Fourth Quarter 2025 Highlights
- Revenue of
$90.9 million versus$94.7 million in the prior year period - GAAP net income of
$5.4 million versus GAAP net income of$2.7 million in the prior year period - Adjusted net income1 of
$7.5 million versus adjusted net income of$4.8 million in the prior year period - Adjusted EBITDA1 of
$15.2 million versus Adjusted EBITDA of$13.0 million in the prior year period - Flight equipment sales consisted of four engines compared to six engines in the prior year period
- Feedstock acquisitions of
$15.4 million in the quarter
2025 Full Year Highlights
- Revenue of
$335.3 million versus$345.1 million - GAAP net income of
$8.6 million versus GAAP Net Income of$5.9 million - Adjusted net income1 of
$15.8 million versus adjusted net income of$9.5 million - Adjusted EBITDA1 of
$46.1 million versus Adjusted EBITDA of$33.4 million - Flight equipment sales consisted of thirteen engines compared to twenty engines and one aircraft in the prior year
- Feedstock acquisitions of
$99.6 million and an additional$11.4 million under contract - Inventory of
$363.8 million as ofDecember 31, 2025
| (in thousands, except per-share amount) | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||
| 2025 | 2024 | Percent Change | 2025 | 2024 | Percent Change | |||||||||||||||
| Total revenue | $ | 90,937 | $ | 94,741 | (4.0 | ) | % | $ | 335,286 | $ | 345,066 | (2.8 | ) | % | ||||||
| GAAP net income | 5,397 | 2,702 | 99.7 | % | 8,575 | 5,851 | 46.6 | % | ||||||||||||
| Adjusted net income(1) | 7,529 | 4,775 | 57.7 | % | 15,826 | 9,520 | 66.2 | % | ||||||||||||
| Adjusted EBITDA(1) | 15,218 | 13,000 | 17.1 | % | 46,142 | 33,386 | 38.2 | % | ||||||||||||
| Diluted earnings per share | 0.11 | 0.05 | 120.0 | % | 0.18 | 0.11 | 63.6 | % | ||||||||||||
| Adjusted diluted earnings per share(1) | 0.16 | 0.09 | 77.8 | % | 0.33 | 0.18 | 83.3 | % | ||||||||||||
| Feedstock acquisitions(2) | $ | 15,428 | $ | 18,365 | (16.0 | ) | % | $ | 99,647 | $ | 61,653 | 61.6 | % | |||||||
Fourth Quarter 2025 Results of Operations
The Company’s revenue for the fourth quarter of 2025 was
As a reminder to investors, the Company’s revenue is likely to fluctuate from quarter-to-quarter and year-to-year based on flight equipment sales and therefore, progress should be monitored based on flight equipment leasing, used serviceable material (“USM”) sales, and asset purchases, as well as MRO activities.
In the fourth quarter of 2025, flight equipment sales were
This increase was primarily driven by strong commercial demand for USM, as well as increased leasing revenue from an expanded lease pool, which includes the deployment of two Boeing 757 freighter aircraft. Our landing gear, aerostructures, and component MRO facilities also delivered improved performance and profitability; and demand for our AerSafe™ Engineered Solutions product also increased. These increases were partially offset by lower heavy MRO revenue at the
Finazzo added, “As we enter 2026, we remain focused on continuing our growth momentum by monetizing our strong inventory position and expanding our MRO capabilities and capacity, which will benefit our customers and continue to build long-term shareholder value.”
Asset Management Solutions (“Asset Management”) revenue decreased 11.1% to
Technical Operations (“TechOps”) revenue increased 10.7% to
Gross margin increased to 34.1% in the fourth quarter of 2025 compared to 31.4% in the same period last year, driven by higher margins generated from our leasing portfolio and on-airport MROs.
Selling, general, and administrative expenses were
Income from operations was
Income tax expense was
Net income for the fourth quarter of 2025 was
Diluted earnings per share was
Full Year 2025 Results of Operations
For full year 2025,
In 2025, flight equipment sales were
Asset Management revenue was
TechOps revenue for the full year of 2025 decreased 4.5% to
The gross margin for the full year of 2025 was 31.5%, compared to 30.1% in 2024, reflecting a favorable sales mix, increased contribution from recurring aftermarket and leasing activities, and disciplined cost management across the business.
Selling, general, and administrative expenses were
Income from operations was
Income tax expense was
Net income for 2025 was
Diluted earnings per share was
Conference Call Information
The Company will host a conference call today,
Non-GAAP Financial Measures
This press release includes non-GAAP financial measures, including adjusted EBITDA, adjusted net income, and adjusted diluted earnings per share.
You should review AerSale’s audited financial statements, and not rely on any single financial measure to evaluate AerSale’s business. Other companies may calculate adjusted EBITDA, adjusted net income, or adjusted diluted earnings per share differently, and therefore AerSale’s adjusted EBITDA, adjusted net income, or adjusted diluted earnings per share measures may not be directly comparable to similarly titled measures of other companies.
Reconciliations of Net Income, the Company’s closest GAAP measure, to adjusted EBITDA, adjusted net income, and adjusted diluted earnings per share, are outlined in the tables below following the Company’s condensed consolidated financial statements.
End Notes
(1) Adjusted net income, adjusted EBITDA and adjusted diluted earnings per share are non-GAAP measures. See “Non-GAAP Financial Measures” and “Adjusted EBITDA, Net Income and Diluted EPS Reconciliation Table” at the end of this press release for a discussion of why we believe these non-GAAP measures are useful together with a detailed reconciliation of these measures to the most directly comparable GAAP (Generally Accepted Accounting Principles) measure.
(2) For the twelve months ended
Fourth Quarter and Full Year 2025 Financial Results | ||||||||||||||||
| AERSALE CORPORATION AND SUBSIDIARIES Consolidated Statements of Operations (in thousands, except share and per share data) (Unaudited) | ||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Revenue: | ||||||||||||||||
| Products | $ | 57,793 | $ | 62,323 | $ | 206,472 | $ | 214,950 | ||||||||
| Leasing | 9,936 | 7,878 | 35,071 | 22,146 | ||||||||||||
| Services | 23,208 | 24,540 | 93,743 | 107,970 | ||||||||||||
| Total revenue | 90,937 | 94,741 | 335,286 | 345,066 | ||||||||||||
| Cost of sales and operating expenses: | ||||||||||||||||
| Cost of products | 37,694 | 41,322 | 143,258 | 141,152 | ||||||||||||
| Cost of leasing | 3,628 | 2,957 | 12,136 | 8,468 | ||||||||||||
| Cost of services | 18,629 | 20,717 | 74,118 | 91,510 | ||||||||||||
| Total cost of sales | 59,951 | 64,996 | 229,512 | 241,130 | ||||||||||||
| Gross profit | 30,986 | 29,745 | 105,774 | 103,936 | ||||||||||||
| Selling, general and administrative expenses | 23,936 | 24,808 | 89,984 | 94,192 | ||||||||||||
| Income from operations | 7,050 | 4,937 | 15,790 | 9,744 | ||||||||||||
| Other (expense) income: | ||||||||||||||||
| Interest expense, net | (2,330 | ) | (1,472 | ) | (8,330 | ) | (5,703 | ) | ||||||||
| Other income, net | 832 | 1,096 | 2,982 | 1,495 | ||||||||||||
| Change in fair value of warrant liability | 32 | (47 | ) | 85 | 2,301 | |||||||||||
| Total other expense, net | (1,466 | ) | (423 | ) | (5,263 | ) | (1,907 | ) | ||||||||
| Income before income tax provision | 5,584 | 4,514 | 10,527 | 7,837 | ||||||||||||
| Income tax expense | (187 | ) | (1,812 | ) | (1,952 | ) | (1,986 | ) | ||||||||
| Net income | $ | 5,397 | $ | 2,702 | $ | 8,575 | $ | 5,851 | ||||||||
| Earnings per share: | ||||||||||||||||
| Basic | $ | 0.11 | $ | 0.05 | $ | 0.18 | $ | 0.11 | ||||||||
| Diluted | $ | 0.11 | $ | 0.05 | $ | 0.18 | $ | 0.11 | ||||||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 47,195,724 | 53,222,762 | 48,378,882 | 53,113,508 | ||||||||||||
| Diluted | 47,766,486 | 53,501,235 | 48,754,585 | 53,359,085 | ||||||||||||
| AERSALE CORPORATION AND SUBSIDIARIES Consolidated Balance Sheet (in thousands, except share data) | ||||||
| 2025 | 2024 | |||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 4,379 | $ | 4,698 | ||
| Accounts receivable, net of allowance for credit losses of | 42,654 | 34,646 | ||||
| Income tax receivable | 1,728 | 1,994 | ||||
| Inventory: | ||||||
| Aircraft, airframes, engines, and parts, net | 205,379 | 224,832 | ||||
| Advance vendor payments | 5,679 | 6,803 | ||||
| Deposits, prepaid expenses, and other current assets | 9,170 | 11,057 | ||||
| Total current assets | 268,989 | 284,030 | ||||
| Fixed assets: | ||||||
| Aircraft and engines held for lease, net | 102,361 | 67,847 | ||||
| Property and equipment, net | 32,006 | 36,331 | ||||
| Inventory: | ||||||
| Aircraft, airframes, engines, and parts, net | 158,385 | 130,958 | ||||
| Operating lease right-of-use assets | 30,130 | 33,105 | ||||
| Deferred income taxes | 8,784 | 10,171 | ||||
| Deferred financing costs, net | 1,024 | 1,296 | ||||
| Other assets | 586 | 595 | ||||
| 19,860 | 19,860 | |||||
| Other intangible assets, net | 18,347 | 20,530 | ||||
| Total assets | $ | 640,472 | $ | 604,723 | ||
| Current liabilities: | ||||||
| Accounts payable | $ | 29,645 | $ | 34,184 | ||
| Accrued expenses | 7,233 | 7,400 | ||||
| Income tax payable | 329 | - | ||||
| Lessee and customer purchase deposits | 780 | 1,734 | ||||
| Current operating lease liabilities | 4,313 | 4,356 | ||||
| Current portion of long-term debt | 993 | 605 | ||||
| Deferred revenue | 530 | 1,781 | ||||
| Deferred insurance proceeds | 28,610 | 24,910 | ||||
| Total current liabilities | 72,433 | 74,970 | ||||
| Revolving credit facility | 110,053 | 39,235 | ||||
| Long-term debt | 1,284 | 1,209 | ||||
| Long-term lease deposits | 3,492 | 2,987 | ||||
| Long-term operating lease liabilities | 28,190 | 30,565 | ||||
| Maintenance deposit payments and other liabilities | 589 | 52 | ||||
| Warrant liability | - | 85 | ||||
| Total liabilities | 216,041 | 149,103 | ||||
| Stockholders’ equity: | ||||||
| Common stock, | 5 | 5 | ||||
| Additional paid-in capital | 276,729 | 316,493 | ||||
| Retained earnings | 147,697 | 139,122 | ||||
| Total stockholders' equity | 424,431 | 455,620 | ||||
| Total liabilities and stockholders’ equity | $ | 640,472 | $ | 604,723 | ||
| AERSALE CORPORATION AND SUBSIDIARIES Consolidated Statements of Cash Flows (in thousands) | ||||||||
| Year Ended | ||||||||
| 2025 | 2024 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 8,575 | $ | 5,851 | ||||
| Adjustments to reconcile net income to net cash used in (provided by) operating activities | ||||||||
| Depreciation and amortization | 19,334 | 16,048 | ||||||
| Amortization of debt issuance costs | 392 | 337 | ||||||
| Amortization of operating lease assets | 557 | 365 | ||||||
| Inventory reserve | 3,476 | 3,695 | ||||||
| Provision for doubtful accounts | - | 195 | ||||||
| Deferred income taxes | 1,387 | 2,032 | ||||||
| Change in fair value of warrant liability | (85 | ) | (2,301 | ) | ||||
| Share-based compensation | 4,887 | 4,347 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (8,008 | ) | (3,601 | ) | ||||
| Income tax receivable | 266 | (366 | ) | |||||
| Inventory | (54,800 | ) | (78,029 | ) | ||||
| Deposits, prepaid expenses, and other current assets | 1,887 | 1,450 | ||||||
| Other assets | 9 | (745 | ) | |||||
| Advance vendor payments | 1,124 | 28,954 | ||||||
| Accounts payable | (4,539 | ) | 4,287 | |||||
| Income tax payable | 329 | - | ||||||
| Accrued expenses | (232 | ) | 1,832 | |||||
| Deferred revenue | (1,251 | ) | (1,217 | ) | ||||
| Lessee and customer purchase deposits | (449 | ) | 3,152 | |||||
| Deferred insurance proceeds | 3,700 | 24,910 | ||||||
| Other liabilities | 472 | (12 | ) | |||||
| Net cash used in (provided by) operating activities | (22,969 | ) | 11,184 | |||||
| Cash flows from investing activities: | ||||||||
| Proceeds from sale of assets | 6,381 | 12,900 | ||||||
| Acquisition of aircraft and engines held for lease, including capitalized costs | (4,160 | ) | (14,978 | ) | ||||
| Purchase of property and equipment | (6,081 | ) | (14,052 | ) | ||||
| Net cash used in investing activities | (3,860 | ) | (16,130 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from long-term debt | 1,173 | 2,429 | ||||||
| Repayments of long-term debt | (710 | ) | (9,174 | ) | ||||
| Proceeds from revolving credit facility | 305,418 | 192,644 | ||||||
| Repayments of revolving credit facility | (234,600 | ) | (182,409 | ) | ||||
| Payments of debt issuance costs | (120 | ) | (126 | ) | ||||
| Purchase of treasury stock | (45,000 | ) | - | |||||
| Proceeds from the issuance of Employee Stock Purchase Plan shares | 386 | 531 | ||||||
| Taxes paid related to net share settlement of equity awards | (37 | ) | (124 | ) | ||||
| Net cash provided by financing activities | 26,510 | 3,771 | ||||||
| Decrease in cash and cash equivalents | (319 | ) | (1,175 | ) | ||||
| Cash and cash equivalents, beginning of period | 4,698 | 5,873 | ||||||
| Cash and cash equivalents, end of period | $ | 4,379 | $ | 4,698 | ||||
| Supplemental disclosure of cash activities | ||||||||
| Income tax refunds, net | $ | (468 | ) | $ | (13 | ) | ||
| Interest paid | $ | 8,031 | $ | 5,648 | ||||
| Supplemental disclosure of noncash investing activities | ||||||||
| Reclassification of inventory to equipment held for lease, net | $ | 33,552 | $ | 43,210 | ||||
| Reclassification of inventory to property and equipment, net | $ | 3,417 | $ | - | ||||
| Reclassification of equipment held for lease, net from property and equipment, net | $ | (8,773 | ) | $ | - | |||
| AERSALE CORPORATION AND SUBSIDIARIES Adjusted EBITDA, Adjusted Net Income and Adjusted Basic/Diluted EPS Reconciliation Table (in thousands, except per and percentage share data) (Unaudited) | ||||||||||||||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||||||||||||||
| % of Total | % of Total | % of Total | % of Total | |||||||||||||||||||||||||||||
| 2025 | Revenue | 2024 | Revenue | 2025 | Revenue | 2024 | Revenue | |||||||||||||||||||||||||
| Reported net income | $ | 5,397 | 5.9 | % | $ | 2,702 | 2.9 | % | $ | 8,575 | 2.6 | % | $ | 5,851 | 1.7 | % | ||||||||||||||||
| Addbacks: | ||||||||||||||||||||||||||||||||
| Change in fair value of warrant liability | (32 | ) | (0.0 | ) | % | 47 | 0.0 | % | (85 | ) | (0.0 | ) | % | (2,301 | ) | (0.7 | ) | % | ||||||||||||||
| Share-based compensation | 1,762 | 1.9 | % | 1,188 | 1.3 | % | 4,887 | 1.5 | % | 4,347 | 1.3 | % | ||||||||||||||||||||
| Payroll taxes related to share-based compensation | - | - | % | - | - | % | 66 | 0.0 | % | 102 | 0.0 | % | ||||||||||||||||||||
| Inventory write-off | 165 | 0.2 | % | 1,135 | 1.2 | % | 165 | 0.0 | % | 898 | 0.3 | % | ||||||||||||||||||||
| Secondary offering costs | - | - | % | - | - | % | - | - | % | 55 | 0.0 | % | ||||||||||||||||||||
| Facility relocation costs | 312 | 0.3 | % | 363 | 0.4 | % | 1,446 | 0.4 | % | 1,519 | 0.4 | % | ||||||||||||||||||||
| Restructuring costs | - | - | % | 216 | 0.2 | % | 1,072 | 0.3 | % | 216 | 0.1 | % | ||||||||||||||||||||
| Legal settlement | - | - | % | - | - | % | 400 | 0.1 | % | - | - | % | ||||||||||||||||||||
| Gain on insurance proceeds | - | - | % | (1,038 | ) | (1.1 | ) | % | - | - | % | (1,038 | ) | (0.3 | ) | % | ||||||||||||||||
| Income tax effect of adjusting items(1) | (75 | ) | (0.1 | ) | % | 162 | 0.2 | % | (700 | ) | (0.2 | ) | % | (129 | ) | (0.0 | ) | % | ||||||||||||||
| Adjusted net income | $ | 7,529 | 8.3 | % | $ | 4,775 | 5.0 | % | $ | 15,826 | 4.7 | % | $ | 9,520 | 2.8 | % | ||||||||||||||||
| Interest expense, net | 2,330 | 2.6 | % | 1,472 | 1.6 | % | 8,330 | 2.5 | % | 5,703 | 1.7 | % | ||||||||||||||||||||
| Income tax expense | 187 | 0.2 | % | 1,812 | 1.9 | % | 1,952 | 0.6 | % | 1,986 | 0.6 | % | ||||||||||||||||||||
| Depreciation and amortization | 5,097 | 5.6 | % | 5,103 | 5.4 | % | 19,334 | 5.8 | % | 16,048 | 4.7 | % | ||||||||||||||||||||
| Reversal of income tax effect of adjusting items(1) | 75 | 0.1 | % | (162 | ) | (0.2 | ) | % | 700 | 0.2 | % | 129 | 0.0 | % | ||||||||||||||||||
| Adjusted EBITDA | $ | 15,218 | 16.7 | % | $ | 13,000 | 13.7 | % | $ | 46,142 | 13.8 | % | $ | 33,386 | 9.7 | % | ||||||||||||||||
| Reported basic earnings per share | $ | 0.11 | $ | 0.05 | $ | 0.18 | $ | 0.11 | ||||||||||||||||||||||||
| Addbacks: | ||||||||||||||||||||||||||||||||
| Change in fair value of warrant liability | (0.00 | ) | 0.00 | (0.00 | ) | (0.04 | ) | |||||||||||||||||||||||||
| Share-based compensation | 0.04 | 0.02 | 0.10 | 0.08 | ||||||||||||||||||||||||||||
| Payroll taxes related to share-based compensation | - | - | 0.00 | 0.00 | ||||||||||||||||||||||||||||
| Inventory write-off | 0.00 | 0.02 | 0.00 | 0.02 | ||||||||||||||||||||||||||||
| Secondary offering costs | - | - | - | 0.00 | ||||||||||||||||||||||||||||
| Facility relocation costs | 0.01 | 0.01 | 0.03 | 0.03 | ||||||||||||||||||||||||||||
| Restructuring costs | - | 0.01 | 0.02 | 0.00 | ||||||||||||||||||||||||||||
| Legal settlement | - | - | 0.01 | - | ||||||||||||||||||||||||||||
| Gain on insurance proceeds | - | (0.02 | ) | - | (0.02 | ) | ||||||||||||||||||||||||||
| Income tax effect of adjusting items | (0.00 | ) | 0.00 | (0.01 | ) | (0.00 | ) | |||||||||||||||||||||||||
| Adjusted basic earnings per share | $ | 0.16 | $ | 0.09 | $ | 0.33 | $ | 0.18 | ||||||||||||||||||||||||
| Reported diluted earnings per share | $ | 0.11 | $ | 0.05 | $ | 0.18 | $ | 0.11 | ||||||||||||||||||||||||
| Addbacks: | ||||||||||||||||||||||||||||||||
| Change in fair value of warrant liability | (0.00 | ) | 0.00 | (0.00 | ) | (0.04 | ) | |||||||||||||||||||||||||
| Share-based compensation | 0.04 | 0.02 | 0.10 | 0.08 | ||||||||||||||||||||||||||||
| Payroll taxes related to share-based compensation | - | - | 0.00 | 0.00 | ||||||||||||||||||||||||||||
| Inventory write-off | 0.00 | 0.02 | 0.00 | 0.02 | ||||||||||||||||||||||||||||
| Secondary offering costs | - | - | - | 0.00 | ||||||||||||||||||||||||||||
| Facility relocation costs | 0.01 | 0.01 | 0.03 | 0.03 | ||||||||||||||||||||||||||||
| Restructuring costs | - | 0.01 | 0.02 | 0.00 | ||||||||||||||||||||||||||||
| Legal settlement | - | - | 0.01 | - | ||||||||||||||||||||||||||||
| Gain on insurance proceeds | - | (0.02 | ) | - | (0.02 | ) | ||||||||||||||||||||||||||
| Income tax effect of adjusting items | (0.00 | ) | 0.00 | (0.01 | ) | (0.00 | ) | |||||||||||||||||||||||||
| Adjusted diluted earnings per share | $ | 0.16 | $ | 0.09 | $ | 0.33 | $ | 0.18 | ||||||||||||||||||||||||
(1) The income tax effect of current period adjusting items is calculated at the Company's applicable statutory rate of 24% after considering federal and state tax rates.
Forward Looking Statements
This press release includes “forward-looking statements”. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements other than statements of historical facts contained in this press release may constitute forward-looking statements, and include, but are not limited to, statements regarding our anticipated financial performance, including anticipations regarding greater demand for AerSale’s USM business; expectations regarding feedstock and commercial demand; our growth trajectory; the expected operating capacity of our MRO facilities and demand for such services; and the sufficiency of our liquidity; AerSale’s actual results may differ from their expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” or the negative of these or other similar expressions are intended to identify such forward-looking statements. The forward-looking statements in this press release are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. You should carefully consider the foregoing factors and the other risks and uncertainties described in the Risk Factors, Management’s Discussion and Analysis of Financial Condition and Results of Operations sections of the Company's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC"), and its other filings with the
Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements and we qualify all of our forward-looking statements by these cautionary statements. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances or otherwise.
About
AerSale’s comprehensive capabilities include aircraft and engine sales and leasing, used serviceable material (USM) sales, component and airframe MRO services, and
With deep technical expertise and a fully integrated business model,
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