PRESS RELEASE For Investors: Norah Morgan Director, Investor Relations InvestorRelations@aercap.com; +353 1 810 2010 For Media: Gillian Culhane Head of Corporate Communications and Marketing gculhane@aercap.com; +353 1 636 0945 AerCap Holdings N.V. Reports Record Financial Results for the Full Year 2025 DUBLIN – February 6, 2026 – AerCap Holdings N.V. (NYSE: AER), the industry leader across all areas of aviation leasing, today reported strong financial results for the fourth quarter and full year ended Dece ...

Core Viewpoint - AerCap Holdings N.V. reported strong financial results for Q4 and the full year 2025, highlighting record net income and earnings per share, alongside significant asset sales and reinvestments in the business [2][6]. Financial Performance - For Q4 2025, AerCap achieved a net income of $633 million, or $3.79 per share, and for the full year, net income reached $3.8 billion, or $21.30 per share [6][24]. - Adjusted net income for Q4 was $660 million, or $3.95 per share, while for the full year, it was $2.7 billion, or $15.37 per share [6][24]. - Total revenues for Q4 were $2.244 billion, an 8% increase from $2.072 billion in Q4 2024, and for the full year, revenues were $8.517 billion, a 7% increase from $7.997 billion in 2024 [5][6]. Revenue Breakdown - Basic lease rents for Q4 2025 were $1.688 billion, a 4% increase from $1.619 billion in Q4 2024, while for the full year, they were $6.679 billion, up 5% from $6.377 billion in 2024 [5][11]. - Maintenance rents and other receipts for Q4 2025 were $225 million, a 112% increase from $106 million in Q4 2024, and for the full year, they were $690 million, a 10% increase from $627 million in 2024 [5][9]. Asset Management - The company sold $3.9 billion in assets during 2025, realizing gains of $819 million, with a net gain on sale of assets for Q4 at $253 million from 55 assets sold for $1.3 billion [2][10]. - AerCap added 103 aircraft firm orders and options to its order book in 2025, reflecting ongoing growth in its portfolio [2][19]. Shareholder Returns - AerCap returned $2.6 billion to shareholders in 2025 through share repurchases and dividends, with a new $1 billion share repurchase program announced and a quarterly dividend increase to $0.40 per share [3][6]. Financial Ratios and Guidance - The company reported a GAAP return on equity of 21% and an adjusted return on equity of 15% for the full year 2025 [7][25]. - The book value per share increased by 19% to $112.59 as of December 31, 2025, compared to $94.57 a year earlier [17][18]. - For 2026, AerCap provided adjusted EPS guidance of $12.00 to $13.00, excluding any gains on sale [6][27].

Core Viewpoint - Harris Associates L.P. emphasizes a consistent investment philosophy focused on value investing, aiming for long-term capital appreciation through fundamental research and client service [1] Group 1: Investment Philosophy - The company believes that stock prices will eventually reflect the underlying value of the companies [1] - It seeks to identify companies trading at significant discounts to their intrinsic value, which must also demonstrate substantial profit potential [1] - The investment approach is framed as owning a piece of a business for the long term, highlighting the importance of intensive, fundamental research [1] Group 2: Research Process - The research process is characterized by a disciplined quantitative and qualitative screening method [1] - Analysts at the company are independent thinkers who do not rely on Wall Street for insights [1] - The team consists of generalists who evaluate companies based on their fundamental characteristics [1]

Core Viewpoint - The company has exceeded high expectations for performance entering 2025, with an initial target set at $10 per share in core valuation [1]. Group 1 - The individual investor and family office principal has over 20 years of investment experience, focusing on fundamental analysis and identifying undervalued asset classes that offer a favorable risk/reward trade-off [1]. - The investment strategy includes employing options strategies, such as covered calls on overvalued companies and writing puts on stocks that are desired at lower prices [1]. - The educational background includes an MBA in Finance from NYU Stern and an undergraduate degree in Computer Science [1]. Group 2 - The analyst has a beneficial long position in the shares of AER, which may include stock ownership, options, or other derivatives [2]. - The article reflects the analyst's personal opinions and is not influenced by compensation from any company mentioned [2].

Core Viewpoint - The head of AerCap, the world's largest aircraft leasing company, advised against overreacting to recent geopolitical and economic uncertainties, emphasizing the resilience of the aviation financing industry [1] Group 1: Company Insights - AerCap is positioned as the largest aircraft leasing company globally, indicating its significant influence in the aviation financing sector [1] - The leadership at AerCap is focused on maintaining a balanced perspective amidst current market volatility, suggesting a strategic approach to navigating challenges [1] Group 2: Industry Context - The aviation financing industry is characterized by its ability to withstand geopolitical and economic fluctuations, highlighting its robustness [1] - Recent uncertainties in the market have prompted discussions about the future of aviation financing, but industry leaders advocate for a measured response rather than panic [1]

Investment Rating - The industry rating is "Outperform" [1][51] Core Insights - Aircraft manufacturers are slowly recovering their production capacity, but delivery delays persist due to supply chain and labor shortages. Boeing is expected to deliver 600 aircraft in 2025, averaging about 50 per month, while Airbus is projected to deliver 793 aircraft, averaging about 66 per month. The backlog of aircraft orders remains at historically high levels [2][5][7]. - Global civil aviation passenger traffic growth has slowed down, with all regions except Africa experiencing a decrease in year-on-year growth rates compared to October. Africa's airlines saw an increase of 12.6%. Europe accounted for the largest share of international passenger traffic, with a year-on-year growth of 6.8% in November, while Asia's international passenger traffic grew by 9.3% [2][11][15][18]. - Overall, while aircraft manufacturers' production capacity is recovering, it still cannot meet the continuously expanding demand for aircraft. The aircraft leasing market remains strong, benefiting from the tight supply-demand situation. The Asia-Pacific aviation market has significant growth potential, providing broader development space for Chinese aircraft leasing companies, which are currently undervalued compared to global leader AerCap [2][3][4]. Summary by Sections 1. Aircraft Supply Continues to be Tight - Boeing's monthly delivery volume has significantly improved compared to last year, while Airbus's delivery volume is slightly better than the same period last year. However, both manufacturers' delivery levels are still far from previous highs [5]. - The backlog of aircraft orders remains at historical highs, with Boeing and Airbus accumulating new orders of 1,175 and 1,000 aircraft respectively in 2025 [7]. 2. Update on Civil Aviation Passenger Demand - In November 2025, global aviation revenue passenger kilometers (RPK) grew by 5.7% year-on-year, down from 6.6% in October. The global passenger load factor (PLF) reached 83.7%, the highest for November on record [11][15]. - The international passenger traffic in November showed robust growth, with Asia-Pacific and Europe regions maintaining strong performance, while North America saw a growth of 4.0% [18]. 3. Tracking Aircraft Leasing Companies - As of June 30, 2025, Bohai Leasing has the largest number of owned aircraft (628), while China Aircraft Leasing has the least (151). In terms of aircraft orders, Bohai Leasing also leads with 442 orders [39][44]. - The average remaining lease term for China Aircraft Leasing is relatively long at 7.9 years, ensuring long-term stability for the company's leases [47].

Core Viewpoint - AerCap (AER) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which have a strong correlation with near-term stock price movements [4][6]. - Rising earnings estimates for AerCap suggest an improvement in the company's underlying business, likely leading to an increase in stock price [5][10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of generating significant returns, particularly for Zacks Rank 1 stocks [7][9]. - AerCap's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns [10]. Earnings Estimate Revisions - AerCap is projected to earn $14.79 per share for the fiscal year ending December 2025, with no year-over-year change expected [8]. - Over the past three months, the Zacks Consensus Estimate for AerCap has increased by 12.2%, reflecting a positive trend in earnings estimates [8].

Core Insights - L1 Capital International Fund focuses on investing in high-quality companies with favorable cashflow-based valuations, emphasizing the importance of valuation analysis for AI-focused investments [1] - The fund achieved a return of 2.2% in Q4 2025, underperforming the benchmark MSCI World Net Total Return Index, which returned 2.5% [1] - For the full year 2025, the fund returned 9.8%, compared to the benchmark's 12.4% [1] Company Focus: AerCap Holdings N.V. (NYSE:AER) - AerCap Holdings N.V. is engaged in leasing, financing, selling, and managing flight equipment, with a market capitalization of $25.48 billion [2] - The stock closed at $141.84 on January 14, 2026, with a one-month return of -1.02% and a 52-week gain of 48.04% [2] - The fund has slightly trimmed its investment in AerCap due to valuation and risk management reasons, despite it being the fund's largest position [3] Investment Sentiment - AerCap is not among the 30 most popular stocks among hedge funds, with 55 hedge fund portfolios holding the stock at the end of Q3 2025, down from 63 in the previous quarter [4] - While AerCap is recognized for its potential, the fund believes certain AI stocks present greater upside potential and lower downside risk [4]

Core Viewpoint - AerCap (AER) is positioned well to potentially beat earnings estimates in its upcoming quarterly report, supported by a strong history of exceeding expectations [1]. Earnings Performance - AerCap has a solid track record of surpassing earnings estimates, with an average surprise of 30.09% over the last two quarters [2]. - In the last reported quarter, AerCap achieved earnings of $4.97 per share, significantly exceeding the Zacks Consensus Estimate of $3.16 per share, resulting in a surprise of 57.28% [3]. - For the previous quarter, the company was expected to report earnings of $2.75 per share but delivered $2.83 per share, yielding a surprise of 2.91% [3]. Earnings Estimates and Predictions - Estimates for AerCap have been trending upward, influenced by its history of earnings surprises [6]. - The stock currently has a positive Zacks Earnings ESP (Expected Surprise Prediction) of +8.70%, indicating increased analyst optimism regarding its near-term earnings potential [9]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat, with historical data showing that this combination results in positive surprises nearly 70% of the time [7][9]. Upcoming Earnings Report - AerCap's next earnings report is anticipated to be released on February 6, 2026 [9].

Group 1 - Oakmark Fund's objective is to deliver capital appreciation by investing in diverse large-cap US companies, and in Q4 2025, it outperformed the S&P 500 Index with a return of 4.78% compared to the index's 2.66% [1] - AerCap Holdings N.V. is highlighted as a key stock, with a market capitalization of $25.727 billion, a one-month return of 2.36%, and a 52-week gain of 49.13% [2] - AerCap is recognized as the largest aircraft lessor globally, benefiting from secular growth in global travel demand, and possesses scale advantages that allow for a higher return on equity (ROE) than its peers [3] Group 2 - The management's opportunistic, returns-focused approach to growth is seen as a key driver of AerCap's performance, with shares purchased at a modest premium to book value or a single-digit price-to-earnings (P/E) multiple [3] - AerCap is not among the 30 Most Popular Stocks Among Hedge Funds, with 55 hedge fund portfolios holding its shares at the end of Q3, down from 63 in the previous quarter [4] - While AerCap is acknowledged for its investment potential, certain AI stocks are considered to offer greater upside potential and less downside risk [4]