Air Lease Corp. (NYSE:AL) reported financial results for the fourth quarter and full year ended December 31, 2025, delivering a top and bottom line that handily exceeded analyst expectations. The aircraft lessor’s performance was bolstered by strong gains from aircraft sales and a significant one-time recovery related to its previously impaired Russian fleet.
Earnings and Revenue Performance
The company’s headline figures for the quarter showed robust growth, with both revenue and adjusted earnings per share coming in well above Wall Street forecasts.
- Revenue: Reported Q4 revenue was $820.4 million, a 15.1% increase year-over-year. This narrowly surpassed the analyst consensus estimate of approximately $820.6 million.
- Earnings Per Share (Adjusted): The standout metric was adjusted diluted earnings per share before income taxes, which came in at $2.20. This result significantly exceeded the analyst estimate of $1.22 per share, representing a beat of over 80%.
For the full fiscal year 2025, the company reported record total revenues of $3.02 billion, up 10.3% from 2024. Net income attributable to common stockholders was $1.04 billion, or $9.29 per diluted share, compared to $372.1 million, or $3.33 per share, in the prior year. The dramatic year-over-year increase was primarily driven by a $736.4 million net benefit from the settlement of insurance claims related to aircraft detained in Russia.
Market Reaction and Price Action
Following the earnings release, shares of Air Lease Corp. (NYSE:AL) experienced a slight decline in after-market trading. This muted reaction, despite the significant earnings beat, is likely attributed to the pending acquisition of the company. Air Lease noted in its release that the merger with Sumisho Air Lease Corporation, approved by shareholders in December 2025, is anticipated to close in the first half of 2026. During such pending transactions, stock price often becomes closely tethered to the acquisition terms rather than quarterly operational performance, which may explain the lack of a strong positive movement post-earnings.
Key Highlights from the Quarter
Beyond the headline numbers, the earnings release outlined several operational strengths:
- Record Sales Activity: The company sold 23 aircraft during the quarter for $1.0 billion in proceeds, generating $132 million in gains. This contributed heavily to the 90% year-over-year increase in "gain on aircraft sales and trading and other income."
- Fleet and Order Book: Air Lease ended the quarter with 490 owned aircraft, with a net book value of $29.1 billion. The company has 218 aircraft on order and reported that 99% of its orderbook is placed on long-term leases for deliveries through the end of 2027.
- Strong Balance Sheet: Total liquidity stood at $7.5 billion as of December 31, 2025. The company’s composite cost of funds was 4.15%, with 76.8% of its total debt at a fixed rate.
- Dividend: A quarterly cash dividend of $0.22 per share was declared, payable on April 7, 2026, to shareholders of record on March 2, 2026.
Looking Ahead
The press release did not provide formal financial guidance for the coming year, which is customary for a company involved in a pending merger. This leaves analysts' estimates as the primary benchmark for future performance. Currently, analysts project Q1 2026 revenue of approximately $790.3 million and full-year 2026 sales of around $3.20 billion.
Investors and analysts seeking a detailed breakdown of future earnings estimates and historical performance can review the data here.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
