AerCap Holdings N.V. Q3 FY2025 earnings call

• Q3 was an exceptional quarter with GAAP net income of $1.2 billion and EPS of $6.98, and adjusted net income of $865 million and adjusted EPS of $4.97. - On the aircraft side, there was strong demand globally, utilization rates topped 99%, delivered the first converted 777 - 300ER Freighter in September, had a healthy extension rate for used aircraft, took back 27 aircraft from Spirit Airlines with engine shop costs in Q4, and benefited from Spirit's order book and Airbus options. - Engine business deepened relationships with partners, e.g., signed a 7 - year agreement with GE Aerospace for GE9X lease pool management. - Milestone Aviation Group's helicopter business had high fleet utilization, with a balanced portfolio approach, investing in new technology helicopters.

In Q3 2025, AerCap's aircraft business generated GAAP net income of $1.2 billion and earnings per share of $6.98, with adjusted net income of $865 million and adjusted EPS of $4.97. The engine business focused on deepening relationships with OEMs, airlines, and MRO partners. The helicopter leasing business of Milestone Aviation Group had high fleet utilization, with a balanced portfolio management strategy, investing in new technology helicopters and divesting midlife or out - of - production types.

• Increased 2025 full year EPS guidance to $13.70. - Anticipates full - year sales to be over $3 billion. - Incorporated the impact of Spirit Airlines Chapter 11 bankruptcy into the guidance.

• Engine shop visit costs associated with taking back 27 aircraft from Spirit Airlines, mainly in the fourth quarter. - Geopolitical, economic, and tariff uncertainties that could potentially affect the business.

Q: Moshe Orenbuch asked about industry consolidation in the US and opportunities globally.

A: Aengus Kelly stated there is limited consolidation in the US, but strong global demand for aircraft, especially used ones due to the supply - demand imbalance.

Q: Jamie Baker asked about the $55 all - stock offer and industry consolidation.

A: Aengus Kelly said consolidation is positive for the industry, AerCap is a strategic bidder but exercises discipline to avoid diluting shareholders.

Q: Hillary Cacanando asked about Spirit exposure in the guidance and details.

A: Peter Juhas said the impact of Spirit includes aircraft downtime and engine overhaul costs, with the majority in the fourth quarter but some possibly slipping to 2026.

Q: Catherine O'Brien asked about capital allocation and leverage.

A: Peter Juhas said leverage was affected by insurance proceeds, and capital was deployed rapidly including buybacks.

Q: Ronald Epstein asked about the A220 market and engine business with Pratt.

A: Aengus Kelly said the A220 faces engine time on wing challenges, and AerCap is in partnership with GE and CFM but is reluctant to share IP.

Q: Terry Ma asked about capital allocation and sale - leasebacks.

A: Aengus Kelly said opportunities exist but must be accretive, and selling assets at high prices in the private market and buying at lower prices in the public market.

Q: Christopher Stathoulopoulos asked about extension rates in 2026 and gains on sales.

A: Aengus Kelly said extension rates are likely to continue as fleet plans are not easily altered by short - term issues, and gains on sales come from selling old mid - life assets to improve portfolio quality.