NYSE$AL

Air Lease Corporation · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported strong second-quarter results driven by new aircraft deliveries and gains from aircraft sales.

Air Lease Corporation (ALC) announced positive financial results for Q2 2023, driven by new aircraft deliveries exceeding expectations and gains from higher volumes of aircraft sales. Lease rates continue to strengthen and demand for both aircraft leasing and sales remain robust.

  • Took delivery of 19 aircraft from orderbook, representing approximately $1.5 billion in aircraft investments, ending the period with approximately $30 billion in total assets.
  • Sold eight aircraft with a carrying value of approximately $600 million during the quarter, resulting in $45 million in gains from aircraft sales.
  • Placed 100% of contracted orderbook positions on long-term leases for aircraft delivering through the end of 2024 and have placed 58% of entire orderbook.
  • Ended the quarter with $29.6 billion in committed minimum future rental payments.

Headline financials

Total Revenue

$673M

Previous: $558M+20.7%
EPS (adj)

$1.58

Previous: $1.39+13.7%
Net book value fleet

$25.5B

Previous: $23.5B+8.5%
Weighted avg fleet age

4.5

Previous: 4.4+2.3%
Weighted avg lease term

7.2

Previous: 7.1+1.4%
Capital Expenditures

-$126M

Previous: -$107M-17.7%
Free Cash Flow

$6.86M

Previous: $9.62M-28.7%
Net Income

$132M

Previous: $116M+13.9%
Operating Income

$164M

Previous: $145M+13.1%
Gross Profit

$673M

Previous: $558M+20.7%
Cash & Equivalents

$577M

Previous: $1.01B-43.1%
Total Assets

$29.8B

Previous: $27.6B+7.6%
Stock-Based Comp

$8.72M

Previous: $6.56M+32.9%

Revenue & EPS history

ALC · Revenue · Quarterly

$673M

Q2 2023+20.7%vs Q2 2022
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

ALC · $561M total across 1 segment · Q4 2022

  • Rental of flight equipment
    $561M

Forward guidance

The press release contains forward-looking statements regarding the state of the airline industry, access to capital and debt markets, the impact of Russia’s invasion of Ukraine, aircraft and engine delivery delays, the aircraft sales pipeline and expectations, the impact of inflation, rising interest rates and other macroeconomic conditions.

Tailwinds

  • Continuing demand for aircraft leasing and sales.
  • Strong lease rates.
  • Expected gains from aircraft sales.
  • Continued growth in the fleet.
  • Benefits from new aircraft deliveries.

Headwinds

  • Inability to obtain additional capital on favorable terms.
  • Increases in cost of borrowing or changes in interest rates.
  • Failure of aircraft or engine manufacturer to meet its delivery obligations.
  • Obsolescence of, or changes in overall demand for, aircraft.
  • Impaired financial condition and liquidity of lessees.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+1.3%

Avg return

Earnings day

+0.2%

Avg return

5 days after

+1.2%

Avg return

30 days after

62%

39 / 63 earnings

Positive

+15.5%

Q1 2020

Best reaction

-17.2%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026
Q4 2025+0.1%+0.2%-0.1%
Q3 2025-0.3%-0.1%+0.1%
Q2 2025-0.4%+0.7%+15.4%
Q1 2025+8.1%+10.0%+17.0%
Q4 2024+6.7%+10.3%-0.7%
Q3 2024-0.5%+2.2%+5.7%
Q2 2024-17.2%-14.6%-6.8%
Q1 2024-7.0%-4.5%-8.7%
Q4 2023-2.9%-4.1%+11.4%
Q3 2023-1.2%+1.4%+5.7%
Q2 2023-0.9%+0.9%-1.4%
Q1 2023-3.4%-5.9%-5.5%
Q4 2022-4.2%-6.2%-18.5%
Q3 2022+1.3%+2.9%+12.7%
Q2 2022+2.1%+0.8%-3.5%
Q1 2022-6.6%-11.7%-8.8%
Q4 2021+2.5%+2.1%-4.0%
Q3 2021+10.1%+11.6%-8.1%
Q2 2021+1.0%+1.0%-3.6%
Q1 2021-9.1%-7.6%-3.9%
Q4 2020+4.0%+2.0%+3.8%
Q3 2020+10.6%+15.4%+34.5%
Q2 2020+5.1%+10.7%+13.3%
Q1 2020+15.5%+1.7%+49.3%
Q4 2019-4.0%-3.4%-47.5%
Q3 2019-1.1%-1.6%+1.3%
Q2 2019+3.6%+0.7%+8.2%
Q1 2019+1.5%+0.5%+0.5%
Q4 2018-0.2%-0.5%-14.7%
Q3 2018-0.2%-3.7%-10.2%
Q2 2018+1.7%+1.8%-0.4%
Q1 2018-0.6%+0.6%+1.8%
Q4 2017+1.5%-3.1%-8.5%
Q3 2017+1.3%-3.2%+2.8%
Q2 2017+8.3%+8.1%+3.0%
Q1 2017-4.5%-7.5%-0.8%
Q4 2016-4.7%-2.6%-5.6%
Q3 2016+4.7%+4.8%+16.3%
Q2 2016+1.5%-0.4%+4.8%
Q1 2016+6.3%
Q4 2015+2.5%
Q3 2015+5.1%
Q2 2015+3.4%
Q1 2015+0.1%
Q4 2014-1.3%
Q3 2014+1.1%
Q2 2014+4.9%
Q1 2014+3.6%
Q4 2013+5.2%
Q3 2013+3.4%
Q2 2013-1.5%
Q1 2013+2.0%
Q4 2012+5.9%
Q3 2012+2.8%
Q2 2012-0.6%
Q1 2012-6.2%
Q1 2011-6.2%
Q4 2011+1.8%
Q3 2011+2.6%
Q3 2010+2.6%
Q2 2010+7.1%
Q2 2011+7.1%
Q4 2010+7.1%
Q1 2010

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