Core Insights - AerCap reported a record financial performance in 2025, driven by aircraft sales, leasing demand, and insurance recoveries related to the Ukraine conflict, with a GAAP net income of $3.8 billion and adjusted net income of $2.7 billion [3][6][12] Financial Performance - The company generated $5.4 billion in operating cash flow and had cash capital expenditures of $6.1 billion in 2025 [2] - AerCap returned $2.6 billion to shareholders through share repurchases and dividends, with a net debt-to-equity ratio of 2.1x [2][4] - Full-year revenue reached $8.5 billion, with sales volumes totaling a record $3.9 billion [2][6] Insurance Recoveries - Ukraine-related insurance recoveries contributed significantly, with AerCap receiving $1.5 billion in 2025, bringing total pre-tax recoveries since 2023 to approximately $3 billion [1][6] Market Conditions - The aviation demand remains robust, supported by record-high industry load factors, while supply is constrained due to delivery delays and maintenance backlogs [10][11] - AerCap executed 705 transactions in 2025, selling 189 assets with a gain-on-sale margin of 27% [12] 2026 Outlook - Management issued adjusted EPS guidance of $12 to $13 for 2026, excluding gains on asset sales, and forecasted lease rents of about $6.7 billion and Cash CapEx of approximately $5.2 billion [5][18] - The company anticipates a structural shortage of aircraft to persist through the end of the decade [11] Capital Allocation Strategy - AerCap reiterated a $1 billion share repurchase program and emphasized disciplined capital deployment, focusing on a "barbell" portfolio approach [4][21] - The company sold assets at high gain-on-sale margins and extended 87% of its leased aircraft in 2025, reflecting strong customer demand [4][13] Growth Initiatives - AerCap expanded its partnerships and acquired aircraft orders to enhance delivery certainty, including a notable acquisition from Spirit Airlines [14][21] - The company also received certification for its cargo conversion program, indicating resilience in the cargo market [16]