AerSale (ASLE) TD Cowen 46th Annual Aerospace & Defense Conference 2025 summary

Business overview and strategy

• Operates a vertically integrated, multidimensional platform focused on asset management and technical operations, enabling multiple value extraction methods from flight equipment.

• Asset management involves acquiring, breaking down, and monetizing aircraft and engines through sales, leasing, or conversion, while TechOps provides MRO services and engineered solutions for both owned and third-party assets.

• Integration across business units allows for effective cross-selling and differentiation from competitors, especially those lacking full integration.

• Focuses primarily on mid-life, mid-technology aircraft and engines, with global sales and MRO facilities supporting operations.

• Maintains disciplined acquisition strategy, targeting unlevered IRRs of 25% and annual feedstock acquisitions averaging $150 million, with flexibility to scale as opportunities arise.

Market conditions and competitive landscape

• Current market for narrowbody aircraft feedstock is extremely tight due to OEM production delays and engine issues, leading to high prices and limited availability.

• Competitors, often backed by private equity, are paying unsustainable prices for assets, lacking the integrated capabilities to extract full value.

• Anticipates a shift when OEMs catch up, leading to increased retirements, lower prices, and greater opportunities for value extraction.

• Integration and scale provide a competitive edge in large transactions and complex asset monetization.

Operational highlights and segment performance

• TechOps and MRO services are experiencing strong demand, driven by increased flying activity and need for maintenance and component repair.

• Opened a new MRO facility in Millington, Tennessee, to meet growing demand for aircraft maintenance.

• Engineered Solutions segment developed products like AerSafe and AerTrak to meet regulatory mandates more quickly and cost-effectively than OEMs.