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

AerSale’s Q3 2025 earnings fell short of expectations, with revenue declining 13.9% year-over-year to $71.19 million and a net loss of $120,000—marking a 123.6% deterioration from prior-year profits. The absence of aircraft or engine sales, a key revenue driver, contributed to the shortfall. Management emphasized progress in leasing and margin expansion but acknowledged challenges in supply constraints and operational transitions.

Revenue

AerSale’s Q3 2025 revenue totaled $71.19 million, a 13.9% decline from $82.68 million in the prior-year period. Product sales accounted for $36.97 million, driven by leasing activity and used serviceable material (USM) demand. Leasing revenue stood at $9.40 million, reflecting growth in asset deployment, while services revenue reached $24.82 million. The absence of whole asset sales—compared to five in 2024 Q3—significantly impacted results, though core operations showed resilience through higher-margin activities like MRO and AerSafe product deliveries.

Earnings/Net Income

Despite stable EPS of $0.00, AerSale reported a net loss of $120,000 in Q3 2025, a 123.6% deterioration from a net income of $509,000 in the prior-year period. The loss underscores the volatility of whole asset sales and operational challenges, though adjusted EBITDA improved to $9.5 million, reflecting cost discipline and leasing contributions.

Post-Earnings Price Action Review

A strategy of buying AerSale shares following revenue raise announcements and holding for 30 days yielded a cumulative 24.78% return over three years, outperforming the SPY ETF’s 13.17% return. The average 30-day return post-earnings was 11.97%, with the highest gain—23.46%—following Q2 2023 results. This outperformance highlights investor confidence in AerSale’s growth potential, though future success hinges on consistent revenue raises and market responsiveness.

CEO Commentary

CEO Nicolas Finazzo highlighted progress in expanding the lease pool and EBITDA margin expansion, despite the absence of aircraft or engine sales. The company is optimistic about higher lease revenue from 757 freighter placements and MRO pipeline momentum at the Goodyear facility. Finazzo emphasized AerSafe’s role in driving demand amid regulatory compliance deadlines, expressing confidence in operational stability and margin expansion.

Guidance

AerSale anticipates continued demand for AerSafe through Q3 2026 as operators meet FAA deadlines. The Goodyear MRO facility’s pipeline is projected to extend into 2026, with efforts to secure long-term contracts. Management reiterated confidence in leveraging higher-margin opportunities and asset deployment strategies but did not provide explicit revenue or EPS guidance.

Additional News

AerSale’s $371.1 million in feedstock inventory supports future growth, with disciplined acquisitions maintaining target margins. Expansion projects at aerostructures and pneumatics facilities are expected to drive 2026 revenue, while the Roswell facility transitions to higher-margin tear-down and decommissioning work. The company also reported a 40.9% year-over-year increase in segment revenue excluding whole asset transactions, driven by USM and leasing activity.

Earnings/Net Income

The EPS of $0.00 was stable year-over-year, but the net loss of $120,000 reflected a sharp decline in profitability, underscoring the company’s reliance on volatile whole asset sales and the challenges of operational transitions.