Ireland's AerCap Q3 adjusted EPS beats estimates, revenue up 5%

Overview

• Ireland-based aviation lessor's Q3 adjusted EPS beat analyst expectations

• Q3 revenue rose 5% yr/yr, driven by higher maintenance rents and asset sales gains

• Company announced new $1 bln share repurchase program in Q3

Outlook

• AerCap raises full-year 2026 adjusted EPS guidance to ~$20.70, before any Q4 gains on sale

• Company expects full-year 2026 effective tax rate of about 15%, excluding discrete items

• AerCap says commercial aviation supply-demand dynamics remain favorable despite higher fuel prices

Result Drivers

• MAINTENANCE RENTS - Q3 maintenance rents and other receipts rose 31% yr/yr, reflecting higher receipts and $35 mln of maintenance rights asset amortization

• ASSET SALES - Net gain on sale of assets increased 6% yr/yr, with 70 owned assets sold for $1.1 bln in Q3

• OPERATING COSTS - Leasing expenses rose to $131 mln in Q3 from $93 mln a year earlier, including $14 mln of maintenance rights amortization

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the corporate financial services peer group is "buy"

• Wall Street's median 12-month price target for AerCap Holdings N.V. is $179.50, about 19.6% above its October 27 closing price of $150.05

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)