AerSale (ASLE) Q4 2025 earnings summary

Executive summary

• Fourth quarter 2025 revenue was $90.9 million, down 4% year-over-year, mainly due to fewer flight equipment sales, but adjusted EBITDA rose 17.1% to $15.2 million.

• Full-year 2025 revenue was $335.3 million, a 2.8% decrease, but adjusted EBITDA increased 38.2% to $46.1 million, driven by higher volumes, favorable mix, and efficiency gains.

• Net income for Q4 2025 was $5.4 million, up from $2.7 million in Q4 2024; full-year net income was $8.6 million, up from $5.9 million.

• Growth in recurring business lines (USM, leasing, MRO, AerSafe) offset volatility in flight equipment sales.

• Strategic facility expansions and new product approvals position the company for significant incremental revenue in 2026.

Financial highlights

• Q4 2025 revenue was $90.9 million, including $20.9 million in flight equipment sales (4 engines), compared to $94.7 million in Q4 2024 (6 engines).

• Q4 2025 adjusted EBITDA was $15.2 million (16.7% margin), up 17.1% year-over-year.

• Full-year adjusted EBITDA was $46.1 million (13.8% margin), up from $33.4 million (9.7% margin) in 2024.

• Gross margin for Q4 2025 increased to 34.1% from 31.4%; full-year gross margin was 31.5%, up from 30.1%.

• Adjusted diluted EPS for the year was $0.33, up from $0.18 in 2024.

Outlook and guidance

• 2026 expected to be another growth year for both revenue and profitability, with incremental improvements as new revenue streams and efficiency initiatives ramp up.

• Anticipates continued strong AerSafe sales ahead of the FAA’s November 2026 FQIS AD compliance deadline.

• Plans to deploy all remaining 757 freighters in 2026, with two under letters of intent at year-end.

• Facility expansions and new MRO capabilities expected to exceed prior incremental revenue estimates of $50 million annually.

• Management focus remains on monetizing inventory and building long-term shareholder value.