Aercap Holdings (AER) AI Stock Analysis

• Market Cap: $24.64B
• Dividend Yield: 0.77%
• Average Volume (3M): 1.44M
• Price to Earnings (P/E): 6.5
• Beta (1Y): 0.81
• Revenue Growth: 2.90%
• EPS Growth: 67.73%
• Country: US
• Employees: 698
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 4.97
• Shares Outstanding: 176,566,560
• 10 Day Avg. Volume: 1,668,945
• 30 Day Avg. Volume: 1,442,471
• PEG Ratio: -0.41
• Price to Book (P/B): 1.06
• Price to Sales (P/S): 2.27
• P/FCF Ratio: -15.40
• Enterprise Value/Market Cap: 2.57
• Enterprise Value/Revenue: 7.97
• Enterprise Value/Gross Profit: 14.78
• Enterprise Value/Ebitda: 11.82
• 1Y Price Target: $149.71
• Price Target Upside: 7.29% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 14.64
• Revenue Forecast (FY): $8.36B

• Rating: 77 Outperform
• Price Target: $156.00 ▲(11.80% Upside)

Aercap Holdings' strong financial performance and bullish technical indicators are key strengths, supported by a favorable valuation. The recent earnings call provided positive guidance and strategic moves, though challenges with Spirit Airlines and engine maintenance present risks.

Positive Factors

Strong Liquidity Position

Aercap's robust liquidity ensures financial flexibility, enabling strategic investments and resilience against market fluctuations.

Strategic Acquisitions

Acquiring new aircraft orders strengthens Aercap's fleet, enhancing competitive positioning and long-term growth potential.

High EBIT Margin

A high EBIT margin indicates efficient operations and strong pricing power, contributing to sustained profitability.

Negative Factors

High Leverage

High leverage can increase financial risk, limiting flexibility and potentially impacting long-term financial stability.

Negative Free Cash Flow

Negative free cash flow indicates potential liquidity challenges, affecting the ability to fund operations and growth initiatives.

Revenue Growth Challenges

Negative revenue growth suggests difficulties in market expansion, which could hinder long-term business development.

Aercap Holdings Business Overview & Revenue Model

Company Description

AerCap Holdings N.V. engages in the lease, financing, sale, and management of commercial flight equipment in China, Hong Kong, Macau, the United States, Ireland, and internationally. The company offers aircraft asset management services, such as remarketing aircraft and engines; collecting rental and maintenance rent payments, monitoring aircraft maintenance, monitoring and enforcing contract compliance, and accepting delivery and redelivery of aircraft and engines; and conducting ongoing lessee financial performance reviews. Its aircraft asset management services also include periodically inspecting the leased aircraft; coordinating technical modifications to aircraft to meet new lessee requirements; conducting restructuring negotiations in connection with lease defaults; repossessing aircraft and engines; arranging and monitoring insurance coverage; registering and de-registering aircraft; arranging for aircraft and engine valuations; and providing market research services. The company also provides cash management services, including treasury services, such as the financing, refinancing, hedging, and ongoing cash management of vehicles; and administrative services comprising accounting and corporate secretarial services consisting of the preparation of budgets and financial statements. In addition, it offers airframe and engine parts and supply chain solutions to airlines; maintenance, repair, and overhaul service providers; and aircraft parts distributors. As of December 31, 2021, the company had a portfolio of 2,369 owned, managed, or on order aircraft. AerCap Holdings N.V. was founded in 1995 and is headquartered in Dublin, Ireland.

How the Company Makes Money

Aercap makes money primarily through leasing its aircraft to airlines on a long-term basis, generating consistent rental income. The company typically acquires aircraft from manufacturers and then leases them out, charging airlines a monthly fee. In addition to leasing revenues, Aercap also earns money through aircraft sales, where it sells older aircraft from its portfolio. Key revenue streams include operating leases, finance leases, and gains from the sale of aircraft. Aercap maintains significant partnerships with major airlines and aircraft manufacturers, which not only strengthens its market position but also enhances its ability to negotiate favorable leasing terms. Additionally, the company's financial strategies, such as leveraging debt financing for aircraft acquisitions, contribute to its profitability by optimizing its capital structure.

Aercap Holdings Financial Statement Overview

Summary

Aercap Holdings demonstrates robust profitability with a high EBIT margin and solid return on equity. However, challenges include negative revenue growth, high leverage, and negative free cash flow.

Income Statement

Aercap Holdings shows strong profitability with a high EBIT margin of 57.89% and a net profit margin of 47.78% in the TTM period. However, revenue growth has been negative recently, indicating potential challenges in expanding sales.

Balance Sheet

The company has a high debt-to-equity ratio of 2.43, which suggests significant leverage. However, the return on equity is solid at 21.51%, indicating efficient use of equity to generate profits.

Cash Flow

Operating cash flow is strong compared to net income, with a ratio of 1.26. However, the free cash flow is negative, and its growth rate is significantly negative, indicating potential cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.93B	8.00B	7.58B	7.01B	4.59B	4.49B
Gross Profit	4.28B	4.61B	4.34B	3.80B	1.30B	2.52B
EBITDA	5.35B	4.15B	3.91B	5.79B	2.72B	3.93B
Net Income	3.79B	2.10B	3.14B	-726.04M	1.00B	-298.57M
Balance Sheet
Total Assets	71.94B	71.44B	71.27B	69.73B	74.57B	42.05B
Cash, Cash Equivalents and Short-Term Investments	1.81B	1.21B	1.63B	1.60B	1.73B	1.25B
Total Debt	44.03B	45.35B	46.58B	46.67B	50.55B	28.84B
Total Liabilities	53.79B	54.26B	54.69B	53.53B	57.92B	33.12B
Stockholders Equity	18.15B	17.18B	16.59B	16.12B	16.57B	8.86B
Cash Flow
Free Cash Flow	-143.17M	-1.18B	-970.95M	1.30B	1.90B	946.66M
Operating Cash Flow	5.55B	5.44B	5.26B	5.17B	3.69B	2.13B
Investing Cash Flow	-1.39B	-3.72B	-3.18B	-2.16B	-23.46B	-712.29M
Financing Cash Flow	-6.23B	-2.13B	-2.01B	-3.16B	20.18B	-1.23B

Aercap Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 139.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AER, the sentiment is Positive. The current price of 139.54 is above the 20-day moving average (MA) of 135.59, above the 50-day MA of 129.95, and above the 200-day MA of 115.36, indicating a bullish trend. The MACD of 2.85 indicates Negative momentum. The RSI at 63.08 is Neutral, neither overbought nor oversold. The STOCH value of 84.21 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AER.

Aercap Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AER	77 Outperform	$24.64B	6.46	21.71%	0.77%	2.90%	67.73%
AL	72 Outperform	$7.16B	7.44	12.74%	1.37%	9.67%	96.43%
WLFC	71 Outperform	$905.94M	7.96	18.91%	0.86%	27.90%	19.25%
HRI	67 Neutral	$5.14B	―	-4.05%	1.81%	19.40%	-120.47%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MGRC	58 Neutral	$2.63B	18.07	12.70%	1.81%	4.77%	-35.44%
FTAI	58 Neutral	$18.15B	40.46	263.05%	0.71%	50.37%	―

Aercap Holdings Corporate Events

AerCap Holdings Announces $1 Billion Share Repurchase Program

On December 2, 2025, AerCap Holdings N.V. announced that its board of directors approved a share repurchase program authorizing the buyback of up to $1 billion of its ordinary shares through June 30, 2026. This strategic move, funded by the company’s cash reserves and operational cash flow, allows AerCap to potentially enhance shareholder value and optimize its capital structure, reflecting confidence in its financial health and future prospects.

AerCap Holdings Announces Q3 2025 Financials and Dividend Declaration

On October 29, 2025, AerCap Holdings N.V. released its interim financial report for the quarter ending September 30, 2025. The company announced a quarterly cash dividend of $0.27 per share, payable on December 4, 2025, to shareholders of record as of November 12, 2025. This announcement reflects AerCap’s ongoing commitment to returning value to shareholders, with specific tax exemptions applicable to U.S. resident shareholders, highlighting the company’s strategic financial management and its implications for stakeholders.

AerCap Holdings Issues $1.2 Billion in Senior Notes to Bolster Financial Position

On October 1, 2025, AerCap Ireland Capital Designated Activity Company and AerCap Global Aviation Trust, both subsidiaries of AerCap Holdings N.V., issued $1.2 billion in senior notes. This issuance, consisting of $600 million 4.375% Senior Notes due 2030 and $600 million 5.000% Senior Notes due 2035, aims to strengthen AerCap’s financial position and support its strategic initiatives in the aviation leasing market.

AerCap Holdings Prices $1.2 Billion Senior Notes Offering

On September 22, 2025, AerCap Holdings N.V. announced the pricing of a $1.2 billion offering of senior notes through its subsidiaries, AerCap Ireland Capital Designated Activity Company and AerCap Global Aviation Trust. The offering consists of $600 million in 4.375% Senior Notes due 2030 and $600 million in 5.000% Senior Notes due 2035, with the proceeds intended for general corporate purposes, including aircraft asset transactions and debt repayment. This move is expected to strengthen AerCap’s financial position and support its strategic initiatives in the aviation leasing industry.

AerCap Secures €91 Million Insurance Settlement Amidst Legal Victory

This week, AerCap Holdings N.V. received a cash insurance settlement of approximately €91 million, resolving claims related to five aircraft previously leased to Nordwind, following the approval of U.S. authorities. Additionally, the Commercial Court in London denied an appeal by insurers, affirming AerCap’s entitlement to a $1 billion indemnity and $234 million in interest related to losses incurred in Russia due to the Ukraine conflict. These developments contribute to AerCap’s total pre-tax recoveries of approximately $2.9 billion since 2023, strengthening its financial position amidst geopolitical challenges.

AerCap Announces $750 Million Share Repurchase Program

On September 10, 2025, AerCap Holdings N.V. announced that its board of directors approved a share repurchase program, authorizing the buyback of up to $750 million of its ordinary shares by the end of 2025. This move aims to enhance shareholder value and will be funded through the company’s existing cash reserves and operational cash flow. The program’s execution will depend on market conditions and other factors, and it may be adjusted or terminated as deemed necessary by AerCap’s management.