AerCap Holdings N.V.

AerCap reported GAAP net income of $726 million, or $4.59 per share, for Q2 2026. Adjusted net income was $811 million, or $5.14 per share, and adjusted ROE was 18%. Basic lease rents were $1.677 billion, maintenance revenues were $177 million, net gain-on-sale of assets was $223 million, and operating cash flow was $1.5 billion. The company sold 38 assets for $1.4 billion of sales revenue at a 20% unlevered gain-on-sale margin (about 1.7x book value on an equity basis). At June 30, total liquidity was about $22 billion, leverage was 2.05x, secured debt to total assets was 9%, and average cost of debt was 4.2%. Management raised full-year 2026 adjusted EPS guidance to approximately $16.80, including the first-half $2.80 of gains on sale and excluding any second-half gains on sale. It now expects full-year asset sales of $4 billion to $5 billion and said adjusted EPS excluding gains on sale is now about $14.

Aengus Kelly framed the quarter as another strong period driven by disciplined capital allocation, high lease extension rates, and a still-favorable supply-demand backdrop. He highlighted the 85% passenger aircraft lease extension rate, $1.4 billion of asset sales, the new 15-aircraft Boeing 787 order, and AerCap’s ability to deploy capital while still returning cash to shareholders. His tone was confident on the core leasing business and the long-term widebody cycle, while more measured on new adjacencies like aeroderivatives, which he said would require the right partners and a clear long-term return case.

Peter Juhas focused on the quarter’s financial strength and liquidity. He cited GAAP net income of $726 million, adjusted net income of $811 million, $1.5 billion of operating cash flow, and $22 billion of total liquidity, including just under $1.7 billion of cash, $10 billion of revolvers, and $3 billion of other committed facilities. He said leverage stayed at 2.05x because the business keeps generating capital, noted $691 million of buybacks in Q2 and more than $8 billion of repurchases since 2023, and reiterated that net maintenance contribution should normalize in the second half. He also said asset sales were running strong, with $2.8 billion completed in the first half and a full-year expectation of $4 billion to $5 billion.

Analysts focused heavily on leverage, capital allocation, and the durability of elevated asset-sale gains. Management said leverage remains low mainly because the business is generating so much cash, but it still expects to move back toward the mid-2s over time while continuing buybacks and looking for larger opportunities. Questions also centered on the new Boeing 787 order and the aeroderivative/data-center opportunity; Kelly said the 787 slots were compelling because of their rarity and AerCap’s execution capability, while stressing that aeroderivatives require strong partners, long-term demand, and reliable performance. On fleet and returns, Juhas said Spirit-related aircraft redeliveries should begin in Q4, which should help lease yields and net spread, and he said the weaker COVID-era leases are now more than halfway through their roll-off.