Aercap (NYSE:AER – Get Free Report) released its quarterly earnings data on Wednesday. The financial services provider reported $5.14 EPS for the quarter, topping analysts’ consensus estimates of $4.14 by $1.00, FiscalAI reports. Aercap had a net margin of 37.85% and a return on equity of 17.62%. The firm had revenue of $2.22 billion during the quarter, compared to the consensus estimate of $2.10 billion. During the same quarter in the previous year, the company posted $2.83 earnings per share. The firm’s revenue was up 14.9% on a year-over-year basis. Aercap updated its FY 2026 guidance to 16.800-16.800 EPS.
Here are the key takeaways from Aercap’s conference call:
- Strong quarterly results and higher guidance: Adjusted EPS was $5.14, adjusted ROE was 18%, and operating cash flow reached $1.5 billion. AerCap raised its full-year 2026 adjusted EPS outlook to approximately $16.80, including $2.80 per share of first-half asset-sale gains.
- Robust leasing and asset-sale environment: Passenger aircraft lease extensions reached 85%, while $1.4 billion of assets were sold in the quarter at a 20% gain-on-sale margin. Management expects full-year asset sales of approximately $4 billion to $5 billion, supported by strong buyer demand.
- Capital returns and financial flexibility remain significant: AerCap repurchased $691 million of shares in the quarter and more than $1.4 billion in the first half, while maintaining approximately $3.5 billion of excess capital and a 2.05-to-1 leverage ratio. Management said share repurchases should continue and that leverage could gradually move toward the mid-2x range.
- Expanded wide-body commitments: AerCap ordered 15 Boeing 787s for delivery from 2030 through 2033, citing scarce delivery positions and long-term demand driven by the aging wide-body fleet. The company also added 131 aircraft to its order book this year, including Airbus narrow-body aircraft obtained through airline-related transactions.
- Some risks and uncertainties remain: Net maintenance contribution was unusually high in the first half and is expected to normalize in the second half, while fleet growth is expected to be modest. AerCap is also evaluating aerospace-engine-derived power systems for data centers but remains cautious because of operational, reliability, partner, and long-term demand risks.
Aercap Price Performance
Shares of NYSE:AER traded down $1.35 on Friday, reaching $151.52. 231,360 shares of the company traded hands, compared to its average volume of 1,282,036. The company has a debt-to-equity ratio of 2.34, a current ratio of 0.24 and a quick ratio of 0.24. The stock has a market capitalization of $25.29 billion, a PE ratio of 7.47, a P/E/G ratio of 1.07 and a beta of 0.94. The company’s 50 day moving average is $144.84 and its 200-day moving average is $143.48. Aercap has a fifty-two week low of $105.65 and a fifty-two week high of $156.33.
Aercap Announces Dividend
Key Stories Impacting Aercap
Here are the key news stories impacting Aercap this week:
- Positive Sentiment: Strong Q2 earnings: AerCap reported second-quarter EPS of $5.14, exceeding the $4.14 consensus estimate, while revenue rose 14.9% year over year to $2.22 billion, above expectations of $2.10 billion. The company maintained full-year 2026 EPS guidance of $16.80. AerCap Holdings N.V. Q2 2026 Earnings Call Summary
- Positive Sentiment: Demand remains supportive: Reports highlighted continued demand for aircraft, helping drive AerCap’s quarterly performance and supporting the outlook for its leasing business. Continued Demand Drives AerCap Figures
- Positive Sentiment: Higher valuation targets: Truist raised its price target to $180 from $175 and retained a Buy rating. Morgan Stanley also lifted its target to $165 from $155, indicating analysts see additional upside despite its Equal Weight recommendation. Analyst price target updates
- Positive Sentiment: Value-stock recognition: Zacks added AER to its Rank #1, or Strong Buy, value-stocks list, potentially attracting interest from value-oriented investors. Best Value Stocks to Buy for July 31st
- Positive Sentiment: Shareholder return: AerCap declared a quarterly dividend of $0.40 per share, payable September 3 to shareholders of record August 12.
- Neutral Sentiment: Mixed analyst signal: Morgan Stanley’s higher target is constructive, but its Equal Weight rating suggests the firm views the stock’s risk-reward profile as broadly balanced at current levels.
Analysts Set New Price Targets
A number of research analysts recently commented on AER shares. Truist Financial upped their price objective on Aercap from $175.00 to $180.00 and gave the stock a “buy” rating in a research note on Thursday. Barclays increased their price objective on shares of Aercap from $164.00 to $179.00 and gave the stock an “overweight” rating in a report on Tuesday, July 7th. Citigroup upped their target price on shares of Aercap from $173.00 to $178.00 and gave the stock a “buy” rating in a research report on Thursday. Morgan Stanley lifted their price target on Aercap from $155.00 to $165.00 and gave the company an “equal weight” rating in a report on Thursday. Finally, Zacks Research upgraded Aercap from a “hold” rating to a “strong-buy” rating in a research report on Monday, July 20th. Two analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Buy” and an average target price of $172.56.
Get Our Latest Stock Analysis on Aercap
Aercap declared that its board has initiated a stock buyback plan on Wednesday, April 29th that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the financial services provider to reacquire up to 4.3% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s board believes its shares are undervalued.
Hedge Funds Weigh In On Aercap
A number of institutional investors have recently bought and sold shares of AER. Greenline Wealth Management LLC acquired a new stake in shares of Aercap during the fourth quarter valued at approximately $30,000. Advisory Services Network LLC acquired a new stake in shares of Aercap in the third quarter worth $35,000. FIL Ltd acquired a new position in Aercap during the fourth quarter valued at $63,000. Geneos Wealth Management Inc. lifted its stake in Aercap by 26.6% in the 1st quarter. Geneos Wealth Management Inc. now owns 447 shares of the financial services provider’s stock worth $46,000 after acquiring an additional 94 shares in the last quarter. Finally, Garton & Associates Financial Advisors LLC acquired a new stake in Aercap during the 4th quarter worth about $72,000. Hedge funds and other institutional investors own 96.42% of the company’s stock.
Aercap Company Profile
AerCap Holdings N.V. (NYSE: AER) is a global aircraft leasing and aviation finance company that acquires, leases, sells and manages commercial aircraft and engines. Its core services include operating leases, finance leases, sale-and-leaseback transactions, aircraft trading and remarketing, and asset management for airline customers. The company also provides related commercial and technical support services designed to optimize fleet utilization and residual values over the life cycle of aircraft and engines.
Operating with a broad global footprint, AerCap serves airlines and other aviation customers across North America, Europe, Asia-Pacific, Latin America, the Middle East and Africa.
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