AerCap Holdings N.V. Reports Record $3.1 Billion 2023 Net Income and Announces New $500 Million Share Repurchase Authorization

Core Insights - AerCap Holdings N.V. reported record financial results for the full year 2023, achieving a net income of $3.1 billion or $13.78 per share, and $1.1 billion or $5.37 per share for the fourth quarter of 2023 [1][19] - The company returned $2.6 billion to shareholders in 2023 and announced a new $500 million share repurchase authorization [1][15] - The CEO highlighted strong operating conditions and positive momentum in the aviation leasing market, with over $600 million in insurance settlements collected in the fourth quarter [2][3] Financial Performance - The adjusted net income for the full year 2023 was $2.4 billion or $10.73 per share, with $641 million or $3.11 per share for the fourth quarter [1][19] - Return on equity was 27% for the fourth quarter, with an adjusted return on equity of 16% [3] - Book value per share increased approximately 25% to $83.81 as of December 31, 2023, compared to the previous year [3][12] Revenue and Income Breakdown - Total lease revenue for the fourth quarter was $1.718 billion, a 5% increase from the previous year, with basic lease rents contributing $1.576 billion [4][32] - The net gain on sale of assets for the fourth quarter was $94 million, down 22% from the previous year, while total revenues and other income reached $1.899 billion [4][32] - The company recognized recoveries related to the Ukraine conflict amounting to $614 million in the fourth quarter [7][30] Expenses and Cash Flow - Selling, general, and administrative expenses for the fourth quarter were $122 million, a 32% increase from the previous year, driven by higher compensation and operational costs [8] - Cash flow from operating activities for the fourth quarter was $1.4 billion, totaling $5.3 billion for the full year [3][30] - Interest expense for the fourth quarter was $496 million, with an average cost of debt of 3.7% [7][22] Shareholder Returns and Equity - The company repurchased 44.3 million shares at an average price of $59.09 during 2023 [3][15] - The adjusted debt/equity ratio as of December 31, 2023, was 2.47 to 1, reflecting the company's capital structure [3][20] - Total shareholders' equity increased to $16.589 billion as of December 31, 2023, compared to $16.118 billion the previous year [13][12]