AerSale (ASLE) Jefferies Global Industrial Conference 2024 summary

Investment case and business model

• Achieved a 10-year compound annual growth rate of 6.7% through a diverse platform and three MRO expansion projects expected online by 2025.

• Asset management monetizes mid-life equipment via sales, leasing, and used serviceable material (USM), while engineered solutions offer long-term growth and margin expansion.

• Integrated model supports the full aircraft lifecycle, including storage, restoration, reconfiguration, and recycling.

• Two-thirds of customers use multiple services, broadening the customer base across airlines, lessors, MROs, and brokers.

• Capital deployment is disciplined, targeting a 25% IRR, with $1.5 billion deployed and a realized IRR of 24.8%.

MRO and TechOps expansion

• Three major CapEx projects totaling over $25 million are expanding MRO capabilities, including a new 90,000 sq ft structures shop and a 112,000 sq ft facility in Millington, TN.

• Pneumatics and structures expansions are scheduled to come online in Q4, with Millington expected to contribute in 2025.

• Investments target both mid-life and new technology aircraft, supporting future market needs.

• Increased throughput in MRO units is expected to drive higher margins and revenue.

Engineered solutions and product innovation

• Engineered solutions address regulatory mandates and efficiency, with products like AerSafe and AerTrak achieving strong margins and industry attention.

• AerAware, leveraging military technology, enhances pilot visibility and safety, appealing to airlines facing pilot transitions.

• Engineering is central to monetizing used equipment and differentiating offerings.