AerCap Holdings NV Q1 FY2025 earnings call

• AerCap generated strong earnings with GAAP net income of $643 million and adjusted net income of $679 million. - Announced a new $500 million share repurchase program and increased 2025 full year EPS guidance. - Operational highlights: strong bids for passenger assets like 787s, extension of 26 midlife narrowbody aircraft, ordered 268 new LEAP engines with progress on delivery, and helicopter deal with Equinor Energy. - Net maintenance contribution was $82 million, net gain on sale of assets was $177 million, other income was $105 million. - Strong liquidity position with total sources of liquidity approximately $20 billion, leverage ratio 2.4 to 1, and operating cash flow of approximately $1.3 billion.

GAAP net income was $643 million and earnings per share of $3.48, adjusted net income was $679 million and adjusted earnings per share of $3.68. On the passenger side, there were strong bids for assets, including notable 787 deals like transitioning midlife 787s between European customers and a 787 sale leaseback. On the narrowbody side, 26 midlife aircraft were extended with a North American customer. On the engine side, 268 new LEAP engines were ordered in 2024, with over 120 delivered, 60 expected this year, and 50+ next year, operating from 27 partner MROs. In the helicopter business, an example was the purchase and leaseback of five new Leonardo AW189 helicopters with Equinor Energy.

• Raised 2025 full year adjusted EPS guidance to a range of $9.30 to $10.30. - Includes approximately $0.80 of gains on sale in the first quarter but not the remainder of the year. - Taking into account delays in the 777 freighter conversion program, expect to be in the top half of the range. - Considerable uncertainty in the macroeconomic and market environment.

• Uncertainty in the overall macroeconomic and market environment. - Delays in the 777 freighter conversion program.

Q: Terry Ma from Barclays asked about engine and helicopter opportunities and buyback.

A: Aengus Kelly said expected more bilateral transactions, Peter Juhas explained the guidance increase and factors like freighter delays.

Q: Moshe Orenbuch from TD Cowen asked about engine and helicopter capital deployment and leasing expenses.

A: Aengus Kelly said ample capital available, Peter Juhas explained lower leasing expenses due to extensions and timing.

Q: Jamie Baker from J.P. Morgan asked about tariffs and portfolio.

A: Aengus Kelly discussed tariff discussions, exemptions, and portfolio strategy.

Q: Hillary Cacanando from Deutsche Bank asked about portfolio and new tech.

A: Aengus Kelly explained the barbell strategy and long-term portfolio view.

Q: Catherine O'Brien from Goldman Sachs asked about aircraft demand and buyer complexion.

A: Aengus Kelly and Peter Juhas discussed U.S. market proportion and buyer split.

Q: Kristine Liwag from Morgan Stanley asked about Shannon Engine JV and CapEx.

A: Aengus Kelly explained engine JV operations and CapEx mix.

Q: Stephen Trent from Citi asked about CapEx and lease renewal rate.

A: Aengus Kelly discussed CapEx mix and lease renewal trend.

Q: Ron Epstein from Bank of America asked about widebody demand and lobbying.

A: Aengus Kelly talked about widebody demand and lobbying efforts.