AerCap Holdings (AER) stock price is $166.32, up 0.36% on the day, as of Nov 5, 2026. It has a market cap of $28.60Bn and a P/E ratio of 9.15, and is classified in the Commercial Aerospace industry (Industrials sector).
Enterprise Value
Margins
P/FCF
Key Stats
Market Cap28.60 Bn
P/E9.15
FCF (Yr)1.74 Bn
ROA (Yr)5.24
EV to EBIT4.14
Net Income (Yr)3.75 Bn
Enterprise Value21.52 Bn
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About
AerCap Holdings N. V. is a global leader in aviation leasing with a portfolio of aircraft engines and helicopters that are owned managed or on order. The company provides a broad range of assets for lease including narrowbody and widebody aircraft regional jets freighters engines and helicopters. It focuses on acquiring in demand flight equipment at attractive prices funding them efficiently hedging interest rate risk and using its platform to deploy assets to deliver…
AerCap Holdings N. V. is a global leader in aviation leasing with a portfolio of aircraft engines and helicopters that are owned managed or on order. The company provides a broad range of assets for lease including narrowbody and widebody aircraft regional jets freighters engines and helicopters. It focuses on acquiring in demand flight equipment at attractive prices funding them efficiently hedging interest rate risk and using its platform to deploy assets to deliver superior risk adjusted returns. In addition to aircraft leasing AerCap operates cargo leasing through AerCap Cargo helicopter leasing through Milestone and parts distribution through AerCap Materials. The firm also offers asset management services for securitization vehicles joint ventures and third parties.
AerCap Holdings N. V. generates revenue primarily from leasing aircraft engines and helicopters under operating leases to airlines cargo operators and other users. The company also earns income from cargo leasing through AerCap Cargo which provides modern freighter aircraft to ecommerce express and general cargo operators. Helicopter leasing through Milestone contributes revenue via operating and finance leases purchase and leaseback arrangements and engine leasing services. AerCap Materials generates revenue from the distribution of airframe and engine components and from aircraft dismantling and parts sales. Additionally the firm receives fees for asset management and administrative services provided to securitization vehicles joint ventures and other third parties.
The company operates through the following segments.
Aircraft Leasing segment owns manages and orders passenger and freighter aircraft for lease to airlines worldwide with a portfolio of 3 500 aircraft engines and helicopters as of December 31 2025 including 1 501 owned aircraft 148 managed aircraft and 283 aircraft on order and provides leasing services that generate the majority of the company's revenue.
AerCap Cargo segment operates as a global leader in the air cargo market with a fleet of approximately 120 aircraft that are owned serviced or committed for conversion offering 11 types of modern narrowbody and widebody freighters to about 25 customers worldwide including Kalitta Air and Amazon and participates in freighter conversion programs such as the Big Twin Boeing 777 300ER conversion and the Boeing 767 300BDSF and the Boeing 737 800BCF and the A321P2F programs.
Engine Leasing segment is the world’s largest lessor of spare engines with over 1 200 owned managed and on order engines including those held by the Shannon Engine Support joint venture focusing on new technology GE and CFM engines that power popular aircraft such as the Airbus A320 family and Boeing 737 and 787 models and provides leasing guaranteed availability administrative servicing light maintenance logistics and optimization services to approximately 150 customers including GE Aerospace and CFMI.
Helicopter Leasing segment operated by Milestone is the world’s leading helicopter leasing and financing company with 335 helicopters owned or on order as of December 31 2025 providing operating leases finance leases purchase and leaseback transactions engine leasing and fleet advisory services to about 50 customers in over 35 countries serving sectors such as offshore oil and gas offshore wind search and rescue emergency medical services police surveillance and utility missions and has major customers including CHC Helicopter Bristow Helicopters Saudi Aramco and Omni Helicopters International.
AerCap Materials segment distributes airframe and engine components for leading aircraft and engine manufacturers operates a dismantlement facility in Greenwood Mississippi maintains a large inventory of parts for aircraft such as the Boeing 737NG Boeing 777 Airbus A320 and A320neo family and Embraer models and provides consignment services asset leasing and repair management to airlines maintenance repair and overhaul providers and parts distributors.
AerCap Holdings N. V. holds a leading position in the global aviation leasing industry being recognized as the industry leader across all segments of aircraft cargo engine and helicopter leasing. The company claims to be the world’s largest lessor of spare engines and the world’s leading helicopter leasing firm through its Milestone subsidiary. Its competitive advantages stem from its extensive infrastructure expertise and financial resources that enable it to execute numerous transactions in varying market conditions and from its proven ability to acquire integrate and manage businesses as demonstrated by the purchases of Genesis Lease International Lease Finance Corporation and GE Capital Aviation Services. While it faces competition from other leasing companies airlines manufacturers brokers and financial institutions AerCap’s diversified fleet global customer relationships and strong ties with original equipment manufacturers such as Airbus Boeing and CFM help it maintain a strong market stance.
AerCap Holdings N. V. serves a diverse customer base that includes airlines cargo operators helicopter operators and industrial users across the world. Specific customers named in the filing are American Airlines Azul Airlines China Southern Airlines EgyptAir SES Kalitta Air Amazon CHC Helicopter Bristow Helicopters Saudi Aramco and Omni Helicopters International as well as engine manufacturers GE Aerospace and CFMI. The company’s lessees are located in every major geographical region with revenue split roughly 30 percent Asia/Pacific 28 percent Europe 19 percent United States/Canada/Caribbean 12 percent Latin America and 11 percent Africa/Middle East.
Sectors:Industrials·Financial ServicesSector rationaleThe company's primary business is the leasing of capital equipment (aircraft, engines, and helicopters) to other businesses, which falls under 'Equipment Rental' within the Industrials sector. It also operates a substantial parts distribution business through AerCap Materials. A secondary sector of Financial Services is justified because the company provides asset management services for securitization vehicles and joint ventures, and engages in finance leases and purchase-leaseback transactions.Industries:+1 moreCommercial AerospaceCommercial AerospacePrimaryAerCap is a global leader in aviation leasing, owning and managing a portfolio of narrowbody and widebody aircraft, regional jets, and engines leased to airlines like American Airlines and Azul Airlines. Its primary revenue is generated from operating leases of these civil aviation assets.Specialty FinanceSpecialty FinanceSecondaryThe company operates as a non-bank financial entity providing specialized aircraft and helicopter leasing, including finance leases and purchase and leaseback arrangements through its Milestone subsidiary.Industrial DistributionIndustrial DistributionSecondaryThrough AerCap Materials, the company distributes airframe and engine components and sells parts from aircraft dismantling to airlines and MRO providers.Classified using BQ-MICSCIK: 0001378789
Bull & bear
Investment Thesis
▲ Bull case
AerCap's strategic positioning within the aviation leasing industry remains exceptionally strong due to its unique ability to unlock value through complex, partner-driven transactions that are inaccessible to competitors. The successful negotiation of the 110 Airbus A320neo order with delivery starting in 2028 exemplifies this advantage, as AerCap leveraged its dominance in engine leasing to free up OEM production slots by resolving capacity constraints for partners like Frontier Airlines. This capability not only enhances portfolio quality with next-generation, fuel-efficient aircraft but also creates a sustainable moat, as no other lessor can replicate the engine-leasing-driven access to early delivery positions. These transactions are accretive to long-term shareholder value by securing assets with superior economics and lower technological obsolescence risk, directly supporting AerCap's outlook for durable growth in the aviation sector.
Despite geopolitical headwinds and elevated jet fuel prices, AerCap continues to demonstrate remarkable operational resilience, with lease extension rates holding at 87% and transaction volumes remaining robust at 286 deals in Q1 FY26, including 202 new lease agreements. The fact that 57% of these leases were signed in March—coinciding with the onset of regional conflicts—underscores that airline demand for AerCap's assets is not merely holding but actively expanding, even amid uncertainty. This suggests that the core demand for aviation leasing is structurally sound and less sensitive to short-term macro volatility than commonly perceived, reinforcing the durability of AerCap's business model and its ability to generate consistent cash flows regardless of transient external shocks.
AerCap's fortress balance sheet, characterized by $21 billion in liquidity, a sub-target leverage ratio of 2.1x net debt to equity, and over $3 billion of excess capital, provides unparalleled flexibility to capitalize on distressed opportunities should airline financial stress persist beyond six months. With four airlines alone controlling more of the global aircraft order book than the entire lessor community, any prolonged fuel-driven pressure on weaker airline credits is likely to trigger a wave of sale-leaseback activity as carriers seek liquidity without sacrificing fleet modernization. AerCap's scale, low cost of capital, and proven track record in structuring such transactions position it to be the primary beneficiary of this dynamic, turning industry stress into accretive growth opportunities that are not fully reflected in current guidance or market expectations.
The company's disciplined capital allocation strategy is increasingly self-reinforcing, as evidenced by the authorization of a new $1 billion share repurchase program concurrent with raised full-year adjusted EPS guidance to $14.50. This dual action signals strong internal confidence in intrinsic value, particularly given that AerCap views its own stock as "the cheapest aircraft in the world" — a metaphor highlighting the attractive valuation relative to the cash-generative power of its underlying asset portfolio. By combining accretive organic growth through technologically advanced aircraft orders with aggressive share repurchases at current levels, AerCap is creating a compounding effect on shareholder value that leverages both operational excellence and capital efficiency, a combination that remains underappreciated by the market focused solely on near-term fuel price volatility.
AerCap's strategic positioning within the aviation leasing industry remains exceptionally strong due to its unique ability to unlock value through complex, partner-driven transactions that are inaccessible to competitors. The successful negotiation of the 110 Airbus A320neo order with delivery starting in 2028 exemplifies this advantage, as AerCap leveraged its dominance in engine leasing to free up OEM production slots by resolving capacity constraints for partners like Frontier Airlines. This capability not only enhances portfolio quality with next-generation, fuel-efficient aircraft but also creates a sustainable moat, as no other lessor can replicate the engine-leasing-driven access to early delivery positions. These transactions are accretive to long-term shareholder value by securing assets with superior economics and lower technological obsolescence risk, directly supporting AerCap's outlook for durable growth in the aviation sector.
Despite geopolitical headwinds and elevated jet fuel prices, AerCap continues to demonstrate remarkable operational resilience, with lease extension rates holding at 87% and transaction volumes remaining robust at 286 deals in Q1 FY26, including 202 new lease agreements. The fact that 57% of these leases were signed in March—coinciding with the onset of regional conflicts—underscores that airline demand for AerCap's assets is not merely holding but actively expanding, even amid uncertainty. This suggests that the core demand for aviation leasing is structurally sound and less sensitive to short-term macro volatility than commonly perceived, reinforcing the durability of AerCap's business model and its ability to generate consistent cash flows regardless of transient external shocks.
AerCap's fortress balance sheet, characterized by $21 billion in liquidity, a sub-target leverage ratio of 2.1x net debt to equity, and over $3 billion of excess capital, provides unparalleled flexibility to capitalize on distressed opportunities should airline financial stress persist beyond six months. With four airlines alone controlling more of the global aircraft order book than the entire lessor community, any prolonged fuel-driven pressure on weaker airline credits is likely to trigger a wave of sale-leaseback activity as carriers seek liquidity without sacrificing fleet modernization. AerCap's scale, low cost of capital, and proven track record in structuring such transactions position it to be the primary beneficiary of this dynamic, turning industry stress into accretive growth opportunities that are not fully reflected in current guidance or market expectations.
The company's disciplined capital allocation strategy is increasingly self-reinforcing, as evidenced by the authorization of a new $1 billion share repurchase program concurrent with raised full-year adjusted EPS guidance to $14.50. This dual action signals strong internal confidence in intrinsic value, particularly given that AerCap views its own stock as "the cheapest aircraft in the world" — a metaphor highlighting the attractive valuation relative to the cash-generative power of its underlying asset portfolio. By combining accretive organic growth through technologically advanced aircraft orders with aggressive share repurchases at current levels, AerCap is creating a compounding effect on shareholder value that leverages both operational excellence and capital efficiency, a combination that remains underappreciated by the market focused solely on near-term fuel price volatility.
AerCap's current outperformance is heavily influenced by transient, non-recurring gains that are not sustainable, particularly the elevated net maintenance contribution of $138 million in Q1 FY26, which Peter Juhas acknowledged is driven by timing factors, transition expenses, and claims rather than core operational strength. This item is expected to trend back to more normal levels in the second half of the year, meaning the record adjusted EPS of $5.39 and adjusted ROE of 19.4% for the quarter are flattered by one-time benefits. Relying on such volatility to justify upward revisions to full-year guidance risks creating false expectations, as the core leasing business may not generate sufficient run-rate earnings to support the elevated targets without continued asset sales or anomalous maintenance recoveries.
Despite management's optimism about sale-leaseback opportunities arising from prolonged fuel price pressure, AerCap's exposure to older technology aircraft—though stated to be less than 20% of the portfolio—carries meaningful residual value risk if airlines accelerate retirements of aging narrowbodies like A320ceos or 737NGs, which constitute a significant portion of that legacy fleet. While AerCap highlights its focus on new tech assets, the historical lag in asset value adjustments means that even a modest shift in airline preference toward younger, more efficient models could pressure lease rates and sale prices for these assets faster than anticipated, especially if secondary market demand weakens due to financing constraints or stricter emissions regulations, creating a drag on portfolio rebalancing efforts.
The company's reliance on engine leasing as a strategic lever to access OEM delivery slots—while innovative—introduces operational and counterparty complexity that may not scale indefinitely. The Frontier Airlines engine redemption transaction, though successful, required specific conditions: a partner willing to reduce capacity, available engine inventory, and alignment with Airbus production needs. Replicating this model depends on continued distress or strategic shifts at specific airlines, which are unpredictable and not guaranteed to recur. Overestimating the predictability and scalability of such bespoke deals could lead to capital misallocation if AerCap prioritizes complex, low-probability opportunities over simpler, more reliable growth avenues, thereby undermining the consistency of its long-term returns.
AerCap's aggressive capital return strategy—combining a $745 million Q1 buyback with a new $1 billion authorization—risks overextending its balance sheet flexibility if market conditions deteriorate more severely than anticipated, particularly if asset sale proceeds fall short of the revised $3 billion+ full-year target due to weakening demand for used aircraft. While current liquidity appears robust, a simultaneous drawdown on revolvers for opportunistic investments, increased debt maturities, and sustained share repurchases could erode the cushion of excess capital faster than modeled, leaving the company less equipped to weather a prolonged downturn in airline profitability or a sudden spike in credit losses, despite its current low leverage appearance.
AerCap's current outperformance is heavily influenced by transient, non-recurring gains that are not sustainable, particularly the elevated net maintenance contribution of $138 million in Q1 FY26, which Peter Juhas acknowledged is driven by timing factors, transition expenses, and claims rather than core operational strength. This item is expected to trend back to more normal levels in the second half of the year, meaning the record adjusted EPS of $5.39 and adjusted ROE of 19.4% for the quarter are flattered by one-time benefits. Relying on such volatility to justify upward revisions to full-year guidance risks creating false expectations, as the core leasing business may not generate sufficient run-rate earnings to support the elevated targets without continued asset sales or anomalous maintenance recoveries.
Despite management's optimism about sale-leaseback opportunities arising from prolonged fuel price pressure, AerCap's exposure to older technology aircraft—though stated to be less than 20% of the portfolio—carries meaningful residual value risk if airlines accelerate retirements of aging narrowbodies like A320ceos or 737NGs, which constitute a significant portion of that legacy fleet. While AerCap highlights its focus on new tech assets, the historical lag in asset value adjustments means that even a modest shift in airline preference toward younger, more efficient models could pressure lease rates and sale prices for these assets faster than anticipated, especially if secondary market demand weakens due to financing constraints or stricter emissions regulations, creating a drag on portfolio rebalancing efforts.
The company's reliance on engine leasing as a strategic lever to access OEM delivery slots—while innovative—introduces operational and counterparty complexity that may not scale indefinitely. The Frontier Airlines engine redemption transaction, though successful, required specific conditions: a partner willing to reduce capacity, available engine inventory, and alignment with Airbus production needs. Replicating this model depends on continued distress or strategic shifts at specific airlines, which are unpredictable and not guaranteed to recur. Overestimating the predictability and scalability of such bespoke deals could lead to capital misallocation if AerCap prioritizes complex, low-probability opportunities over simpler, more reliable growth avenues, thereby undermining the consistency of its long-term returns.
AerCap's aggressive capital return strategy—combining a $745 million Q1 buyback with a new $1 billion authorization—risks overextending its balance sheet flexibility if market conditions deteriorate more severely than anticipated, particularly if asset sale proceeds fall short of the revised $3 billion+ full-year target due to weakening demand for used aircraft. While current liquidity appears robust, a simultaneous drawdown on revolvers for opportunistic investments, increased debt maturities, and sustained share repurchases could erode the cushion of excess capital faster than modeled, leaving the company less equipped to weather a prolonged downturn in airline profitability or a sudden spike in credit losses, despite its current low leverage appearance.