AerCap Holdings N.V. (AER) Q3 2022 Earnings Call Transcript

For the period ending September 30, 2022

November 4, 2022 8:30 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good day and welcome to AerCap's Third Quarter 2022 Financial Results. Today’s conference is being recorded and a transcript will be available following the call in the company’s website.

At this time, I'd 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. Welcome to our third quarter 2022 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 November 3, 2022. A copy of our 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 we'll allow time at the end for Q&A. As a reminder, I would ask that analysts limit themselves to one question and one follow.

I will now turn the call over to Aengus Kelly.

Aengus Kelly

Thank you for joining us for our third quarter 2022 earnings call. We are pleased to report another quarter of strong earnings for AerCap. During the third quarter, we generated $2.21 of adjusted earnings per share and adjusted net income of $537 million. We generated strong net income and cash flow and achieved our target leverage ratio well ahead of our expectations. As a result, we are raising our full year EPS guidance from a range of $6.50 to $7 to a range of $8 to $8.50.

As we've discussed in prior quarters, the environment for aircraft leasing continues to strengthen and we are seeing this reflected in our financial results. On the operational side, the impact of this strengthening demand is clearly evident. The best indication of this was in the execution of a record 255 transactions in the third quarter. This included lease agreements for 137 aircrafts, 24 helicopters and 23 engines. We also completed the purchase of 15 aircraft, 16 engines and three helicopters, and sold 21 aircraft, 13 engines and three helicopters.