AerCap Posts Record Adjusted Profit of $1.009 Billion, Raises 2026 Outlook

Key Facts

AerCap said on October 28 that adjusted net income reached a record $1.009 billion, or $6.56 per share, in the third quarter of 2026. Net income under accounting standards was $949 million, or $6.17 per share. The company raised its 2026 adjusted earnings-per-share guidance to about $20.70, including gains on sales recorded during the first nine months and excluding any sale gains in the fourth quarter. Return on equity was 20%, while adjusted return on equity reached a record 22%. The results combine record adjusted profitability with higher full-year guidance, while leaving potential gains on sales in the final quarter out of the calculation.

Revenue and other income totaled $2.415 billion, up 5% from $2.309 billion in the third quarter of 2025. Lease revenue rose 4% to $1.965 billion, compared with $1.894 billion a year earlier. Adjusted net interest margin after depreciation and amortization increased 4% to $593 million from $573 million. By contrast, leasing expenses were $131 million, compared with $93 million in the year-earlier quarter. The effective tax rate was 12.3%, compared with 14.5% a year earlier, while the company expects an annual rate of about 15% in 2026, excluding special items.

Accounting net income presents a different picture from adjusted profit when the two quarters are compared, because the year-earlier period in 2025 included $474.879 million in recoveries related to the Ukraine dispute. The company recorded no such recoveries in the third quarter of 2026. This exceptional item puts part of the year-over-year comparison for accounting net income in a different context from revenue growth and adjusted net interest margin. In the current quarter, accounting net income was $949 million, while adjusted income was $1.009 billion. The figures cited here did not include the company's accounting net income for the year-earlier quarter.

Chief Executive Aengus Kelly said, "The underlying supply and demand dynamics in commercial aviation remain favorable for AerCap," despite the impact of higher fuel prices on airline profitability. The company added that demand for high-quality aviation assets remains strong. Cash flow from operating activities was $1.8 billion in the third quarter. Capital expenditure reached $1.9 billion, including the purchase of 32 aircraft. AerCap also signed 85 lease agreements and completed 85 sale transactions during the quarter, and signed financing transactions totaling about $900 million.

AerCap repurchased 5.3 million shares for about $783 million during the third quarter. That brought total share repurchases in 2026 to more than $2.2 billion, equivalent to about 10% of shares outstanding at the end of 2025. The board declared a quarterly cash dividend of $0.40 per share for shareholders of record on November 11, payable on December 3. Adjusted debt to adjusted equity was 2.0 to 1, and the company was rated BBB+/Baa1 by the three major rating agencies. The average cost of debt was 4.2% in the third quarter, compared with 4.0% in the same period of 2025.

Cash, cash equivalents and restricted cash totaled $2.653 billion on September 30, up 79% from $1.480 billion at the end of 2025. The company's portfolio comprised 3,482 aircraft, engines and helicopters owned, on order or managed. The average age of its owned passenger aircraft was 7.3 years, and the average remaining contracted lease term was 7.4 years. In premarket trading on October 28, the stock rose 2.73% to $154.14, from a previous close of $150.05. Adjusted earnings per share of $6.56 topped Zacks' estimate of $4.57, while management was scheduled to hold an investor call the same day at 8:30 a.m. Eastern time, with a replay available for one year.