AerSale's Q2 2025 Earnings Call: Unpacking Contradictions in Demand, Supply, and Growth Expectations

Demand and supply dynamics in the engine market, AerAware customer onboarding timeline, MRO investment and growth expectations, feedstock availability and market conditions, asset evaluation and impairment risk are the key contradictions discussed in AerSale's latest 2025Q2 earnings call.



Revenue and Sales Growth:
- AerSale Corp reported second quarter revenue of $107.4 million, a 33% increase from the previous year's $77.1 million.
- Growth was driven by an increase in flight equipment sales and higher sales growth from the USM business, reflecting better monetization of feedstock inventory.

Flight Equipment Sales and Inventory:
- Sales of flight equipment totaled $33.4 million, up from $17.9 million in the prior year, highlighting a significant increase in flight equipment transactions.
- The increase was attributed to a strong inventory position, improved feedstock acquisition, and greater sales execution.

Adjusted EBITDA Improvement:
- Adjusted EBITDA improved to $18.3 million, compared to $3.2 million in the prior year, reflecting stronger execution across the business and increased monetization of feedstock inventory.
- This improvement stems from higher revenue, increased flight equipment sales, and cost discipline initiatives implemented over the past year.

MRO Segment Performance:
- Revenue in the TechOps segment decreased by 11.9% year-over-year, but segment revenue rose by 17.1% from the first quarter of 2025, indicating a recovery from reduced activity at heavy MRO facilities.
- This recovery is due to efforts to secure long-term contracts and a focus on high-margin storage and dismantlement opportunities at the Roswell facility.