AerCap Posts Record Q3 2026 Adjusted Net Income of $1,009 Million and Raises Full-Year EPS Guidance to About $20.70
Why It MattersRecord earnings and a larger buyback show the largest aircraft lessor still profiting from tight aircraft supply, even as higher fuel prices squeeze airline margins.
AerCap Holdings reported record third-quarter 2026 results on October 28, 2026. GAAP net income was $949 million, or $6.17 per share, and adjusted net income reached a record $1,009 million, or $6.56 per share. The company raised its full-year 2026 adjusted earnings per share guidance to approximately $20.70, before any fourth-quarter gains on sale. GAAP return on equity was 20% and adjusted return on equity was a record 22%. Operating cash flow was $1.8 billion, and capex was $1.9 billion, including the purchase of 32 aircraft.
Total lease revenue rose 4% to $1,965 million from $1,894 million a year earlier. Basic lease rents were $1,698 million against $1,690 million, while maintenance rents and other receipts were $267 million against $204 million. Net gain on sale of assets was $353 million on 70 owned assets sold for $1.1 billion, compared with $332 million on 32 assets sold for $1.5 billion in the third quarter of 2025. The unlevered gain-on-sale margin was 45%, or 2.6x book value on an equity basis. Total revenues and other income were $2,415 million, up 5%. Interest expense excluding mark-to-market of interest rate derivatives was $479 million, with an average cost of debt of 4.2% against 4.0% a year earlier. Selling, general and administrative expenses were $125 million against $129 million, and leasing expenses were $131 million against $93 million. The effective tax rate was 12.3%, with about 15% expected for the full year excluding discrete items.
AerCap repurchased 5.3 million shares for about $783 million in the quarter, bringing 2026 repurchases to over $2.2 billion, roughly 10% of shares outstanding at December 31, 2025, and announced a new $1 billion repurchase program. The adjusted debt/equity ratio was 2.0 to 1 as of September 30, 2026, and the company is rated BBB+/Baa1 by all three major rating agencies. Shareholders' equity was $18,622 million, debt was $43,272 million, and cash and restricted cash were $2,653 million.
The portfolio comprised 3,482 aircraft, engines and helicopters owned, on order or managed. The owned passenger fleet averaged 7.3 years in age (5.5 years for new technology and 15.7 years for current technology aircraft), with an average remaining lease term of 7.4 years. The board declared a quarterly cash dividend of $0.40 per share, payable December 3, 2026 to shareholders of record on November 11, 2026. CEO Aengus Kelly said higher fuel prices are weighing on airline profitability, but supply-demand dynamics in commercial aviation remain favorable for AerCap.
