### At a GlanceAerCap reported second-quarter GAAP net income of $726 million, adjusted net income of $811 million, or $5.14 per share, and an adjusted ROE of 18%. Management raised its full-year adjusted EPS guidance to approximately $16.80, driven primarily by higher-than-expected asset sale gains in the first half.

Key Data: Adjusted EPS of $5.14 (no direct year-over-year comparison); repurchased 6% of outstanding shares in the first half; full-year adjusted EPS guidance raised to approximately $16.80.

Business Progress: The quarter saw the sale of 38 owned assets, generating $1.4 billion in revenue, with an unlevered sale margin of 20%. The company continues to expand its fleet of new, fuel-efficient aircraft and has placed new orders with Airbus and Boeing. It conducted extensive evaluations in the aviation derivatives space (used for data center power generation) but has not yet identified a long-term strategic partner, emphasizing the need to ensure reliability and long-term demand.

Guidance & Outlook: Management raised its full-year 2026 adjusted EPS guidance to approximately $16.80 (from $14.50 previously), which includes $2.80 in first-half sale gains but assumes no sale gains in the second half. Full-year asset sale volume is expected to be in the $4 billion to $5 billion range. Net lease yield increased 30 basis points year-over-year, and net interest margin rose 50 basis points, with further improvement expected in coming quarters.

Risk/Highlight Signals: Management remains cautious on aviation derivatives opportunities, stating the need to find the right partner and ensure long-term value. It also noted that rising oil prices could impact the profitability of some airlines, though the global aviation industry remains healthy overall.