Air Lease Corporation (NYSE: AL) saw its stock plummet 7.36% in after-hours trading on Tuesday, despite reporting strong second-quarter results that surpassed analyst expectations in several areas. The aircraft leasing company's mixed financial results, which included a significant earnings beat but a miss on adjusted EPS, seem to have left investors uncertain about the company's near-term prospects.

For Q2 2025, Air Lease reported revenues of $731.7 million, marking a 9.7% increase from the same period last year and beating the analyst consensus estimate of $720.96 million. The company's net income soared to $374 million, or $3.33 per diluted share, compared to $90.4 million in the previous year, representing a remarkable 313.8% increase. However, the adjusted earnings per share of $1.40, while up 13.82% year-over-year, missed the analyst estimate of $1.69 by 17.21%.

The company attributed its strong performance to fleet expansion, higher end-of-lease revenue, and substantial recoveries related to the Russian fleet write-off. Notably, Air Lease recorded a $344 million insurance claim settlement related to its former Russian fleet, which significantly boosted its bottom line. Despite the positive financial results and the company's optimistic outlook on robust aircraft demand supporting margin expansion, the market's after-hours reaction suggests investors may be concerned about the sustainability of such one-time gains and the company's performance excluding these exceptional items. The miss on adjusted EPS expectations could also be contributing to the negative sentiment, as it may indicate underlying challenges in the core business operations.