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AerSale Corp.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 6 August 2026: press release. The quarter’s numbers.

Key takeaways

  • Revenue fell 33.9% on no Flight Equipment: Revenue was $70.9 million, down from $107.4 million. The prior year included $33.4 million of Flight Equipment sales and this quarter included none, and USM sales volume was also lower. Source
  • Net loss and adjusted EBITDA declined: Net loss was $5.6 million against net income of $8.6 million a year earlier. Adjusted EBITDA was $2.2 million, or 3.1% of revenue, versus $18.3 million. Source
  • Management sees underlying demand continuing: Management said underlying demand across the platform continues and expects benefits from recent investment to appear in the second half of 2026. Source
  • Flight Equipment sales timing, not market: Management attributed the absence of Flight Equipment sales to timing of transactions. Sellable USM was also used to support Flight Equipment overhaul, shifting sales into the second half. Source
  • Liquidity stood at $34.0 million: Liquidity was $34.0 million, made up of $2.2 million of cash and $31.8 million of available revolver capacity. Source
  • Operating cash outflow reached $33.5 million: The six-month operating cash outflow reflected operating results and continued inventory investment through feedstock and make-ready costs for USM and Flight Equipment. Source

“Our second quarter results reflect timing, not trajectory.”

Nicolas Finazzo, Chief Executive Officer at AerSale

What changed from last quarter

  • New: Management cited a Boeing 737 aircraft sale valued at approximately $35.0 million among recent wins, a deal not mentioned in the first quarter release. Source

Quarter results overview

  • Revenue fell 33.9% on no Flight Equipment: Revenue was $70.9 million, down from $107.4 million. The prior year included $33.4 million of Flight Equipment sales and this quarter included none, and USM sales volume was also lower. Source
  • Net loss and adjusted EBITDA declined: Net loss was $5.6 million against net income of $8.6 million a year earlier. Adjusted EBITDA was $2.2 million, or 3.1% of revenue, versus $18.3 million. Source
  • Revenue excluding Flight Equipment fell 4.2%: The decline came from lower USM sales, as material was used to build serviceable engines for leasing and for Flight Equipment overhaul. Source
  • Diluted loss per share widened: Diluted loss per share was $0.12 against diluted earnings of $0.18. Adjusted diluted loss per share was $0.09, against adjusted diluted earnings of $0.20 a year earlier. Source

Asset Management Solutions segment

  • AMS excluding Flight Equipment fell 13.6%: Segment revenue was $37.1 million, down 51.3%. Excluding Flight Equipment, AMS revenue fell 13.6% to $37.0 million on lower USM sales, partly offset by higher leasing revenue. Source
  • Leasing revenue rose on larger lease portfolio: Leasing revenue was $12,362 thousand, against $8,231 thousand a year earlier, reflecting an expanded engine and B757 freighter lease portfolio. Source
  • Feedstock acquisitions fell to $5.6 million: Feedstock acquisitions were $5.6 million, against $27.1 million a year earlier. Year-to-date acquisitions were $30.6 million, against $70.5 million. Source

“We expect meaningful improvement to our earnings and liquidity in the second half of 2026”

Nicolas Finazzo, Chief Executive Officer at AerSale

Technical Operations segment

  • TechOps revenue rose 8.7% on CRJ ramp: TechOps revenue rose 8.7% to $33.8 million, driven by ramp-up of a CRJ multi-line maintenance agreement, added storage volume, and landing gear and aerostructures overhaul activity. Source
  • AerSafe demand expected to peak Q3: AerSafe demand continued and is expected to peak in the third quarter of 2026, ahead of the FAA compliance deadline for a fuel tank safety Airworthiness Directive. Source

Costs, margins and expenses

  • Gross margin fell to 22.9%: Gross margin was 22.9% against 32.9%. Management also cited lower USM gross profit tied to reduced feedstock acquisitions, and labor and ramp-up costs at Goodyear and Millington. Source
  • Prior-year Flight Equipment gross profit absent: Flight Equipment sales in the prior-year quarter generated $13.2 million of gross profit, which the current quarter does not include. Source
  • SG&A declined on lower rent: SG&A was $21.0 million against $22.8 million, on lower rent and variable expenses. Share-based compensation was $1.3 million, against $0.7 million. Source
  • Tax benefit and higher effective rate: Income tax was a $1.6 million benefit, against a $1.8 million provision a year earlier. The effective tax rate was 22.6%, against 17.0%. Source

“This weighed on results in the near term, but we believe positions us well for the anticipated demand ahead.”

Nicolas Finazzo, Chief Executive Officer at AerSale

Demand and order flow

  • Management sees underlying demand continuing: Management said underlying demand across the platform continues and expects benefits from recent investment to appear in the second half of 2026. Source
  • Flight Equipment sales timing, not market: Management attributed the absence of Flight Equipment sales to timing of transactions. Sellable USM was also used to support Flight Equipment overhaul, shifting sales into the second half. Source

Liquidity, cash and inventory

  • Liquidity stood at $34.0 million: Liquidity was $34.0 million, made up of $2.2 million of cash and $31.8 million of available revolver capacity. Source
  • Operating cash outflow reached $33.5 million: The six-month operating cash outflow reflected operating results and continued inventory investment through feedstock and make-ready costs for USM and Flight Equipment. Source
  • Inventory rose to $376.0 million: Inventory was $376.0 million at June 30, 2026, up from $369.5 million at the end of the first quarter. Source

Strategy and asset monetization

  • Strategy centers on monetization and MRO scale: Management said the company is working through initiatives to monetize its asset base, scale MRO operations and grow recurring revenue, which has affected near-term earnings. Source
  • Confidence in freighter monetization and lease pool: Management said it remains confident in monetizing its two remaining freighters, expanding its lease pool and filling capacity across the MRO network. Source

Coming up, as management said on 6 August 2026

  • Three engine sales expected to close: Management said commitments exist for three additional engine sales, which it expects to close in the late third or early fourth quarter. Source
  • Fifth freighter lease scheduled for August: Management said a lease agreement is executed for a fifth B757 freighter, scheduled for delivery in August. Source

Figures management reported

FigureReported
Engines on lease Source18
B757 freighter aircraft on lease Source3

Risks management discussed

  • Demand: Management said revenue may fluctuate significantly from quarter to quarter based on the timing of Flight Equipment sales. Source
  • Operational: Management said labor was added ahead of anticipated volume at Goodyear and for the Millington CRJ program, which weighed on near-term results. Source
  • Financial: Management noted that revolver capacity is subject to conditions, lender commitments and borrowing base limits. Source

Earlier plans management reported on

  • Not stated: The first quarter release reported one freighter under letter of intent; the second quarter release reports a fourth B757 freighter delivered on lease in July.
  • Not stated: The first quarter release expected start-up margin pressure to normalize as volumes rose. The second quarter release reports continued labor investment ahead of anticipated volume.

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.