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- **Core growth despite headwinds**: Q3 revenue down 14% YoY due to no whole asset sales, but core business (USM + leasing) up 18.5% YoY
- **Margin expansion**: Adjusted EBITDA margin 13.3% vs 10.0% YoY, driven by cost cuts and higher-margin teardown work
- **MRO growth pipeline**: 2026 MRO revenue target $25 million (vs $50 million full capacity)
- **757 P2F momentum**: 1 aircraft leased Q3, 2 under LOI, 3 remaining to place
- **Engine demand surge**: Insatiable demand for narrow-body and wide-body engines, with 6-12 month lead times

**【CEO Summary Section】**
- Q3 2025 revenue: $71.2 million (down 14% YoY) due to absence of engine/aircraft sales, which contributed $22.6 million in Q3 2024.
- Core business growth: Excluding whole asset sales, revenue grew 18.5% YoY to $71.2 million, driven by:
  - USM (Used Serviceable Material) sales: +40.9% YoY
  - Leasing revenue: 15 engines and 1,757 freighter aircraft on lease
- Margin improvement: Adjusted EBITDA $9.5 million (13.3% of sales vs 10.0% YoY), despite no whole asset sales
- Inventory strength: $371.1 million feedstock, including 9 engines available for sale/lease
- 757 P2F program: 1 aircraft leased Q3, 2 under LOI, 3 remaining to place
- AerSafe: $22 million delivered YTD, backlog secured for 2025 targets
- MRO expansion: New facilities at Goodyear, Millington, and Roswell nearing full production

**【CFO Financial Commentary】**
- Q3 2025 financial highlights:
  - Revenue: $71.2 million (vs $82.7 million YoY)
  - Gross margin: 30.2% (vs 28.6% YoY)
  - SG&A: $18.6 million (down 14% YoY)
  - Operating income: $2.9 million (vs $2.0 million YoY)
  - Adjusted EBITDA: $9.5 million (vs $8.2 million YoY)
  - Liquidity: $58.9 million (cash $5.3 million + $53.6 million revolver)
- 2026 outlook:
  - MRO expansion to add $25 million revenue and $4-5 million EBITDA
  - Full year 2026 MRO capacity: $50 million revenue
  - Engine shop delays causing 6-12 month lead times

**【Q&A Key Highlights】**
1. MRO Expansion:
   - 2026 MRO revenue target: $25 million (vs $50 million full capacity)
   - Millington facility signed LOI for regional carrier fleet program
2. 757 P2F Progress:
   - 1 aircraft leased Q3, 2 under LOI, 3 remaining
   - No direct competitors for 757 freighter performance
3. Engine Demand:
   - Insatiable demand for narrow-body (737NG, A320) and wide-body (PW4000, CF6-80) engines
   - Preference for long-term leases over cash sales
4. Facility Transitions:
   - Roswell fully transitioned to teardown/decommissioning
   - Goodyear near full capacity with short-term A320neo work
   - Millington to start with regional carrier program

AerSale Corporation (ASLE) Q3 2025 Earnings Call Transcript

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