipment

(2,446,366)

(3,628,330)

Proceeds from sale or disposal of assets

1,941,531

1,857,878

Prepayments on flight equipment

(1,545,979)

(1,360,208)

Cash proceeds from insurance claim and related settlements

1,288,479

3,933

Other

14,134

61,718

Net cash used in investing activities

(748,201)

(3,065,009)

Issuance of debt

3,935,969

6,441,379

Repayment of debt

(5,214,659)

(4,533,668)

Debt issuance and extinguishment costs paid, net of debt premium received

(26,878)

(97,198)

Maintenance payments received

725,250

695,568

Maintenance payments returned

(176,779)

(212,668)

Security deposits received

247,306

214,443

Security deposits returned

(192,922)

(157,342)

Repurchase of shares and tax withholdings on share-based compensation

(2,071,832)

(1,220,450)

Dividends paid on ordinary shares

(141,781)

(89,806)

Net cash (used in) provided by financing activities

(2,916,326)

1,040,258

Net increase in cash, cash equivalents and restricted cash

508,088

2,127,556

Effect of exchange rate changes

2,780

1,491

Cash, cash equivalents and restricted cash at beginning of period

1,401,582

1,825,466

Cash, cash equivalents and restricted cash at end of period

$1,912,450

$3,954,513

SOURCE AerCap Holdings N.V.