Financial Data and Key Metrics Changes - AerCap reported record GAAP net income of $3.8 billion, or $21.30 per share, and adjusted net income of $2.7 billion, or $15.37 per share for 2025 [5][19] - Full-year revenues reached an all-time high of $8.5 billion, with sales volumes totaling a record $3.9 billion [5][19] - Operating cash flow for the full year was $5.4 billion, with a net debt-to-equity level of 2.1x at year-end [6][20] - The company returned $2.6 billion of capital to shareholders, the highest annual amount ever, through share repurchases and dividends [5][26] Business Line Data and Key Metrics Changes - AerCap executed 705 transactions in 2025, including the sale of 189 assets with a gain-on-sale margin of 27% [9][14] - The company extended 87% of its leased aircraft in 2025, up from 79% in 2024, indicating strong customer demand [9] - The engine leasing business expanded with a partnership with GE Aerospace, enhancing AerCap's value proposition [11] Market Data and Key Metrics Changes - Demand for aviation assets remains robust, with industry-wide load factors at record highs, while supply is constrained due to delivery delays and maintenance backlogs [8] - Airlines and lessors accounted for over 80% of aircraft sales revenues in 2025 [10] Company Strategy and Development Direction - AerCap's strategy focuses on capitalizing on favorable market conditions, with a strong outlook for 2026 projected adjusted EPS of $12-$13 per share [7][25] - The company aims to maintain a disciplined approach to capital allocation, with over $3 billion of excess capital to deploy [15][26] - AerCap is uniquely positioned to execute strategic transactions due to its scale, market intelligence, and strong financial position [10][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the structural shortage of aircraft persisting at least through the end of the decade, despite potential demand fluctuations [8][9] - The company highlighted the importance of operational efficiency and asset management as key drivers of business stability [43] Other Important Information - AerCap received $1.5 billion in insurance and other recoveries related to the Ukraine conflict in 2025, bringing total pre-tax recoveries since 2023 to approximately $3 billion [6] - The company announced an increase in its quarterly dividend to $0.40 per share and a new $1 billion share repurchase program [8][21] Q&A Session Summary Question: On the order book and potential future orders - Management indicated that while they prefer to order at the bottom of the cycle, they remain open to opportunities that make sense for customers [29][30] Question: Concerns about the size of lessors - Management noted that as long as they can maintain price discipline and are not forced to participate in every transaction, growth is feasible [33][34] Question: Thoughts on the A220-500 aircraft - Management expressed skepticism about the need for the A220-500, suggesting it could cannibalize Airbus's existing market share [38] Question: Transition from selling aircraft to traditional leasing - Management emphasized that the majority of earnings come from the operating business, and they have consistently sold assets at a gain over the years [39][40] Question: Systemic risks to aircraft lessors - Management acknowledged the importance of operational efficiency and asset management to mitigate risks associated with financially weaker airlines [85]