AerSale 2025 Q3 Earnings Net Loss Deteriorates 123.6% Amid Revenue Decline

AerSale’s Q3 2025 results fell short of expectations, with revenue declining 13.9% year-over-year and a net loss widening significantly. The company reported stable EPS but faced challenges in engine repairs and competitive feedstock markets. Management highlighted operational stability and growth in leasing and MRO segments, though no explicit guidance was provided.

Revenue

AerSale’s total revenue dropped 13.9% to $71.19 million in Q3 2025, compared to $82.68 million in the prior year. The decline was driven by the absence of aircraft or engine sales, which had contributed $22.6 million in Q3 2024. Product and leasing segments combined accounted for $46.37 million, while services revenue added $24.82 million.

Earnings/Net Income

Despite stable EPS of $0.00, AerSale reported a net loss of $120,000, a 123.6% deterioration from a net income of $509,000 in Q3 2024. The loss reflects operational challenges, including delays in engine repairs and higher feedstock costs.

Post-Earnings Price Action Review

The strategy of buying AerSale shares on revenue raise announcements showed a 24.8% cumulative return over three years, peaking at 31.5% in 2024. Recent inventory growth and expansion efforts, including a 757 freighter lease, position the company for potential gains. However, ongoing engine repair delays and competitive feedstock markets warrant caution.

CEO Commentary

CEO Nicolas Finazzo emphasized progress in leasing and MRO operations, noting a 757 freighter lease and strong demand at the Goodyear facility. He highlighted AerSafe’s regulatory-driven growth and EBITDA margin expansion despite the absence of asset sales.

Guidance

AerSale expects sustained demand for AerSafe through Q3 2026 and momentum in lease revenue from its expanded 757 fleet. The company anticipates operational stability and higher-margin opportunities but did not provide quantitative revenue or earnings guidance.

Additional News

Recent developments include the completion of aerostructures and pneumatics facility expansions, expected to boost 2026 revenue. The Roswell facility’s shift to tear-down activities and Goodyear’s near-full capacity for A320 recommissioning work underscore operational focus. Management also reiterated disciplined feedstock acquisitions, maintaining target margins despite a tight market.