AER - Earnings call transcript Q4 2024

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Operator

Good day, and welcome to AerCap's Fourth Quarter 2024 Financial Results. Today's conference is being recorded, and a transcript will be available following the call on the company's website. At this time, I would like to turn the conference over to Joseph McGinley, Head of Investor Relations. Please go ahead, sir.

Joseph McGinley

Thank you, operator, and hello, everyone. Quarter call. Fourth our to XXXX conference Welcome remind With Kelly; Pete and is conference our call, like Juhas; during not statements Officer, be Aengus Chief Executive forward-looking to would our I facts, we which today's me that this begin some made today before call, you historical Chief may are Financial Officer, statements.

undertakes uncertainties from no circumstances call. results this or such differ materially those Forward-looking imposed or to actual statements. other by statements statements information after events publicly revise obligation cause reflect Aircraft involve than that update or that may future events, arise risks any in expressed and to implied law that to forward-looking or

in of open release for A public our AerCap's XX, being XXXX. concerning available earnings presentation This the archived February call earnings is to and will affect information Further that found could dated copy issues and at be aercap.com. replay. on materially webcast are aercap.com the conference release website simultaneously call at is be performance and can

run will and at time allow Q&A. earnings end our for We will the presentation through shortly

[Operator Aengus Kelly. over Instructions] turn to would I call now the

Aengus Kelly

quarter Thank us joining for our earnings you call. fourth for XXXX

year strong adjusted EPS of of GAAP and earnings earnings of billion and We $XX.XX. income $X.X to report per The of $XX.XX. $X.X are pleased another for generating share income AerCap, of net billion adjusted net

last year for accretive This We expect XXXX. capital saw demand and to see the in opportunities our robust we a continuation the that dynamic, deployment supportive of includes assets. supply-demand continued trends

been gains contribution which $X.XX XXXX not Leading assets, $X.XX the material. of have of sale adjusted to to an historically and of EPS range including

and aircraft seeing quarters, environment for we reflected strong of the in the discussed in prior leasing have performance we operational are As business. this positive continues,

on operating $X.X of million excludes course, $XXX flow, generated of we year, Last of sale. which, gains cash billion

This executed equity. the fourth a XX% quarter, XXX gain unrivaled generated of sale book AerCap margin more XXX% gives our global than the equivalent of various into the associated businesses, transactions per or activity We to of level day. During market. insights aviation across we on X

for a needs support customers' our to their allows better understanding turn, growth. and in This, of how

future have our for place and in $XX existing cash of billion visibility fleet, XX% ahead, flows our the years. us creating of us be which capital received contracted into shareholders. effectively we This future lease tremendous over cash allocate to continued Looking our on next X value flows, allowing gives in thoughtfully, will

to to Further share pleased a and largest today authorized repurchase takes With spent in last single and To underlining value for alone. the stock see billion amount XXXX significant the $X the in of billion. our this AerCap are we mind, new $X confidence the buyback in in program, years and announce outlook authorization we our date. X This total beyond.

in Turning a gain by is It strong market. XXXX plan increased year demand extension a the was industry increases longer that clear continued the to in rates, row to and sale. environment, evidenced lower lease of on the is our $XXX QX, million. lease for gain for third sale supply on continues quarter highest a and extension of in $XXX single million year This demand full also activity, this of sale also a gain on sales ongoing reflective in resulting in strong activity, a aircraft. record driving for

aircraft with thousands hosted the to the month, conversations from largest clear Dublin stakeholders in grow. demand conference for traders was assets attracting And had of event. airlines, last the we was aviation financiers, and leasing The continues aircraft global many to it

buyers, wide focus mix or on of type are with we to assets see can of mix age asset counterparty. you selling different As slide, each wide a from a the a

the curve, of out capacity. of airlines category, tend of aircraft lease first secure the end at In the typically focus a certainty older buying part to the to on

Given their buyer its the base value on to condition, X things. reflects maintenance generate well of of understand this well the in placed are they strong the and with gains aircraft sale knowledge aircraft. We

teams of it and benefit aircraft shows cycle having the Firstly, in-house engines into critical engine the the and control who values. residual translating higher technical of condition life spend

Secondly, challenges. over continued the engine assets values. command to it market and points light carrying the the premium reliability delays, of in or OEM our In

Financial other midlife were engines. buyers of beyond. These where we this early is and buy of but expect in remaining hand, valuable. we continue to having This lease of XXXX the we space. a are the some aircraft tend on into young terms see toward predictability here theme to Ideally investors, highly conversations again to and is on long more based prevalent signs before income returning strength recent with

In category our other and helicopter combination or and finance gamut to summary, portfolios. gains across that The not shows companies. leasing engines run sold broad-based of full are on The to other contained few and for types. of age part-out aircraft but this aircraft, leases limited a sale assets select sales AerCap's credits, the aircraft which

Gains business almost by on and AerCap single every value a sale company embedded for reflect platform the have years been the as public day. created a feature XX deep of our

flows, visibility our earlier cash We excellent capital allocation. capital we deployment to mentioned strategy. of is that which to future Turning key have

shareholders, cash strong strong return to to also flows while capital today's environment. these sales you, our We into utilize will leaning continue very to

company. proceeds gains sell sale lower and growth assets In more on resulting for continue a to in repurchases, our doing share more we reinvest priority this, the and will into organic strong profitable efficient,

$XX we have over Over billion levered. assets. returned and the shareholders billion into last alone, invested to $X new We over X years

balance credit while our approach level and not unique capital extremely this remains target at return fact, the sheet can opposite am your shareholders, I at to it delevering credit is investment-grade it flexibility, rare our below it's shareholder-friendly significant stated achieved but of sure to leverage highest that increasing be the stand quite scale well in ratings. our ratio ever This as to And X.Xx BBB+. X. at the ratings

What should stability stand to and is years. also this many the out of approach consistency investors over

in the and you'll comes our in opportunistic see recently our This the engine sources. of direct environments; investment organic growth On existing deals. help the aircraft more sale One made leasebacks with organic OEMs customers airline slide, new favorable side three, the and from X needs two, left-hand from purchases business. that AerCap's announced

the authorization total that $X years. On share shareholder core billion returns, time, X billion the takes and on of In today we more both last billion latest have profitability, share this as we to reduced $X cash mentioned earlier, come announcements in count to $X from repurchase strength returns knowledge These them and industry-leading and flows, sustainable. from built authorization. XX%, attractive come making with a by deployed position

this lease great generated operating year billion XXXX, our demand with under agreements was aircraft. So $X.X as look we just for for We of completed cash XXX and broad-based executed back XXX another AerCap asset on flow. purchases

million were addition, repurchased BBB+ upgraded for we Moody's. and reduced both to In billion, $X.X to by XX.X X.XXx S&P shares and our leverage

forward confidence and look forward in come. company's outlook strong, quarters to you XXXX, to years this Looking the to to remains our the demonstrating in and we

financials over With that, and the call Thank to I'll you. outlook to the XXXX. the review Pete for hand

Peter Juhas

everyone. morning, Good Gus. Thanks,

$XX $X.XX Our adjustments The per purchase million GAAP share. of million or income share. fourth impact was a quarter $X.XX accounting That $XXX for net quarter includes for or was $XXX the the which amortization reduced lease maintenance maintenance and $XX of basic $XX maintenance million, rents, amortization million, increased amortization rights which reduced premium million, revenue leasing of lease which expenses. of rights

settlements overall This $X conflict policy. During a represents our or of related the $X.XX The the to the and quarter, we Ukraine net of effect $XXX or was a $X.XX million tax to million share. fourth the of purchase had with insurance adjustments share. conflict the Ukraine insurers accounting on recoveries related certain recoveries the C&P

all taking million $X.XX of net that income was fourth the our for quarter adjusted So share. into or per account, $XXX

are affected Basic rents reflected I'll our main $X.XXX were for an a lease the the rents. reduction billion rents $X.XX premium reduces over third $XX through lease the results briefly which the lease the quarter. in fourth amortization the rents. remaining go basic basic expense, Basic million Lease lease from quarter. of lease premium that as lease of increase billion, term in assets drivers amortized

for quarter a during maintenance without that revenue quarter. or for on were million. $XXX revenue would to the words, had. Net million sales revenues That value, million have million been total maintenance XX% of We million of $XX the the for the the maintenance were an million. highest resulted on rights $XXX amortized gain fourth and quarter other unlevered $XXX owned we've to margins assets margin maintenance X.Xx In the was of in higher assets a reflects one sold That gain amortization. of record multiple revenue quarter Our fourth $XX sale equivalent quarterly quarter. is of which for of assets our the ever sale during book that's XX $XXX in

million As and income. million expense expense. worth million included assets sale. consisted of the expenses held the of $XXX primarily was income Other interest for which December was that million quarter. were $XX Leasing of amortization $XXX quarter, $XXX the of Interest million XX, we fourth for for had quarter, for maintenance $XX rights

for an the represents of rate was Income XX.X% million tax $XX fourth tax effective quarter. expense which

XXXX was what tax recoveries were of the to million effective was year. X.X% been. otherwise from we Pillar under I'd X, includes during allowance full global tax subject rate For have minimum year XX.X%, first year, our the releases rate increased which by that and it note tax our would $XX tax the valuation around the which also

approximately and million a the year. That resulted in insurance a for recoveries which EPS the GAAP very billion equates slide, you share, year had approximately as $XXX it On of that the see, as accounting We the for conflict. for walk of income well to as and purchase for strong full And of income a for included see AerCap. of can billion $X.X million, of of net adjusted can year you net earnings items After for is to record year Ukraine related which GAAP our adjusting year for $X.X adjusted $XX.XX EPS net was our per recoveries was the AerCap. next EPS. $XX.XX the $XXX

As for return year, adjusted GAAP was on XX%. the our XX% full our was result, ROE a equity and

It because $X.X That proceeds through doesn't year. cash investing gains cash flow include the from flow. on for cash investing flow. Our was a go also record through billion also sale any settlements go doesn't operating Russian those as include insurance those any

maintain position. We a continue liquidity to strong

compares XX, coverage of That $XX $XX that December were the in billion. of usage next cash excess around around approximately our liquidity of and sourced ratio As sources around Xx, billion. of $XX to uses reflects XX-month of coverage total resulting billion

to the X.XX Our than which ratio is quarter. quarter leverage slightly X, at end lower was the of last

approximately operating cash was the fourth $X.X quarter. flow for Our billion

XX% at our was which is was ratio last average of as assets cost same the end quarter, Our and of debt-to-total secured December, the debt X.X%.

During total the $XX.XX million quarter, of a average million. X.X at we of $XXX back shares bought fourth an price for

dividend We also $X.XX our share. quarterly paid of third a

Our per over of was book value as months. XX is December XX, an which share the last of XX% increase $XX.XX

include out in $X.XX course, the a year. the And doesn't of share we during that that, paid dividends

our So XXXX that performance. covers

turn I'll guidance for Now XXXX. to our

on For $X.XX EPS of not projected to sale. we're adjusted XXXX, gains $X.XX including any

next items. can we've the EPS some a XXXX XXXX to major slide, On expect our provided from the we you what call actuals walk see out for to of of

or In XXXX, after tax. $XXX million of sale on gains share per we had $X.XX

other in XXXX, on was well items. some driven income, of $X.XX. So by XXXX onetime for In high our excluding balances sale, adjusted level was which we high EPS cash as as part had a gains

other XXXX, $X.XX about we're in income So to by lower be expecting share. a

As recognized the of around for I XXXX, $XX benefits which in rate tax we our million reduced tax year. effective discrete mentioned,

effective our XX%. benefits, tax have around these Without been would rate

tax out. aren't call about of items everything be so positive to 'XX. we in will The column leasing, major that's Those XXXX benefits these expect projecting share We XXXX. are repurchases, all cetera, $X.XX any includes last in of et effect headwind a of else, XXXX, including the net in a compared and $X.XX around share maintenance, to the

to not $X.XX takes including So the XXXX, any EPS to of gains sale. that for $X.XX on again, range us

slide, breakdown projected showing a next see the major the can our you items. statement line for On income XXXX, of

$X.X of total million around $X.X and For of the revenue $XXX around around revenue income maintenance of million full 'XX, year, $XXX revenues of we have billion. about for lease other billion

of cash around the for assumed have asset billion. $X.X we'll year sales CapEx We've and billion of that around $X

billion depreciation figures and around for around these to the can is time and largely know, sales deliveries projecting CapEx dependent expense for of $X.X amortization assets As those billion. depends interest you vary OEM volume the on close and of We're significantly. demand year it on transactions. $X.X the takes and

And jurisdictions assumes like around impact than minimum effective an global the tax leasing $X.X rate On XXXX. other expenses we've is and reflects Pillar and for specific of Ireland top-up assumed the mentioned, of an also total tax X which, expenses, tax in company tax to tax, for rate tax billion XX.X% We had results year. we XX%. paying in as which of as no SG&A the that expect effective I under less a where releases

income In that expect tax expect to around $XXX of around income That for investments. to us leasing equity gives that's our us $XXX but includes million around around billion it the $XXX from net the $X.X GAAP to Altogether, XXXX, of and we joint billion smaller year. SES, equity $X.X earnings to year. including EPS for the any venture, million not some $X.XX recognize gains for net After engine range also primarily projected $X.XX adjusted other investments, of our gives purchase an on of year, again, accounting after sale. have adjustments we adjusted million

strongly fourth the quarter. during Overall, to perform continued AerCap very

of year the look level which you be reflected fourth leasing, out continue see of rate strong we in sales, can you see a and XX%. for can to for gain see we environment our in As and to for environment aircraft sale record continues from the strong a It on XXXX, that the XXXX. full quarter also into utilization

and turn profitability more greater and result generate to aircraft opportunities. capital we're and cash in in strong deploying financial attractive flexibility, flows that engine continuing towards We're

We to shareholders. to also capital continue return

of at the past market of back X Over the over stock, our worth years, $X we period. XX% is of bought beginning billion cap almost that which

our ever. an And which program program today share X% dividend, today, $X.XX also a largest announced to new is to taking billion, of we've announced quarterly it $X our repurchase a We've increase share.

strong AerCap up in future. the open reflect our the All confidence for in outlook of the of the we operator, value for that, now with these actions company's stock call and And Q&A. can

Operator

[Operator Instructions] Deutsche Bank. We Hillary from first our question with take will Cacanando

Hillary Cacanando

of about is market, talked you very different secondary interesting. buyers the aircraft which So sets in

years sales get view environment OEMs now. from your what understand the on But So aircraft to probably I of just which wanted when couple the time, is start on I happens to it's producing a more the and robust, aircraft that buying buyers changes the view the product mix environment buyers your will sales it the buying airline versus remain secondary but in maybe maybe to financial market? the

the right car way think about do environment think Is to used that to supply the it? Or the that you back normal? if is sales gets

Aengus Kelly

Well, shortage be Thank to you, come at Markets said on years aircraft believe of Day. our I Capital all, first will have a calls for several I do of Hilary. there and as

Capital to that before Day, I Markets eventually, today. go that you're if being they away that challenges right So aircraft producing still more airframers get will are highlighted our the you the produced their course, of back years But several we targets. of the aircraft start to think where

XX% spend in they new not fragile, that spend necessity strength future. are our see, values portfolio as what is as their into in the to more shop. you for expect the well aircraft From Therefore, they our more will because the do out used though, much at is continued I they see service moment. That time of perspective, time predecessors tech

the the that closer will course of Is closer to And XX, I'm and sure get okay? over that few years, XX. next

Hillary Cacanando

could like which seems forward was going and question talk I could in if That's be Great. elevated if run new a on quick this And what just then a fourth the rate you a drove wondering or helpful. Yes. that no? about just really bit [indiscernible] quarter.

Peter Juhas

Hillary. Sure,

slightly in million year. was $XX it this the so higher it's but So running than or fourth higher quarter, been at quarters maybe other

I events. the timing now. moves rate said of think around in as a it's leasing I I've run the reasonable past, mean, on depending expenses

much it into very to around XXXX. stay probably roughly X I in hard but it's levels quarter, So read these will any think

Hillary Cacanando

you Okay. them due from specific selling costs could? that or it or like anything transitioning Is to aircraft just

Peter Juhas

of that through the of combination a just It's really. things all go

So -- all the events happen. it's it's that mainly timing of these yes,

can from think $XXX So I think million around will I mean, why -- it is I run quarter quarter-to-quarter. like you that's bounce see yes, overall, that rate. like a But a reasonable

Hillary Cacanando

Got it. Great.

Peter Juhas

Sure.

Operator

from with is question Baker Jamie next The JPMorgan.

Jamie Baker

I have lease a question on extensions.

it think I the was Slide deck. X in

the actually of aircraft not How So that extended. being are are many transitioning.

the parted they're basically an around, of out. extended, being They They're dialing kind So are model airline. hey, to not you of being do at want old-fashioned plan. not

that contributing net curious the the might We're a And have if is down aircraft we year-on-year. margin transitioning slightly did tick reason ask factor. been

Aengus Kelly

Well, very we at we aircraft higher few out maybe moment, try of I that are few pull a because and more throughout of a rates handful we the There transition. couple things. There's the think know get a them elsewhere. And year. can can can

As Jamie. EPS manage net tax which is country by is it And net to not to a spread. ROE. business The was though, we the to number relates manage XX% year, and do ROE that it industry-leading key mile. this We after spread, there

Now I the don't spread. mentioned why we net manage

when lower the for dollar just it ROE and every I'd that higher have earnings those have and taken and I this have net those -- I'd EPS risk proceeds Of drives allocate assets, all debt, net and a company pay higher the down in spread assets, I'd did sell if shareholders if so per I we course, lower the spread. If -- never share. business I've we and sold have higher -- generates, way EPS. older I

anywhere anything line. shareholders sheet else, for The that's or except that the the the money the line only to about matters about really bottom And us. care I don't in matters what growth. only to I don't making at balance line P&L care me the that

Jamie Baker

Understood. Russia. second, And then on

recovered you Given recovery. put see value percentage that you've you of what let now but wrote more not percent estimate that guys. the now the down book value, what on book me does us sorry. you've original XXth the been is bring down, necessarily written the Of Actually, original the in amount and you it what the I'll has of that where what recovered. you've received, of terms precisely,

Peter Juhas

Jamie, so maintenance. net was that because $X.X write-down some of the billion that offsets we we was Well, had pretax released about

that billion there. $X.X So call book value had a that we

So we roughly, in another $XXX XXXX. recovered $X.X million billion in XXXX and

where gives stand value. to relative book you an of that idea So we initial that

Jamie Baker

That's care. perfect. Appreciate it. Take

Operator

The Trent Citi. next question is Stephen from with

Stephen Trent

hear Can you me? guys

Peter Juhas

Sure.

Stephen Trent

Great.

was I Sorry, having trouble some my phone. in

Just quick me. for ones some

first that The pushing see about think we benefit that is when credit you net rating terms attractive of any very rating. higher in BBB about maybe thinking from spreads? Do

Peter Juhas

has so with to We'd And well, X look, see positive Fitch. you Stephen, on the outlook would to years. of with outperformance of as that that. been strong think that helpful. trajectory this agencies performance we're and all know, in converted in and a flows with the recognition few cash the the over resilience the for BBB+ last I terms rating us the and Fitch hope BBB+ Well, and as be which good of of of business

could have go So It that to see go where we'll could higher? goes. it but higher,

the at around right? XX our think I at basis They're you are moment, a that spreads X-year. know, tight points on historically levels, as

say. look, up welcome benefit higher to certainly, A-, from ratings, a that's to we positive. How get Hard we'd So be that But getting very would would good. much

Stephen Trent

just question you. the anything today market Are tariffs. looking an guys. pertain respect for And to seeing in it to the you that. are tariff U.S. know doesn't oust potential pulling this just a that in on sell if or suggest to And with the I But uncertainty transactions, the industry helpful. potentially airlines love back Very purchase sort little bit on given Okay. having at to lesser you your U.S.-based might a exactly back pay they whatever a even of sale-leaseback they view

Aengus Kelly

yet behavior any part of any any we in Thanks, airline as from in the haven't Stephen. No, world. observed change

commit I in are at anyone uncertain think for a of to this to course too things time. action far point

Stephen Trent

sense. Makes

Operator

with Barclays. question is Terry from Ma next The

Terry Ma

potential the recoveries. use incremental and buyback that. I with nothing of well lower So target And the the more core then with billion go to confirm you're additional leverage want first, broadly, even Ukraine the $X guide just EPS to just contemplates below above your

you optimal more period? Can about just about back think you how time maybe and a leverage moving to talk level overall

Peter Juhas

Sure.

So thanks, Terry.

program on we first based what terms your of existing question, And is the nothing is billion, in where remaining that. then of of look, million under on are. utilization Yes, amount the authorization, $XXX and today. guide that our So new which beyond $X is the

So X.XX, relatively as ratio said, is now low, is you leverage which below target. our

go of my years, And things in company capital returning well, has the forward, we've referenced remarks, As that lots of capital. I as of -- the you've bought capital XX% find seen, over in almost mean, hard the to progresses, market cap other to lots terms deployed back deployed as year I We've we done shareholders. obviously, both prepared X it's last any of that.

we've But the the is grow, to and good year, capital. opportunities do we which to at seen we're over opportunities that deploy also token, same past looking attractive where by

So flow, of wait as ways. huge and significant how But amount we a It's you've huge just are have a business it of cash seen. capital, that in generates this deploying amount happens. just see to

Terry Ma

the buyers of the earmarked we as assets the have different about just you you of this sale just for quarter a the of impact I may bit. as it, margin year, to missed then any And color margin have seeing think you we from it. also should Got gain we you mentioned and mix but maybe forward how on can demand sale. in look And can kind of provide of factor this XX% you're the kind on types

Peter Juhas

Yes.

seen selling really by engines aircraft across one been strong much that hasn't all pretty margin So it particular. in the so driven area we've across board, been types well, any and asset the -- a we've

change to we is As out, look XXXX. mix I significantly the going in don't think

quarter, be year. high the above, I hard will we the say. gains XX% normal. to full think much fourth sale this how higher the probably That's XX% year, in for long-term that far it's above obviously, do very than on the but averages, were Look,

Operator

The with Cowen. next TD question's from Moshe Orenbuch

Moshe Orenbuch

your X, Great. got you're approach. for can I or guidance at questions for pretty at rents, commentary little from your maybe and other given XXXX higher $X.X the $X.X But unpack bit lease you billion quarter, leasebacks been levels Can mean right? opportunities And call what's renewals by if couple feels the sale of billion? a that obviously, And about it's about not. is Pete, of just million. like better you and the inherent conservative the kind as just in is of during you've of last as in same kind the simply it's kind multiply than you talk it out conservative there, at lease potential fourth well things. look whether that $X.X that just always the

Peter Juhas

Sure, Moshe.

So that And the at really really, gradual place environment, lease basic a a are what now increase we're expecting rates we takes in rents. to of putting is steady roll that's for quarter-by-quarter given it a but through kind higher to due of of while portfolio. good the that leases the progression

And beyond really. so throughout to I the and year expect progression next continue would steady

Moshe Orenbuch

venture joint mean you've think got million know in and for that been kind think service, much something XXXX? you've Gus business. I talked the about less I income, looking I kind that at one I time of engine looking alluded $XXX and benefit And a are of it's to leasing Great. that's at only the spending the things that planes of your in the

Just the bit talk leasing business outlook and a about for. engine little your

Peter Juhas

can can generally. comment it line Maybe the on that -- Sure. talk guidance, about I'll then I Gus item, and

$XXX income guidance the million from million, So if XXXX, method Moshe, $XXX was $XXX equity in to our million. look, investments you and was net

from it level that deals these engines receiving that we've deals, them changed close full these engine maintenance new The are worth SES we've so life has that of done XXXX. of we and the done monthly here to some So new engine as terms thing is receiving rather of is lease. that than that's end of at CFM, the one noting

engines is to that's us life the revenue means course recognizing you're shopping result, not of during think economic condition. maintenance it But lease. full frankly. are they them So returning better the and a We what the in that

at You've basically. but item. the that lease And that's what got explains it's the a lower of better engine maintenance end monthly revenue, line

Aengus Kelly

very rightly engine point that the mean, industry. assets, a and you we out, unique these desirable As I position occupy it are is the business, in

Operator

is The O'Brien Sachs. next question with from Catherine Goldman

Catherine O'Brien

as So you have be I of XX-F, know these I XX-F they XXX these just between once leases as we'll XXXX get we aircraft XXXX new to today's XX% leases COVID for passenger your of year-end as you expiring at to with your of us and rates get to later era about are through percentage rates? think Can you -- already. ones are morning that's the leases? what of some these move could going But renegotiated the change had COVID figures fleet. help And aircraft this XXXX what XXXX think these upside to lease

Aengus Kelly

about to aircraft, of if X is term numbers lease specific years. the generally The our think you average X just fleet,

repricing of given any So in capable that's have you year. what

so would about I it. how think that's And

all to were happen term will the over look you leases it at If X-year the to that's period. a reprice,

Peter Juhas

just -- XXXX. just from those year And expect leases Catie, now you maybe say, XXXX, the pretty it's helpful at a off we COVID to X.X generally, out going much about run to until, if look era

a takes be a tailwind forward. going through, will us it that it while to for So but come for

Catherine O'Brien

the another maybe then engines. And one Great. on Okay. just

and us engine investment that Can of today. is in billion incremental driving gap the walk the in market demand what $X another is in you announced commitments well You course, through supply engines, documented. of

just and engines from long the than better in are capital backlog on today's aircraft standpoint. like is turn is aircraft of make is too So economics that it engines aircraft? Or sense more buying it pricing and a for

between the Just economics any to very the dollars comparison be and engine aircraft the why thoughts incremental on helpful. going and would of today are engines

Aengus Kelly

the aftersales its got engine as the I partner product engine think, position to to OEM of that Catie, a to look OEM Well, at in gives the the business customers. part Sure. our you've providing

So one the logistics vast businesses every that in is week at leasing respects, is one world the the the of SCS, have, engines are you around numbers a in-house we many moving is where engine instruction of OEM. business,

XX payment and So from leasing. And take we a a engine is Saigon, the need business get the to infrastructure been position has It's over back we're to up Tokyo, from business of have one years back where it's one take built around New get Friday since have unique to told one that's get the type you a call world Delhi. we on different it more a a rapidly began one infrastructure to to the that candidly York, to different has structure. if from move engines another by to OEM,

that what does. That's business

So straightforward slightly a different a type significantly business. different business business or financing of it's from

And so value our add OEMs after ability to and we unique sales there the service. is

when get So it's a the opportunity business. you And that, very type grow different where of grow. to want to we that's

Catherine O'Brien

count. billion by math assume a buybacks? is to earlier question too $X.XX one maybe I include share $X.XX one. the in more Just maybe XQ you EPS follow-up not Pete, am income this gets And your I could to that modeling but to an dividing any $X.X Great. in quick net sneak simple, right does

So any on more help announced. there? largest it's And generally, the just authorization then ever repurchase your

buyback the large what think we Or drove of piecing? comment a that else as on announcement? Should

Peter Juhas

as authorization. of kind deploying midpoint fully full the just that at assuming would the that range, of we're I think that -- Well, of it that's Sure.

around midpoint low contingencies the So obviously, standpoint. to is deploying range a from way really one that's right? we it it it's way So think in just about built more or is just other to best think have fully probably modeling we're a the that there, -- end about not

coming pace And kind then that. capital if in as to done we've I terms assuming with these one look, -- in, of figure before, the we're of get And more certainly, been then have excess if we buybacks, of that. out ways we we'll capital key of the of referenced is for shareholders now. only to do what return to has outperform But that can projections, this

that assume available. But continue. to reasonable look that at we would it's think Sure. all we opportunities are obviously, I So

Operator

Kelly, no for additional further turn closing at remarks. time, Mr. conference back this at will or this you to questions the time. are There I any

Aengus Kelly

everyone, to the to for forward months. we you, Thank much. you earnings Thanks and and thank full us very for in our you, joining look call, talking operator, coming year

Operator

This call. you your participation. Thank concludes for today's

disconnect. now may You

AerCap (AER) 26 Feb 252024 Q4 Earnings call transcript