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

• Record net income for the second quarter of 2025 of $1,259 million, or $7.09 per share.
• Adjusted net income for the second quarter of 2025 of $502 million, or $2.83 per share.
• Raising full-year 2025 adjusted earnings per share guidance to approximately $11.60, not including any additional gains on sale for the remainder of the year.

DUBLIN, July 30, 2025 /PRNewswire/ -- AerCap Holdings N.V. (NYSE: AER), the industry leader across all areas of aviation leasing, today reported strong financial results for the second quarter of 2025.

"AerCap produced another strong performance for the second quarter of 2025. We generated record net income, driven by strong operating results and the favorable June court judgment in our insurance case. We also announced a new strategic partnership for engine leasing with Air France-KLM that will expand our ability to support LEAP engine operators. Global demand for aviation assets remains high, as evidenced by our 97% lease extension rate during the second quarter. Based on AerCap's strong first-half results and positive outlook for the remainder of the year, we have increased our 2025 full-year EPS guidance," said Aengus Kelly, Chief Executive Officer of AerCap.

Highlights:

• Awarded approximately $1 billion insurance payment by London Commercial Court for aircraft and engines lost in Russia.
• Return on equity of 29% and adjusted return on equity of 11% for the second quarter of 2025.
• Cash flow from operating activities of $1.3 billion for the second quarter of 2025.
• Unlevered gain-on-sale margin of 18% for assets sold in the second quarter of 2025, or 1.7x book value on an equity basis.
• Entered into framework agreement with Leonardo S.p.A. to support the transfer of maintenance agreements between customers, making helicopter transitions easier and more cost-efficient.
• Capex of $734 million, including purchases of 11 aircraft, five engines and five helicopters.
• Signed financing transactions for approximately $2.9 billion in the second quarter of 2025.
• Adjusted debt/equity ratio of 2.2 to 1 as of June 30, 2025.
• Book value per share of $102.99 as of June 30, 2025, an increase of approximately 15% from June 30, 2024.
• Returned $445 million to shareholders through the repurchase of 4.7 million shares at an average price of $94.03 per share during the second quarter of 2025, taking total share repurchases to over $1 billion for 2025 year-to-date.

Revenue and Net Spread

		Three Months Ended June 30,						Six Months Ended June 30,
		2025		2024		% increase/ (decrease)		2025		2024		% increase/ (decrease)
		(U.S. Dollars in millions)						(U.S. Dollars in millions)
Lease revenue:
Basic lease rents		$1,653		$1,568		5 %		$3,302		$3,153		5 %
Maintenance rents and other receipts		115		180		(36 %)		261		359		(27 %)
Total lease revenue		1,768		1,748		1 %		3,563		3,513		1 %
Net gain on sale of assets		57		129		(56 %)		234		289		(19 %)
Other income		62		81		(24 %)		167		175		(5 %)
Total Revenues and other income		$1,887		$1,958		(4 %)		$3,964		$3,976		- %

Basic lease rents were $1,653 million for the second quarter of 2025, compared with $1,568 million for the same period in 2024. Basic lease rents for the second quarter of 2025 were negatively impacted by $26 million of lease premium amortization.

Maintenance rents and other receipts were $115 million for the second quarter of 2025, compared with $180 million for the same period in 2024. Maintenance rents for the second quarter of 2025 were negatively impacted by $27 million as a result of maintenance rights assets that were amortized to revenue.

Net gain on sale of assets for the second quarter of 2025 was $57 million, relating to 18 assets sold for $374 million, compared with $129 million for the same period in 2024, relating to 31 assets sold for $793 million.

Other income for the second quarter of 2025 was $62 million, compared with $81 million for the same period in 2024.

	Three Months Ended June 30,						Six Months Ended June 30,
	2025		2024		% increase/ (decrease)		2025		2024		% increase/ (decrease)
	(U.S. Dollars in millions)						(U.S. Dollars in millions)
Basic lease rents	$1,653		$1,568		5 %		$3,302		$3,153		5 %
Adjusted for:
Amortization of lease premium/deficiency	26		32		(21 %)		53		66		(20 %)
Basic lease rents excluding amortization of lease premium/ deficiency	$1,678		$1,600		5 %		$3,355		$3,219		4 %
Interest expense	519		478		8 %		1,022		970		5 %
Adjusted for:
Mark-to-market of interest rate derivatives	(11)		(5)		129 %		(15)		(8)		95 %
Interest expense excluding mark-to-market of interest rate derivatives	508		474		7 %		1,006		962		5 %
Adjusted net interest margin (*)	$1,170		$1,126		4 %		$2,348		$2,257		4 %
Depreciation and amortization	(669)		(636)		5 %		(1,329)		(1,270)		5 %
Adjusted net interest margin, less depreciation and amortization	$501		$490		2 %		$1,019		$987		3 %
Average lease assets (*)	$62,032		$60,237		3 %		$62,042		$60,347		3 %
Annualized net spread (*)	7.5 %		7.5 %				7.6 %		7.5 %
Annualized net spread less depreciation and amortization (*)	3.2 %		3.3 %				3.3 %		3.3 %
(*) 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 $508 million for the second quarter of 2025, compared with $474 million for the same period in 2024. AerCap's average cost of debt was 4.1% for the second quarter of 2025 and 3.8% for the same period in 2024, excluding debt issuance costs, upfront fees and other impacts.

Recoveries Related to Ukraine Conflict

During the second quarter of 2025, we were awarded approximately $1 billion from the war risks insurers of our contingent and possessed insurance policy by the London Commercial Court in respect of assets lost in Russia in 2022.

Selling, General and Administrative Expenses

	Three Months Ended June 30,						Six Months Ended June 30,
	2025		2024		% increase/ (decrease)		2025		2024		% increase/ (decrease)
	(U.S. Dollars in millions)						(U.S. Dollars in millions)
Selling, general and administrative expenses (excluding share-based compensation expenses)	$98		$93		6 %		$184		$187		(2 %)
Share-based compensation expenses	73		32		126 %		100		58		74 %
Selling, general and administrative expenses	$171		$125		37 %		$284		$245		16 %

Selling, general and administrative expenses were $171 million for the second quarter of 2025, compared with $125 million for the same period in 2024. The increase was primarily driven by higher share-based compensation expenses due to upfront recognition of certain expenses.

Other Expenses

Leasing expenses were $95 million for the second quarter of 2025, compared with $173 million for the same period in 2024. Leasing expenses for the second quarter of 2025 were negatively impacted by $29 million of maintenance rights amortization.

Effective Tax Rate

AerCap's effective tax rate was 12.2% for the second quarter of 2025, compared to an effective tax rate of 15.5% for the second 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. In the second quarter of 2025, the income tax expense included a tax benefit of $41 million due to the reversal of a Pillar 2 provision from the prior year.

Book Value Per Share

		June 30, 2025		June 30, 2024
		(U.S. Dollars in millions, except share and per share data)
Total AerCap Holdings N.V. shareholders' equity		$17,947		$17,016
Ordinary shares outstanding		178,309,768		195,159,322
Unvested restricted stock		(4,051,509)		(4,975,247)
Ordinary shares outstanding (excl. unvested restricted stock)		174,258,259		190,184,075
Book value per ordinary share outstanding (excl. unvested restricted stock)		$102.99		$89.47
Cumulative dividends declared per ordinary share		$1.29		$0.25

Financial Position

		June 30, 2025		December 31, 2024		% increase/ (decrease) over December 31, 2024
		(U.S. Dollars in millions)
Total cash, cash equivalents and restricted cash		$2,846		$1,402		103 %
Total assets		73,634		71,442		3 %
Debt		46,113		45,295		2 %
Total liabilities		55,687		54,257		3 %
Total AerCap Holdings N.V. shareholders' equity		17,947		17,185		4 %

Flight Equipment

As of June 30, 2025, AerCap's portfolio consisted of 3,508 aircraft, engines and helicopters that were owned, on order or managed. The average age of the company's owned aircraft fleet as of June 30, 2025 was 7.6 years (5.1 years for new technology aircraft, 15.4 years for current technology aircraft) and the average remaining contracted lease term was 7.2 years.

Dividend

In July 2025, AerCap's Board of Directors declared a quarterly cash dividend of $0.27 per share, with a payment date of September 4, 2025, to shareholders of record of AerCap ordinary shares as of the close of business on August 13, 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 June 30, 2025				Six Months Ended June 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		$1,259		$7.09		$1,902		$10.51
Adjusted for:
Net recoveries related to Ukraine Conflict		(973)		(5.48)		(973)		(5.37)
Amortization of maintenance rights and lease premium assets recognized under purchase accounting (*)		82		0.46		125		0.69
Income tax effect of above adjustments		134		0.75		127		0.70
Adjusted net income / earnings per share		$502		$2.83		$1,182		$6.53
Average AerCap Holdings N.V. shareholders' equity		$17,570				$17,441
Return on equity		29 %				22 %
Adjusted return on equity		11 %				14 %
(*) Includes $26 million adjustment to basic lease rents, $27 million adjustment to maintenance revenues and $29 million adjustment to leasing expenses for the three months ended June 30, 2025 and $53 million adjustment to basic lease rents, $36 million adjustment to maintenance revenues and $36 million adjustment to leasing expenses for the six months ended June 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		$2.6
Amortization of maintenance rights and lease premium assets recognized under purchase accounting		0.3
Net recoveries related to Ukraine Conflict		(1.0)
Income tax effect of above adjustments		0.1
Adjusted net income		$2.1
Adjusted earnings per share		$11.60

Adjusted debt/equity ratio

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

• Adjusted debt means consolidated total debt less cash and cash equivalents, and less a 50% equity credit with respect to certain long-term subordinated debt.
• Adjusted equity means total equity, plus the 50% equity credit relating to the long-term subordinated debt.

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.

		June 30, 2025		December 31, 2024
	(U.S. Dollars in millions, except debt/equity ratio)
Debt		$46,113		$45,295
Adjusted for:
Unrestricted cash and cash equivalents		(2,696)		(1,209)
50% equity credit for long-term subordinated debt		(1,125)		(1,125)
Adjusted debt		$42,292		$42,960
Equity		$17,947		$17,185
Adjusted for:
50% equity credit for long-term subordinated debt		1,125		1,125
Adjusted equity		$19,072		$18,310
Adjusted debt/equity ratio		2.22 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 June 30,
		2025		2024
	(U.S. Dollars in millions)
Interest expense		$519		$478
Adjusted for:
Mark-to-market on interest rate derivatives		(11)		(5)
Debt issuance costs, upfront fees and other impacts		(26)		(33)
Interest expense, excluding mark-to-market on interest rate derivatives, debt issuance costs, upfront fees and other impacts		$482		$440
Average debt balance		$46,667		$45,972
Average cost of debt		4.1 %		3.8 %

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 second quarter 2025 results, management will host a conference call with members of the investment community today, Wednesday, July 30, 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) [phone] or (International) [phone] and referencing code 6607713 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: [phone] ( [email protected] ).

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)
			June 30, 2025		December 31, 2024
	Assets
	Cash and cash equivalents		$2,696,068		$1,209,226
	Restricted cash		150,081		192,356
	Trade receivables		54,172		68,073
	Flight equipment held for operating leases, net		58,708,975		58,575,672
	Investment in finance leases, net		1,256,028		1,208,585
	Flight equipment held for sale		469,614		466,173
	Prepayments on flight equipment		4,310,680		3,460,296
	Maintenance rights and lease premium, net		1,901,942		2,129,993
	Other intangibles, net		128,727		139,666
	Deferred tax assets		263,790		261,004
	Associated companies		1,205,953		1,128,894
	Other assets		2,487,917		2,602,038
	Total Assets		$73,633,947		$71,441,976
	Liabilities and Equity
	Accounts payable, accrued expenses and other liabilities		$1,873,510		$1,774,827
	Accrued maintenance liability		3,468,886		3,327,347
	Lessee deposit liability		1,207,368		1,092,585
	Debt		46,113,492		45,294,511
	Deferred tax liabilities		3,023,406		2,767,874
	Total Liabilities		55,686,662		54,257,144
	Ordinary share capital €0.01 par value, 450,000,000 ordinary shares authorized as of June 30, 2025 and December 31, 2024; 196,043,739 and 204,543,739 ordinary shares issued and 178,309,768 and 186,783,225 ordinary shares outstanding (including 4,051,509 and 5,072,382 unvested restricted stock) as of June 30, 2025 and December 31, 2024, respectively		2,466		2,558
	Additional paid-in capital		5,122,322		5,809,276
	Treasury shares, at cost (17,733,971 and 17,760,514 ordinary shares as of June 30, 2025 and December 31, 2024, respectively)		(1,697,801)		(1,425,652)
	Accumulated other comprehensive (loss) income		(43,524)		42,683
	Accumulated retained earnings		14,563,612		12,755,758
	Total AerCap Holdings N.V. shareholders' equity		17,947,075		17,184,623
	Non-controlling interest		210		209
	Total Equity		17,947,285		17,184,832
	Total Liabilities and Equity		$73,633,947		$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 June 30,				Six Months Ended June 30,
								2025		2024		2025		2024
	Revenues and other income
	Lease revenue:
	Basic lease rents							$1,652,669		$1,567,526		$3,301,730		$3,153,157
	Maintenance rents and other receipts							114,969		180,036		261,460		359,496
	Total lease revenue							1,767,638		1,747,562		3,563,190		3,512,653
	Net gain on sale of assets							57,098		129,459		234,016		289,039
	Other income							62,016		81,124		166,578		174,541
	Total Revenues and other income							1,886,752		1,958,145		3,963,784		3,976,233
	Expenses
	Depreciation and amortization							668,932		636,419		1,328,667		1,269,897
	Net recoveries related to Ukraine Conflict							(972,822)		-		(972,822)		(22,749)
	Asset impairment							2,369		27,686		5,609		30,356
	Interest expense							518,866		478,282		1,021,726		969,797
	Loss on debt extinguishment							1,982		7,008		1,982		7,020
	Leasing expenses							94,539		172,791		175,284		321,405
	Selling, general and administrative expenses							170,830		125,333		283,931		244,625
	Total Expenses							484,696		1,447,519		1,844,377		2,820,351
	Loss on investments at fair value							(22,533)		(18,207)		(23,928)		(4,684)
	Income before income taxes and income of investments
	accounted for under the equity method							1,379,523		492,419		2,095,479		1,151,198
	Income tax expense							(168,366)		(76,346)		(279,339)		(170,455)
	Equity in net earnings of investments accounted for under the equity method							48,052		32,094		85,930		71,634
	Net income							$1,259,209		$448,167		$1,902,070		$1,052,377
	Net (income) loss attributable to non-controlling interest							-		(1)		(1)		3
	Net income attributable to AerCap Holdings N.V.							$1,259,209		$448,166		$1,902,069		$1,052,380
	Basic earnings per share							$7.24		$2.33		$10.76		$5.42
	Diluted earnings per share							$7.09		$2.28		$10.51		$5.30
	Weighted average shares outstanding - basic							173,960,277		192,515,755		176,725,697		194,144,800
	Weighted average shares outstanding - diluted							177,541,220		196,881,272		181,062,000		198,514,778

	AerCap Holdings N.V
	Unaudited Consolidated Statements of Cash Flows
	(U.S. Dollars in thousands)
				Six Months Ended June 30,
				2025		2024
	Net income			$1,902,070		$1,052,377
	Adjustments to reconcile net income to net cash provided by operating activities:
	Depreciation and amortization			1,328,667		1,269,897
	Net recoveries related to Ukraine Conflict			(972,822)		(22,749)
	Asset impairment			5,609		30,356
	Amortization of debt issuance costs, debt discount, debt premium and lease premium			90,471		116,181
	Maintenance rights write-off			72,473		184,118
	Maintenance liability release to income			(76,389)		(112,413)
	Net gain on sale of assets			(234,016)		(289,039)
	Deferred tax expense			266,748		148,777
	Share-based compensation			100,214		57,668
	Collections of finance leases			157,021		203,113
	Loss on investments at fair value			23,928		4,684
	Loss on debt extinguishment			1,982		7,020
	Other			(78,319)		(4,719)
	Changes in operating assets and liabilities:
	Trade receivables			13,749		24,305
	Other assets			90,233		165,557
	Accounts payable, accrued expenses and other liabilities			(25,169)		(50,620)
	Net cash provided by operating activities			2,666,450		2,784,513
	Purchase of flight equipment			(1,684,831)		(2,177,406)
	Proceeds from sale or disposal of assets			875,073		1,527,481
	Prepayments on flight equipment			(1,286,084)		(1,077,429)
	Cash proceeds from insurance claim settlements			824,167		-
	Other			(27,328)		34,939
	Net cash used in investing activities			(1,299,003)		(1,692,415)
	Issuance of debt			3,585,969		2,796,670
	Repayment of debt			(2,766,797)		(3,579,662)
	Debt issuance and extinguishment costs paid, net of debt premium received			(28,847)		(37,165)
	Maintenance payments received			462,937		442,130
	Maintenance payments returned			(81,268)		(178,364)
	Security deposits received			198,465		122,433
	Security deposits returned			(96,961)		(105,500)
	Repurchase of shares and tax withholdings on share-based compensation			(1,104,219)		(722,974)
	Dividends paid on ordinary shares			(95,363)		(41,806)
	Net cash provided by (used in) financing activities			73,916		(1,304,238)
	Net increase (decrease) in cash, cash equivalents and restricted cash			1,441,363		(212,140)
	Effect of exchange rate changes			3,204		(1,091)
	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			$2,846,149		$1,612,235

SOURCE AerCap Holdings N.V.