Company Overview - AerCap Holdings N.V. is a global leader in aviation leasing with a strong order book and serves approximately 300 customers worldwide [2] Financial Reporting - AerCap has filed an interim financial report for the second quarter ended June 30, 2025, including unaudited condensed consolidated financial statements with the U.S. Securities and Exchange Commission [1] Industry Context - The company operates in the aviation leasing industry, which is influenced by various factors including economic conditions, geopolitical tensions, and regulatory changes [3][4]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $347.8 million in Q2 2025, up 30% from $268.6 million in Q1 2025 and up 63% from $213.9 million in Q2 2024 [19] - Adjusted free cash flow for the first half of 2025 was $370 million, exceeding the target of $350 million, with expectations to reach $750 million for the full year [14] - The company raised its EBITDA outlook for aviation leasing from $500 million to $600 million and for aerospace products from $600-650 million to $650-700 million for 2025 [15] Business Line Data and Key Metrics Changes - Aerospace products generated $165 million in adjusted EBITDA with a margin of 34%, reflecting a 26% increase from $130.9 million in Q1 2025 and an 81% increase from $91.2 million in Q2 2024 [21] - The leasing segment posted approximately $199 million of EBITDA, with the pure leasing component at $169 million, up from $152 million in Q1 2025 [20] - The company refurbished 184 CFM56 modules in Q2, a 33% increase from the previous quarter [11] Market Data and Key Metrics Changes - The company estimates its market share at 9%, approximately double from the previous year, with a long-term goal of reaching 25% [8] - The global demand for prebuilt engines and modules is increasing, providing a flexible and cost-effective alternative to traditional maintenance [9] Company Strategy and Development Direction - The company aims to expand its aerospace products margins to over 40% by 2026 through various strategies, including new procurement programs and the introduction of PMA parts [10][11] - The acquisition of Pacific Aerodynamic is expected to enhance operational efficiencies and further differentiate the company's offerings in the market [12] - The company is actively reviewing M&A opportunities to further enhance its capabilities and market position [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of the aerospace market, driven by the aging of aircraft and engines, which increases maintenance needs [18] - The company anticipates substantial growth in free cash flow in the coming years as it completes its pivot to an asset-light business model [14] - Management highlighted the positive reception from airline customers regarding their engine maintenance solutions, emphasizing the cost and risk advantages [41] Other Important Information - The company announced its 41st dividend as a public company, amounting to $0.30 per share, to be paid on August 19, 2025 [7] - The company has closed on additional equity partners for its Strategic Capital Initiative (SCI) and expects to invest $4 billion through the partnership [16] Q&A Session Summary Question: What are the margin improvements expected for Aerospace products in 2026? - Management indicated that margin improvements could be between 5 to 10 percentage points due to various factors, including new serviceable materials and PMA parts [25][26] Question: Can you elaborate on the Pacific Aerodynamic acquisition and its impact? - The acquisition is expected to save $50,000 per shop visit, leading to a payback period of about six months, enhancing the company's repair capabilities [27][28] Question: What is the customer reception of the modules and the potential for repeat business? - Customer feedback has been positive, with airlines recognizing the cost and risk advantages of outsourcing engine maintenance [41][42] Question: How does the company plan to address technician shortages? - The company has developed a training academy and immersive learning experiences to attract and train young technicians [48][50] Question: What is the outlook for the Strategic Capital Initiative? - Management is optimistic about the SCI's performance and plans to decide on a second initiative in the near future, given the current success [67][68] Question: What is the company's strategy regarding PMA parts? - The company is awaiting FAA approval for key PMA parts, which are expected to significantly contribute to cost savings [75] Question: How does the company view the value of legacy engines in the coming years? - Management expects a slowdown in growth but believes that market share gains and OEM price increases will drive future growth [104][106]

Financial Performance - AerCap reported a GAAP EPS of $7.09 and an adjusted EPS of $2.83 for Q2 2025[10] - Net income for Q2 2025 was $1.259 billion, or $7.09 per share[16] - Adjusted net income for Q2 2025 was $502 million, or $2.83 per share[16] - The company is raising its 2025 adjusted EPS guidance to approximately $11.60, excluding any additional gains on sale[10, 21] - Q2 2025 operating cash flow was $1.3 billion[20] Transactions and Portfolio - AerCap leased, purchased, and sold a total of 116 assets in Q2 2025[11] - Sales in Q2 2025 amounted to $374 million, with an 18% gain-on-sale margin and a 1.7x book equity multiple[10] - New technology assets comprise approximately 75% of the total fleet[33] Capital Structure and Liquidity - The company has a strong liquidity position, with a next 12 months' sources-to-uses coverage of 1.9x and approximately $22 billion in sources of liquidity[17] - The adjusted leverage ratio is 2.2x[20] - AerCap repurchased 4.7 million shares in Q2 2025 for a total of $445 million[20] - Secured debt-to-total-assets ratio of approximately 11%[20]

Financial Performance - FTAI Aviation reported Q2 2025 Revenue of $676 million[10] - Net Income for Q2 2025 was $162 million[10] - Adjusted EBITDA for Q2 2025 reached $348 million[10] - The company generated $370 million in Adjusted Free Cash Flow in 1H 2025[10] Strategic Capital Initiative (SCI) - FTAI invested $109 million in 1H 2025 as a 20% minority equity interest in the 2025 Partnership[42] - SCI is targeting final closing by Q4 2025 and aims to deploy $4 billion in capital[42] - MRE Contract YTD Revenue from SCI reached $170 million[42] Aerospace Products - Q2 2025 Aerospace Products Revenue was $490 million, equivalent to an annualized ~9% industry market share[16] - Module production rose 33% to 184 CFM56 modules in Q2 2025[16] - Aerospace Products Adjusted EBITDA was $165 million in Q2 2025 with a 34% margin[11,27] Aviation Leasing - Aviation Leasing generated $199.3 million in Adjusted EBITDA for Q2 2025[11,64] - The company sold 45 aircraft to SCI from FTAI's balance sheet for approximately $475 million[44]

Core Viewpoint - AerCap Holdings N.V. reported strong financial results for Q2 2025, achieving record net income and announcing a strategic partnership with Air France-KLM for engine leasing, amidst high global demand for aviation assets [2][8]. Financial Performance - Record net income of $1,259 million, or $7.09 per share, for Q2 2025, with adjusted net income of $502 million, or $2.83 per share [8][23]. - Total lease revenue for Q2 2025 was $1,768 million, a 1% increase from $1,748 million in Q2 2024, driven by basic lease rents of $1,653 million, up 5% year-over-year [4][42]. - Maintenance rents and other receipts decreased by 36% to $115 million in Q2 2025 compared to $180 million in Q2 2024 [5][42]. - Net gain on sale of assets was $57 million for Q2 2025, down 56% from $129 million in Q2 2024 [6][42]. Strategic Developments - A new strategic partnership with Air France-KLM was announced to enhance engine leasing capabilities [2]. - The company was awarded approximately $1 billion in insurance payments related to assets lost in Russia, significantly impacting financial results [9][11]. Operational Metrics - The average lease assets increased by 3% to $62,032 million as of June 30, 2025 [7]. - The annualized net spread remained stable at 7.5% for Q2 2025 [10]. - Cash flow from operating activities was $1.3 billion for Q2 2025 [9]. Shareholder Returns - The company returned $445 million to shareholders through share repurchases in Q2 2025, bringing total repurchases to over $1 billion year-to-date [9]. - A quarterly cash dividend of $0.27 per share was declared for Q3 2025 [19]. Financial Position - Total cash, cash equivalents, and restricted cash increased by 103% to $2,846 million as of June 30, 2025 [17]. - Book value per share rose to $102.99, a 15% increase from $89.47 a year earlier [15]. - The adjusted debt/equity ratio improved to 2.22 to 1 as of June 30, 2025 [28].

Core Viewpoint - AerCap Holdings N.V. has delivered the first of twenty new Airbus A321LR aircraft on lease to Etihad Airways, marking a significant milestone in their partnership and Etihad's fleet expansion [1][4]. Group 1: Aircraft Delivery and Features - The delivered aircraft is the first A321LR to be included in Etihad's fleet, featuring luxurious cabin interiors with private First Suites, lie-flat Business seats, and advanced Economy class seats equipped with 4K touchscreens and high-speed Wi-Fi [2][4]. - This delivery is part of Etihad's strategy to enhance its service offerings on short and medium-haul routes, combining widebody luxury with operational efficiency [4]. Group 2: Statements from Executives - Peter Anderson, CCO of AerCap, expressed pride in supporting Etihad's fleet expansion and highlighted the aircraft's exceptional performance, extended range, and improved fuel efficiency [3]. - Antonoaldo Neves, CEO of Etihad Airways, emphasized that the A321LR represents a transformative step in their growth strategy, enabling increased flight frequencies and new destinations [4]. Group 3: Company Overview - AerCap is recognized as the world's largest Airbus A320neo Family lessor, managing a total of 580 owned, on order, and managed aircraft [4]. - The company serves approximately 300 customers globally, providing comprehensive fleet solutions and is listed on the New York Stock Exchange [5].

Core Insights - FTAI Aviation Ltd. is expected to report second-quarter 2025 results on July 29, 2025, after market close, with a four-quarter average negative earnings surprise of 9.98% [1] Revenue Performance - The Aviation Leasing Unit is projected to see revenues of $308 million, reflecting a 67% increase year-over-year due to higher engine and aircraft lease revenues supported by an increased number of aircraft and engines on lease along with higher rental rates [2] - The Aerospace Products segment is estimated to generate revenues of $390.3 million, indicating a growth of 59.2% from the previous year, driven by higher sales of commercial jet engines and positive synergies from recent acquisitions [3] Overall Financial Estimates - FTAI's overall second-quarter sales are expected to reach $511.3 million, representing a 15.3% increase from the prior-year quarter, with solid growth expectations across both segments and a decrease in repairs and maintenance expenses benefiting the bottom line [4][9] - The consensus estimate for earnings per share is projected at $1.33, which implies a significant growth of 411.5% compared to the year-ago quarter [5] Earnings Prediction Model - The current model does not predict a definitive earnings beat for FTAI, as it holds a Zacks Rank of 4 (Sell) despite having an Earnings ESP of +2.75% [6][7]

Core Viewpoint - BOC Aviation (BOCA) demonstrated steady business growth in 2Q25, signing 18 lease commitments and delivering 13 aircraft, indicating resilience in the global airline industry despite uncertainties related to US tariffs [1][2]. Business Performance - BOCA reported 18 lease commitments in 2Q25, an increase from 16 in 1Q25 but a decrease from 24 in 2Q24 [2]. - The company delivered 13 aircraft in 2Q25, compared to 11 in 1Q25 and 13 in 2Q24 [2]. - The customer base consisted of 92 airlines across 45 countries and regions in 2Q25, down from 93 airlines in 48 countries in 1Q25 [2]. Fleet and Utilization - Owned aircraft utilization reached 100% at the end of June 2025, consistent with 100% at the end of March 2025 and an increase from 99% at the end of December 2024 [3]. - The average fleet age was reported at 5.0 years in 2Q25, slightly improved from 5.1 years in 1Q25, with an average remaining lease term of 7.9 years [3]. Industry Outlook - The global airline industry is expected to continue improving in 2H25, which is anticipated to positively impact BOCA's operations [1]. - BOCA is projected to report positive earnings growth in 2025, supported by steady growth in the global airline industry [1][4]. Valuation - BOCA is positioned as a geared beneficiary of the steady growth in the global airline industry, with a solid business model and an expected dividend yield of approximately 3.7% in 2025 [4]. - The target price for BOCA is maintained at HK$83.84, based on a 1.1x 2025E P/B ratio [4].

Core Points - Willis Lease Finance Corporation will release its financial results for Q2 2025 on August 5, 2025, before market opens [1] - A conference call will be hosted by the executive management team on the same day at 10:00 a.m. Eastern Time [1] Company Overview - Willis Lease Finance Corporation is a leading lessor of commercial aircraft engines and provides global aviation services [3] - The company leases large and regional spare commercial aircraft engines, auxiliary power units, and aircraft to various clients including airlines and maintenance providers [3] - Its services include engine maintenance, aircraft disassembly, parking, storage, and ground handling services [3] - Willis Sustainable Fuels aims to develop projects to decarbonize aviation [3]

Core Viewpoint - AerCap Holdings N.V. will host a conference call and webcast on July 30, 2025, to discuss its second quarter 2025 financial results [1][2]. Group 1: Conference Call Details - The earnings press release will be available before the U.S. financial markets open on July 30, 2025, and will be posted on AerCap's website [2]. - The conference call can be accessed by dialing specific numbers for U.S./Canada and international participants, with a reference code provided [3]. - A replay of the webcast will be archived on the "Investors" section of AerCap's website for one year [3]. Group 2: Company Overview - AerCap is recognized as the global leader in aviation leasing, serving approximately 300 customers worldwide with comprehensive fleet solutions [4]. - The company is listed on the New York Stock Exchange (AER) and has a presence in multiple global locations, including Dublin, Miami, and Singapore [4].