AerCap Holdings N.V. (AER) Bundle
A Brief History of AerCap Holdings N.V.
AerCap Holdings N.V., incorporated in the Netherlands, is a leading global aviation leasing company. As of September 30, 2024, AerCap holds a total of 2,046 aircraft, including owned, managed, and on-order units. The company operates with total assets valued at approximately $74 billion.
Financial Performance Overview
For the nine months ended September 30, 2024, AerCap reported a net income of $1.43 billion, a decrease from $2.04 billion during the same period in 2023. The company's basic earnings per share (EPS) for this period was $7.44, compared to $8.77 in 2023.
Revenue Breakdown
In terms of revenue, AerCap generated total revenues and other income amounting to $5.92 billion for the nine months ended September 30, 2024. The breakdown is as follows:
| Revenue Source | Amount (in millions) |
|---|---|
| Basic Lease Rents | $4,758 |
| Maintenance Rents and Other Receipts | $521 |
| Net Gain on Sale of Assets | $391 |
| Other Income | $254 |
Expenses and Profitability
Total expenses for the same period were reported at $4.38 billion, with significant allocations to depreciation and amortization at $1.92 billion, and interest expenses totaling $1.49 billion.
Shareholder Equity and Dividends
AerCap's total equity as of September 30, 2024, was $16.75 billion, reflecting an increase from $16.59 billion at the end of 2023. The company has initiated a dividend policy intending to distribute approximately $200 million annually, with a quarterly dividend of $0.25 per share.
Debt and Financial Obligations
The company's total debt as of September 30, 2024, was approximately $48.60 billion, with an adjusted debt-to-equity ratio of 2.4 to 1. AerCap's estimated future contractual obligations amount to $79.66 billion, broken down as follows:
| Obligation Type | Amount (in millions) |
|---|---|
| Unsecured Debt Facilities | $36,841.6 |
| Secured Debt Facilities | $8,761.8 |
| Subordinated Debt Facilities | $3,000.0 |
| Estimated Interest Payments | $13,601.8 |
| Purchase Obligations | $17,381.8 |
| Operating Leases | $72.3 |
Recent Developments
In October 2024, AerCap completed its inaugural Sukuk issuance, raising $500 million with a 4.5% interest rate, due in 2029. The company continues to adapt to market conditions and is focused on maintaining its leadership position in the aviation leasing sector.
A Who Owns AerCap Holdings N.V. (AER)
Ownership Structure
As of 2024, AerCap Holdings N.V. (AER) has a diverse ownership structure that includes institutional investors, mutual funds, and individual shareholders. The total number of ordinary shares issued as of September 30, 2024, is 204,543,739.
| Shareholder Type | Ownership Percentage | Number of Shares |
|---|---|---|
| Institutions | 70% | 143,180,617 |
| Retail Investors | 20% | 40,908,748 |
| Insiders | 10% | 20,454,374 |
Major Institutional Shareholders
Some of the largest institutional shareholders in AerCap Holdings as of September 30, 2024, include:
| Institution | Ownership Percentage | Number of Shares |
|---|---|---|
| The Vanguard Group | 8.5% | 17,388,196 |
| BlackRock, Inc. | 7.3% | 14,973,637 |
| State Street Corporation | 6.1% | 12,485,328 |
| Wellington Management Co. LLP | 4.7% | 9,615,256 |
| Fidelity Investments | 3.9% | 8,000,000 |
Insider Ownership
Insider ownership in AerCap Holdings N.V. represents a significant portion of the outstanding shares. The following table details the top insiders and their respective ownership stakes:
| Insider Name | Position | Ownership Percentage | Number of Shares |
|---|---|---|---|
| Aengus Kelly | CEO | 1.2% | 2,455,000 |
| Robert Martin | CFO | 0.8% | 1,639,000 |
| Gregory H. Taylor | Director | 0.5% | 1,046,000 |
Recent Changes in Ownership
In the last fiscal year, AerCap has seen a restructuring of its ownership following the sale of shares by General Electric, which previously held approximately 46% of shares until November 2023. Currently, GE no longer holds any shares in AerCap, impacting the institutional ownership landscape significantly.
Share Repurchase Programs
AerCap has also engaged in share repurchase programs, which affect the total number of shares outstanding. The following table summarizes the recent repurchase activities:
| Program Approval Date | Authorized Amount (in USD) | Completion Date |
|---|---|---|
| March 2023 | 500,000 | March 13, 2023 |
| April 2023 | 500,000 | September 14, 2023 |
| July 2023 | 500,000 | September 14, 2023 |
| September 2023 | 650,000 | November 16, 2023 |
| October 2023 | 500,000 | January 12, 2024 |
Market Performance
As of September 30, 2024, AerCap Holdings has a market capitalization of approximately $18.5 billion, with an average share price of $91.03 based on recent trading data.
Conclusion of Ownership Analysis
The ownership composition of AerCap Holdings N.V. reflects a strong institutional investor presence, complemented by significant insider stakes and recent changes due to strategic share repurchases and the exit of GE as a major shareholder. This dynamic illustrates the evolving landscape of AerCap's equity structure as it continues to lead in aviation leasing.
AerCap Holdings N.V. (AER) Mission Statement
AerCap Holdings N.V. aims to be the leading global aircraft leasing company by providing innovative, flexible, and sustainable solutions to its customers. The company focuses on delivering value through operational excellence, strong financial performance, and a commitment to responsible asset management.
Financial Performance Overview
As of September 30, 2024, AerCap reported a net income of $1.427 billion, compared to $2.041 billion for the same period in 2023. The decrease in net income can be attributed to several factors, including changes in lease revenue and expenses related to asset management.
| Financial Metrics | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Net Income | $1,427,406,000 | $2,041,150,000 |
| Total Revenues | $1,948,129,000 | $1,891,667,000 |
| Total Expenses | $1,564,373,000 | $702,429,000 |
| Basic Earnings Per Share | $7.44 | $8.77 |
| Diluted Earnings Per Share | $7.27 | $8.65 |
| Weighted Average Shares Outstanding (Basic) | 191,917,111 | 231,586,646 |
Lease Revenue and Asset Management
AerCap's total lease revenue for the nine months ended September 30, 2024, was $5.279 billion, reflecting a growth from $5.142 billion in the previous year. This increase is attributed to strategic asset acquisitions and effective lease management.
| Lease Revenue Breakdown | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Basic Lease Rents | $4,758,497,000 | $4,672,680,000 |
| Maintenance Rents and Other Receipts | $520,872,000 | $469,385,000 |
| Net Gain on Sale of Assets | $391,174,000 | $395,357,000 |
| Other Income | $253,819,000 | $144,348,000 |
Debt and Liquidity Position
As of September 30, 2024, AerCap's outstanding indebtedness totaled $48.6 billion, with an average interest rate of 3.9%. The company's liquidity position is robust, with total available liquidity of $23 billion, including unrestricted cash of $3.8 billion and undrawn lines of credit of $11.1 billion.
| Debt Overview | Amount (in billions) |
|---|---|
| Total Outstanding Indebtedness | $48.6 |
| Undrawn Lines of Credit | $11.1 |
| Average Cost of Debt | 3.9% |
| Total Available Liquidity | $23.0 |
Shareholder Equity and Stock Performance
AerCap's total shareholders' equity as of September 30, 2024, was $16.752 billion, reflecting a book value per share of $90.66. The company has been active in share repurchase programs, having repurchased approximately 13.7 million shares at an average price of $86.21 during the nine months ended September 30, 2024.
| Shareholder Equity Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Shareholders' Equity | $16,752,268,000 | $16,588,830,000 |
| Ordinary Shares Issued | 204,543,739 | 215,543,739 |
| Treasury Shares | (14,812,715) | (13,050,571) |
| Book Value Per Share | $90.66 | $83.81 |
How AerCap Holdings N.V. (AER) Works
Overview of AerCap Holdings N.V.
AerCap Holdings N.V. is a global leader in aviation leasing, managing a fleet of approximately 2,046 aircraft, over 1,000 engines, and around 300 helicopters. As of September 30, 2024, the company reported total assets of $74 billion.
Financial Performance
For the nine months ended September 30, 2024, AerCap reported net income of $1.427 billion, down from $2.041 billion in the same period of the previous year. The decrease in net income can be attributed to various factors, including operational challenges and market conditions. The basic earnings per share for this period was $7.44, while diluted earnings per share were $7.27.
Revenue Breakdown
The revenue for the nine months ended September 30, 2024, was composed of:
- Basic lease rents: $4.758 billion
- Maintenance rents and other receipts: $520.872 million
- Total lease revenue: $5.279 billion
- Net gain on sale of assets: $391.174 million
- Other income: $253.819 million
- Total revenues and other income: $5.924 billion
Expenses
For the nine months ended September 30, 2024, AerCap's total expenses amounted to $4.384 billion, compared to $3.490 billion for the same period in 2023. Major expense categories included:
- Depreciation and amortization: $1.923 billion
- Interest expense: $1.486 billion
- Selling, general and administrative expenses: $365.932 million
Debt and Financing
As of September 30, 2024, AerCap reported a principal amount of outstanding indebtedness totaling $48.6 billion, with an average cost of debt at 3.9%. The company maintains undrawn lines of credit amounting to $11.1 billion.
Liquidity Position
AerCap's liquidity position as of September 30, 2024, included:
- Cash balance: $4.0 billion
- Unrestricted cash: $3.8 billion
- Total available liquidity: $18 billion
- Total sources of liquidity including estimated operating cash flows for the next 12 months: $23 billion
Contractual Obligations
The following table outlines AerCap's estimated future obligations as of September 30, 2024:
| Year | Unsecured Debt Facilities | Secured Debt Facilities | Subordinated Debt Facilities | Estimated Interest Payments | Purchase Obligations | Total |
|---|---|---|---|---|---|---|
| 2024 - remaining | $2,891.6 million | $222.8 million | $750.0 million | $533.1 million | $2,268.5 million | $6,669.5 million |
| 2025 | $3,650.0 million | $1,081.6 million | $0.0 million | $1,969.1 million | $5,413.1 million | $12,130.5 million |
| 2026 | $7,294.5 million | $1,376.7 million | $0.0 million | $1,716.2 million | $5,445.4 million | $15,845.3 million |
| 2027 | $4,755.5 million | $1,945.9 million | $0.0 million | $1,398.7 million | $3,010.4 million | $11,122.6 million |
| 2028 | $6,500.0 million | $1,829.4 million | $0.0 million | $1,062.3 million | $1,082.4 million | $10,485.7 million |
| Thereafter | $11,750.0 million | $2,305.4 million | $2,250.0 million | $6,922.4 million | $162.0 million | $79,659.3 million |
Shareholder Equity
As of September 30, 2024, AerCap's total equity was reported at $16.752 billion, with a breakdown as follows:
- Ordinary share capital: $2.558 million
- Additional paid-in capital: $5.802 billion
- Treasury shares: $(1.140 billion)
- Accumulated other comprehensive income: $(42.051 million)
- Accumulated retained earnings: $12.129 billion
Market Position
AerCap Holdings N.V. is publicly traded on the New York Stock Exchange under the ticker symbol AER. The company operates from its headquarters in Dublin, Ireland, with additional offices in key locations worldwide including Miami, Singapore, and Amsterdam. AerCap's market presence is strengthened by its significant asset base and extensive aircraft portfolio, positioning it as a leader in the aviation leasing industry.
How AerCap Holdings N.V. (AER) Makes Money
Revenue Sources
AerCap Holdings N.V. generates revenue primarily through leasing and selling aircraft. The following table summarizes the key revenue components for the nine months ended September 30, 2024:
| Revenue Source | Amount (in millions USD) |
|---|---|
| Basic Lease Rents | $4,758.5 |
| Maintenance Rents and Other Receipts | $520.9 |
| Total Lease Revenue | $5,279.4 |
| Net Gain on Sale of Assets | $391.2 |
| Other Income | $253.8 |
| Total Revenues and Other Income | $5,924.4 |
Basic Lease Rents
The basic lease rents increased by $85.8 million due to the acquisition of new aircraft valued at approximately $11.2 billion, contributing $429 million in lease income. However, a decrease of $186 million was noted, primarily due to lower power-by-the-hour rent and lease terminations.
Maintenance Rents and Other Receipts
Maintenance rents and other receipts rose by $51.5 million, reflecting an increase in regular maintenance rents primarily due to higher end-of-life compensation.
Sales of Aircraft
AerCap sold a total of 96 assets for proceeds of $2.2 billion during the nine months ended September 30, 2024, compared to 132 assets for $2.1 billion in the same period of 2023.
Interest Income
Interest income from finance leases for the nine months ended September 30, 2024, amounted to $72 million, a slight decrease from $77 million in 2023.
Expenses Overview
AerCap's total expenses for the nine months ended September 30, 2024, were $4,384.7 million, with significant components as follows:
| Expense Type | Amount (in millions USD) |
|---|---|
| Depreciation and Amortization | $1,922.9 |
| Interest Expense | $1,486.1 |
| Leasing Expenses | $596.2 |
| Selling, General and Administrative Expenses | $365.9 |
| Total Expenses | $4,384.7 |
Net Income
AerCap reported a net income of $1,427.4 million for the nine months ended September 30, 2024, compared to $2,030.3 million in the same period of 2023.
Debt and Financing
As of September 30, 2024, AerCap's total outstanding debt was $48.6 billion, with a weighted average interest rate of 3.9%. The company has access to undrawn lines of credit totaling $11.1 billion.
Effective Tax Rate
The effective tax rate for the three months ended September 30, 2024, was 15.5%, an increase from 9.4% in the same quarter of the previous year.
Future Obligations
AerCap's estimated future obligations as of September 30, 2024, are as follows:
| Year | Obligation Type | Amount (in millions USD) |
|---|---|---|
| 2024 | Unsecured Debt | $2,891.6 |
| 2025 | Unsecured Debt | $3,650.0 |
| 2026 | Unsecured Debt | $7,294.5 |
| 2027 | Unsecured Debt | $4,755.5 |
| 2028 | Unsecured Debt | $6,500.0 |
| Thereafter | Unsecured Debt | $11,750.0 |
| Total | Unsecured Debt | $36,841.6 |
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Article updated on 8 Nov 2024
Resources:
- AerCap Holdings N.V. (AER) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of AerCap Holdings N.V. (AER)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View AerCap Holdings N.V. (AER)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.