Air Lease 2025 Q1 Earnings Strong Performance with Net Income Up 248%

Air Lease (AL) reported its fiscal 2025 Q1 earnings on May 05th, 2025. The total revenue of Air Lease increased by 11.3% to $738.28 million in 2025 Q1, up from $663.31 million in 2024 Q1. Air Lease's EPS rose 271.6% to $3.27 in 2025 Q1 from $0.88 in 2024 Q1, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $375.83 million in 2025 Q1, marking 248.4% growth from $107.87 million in 2024 Q1. Air Lease achieved record levels in total revenue and net income, beating expectations. The outlook for aircraft deliveries and lease rates remains positive, with guidance in line with previous forecasts.

Revenue

The total revenue of Air Lease increased by 11.3% to $738.28 million in 2025 Q1, up from $663.31 million in 2024 Q1.

Earnings/Net Income

Air Lease's EPS rose 271.6% to $3.27 in 2025 Q1 from $0.88 in 2024 Q1, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $375.83 million in 2025 Q1, marking 248.4% growth from $107.87 million in 2024 Q1. Remarkably, in 2025 Q1, the company set a new record high for fiscal Q1 net income, the highest in 15 years. The EPS performance indicates robust earnings growth driven by strategic fleet expansion and significant insurance settlements.

Price Action

The stock price of Air Lease has edged up 2.37% during the latest trading day, has climbed 5.45% during the most recent full trading week, and has edged down 2.40% month-to-date.

Post-Earnings Price Action Review

In the wake of Air Lease’s fiscal 2025 Q1 earnings report, the stock price showed fluctuating movements. The backtest results indicate that the 3-Day win rate for revenue, net income, and EPS is 52.38%, suggesting that approximately half of the time, the stock price increases within three days after the earnings report. The 10-Day win rate is slightly lower at 47.62%, while the 30-Day win rate aligns with the 3-Day win rate at 52.38%. The maximum return observed was 7.03% over 30 days, highlighting the potential for gains, though the overall impact remains relatively modest. This analysis indicates that while positive earnings reports can lead to stock price increases, the overall effect on Air Lease’s stock remains moderate, reflecting the market’s balanced response to earnings announcements.

CEO Commentary

John Plueger, CEO and President, highlighted that Air Lease achieved revenues of $738 million and diluted earnings per share of $3.26 during Q1 2025, driven by fleet expansion and significant insurance settlements of $329 million. He noted the record levels in total revenue, fleet net book value, and book value per common share. While expressing optimism, he acknowledged challenges, such as rising interest expenses and delays from Airbus on future aircraft deliveries. Plueger emphasized the ongoing strong demand for aircraft, particularly outside North America, and reiterated the company's commitment to driving long-term shareholder value amid geopolitical uncertainties.

Guidance

Air Lease expects aircraft deliveries for 2025 to range between $3 billion and $3.5 billion, with approximately $800 million anticipated for Q2. The company anticipates around $1.5 billion in aircraft sales for the year, with $300 million expected to close in the second quarter. Plueger mentioned that the outlook for lease rates remains positive and indicated confidence in continued global demand for air travel, despite potential macroeconomic challenges.

Additional News

In recent developments, Air Lease announced the successful expansion of its fleet with the delivery of 14 new aircraft from its orderbook. This includes four Airbus A220s, eight Boeing 737-8s, one Boeing 737-9, and one Boeing 787-10. Furthermore, Air Lease completed the sale of 16 aircraft to third-party buyers, generating approximately $520 million in sales proceeds. The company also received an aggregate of $328.5 million in cash insurance settlement proceeds related to its fleet in Russia, highlighting its strategic management of fleet assets. Additionally, Air Lease increased its syndicated unsecured revolving credit facility to $8.2 billion, enhancing its financial flexibility and extending the final maturity to 2029.