📊 AL Key Takeaways
Is Air Lease Corp. (AL) a Good Investment?
Air Lease demonstrates exceptional fundamental strength with robust profitability (36.1% net margin, 45.4% operating margin) and substantial free cash flow generation ($1.5B FCF with 49.6% margin). The 810.5% revenue growth coupled with 179% EPS growth signals strong operational leverage and market demand, while the company maintains a healthy 7.0x interest coverage ratio despite significant leverage.
Air Lease Corp shows strong core profitability, with a 45.4% operating margin, 36.1% net margin, and solid cash generation reflected in $1.50B of free cash flow. Financial quality is supported by adequate interest coverage and positive earnings growth, but the balance sheet remains heavily levered with $19.73B of long-term debt, so the story depends on maintaining lease economics, funding access, and disciplined capital allocation.
Why Buy Air Lease Corp. Stock? AL Key Strengths
- Exceptional profitability with 36.1% net margin and 45.4% operating margin
- Strong free cash flow generation of $1.5B with 49.6% FCF margin demonstrates cash conversion efficiency
- Robust revenue growth of 810.5% YoY with EPS growth of 179% indicating operational leverage and market momentum
- Solid interest coverage ratio of 7.0x provides adequate debt servicing capability
- Positive operating cash flow of $1.7B substantially exceeds capital expenditure needs
- High insider activity with 26 Form 4 filings in last 90 days suggests management confidence
- High profitability with 45.4% operating margin and 36.1% net margin
- Strong cash generation, with $1.73B operating cash flow and $1.50B free cash flow
- Earnings remain positive and growing, with net income up 4.2% YoY and ROE at 12.8%
AL Stock Risks: Air Lease Corp. Investment Risks
- High financial leverage with 2.33x debt-to-equity ratio and $19.7B long-term debt representing 61% of total assets creates vulnerability to interest rate increases and economic downturns
- Extraordinary revenue growth of 810.5% may not be sustainable and could indicate one-time revenue recognition or business model shifts requiring validation
- Low ROA of 3.3% relative to asset base of $32.9B suggests capital intensity and potential asset quality concerns in equipment lease portfolio
- Equipment leasing industry exposure to cyclical economic conditions, airline/aviation sector volatility, and aircraft demand fluctuations
- Modest cash position of $466.4M represents only 1.4% of total assets, limiting financial flexibility despite strong cash generation
- High leverage, with debt/equity of 2.33x and $19.73B in long-term debt
- Low cash balance relative to asset base and debt load, at $466.41M
- Revenue growth appears unusually large versus modest net income growth, which may indicate lower-quality or non-recurring growth dynamics
Key Metrics to Watch
- Lease portfolio quality and default rates on aircraft equipment leases
- Ability to sustain high margins as revenue growth moderates to normalized levels
- Debt refinancing capacity and interest rate exposure on $19.7B long-term debt
- Free cash flow generation and capital allocation decisions (dividends vs debt reduction)
- Aircraft market conditions and utilization rates affecting lease valuations and revenues
- Interest coverage and debt refinancing profile
- Operating cash flow consistency relative to net income
Air Lease Corp. (AL) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 49.6% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
AL Profit Margin, ROE & Profitability Analysis
AL vs Industrial Sector: How Air Lease Corp. Compares
How Air Lease Corp. compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Air Lease Corp. Stock Overvalued? AL Valuation Analysis 2026
Based on fundamental analysis, Air Lease Corp. has mixed fundamental signals relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Air Lease Corp. Balance Sheet: AL Debt, Cash & Liquidity
AL Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Air Lease Corp.'s revenue has grown significantly by 231% over the 5-year period, indicating strong business expansion. The most recent EPS of $5.14 reflects profitable operations.
AL Revenue Growth, EPS Growth & YoY Performance
AL Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $44.5M | $102.9M | $0.82 |
| Q2 2025 | $53.0M | $102.9M | $0.81 |
| Q1 2025 | $49.0M | $107.9M | $0.87 |
| Q3 2024 | $55.3M | $102.9M | $0.82 |
| Q2 2024 | $57.8M | $102.9M | $0.81 |
| Q1 2024 | $18.4M | $107.9M | $0.87 |
| Q3 2023 | $19.9M | $110.4M | $0.90 |
| Q2 2023 | $12.4M | $116.3M | $0.95 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Air Lease Corp. Dividends, Buybacks & Capital Allocation
AL SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Air Lease Corp. (CIK: 0001487712)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Apr 14, 2026 | 8-K | d119227d8k.htm | View → |
| Apr 10, 2026 | 4 | xslF345X06/form4-04102026_090430.xml | View → |
| Apr 10, 2026 | 4 | xslF345X06/form4-04102026_090428.xml | View → |
| Apr 10, 2026 | 4 | xslF345X06/form4-04102026_090426.xml | View → |
| Apr 10, 2026 | 4 | xslF345X06/form4-04102026_090425.xml | View → |
❓ Frequently Asked Questions about AL
What is the AI rating for AL?
Air Lease Corp. (AL) has a Combined AI Rating of BUY from Claude (STRONG BUY) and ChatGPT (BUY) with 82% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AL's key strengths?
Claude: Exceptional profitability with 36.1% net margin and 45.4% operating margin. Strong free cash flow generation of $1.5B with 49.6% FCF margin demonstrates cash conversion efficiency. ChatGPT: High profitability with 45.4% operating margin and 36.1% net margin. Strong cash generation, with $1.73B operating cash flow and $1.50B free cash flow.
What are the risks of investing in AL?
Claude: High financial leverage with 2.33x debt-to-equity ratio and $19.7B long-term debt representing 61% of total assets creates vulnerability to interest rate increases and economic downturns. Extraordinary revenue growth of 810.5% may not be sustainable and could indicate one-time revenue recognition or business model shifts requiring validation. ChatGPT: High leverage, with debt/equity of 2.33x and $19.73B in long-term debt. Low cash balance relative to asset base and debt load, at $466.41M.
What is AL's revenue and growth?
Air Lease Corp. reported revenue of $3.0B.
Does AL pay dividends?
Air Lease Corp. pays dividends, with $98.3M distributed to shareholders in the trailing twelve months.
Where can I find AL SEC filings?
Official SEC filings for Air Lease Corp. (CIK: 0001487712) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AL's EPS?
Air Lease Corp. has a diluted EPS of $9.29.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is AL a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Air Lease Corp. has a BUY rating with 82% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is AL stock overvalued or undervalued?
Valuation metrics for AL: ROE of 12.8% (sector avg: 15%), net margin of 36.1% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy AL stock in 2026?
Our dual AI analysis gives Air Lease Corp. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is AL's free cash flow?
Air Lease Corp.'s operating cash flow is $1.7B, with capital expenditures of $237.7M. FCF margin is 49.6%.
How does AL compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 36.1% (avg: 10%), ROE 12.8% (avg: 15%), current ratio N/A (avg: 1.8).
Is Air Lease Corp. carrying too much debt?
AL has a debt-to-equity ratio of 2.33x, which is above the Industrial sector average of 0.7x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.