AerCap's Q4: EPS Win, Revenue Wobble, $500M Share Buyback & More

AerCap Holdings N.V. AER shares are trading lower after it reported fourth-quarter FY23 results.

Total lease revenue grew 5% Y/Y to $1.718 billion. Total revenues and other income rose 4% to $1.899 billion, missing the consensus of $1.926 billion.

Basic lease rents were $1.576 billion in the fourth quarter, up 6% Y/Y, impacted by $40 million of lease premium amortization. 

The aviation leasing company signed 179 lease agreements in the fourth-quarter, comprising 11 wide-body aircraft, 89 narrow-body aircraft, three regional jets, 57 engines, and 19 helicopters.

AerCap had an adjusted return on equity of 16% for the fourth quarter. Adjusted EPS of $3.11 beat the analyst consensus of $2.45. 

Net gain on sale of assets for the fourth quarter was $94 million, relating to 35 assets sold for $625 million, compared with $121 million a year ago.

During the fourth quarter of 2023, the company recognized recoveries related to the Ukraine Conflict of $614 million.

The adjusted debt/equity ratio was 2.47 to 1, and AerCap held $1.8 billion in cash and equivalents as of December 31, 2023.

As of December 31, 2023, AerCap’s portfolio comprised 3,452 aircraft, engines and helicopters that were owned, on order or managed. 

Repurchase: In February 2024, the Board of Directors approved a new share repurchase program authorizing total repurchases of up to $500 million of shares through September 30, 2024.

Aengus Kelly, Chief Executive Officer of AerCap, said: “These results reflect the continued strong operating environment across our businesses and the positive momentum for leasing and sales of aircraft, engines and helicopters.” 

“Given the strong tailwinds that we see for demand for aircraft, engines and helicopters, we are confident about the outlook for AerCap in 2024 and beyond.”

Price Action: AER shares are trading lower by 1.06% to $77.74 on the last check Friday.