Core Viewpoint - AerCap Holdings N.V. is recognized as one of the best undervalued stocks to consider for investment in 2026, with a positive outlook on its financial performance and capital allocation strategy [1]. Financial Performance - For the full year 2025, AerCap reported record financial results, achieving a GAAP net income of $3.8 billion, or $21.30 per share, and an adjusted net income of $2.7 billion, or $15.37 per share, both setting company records [3]. - The company achieved a GAAP return on equity of 21% and an adjusted return on equity of 15%, with total revenue reaching an all-time high of $8.5 billion [3]. - Aircraft sales volumes also set a record at $3.9 billion, with a gain-on-sale margin of 27%, translating to approximately twice the book equity on owned assets [3]. Shareholder Returns - AerCap returned approximately $2.6 billion to shareholders in 2025 through share repurchases and dividends, including the buyback of about 22.1 million shares [4]. - In December, the company announced a new $1 billion share repurchase authorization and increased its quarterly dividend to $0.40 per share [4]. - During the fourth quarter, AerCap repurchased 3.5 million shares for $444 million at an average price of $127.63 per share [4]. Future Guidance - Looking ahead, AerCap guided for adjusted earnings per share of $12.00 to $13.00 in 2026, excluding any gains from asset sales [5]. - The company expects a GAAP net income of roughly $1.7 billion and adjusted net income of about $2.0 billion after accounting for approximately $300 million in purchase-accounting adjustments [5]. - Management noted that the 2025 results included $3.95 per share of gains on sale that are not assumed in the 2026 outlook [5]. Company Overview - Founded in 1995, AerCap Holdings N.V. is an Irish-American aviation leasing company headquartered in Dublin, Ireland, specializing in leasing commercial aircraft, engines, and helicopters through long-term agreements with airlines globally [6].