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.

• Excluding flight equipment sales, Q4 revenue increased 9.8%, reflecting growth in component MROs, USM, and leasing.

• Full year 2025 revenue was $335.3 million, down 2.8% year-over-year, but adjusted EBITDA increased 38.2% to $46.1 million, supported by efficiency initiatives and favorable product mix.

• Adjusted net income for 2025 was $15.8 million, with adjusted diluted EPS of $0.33, both showing significant year-over-year growth.

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

Financial highlights

• 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% in Q4 2024; full year gross margin was 31.5%, up from 30.1%.

• Year-end liquidity: $71.6 million, including $4.4 million in cash and $67.2 million revolver availability.

• Year-end inventory: $364 million, with $150 million ready for USM and $118 million in whole assets.

Outlook and guidance

• 2026 expected to be a growth year for both revenue and profitability, driven by expanded MRO capacity, USM sales, and AerSafe demand ahead of the FAA’s FQIS AD deadline.

• Largest AerSafe sales expected in 2026, with backlog already exceeding prior year.

• Management expects continued growth in USM, leasing, and MRO activities, leveraging strong inventory and expanded MRO capacity.

• Anticipates steady incremental improvements as new revenue streams ramp up and efficiency initiatives continue.

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