AerSale (ASLE) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue was $71.2 million, down from $82.7 million year-over-year, mainly due to the absence of engine or aircraft sales compared to five engine sales in the prior year period; core business revenue excluding whole asset sales grew 18.5%.

• Adjusted EBITDA improved to $9.5 million (13.3% margin) from $8.2 million (10.0% margin) year-over-year, reflecting higher leasing, USM activity, and cost reductions.

• Net loss for Q3 2025 was $0.1 million versus net income of $0.5 million in Q3 2024; adjusted net income was $1.5 million, down from $1.8 million.

• Strategic focus on recurring revenue streams, feedstock acquisitions, and facility expansions positions the company for stable, diversified growth into 2026.

• Placed a second 757 freighter on lease and increased focus on leasing for more stable performance.

Financial highlights

• Gross margin improved to 30.2% from 28.6% year-over-year, driven by improved sales mix, higher leasing revenue, and cost controls.

• Operating income rose to $2.9 million from $2.0 million year-over-year.

• SG&A expenses reduced to $18.6 million from $21.7 million, reflecting cost control initiatives.

• Cash and cash equivalents at quarter-end were $5.3 million, with total liquidity of $58.9 million.

• Repurchased 6.4 million shares for $45 million in Q1 2025.

Outlook and guidance

• Excluding flight equipment sales, full-year revenue is expected to exceed 2024 levels, with a greater increase in EBITDA year-over-year.

• Facility expansions and a robust lease pool are expected to drive revenue and margin growth in 2026.

• Strong customer interest in remaining 757 converted aircraft and AerSafe™ products, with demand expected through Q3 2026 due to regulatory compliance deadlines.

• Management believes current liquidity and credit facilities are sufficient for operations over the next twelve months.