AerCap Holdings N.V. (NYSE:AER) Q4 2023 Earnings Call Transcript
AerCap Holdings N.V. (NYSE:AER) Q4 2023 Earnings Call Transcript February 23, 2024
AerCap Holdings N.V. isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Operator: Good day and welcome to the AerCap Holdings NV fourth quarter 2023 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’d like to turn the conference over to Joseph McGinely, Head of Investor Relations. Please go ahead, sir.
Joseph McGinely: Thank you Operator and hello everyone. Welcome for our fourth quarter 2023 conference call. With me today is our Chief Executive Officer, Aengus Kelly, and our Chief Financial Officer, Pete Juhas. Before we begin today’s call, I would like to remind you that some statements made during this conference call which are not historical facts may be forward-looking statements. Forward-looking statements involve risks and uncertainties that may cause actual results or events to differ materially from those expressed or implied in such statements. AerCap undertakes no obligation, other than that imposed by law, to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after this call.
Further information concerning issues that could materially affect performance can be found in AerCap’s earnings release dated February 23, 2024. A copy of the earnings release and conference call presentation are available on our website at aercap.com. This call is open to the public and is being webcast simultaneously at aercap.com and will be archived for replay. We will shortly run through our earnings presentation and will allow time at the end for Q&A. As a reminder, I would ask that analysts limit themselves to one question and one follow-up. I will now turn the call over to Aengus Kelly.
Aengus Kelly: Thank you for joining us for our fourth quarter 2023 earnings call. I am pleased to report another year of record earnings for AerCap. We generated GAAP net income of $3.1 billion and earnings per share of $13.78. Adjusted net income came in at $2.4 billion and adjusted EPS at $10.73, and we generated a record operating cash flow of $5.3 billion. We expect to see a continuation of the trends in 2024 that we observed last year in terms of the supportive supply-demand dynamics, continued accretive capital deployment and demand for our assets, leading to an EPS range of $7.50 to $8.50; however, this does not include the impact of any gain on sale which historically has been significant. Given the continued strength of the business and consistent cash generation, I am also pleased to announce another $500 million share repurchase program, taking total authorizations in the last 12 months to over $3 billion.
We continue to see tremendous value in the stock today and this latest authorization underscores our confidence in the outlook for 2024 and beyond. As we have consistently said for some time, demand continues to outstrip supply for aircraft, for engines and for helicopters. We expect this dynamic to persist for many years. The largest global leasing conference was just hosted in Dublin and attracted over 5,000 people to the event. It was clear from the many conversations we had with airlines, aircraft traders and financiers that demand for aviation assets continues to grow. Unsurprisingly, the main concern for airlines at the moment is around sourcing lift and the reliability of their fleet, so in tandem with our engine leasing business, we are in a unique position to offer multi-faceted solutions, putting us in a very envious position.
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