AerSale 2025 Q3 Earnings Net Loss Widens 123.6% Amid Revenue Drop

AerSale (ASLE) reported Q3 2025 earnings that missed Wall Street expectations, with revenue declining 13.9% year-over-year to $71.2 million and a net loss of $120K versus $509K in the prior year. The company maintained stable EPS at $0.00 but acknowledged challenges from the absence of aircraft or engine sales. Management emphasized optimism about long-term lease revenue and margin expansion despite near-term volatility.

Revenue

AerSale’s Q3 revenue fell 13.9% to $71.19 million, driven by the absence of aircraft or engine sales, which totaled $22.6 million in the prior-year quarter. Excluding whole-asset transactions, core operations grew 18.5% to $71.2 million, supported by strong USM (used serviceable material) sales and higher leasing activity. Asset management revenue declined to $39.2 million, but segment growth excluding whole-asset sales reached 40.9%, reflecting robust demand for 757 freighter conversions and leasing. Tech ops revenue stabilized at $32 million, bolstered by MRO activity at Goodyear and Roswell facilities.

Earnings/Net Income

AerSale reported stable EPS at $0.00, but net income deteriorated to a $120K loss, a 123.6% decline from $509K in 2024 Q3. Adjusted EBITDA improved to $9.5 million (13.3% margin), up from $8.2 million, driven by cost reductions and higher leasing margins. Despite operational efficiency, the absence of high-margin sales and increased supply chain constraints pressured profitability. The net loss highlights the volatility inherent in the company’s business model.

Post-Earnings Price Action Review

The strategy of buying AerSale shares following revenue announcements and holding for 30 days yielded a 17.98% cumulative return over three years, with an average annual return of 6.06%. This suggests a medium-term investment potential despite short-term volatility. However, recent price action has been mixed, with a 7.81% intraday gain offset by a 22.51% month-to-date decline.

CEO Commentary

CEO Nicolas Finazzo highlighted strategic growth in lease pool expansion, contributing to EBITDA margin expansion despite no aircraft or engine sales in Q3. Operational stability was emphasized through the placement of an additional 757 freighter on lease and strong customer interest in converted aircraft. Momentum at the Goodyear MRO facility and confidence in AerSafe™ demand driven by regulatory deadlines were key themes.

Guidance

AerSale anticipates higher lease revenue from its expanded 757 freighter fleet and continued demand for AerSafe™ products through 2026. The company expects extended MRO activity at Goodyear and operational stability via lease-focused strategies. While forward-looking statements remain cautious on quarterly revenue volatility due to flight equipment sales, confidence in margin expansion and asset deployment efficiency persists.

Additional News

AerSale’s Q3 2025 earnings call highlighted progress on expansion projects at aerostructures and pneumatics facilities, expected to drive revenue growth in 2026. The company reported a $371.1 million feedstock inventory, supporting future USM and leasing activities. Roswell facility results declined due to a transition to tear-down and decommissioning work, while Goodyear’s MRO capacity nears full utilization. Management also noted delays in engine repairs, impacting availability for sale or lease, but expects resolution by Q1 2026.