Air Lease Corporation (NYSE: AL) saw its stock price plummet 5.31% during Tuesday's trading session, following a 7.36% drop in after-hours trading on Monday. The sharp decline comes in the wake of the company's second-quarter earnings report, which presented a mixed picture of its financial performance.

Despite reporting strong overall results for Q2 2025, including a 9.7% increase in revenues to $731.7 million and a substantial 313.8% surge in net income to $374 million, investors appeared to focus on the company's failure to meet adjusted earnings per share (EPS) expectations. Air Lease reported an adjusted EPS of $1.40, up 13.82% year-over-year, but falling short of the analyst estimate of $1.69 by 17.21%.

The market's negative reaction seems to stem from concerns about the sustainability of Air Lease's impressive bottom-line growth, which was largely driven by a one-time $344 million insurance claim settlement related to its former Russian fleet. Investors may be questioning the company's core business performance when excluding such exceptional items. Additionally, the miss on adjusted EPS estimates could be interpreted as a sign of underlying challenges in the aircraft leasing company's operations, despite management's optimistic outlook on robust aircraft demand supporting margin expansion.