AerCap Q3 2026 Earnings: Record Adjusted Profit Lifts Guidance

AerCap (NYSE: AER) reported Q3 2026 revenue and other income of $2.415 billion, up 5% year over year, while GAAP diluted EPS fell to $6.17 from $6.98 for the quarter ended September 30, 2026. Adjusted net income reached a record $1.009 billion, or $6.56 per share, and operating cash flow was $1.8 billion as higher maintenance receipts, asset sale gains, and a wider net spread supported the quarter.

Core Earnings Data

Revenue growth came primarily from maintenance rents and other receipts, asset sale gains, and other income, while basic lease rents were nearly unchanged. The decline in GAAP profit largely reflects a difficult comparison with Q3 2025, when AerCap recognized almost $475 million of net recoveries related to the Ukraine conflict.

Adjusted earnings remove Ukraine-related recoveries and purchase-accounting amortization. AerCap did not provide comparable Q3 2025 adjusted net income or adjusted EPS in the release.

Revenue Mix and Asset Sales

Basic lease rents were $1.698 billion, compared with $1.690 billion a year earlier. Excluding lease premium amortization, basic lease rents were also essentially flat at $1.721 billion, while average lease assets declined 1% to $61.35 billion.

Maintenance rents and other receipts increased 31% to $267 million, making this the main source of lease-revenue growth. Other income rose 17% to $97 million.

AerCap sold 70 owned assets for $1.1 billion during the quarter, compared with 32 assets for $1.5 billion a year earlier. Despite lower total proceeds, the net gain on sales increased 6% to $353 million. The company reported an unlevered gain-on-sale margin of 45%.

Adjusted net interest margin was nearly flat at $1.242 billion, but the measure after depreciation and amortization increased 4% to $593 million. Annualized net spread improved to 8.1% from 8.0%, while net spread after depreciation and amortization rose to 3.9% from 3.7%.

Prior-Year Ukraine Recoveries Obscure the GAAP Comparison

The direction of GAAP earnings differs from AerCap’s operating trends because Q3 2025 included $474.9 million of Ukraine-related net recoveries, recorded as a reduction in expenses. There was no comparable recovery in Q3 2026, and that prior-year benefit was larger than the $267 million year-over-year decline in reported net income.

In the current quarter, AerCap adjusted GAAP net income for $71 million of maintenance-rights and lease-premium amortization, partly offset by an $11 million tax effect. This produced adjusted net income of $1.009 billion, compared with GAAP net income of $949 million. The contrast indicates that the lower GAAP result was driven primarily by the comparison base rather than weaker revenue.

Profitability, Cash Flow, and the Balance Sheet

Depreciation and amortization declined 3% to $649 million, interest expense fell 2% to $475 million, and selling, general, and administrative expenses decreased 3% to $125 million. Leasing expenses moved in the opposite direction, rising 42% to $131 million, including $14 million of maintenance-rights amortization.

AerCap’s average cost of debt increased to 4.2% from 4.0%, but its average debt balance declined to $43.47 billion from $44.87 billion, helping total interest expense decrease. The effective tax rate also fell to 12.3% from 14.5%. GAAP return on equity was 20%, and adjusted return on equity was 22%.

Quarterly operating cash flow of $1.8 billion nearly covered $1.9 billion of capital expenditures, which included the purchase of 32 aircraft, before considering asset-sale proceeds. For the first nine months of 2026, operating cash flow increased to $4.723 billion from $4.173 billion.

Total cash, cash equivalents, and restricted cash reached $2.653 billion at September 30, up 79% from the end of 2025. Debt declined 1% to $43.272 billion, while the adjusted debt-to-equity ratio improved to 2.0-to-1 from 2.1-to-1.

AerCap repurchased 5.3 million shares for approximately $783 million during Q3. Repurchases exceeded $2.2 billion for the first nine months of 2026, and the company announced a new $1 billion authorization. Book value per share, excluding unvested restricted stock, increased to $124.89 from $109.22 a year earlier.

Earnings Guidance

AerCap raised full-year 2026 adjusted EPS guidance to approximately $20.70. The company did not disclose the previous guidance figure in the supplied release, and the updated outlook includes gains on sale recognized during the first nine months but excludes any fourth-quarter gains on sale.

AerCap also expects a full-year effective tax rate of approximately 15%, excluding discrete items.

Management Perspective

CEO Aengus Kelly said demand for high-quality aviation assets remains favorable, particularly for engines and next-generation aircraft. Management acknowledged that higher fuel prices are affecting airline profitability but maintained that commercial aviation’s underlying supply-demand conditions remain supportive for AerCap.

Kelly also emphasized lifecycle asset management and capital allocation rather than viewing the business solely as aircraft leasing. That approach was visible this quarter in the combination of aircraft purchases, asset sales, share repurchases, and lower leverage.

Recent Insider Transactions

The supplied insider data shows 2,934 shares purchased in one transaction and 146,148 shares sold across six transactions during the preceding six months, resulting in net sales of 143,214 shares. The table below includes the unique recent entries with a disclosed transaction and value; the source listed Rita Forst’s August 6 transaction twice, so it is shown once here.

These disclosures describe the transactions but do not establish why each insider sold or transferred shares.

Risks Investors Need to Watch

• Airline customer profitability: Management said higher fuel prices are affecting airline profitability. Prolonged pressure could weaken customers’ ability to meet lease obligations or affect demand for leased assets.
• Reliance on variable asset sale gains: Gains on sale contributed $353 million in Q3, but their timing and size can fluctuate. AerCap’s full-year adjusted EPS guidance explicitly excludes potential fourth-quarter gains.
• Higher funding costs: The average cost of debt rose to 4.2% even as total interest expense declined. A continued increase could pressure net spread if lease yields do not rise enough to compensate.
• Flat basic lease rents and higher leasing expenses: Basic lease rents were nearly unchanged, while leasing expenses rose 42%. If that pattern continues, maintenance receipts and asset sale gains would need to carry more of the earnings growth.

Summary

AerCap’s Q3 2026 results combined modest revenue growth with record adjusted earnings, strong operating cash flow, profitable asset sales, and lower leverage. GAAP net income declined mainly because the prior-year quarter included a large Ukraine-related recovery, while underlying spread and adjusted profitability improved. The next areas to monitor are basic lease-rent growth, airline customer health, leasing expenses, debt costs, and whether AerCap can deliver its raised full-year adjusted EPS guidance without relying on fourth-quarter asset sale gains.