Financial Performance - AerCap achieved a record GAAP Net Income of $3.1 billion in 2023 and an Adjusted Net Income of $2.4 billion[6] - The company returned $2.6 billion to shareholders in 2023 and announced a new $500 million share repurchase authorization[6] - AerCap's book value per share has grown by a CAGR of 20% since March 2022[14] - The company projects an adjusted EPS of $7.50 - $8.50 for FY 2024, not including any gains on sale[6, 30] Market Dynamics - Demand continues to outstrip supply across aircraft, engines, and helicopters[6] - 2023 commercial aircraft deliveries remain behind even 2015 levels[8] - Strong demand for mid-life and older aircraft supports secondary sales at attractive margins[11] Capital Management - AerCap recovered $1.3 billion in insurance settlement proceeds to date[6] - The company has a strong liquidity position, with next 12 months' sources-to-uses coverage of 1.4x and ~$19 billion in sources of liquidity[23] - Approximately 10.3 million shares were repurchased in 4Q 2023 at an average price of $62.86, for a total of ~$649 million[24] Portfolio and Assets - New technology aircraft comprise approximately 70% of the aircraft fleet[40] - The company reported a net gain on sale of assets of $94 million in 4Q 2023, representing an 18% unlevered gain-on-sale margin[21]

Record net income for the full year 2023 of $3.1 billion, or $13.78 per share, and $1.1 billion, or $5.37 per share, for the fourth quarter of 2023. Record adjusted net income for the full year 2023 of $2.4 billion, or $10.73 per share, and $641 million, or $3.11 per share, for the fourth quarter of 2023. Returned $2.6 billion to shareholders in 2023. New $500 million share repurchase authorization announced today. DUBLIN, Feb. 23, 2024 /PRNewswire/ -- AerCap Holdings N.V. (NYSE: AER), the industry lead ...

Debt and Financial Exposure - As of December 31, 2023, the principal amount of outstanding floating rate debt was $10.3 billion, representing 22% of the total indebtedness[35] - Negative changes in credit ratings could limit financing options and increase borrowing costs, impacting financial results[39] - Interest rate increases may lead to higher borrowing costs and negatively impact net income, especially if not hedged[36] Lease Revenue and Market Dependence - During 2023, 98.5% of basic lease rents from flight equipment under operating leases were from fixed lease rates, while only 1.5% were from floating rate leases[36] - Lease revenue from emerging market countries accounted for 53% in 2023, highlighting the company's reliance on these markets[46] - The financial condition of lessees is critical, as their ability to meet lease obligations is affected by factors such as fuel prices, economic conditions, and operational disruptions[72] Geopolitical and Economic Risks - The company is exposed to geopolitical risks that may disrupt operations and affect revenue, particularly due to the ongoing Ukraine Conflict[42] - High inflation rates during 2022 and 2023 have increased operational costs and may diminish the value of fixed-rate leases[38] - A deterioration in lessees' financial conditions could lead to delays or failures in rental payments, impacting the company's revenue[74] Regulatory and Compliance Challenges - Compliance with international regulations and sanctions is critical, as violations could result in severe penalties and adversely affect financial performance[49] - The company may incur significant fines of up to 4% of its annual global revenue for non-compliance with the GDPR[51] - The company faces potential substantial costs related to environmental regulations, including capital expenditures and fines for non-compliance[52] Environmental and Sustainability Factors - The aviation industry is under scrutiny regarding environmental impacts, which may reduce demand for the company's aircraft and affect financial performance[54] - Future emissions limitations and sustainability regulations could adversely affect the company's operations and financial condition[55] - The company may face increased costs and reduced demand due to the transition to lower-carbon technologies and sustainable aviation fuels[54] Aircraft and Market Dynamics - Demand for flight equipment is influenced by long-term trends in passenger air travel and air cargo demand, which are affected by economic growth, regulation, and fuel prices[64] - New aircraft types introduced by manufacturers like Boeing and Airbus may decrease the desirability and residual value of older aircraft, impacting lease rates[66] - The concentration of aircraft manufacturing among a few companies can lead to delivery delays, affecting the company's ability to meet customer obligations[71] Insurance and Risk Management - The company has experienced a significant increase in insurance costs and a reduction in coverage due to the Ukraine Conflict, affecting financial stability[57] - As of December 31, 2023, the company's captive insurance company, Aistrigh, provides approximately 25% of its hull war insurance[57] - The company has submitted insurance claims related to losses from the Ukraine Conflict, with uncertain recovery timelines[59] Taxation and Financial Implications - The introduction of the EU Minimum Tax Directive mandates a minimum effective tax rate of 15% for the group, effective in 2024[107] - Changes in tax laws or practices could lead to additional income or other taxes, adversely affecting financial results[106] - The U.S. Corporate Alternative Minimum Tax (CAMT) imposes a 15% tax on adjusted financial statement income for certain corporations, with potential implications for the company's effective tax rate[111] Operational Challenges and Cybersecurity - Financial instability or manufacturing delays from aircraft manufacturers could negatively impact cash flow and operational results, particularly if delivery delays exceed one year[89] - Recent quality control issues with Boeing aircraft, including the 737 MAX 9, have led to delivery delays that could materially affect revenues and operating cash flows[90] - The company has experienced a cybersecurity incident in January 2024, but there was no material disruption to operations, and financial loss has not been incurred[98]

SINGAPORE, Feb. 21, 2024 /PRNewswire/ -- AerCap Holdings N.V. ("AerCap" or the "Company") (NYSE: AER) today announced it has signed lease agreements with Thai Airways International Public Company Limited ("Thai Airways") for seven widebody aircraft comprising four Airbus A350-900 aircraft and three Boeing 787-9 aircraft, and ten Airbus A321NEO aircraft. The decision to procure these aircraft was made in 2023 as part of Thai Airways' short-term fleet development strategy. Of the four A350 aircraft, two have ...

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are underva ...

DUBLIN, Jan. 3, 2024 /PRNewswire/ -- AerCap Holdings N.V. ("AerCap") (NYSE: AER) has announced its major business transactions during the full year and fourth quarter 2023: Full Year 2023 Transactions Signed 592 lease agreements, completed 173 purchases and 188 sale transactions. Received cash insurance settlement proceeds of approximately $1.3 billion. Repurchased approximately 44 million shares, at an average price of $59.09 per share, for a total of approximately $2.6 billion. Signed financing transacti ...

Core Viewpoint - Investors are advised to avoid airlines and consider AerCap (NYSE:AER) for exposure to the airline industry due to its superior performance and business model [2][5]. Business Model and Performance - AerCap's business model is akin to structured finance, collateralized by aircraft and engines, allowing it to manage risks effectively compared to airlines, which face various operational risks [6]. - Despite challenges such as COVID-19 and geopolitical issues, AerCap has shown resilience and has made strategic acquisitions, such as GECAS, at discounts to book value [6][10]. Valuation Insights - AerCap typically trades at a slight discount to its growing book value, with historical trading around 0.9x-0.95x book value [7]. - The current book value is believed to be materially understated, with estimates suggesting a "true" book value of approximately $123 compared to the reported $78 [10]. Capital Allocation Strategy - AerCap does not pay dividends but focuses on share buybacks and opportunistic acquisitions, which have historically yielded significant returns on book equity [11]. - Recent asset sales have been at a premium of around 25% above book value, enhancing shareholder value through strategic capital allocation [11]. Future Outlook - The consensus earnings estimate for Q4 is significantly lower than expected, with projections of $3 EPS compared to the consensus of $2.44 [13]. - AerCap is on track to buy back approximately 20% of outstanding shares by the end of 2023 and 15% in 2024, indicating strong capital management [13]. - Favorable industry dynamics are anticipated to persist for several years, supporting growth in book value and share price [13].

AerCap Holdings N.V. (NYSE:AER) Q3 2023 Results Conference Call October 27, 2023 8:30 AM ET Company Participants Joseph McGinley - Head of Investor Relations Aengus Kelly - Chief Executive Officer Pete Juhas - Chief Financial Officer Conference Call Participants Jamie Baker - JP Morgan Stephen Trent - Citigroup Helane Becker - TD Cowen Catherine O'Brien - Goldman Sachs Hillary Cacanando - Deutsche Bank Vincent Caintic - Stephens Jordan Lyonnais - Bank of America Operator Good day, and welcome to the AerCap ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of October 2023 Commission File Number 001-33159 Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F x Form 40-F o Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b ...

AerCap Holdings N.V. (NYSE:AER) Q2 2023 Earnings Conference Call July 31, 2023 8:30 AM ET Company Participants Joseph McGinley - Head of Investor Relations Aengus Kelly - Chief Executive Officer Pete Juhas - Chief Financial Officer Conference Call Participants Helane Becker - TD Cowen Catherine O'Brien - Goldman Sachs Jamie Baker - JPMorgan Stephen Trent - Citi Hillary Cacanando - Deutsche Bank Christopher Stathoulopoulos - Susquehanna International Group Operator Good day, everyone, and welcome to the AerC ...