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AerSale Corp.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 5 November 2026: press release. Guidance figures: 1 kept. The quarter’s numbers.

Key takeaways

  • Revenue rose 28.6% year on year: Revenue was $91.6 million, up from $71.2 million a year earlier and from $70.9 million in the second quarter. Growth came from leasing, USM, heavy MRO, and Flight Equipment sales. Source
  • AMS revenue rose 28.9%: AMS revenue was $50.5 million, up from $39.2 million. Excluding Flight Equipment sales, AMS revenue grew 6.4% to $41.3 million on higher leasing and USM revenue. Source
  • Five of seven freighters now leased: Five B757 freighters were on lease at September 30, against three at June 30, with 18 engines on lease at both dates. Source
  • Gross margin fell to 22.5%: Gross margin was 22.5%, against 30.2% in the same period last year. Source
  • Boeing 737 sale committed at $35M: The company has commitments for a $35 million sale of a Boeing 737 to the U.S. Marshals Service. Other customers have engines in final restoration. Source
  • Liquidity fell to $23.1 million: Liquidity was $23.1 million, made up of $3.9 million cash and $19.2 million of revolver capacity, down from $34.0 million at June 30. Source
  • Net loss included goodwill charge: Net loss was $15.0 million, including a $13.4 million non-cash goodwill impairment, against a $0.1 million net loss a year earlier. Source

“The initiatives we have undertaken since early 2025 to make inventory and Flight Assets ready for sale or lease, optimize our sales force, invest in technology, and complete major facilities expansion projects, are taking hold.”

Nicolas Finazzo, Chief Executive Officer at AerSale

Guidance

AreaPeriodFigureAgainst last quarter
Boeing 737 sale value Sourcefourth quarter 2026$35 millionKept
Timing of Boeing 737 sale and engine sales Sourcefourth quarter 2026fourth quarter 2026

What changed from last quarter

  • New: The company was awarded seven A330 airframes that meet its return requirements, with the first expected to close in the coming weeks. Source
  • New: Management says it significantly optimized its management and sales organization, which it expects to improve performance in 2027. Source

Results and growth drivers

  • Revenue rose 28.6% year on year: Revenue was $91.6 million, up from $71.2 million a year earlier and from $70.9 million in the second quarter. Growth came from leasing, USM, heavy MRO, and Flight Equipment sales. Source
  • Growth excluding Flight Equipment: Revenue excluding Flight Equipment sales grew 16.2% to $82.3 million, with gains in leasing, USM, heavy MRO and Engineered Solutions. Flight Equipment sales were $9.3 million, against $0.4 million. Source
  • Adjusted EBITDA improved sequentially: Adjusted EBITDA was $8.6 million, or 9.3% of total revenue, against $9.5 million, or 13.3%, a year earlier. It improved from $2.2 million in the second quarter. Source

Asset Management Solutions segment

  • AMS revenue rose 28.9%: AMS revenue was $50.5 million, up from $39.2 million. Excluding Flight Equipment sales, AMS revenue grew 6.4% to $41.3 million on higher leasing and USM revenue. Source
  • Leasing grew on freighter portfolio: Leasing revenue grew on an expanded B757 freighter lease portfolio, as the company continued placing aircraft on lease. Source
  • Five of seven freighters now leased: Five B757 freighters were on lease at September 30, against three at June 30, with 18 engines on lease at both dates. Source
  • USM volumes built through quarter: USM revenue increased as volumes built throughout the quarter, while the company continued to monetize existing inventory. Source

“As such, our third quarter operational results improved meaningfully over the second quarter.”

Nicolas Finazzo, Chief Executive Officer at AerSale

Technical Operations segment

  • TechOps revenue rose 28.2%: TechOps revenue was $41.0 million, up from $32.0 million in the prior-year quarter. Source
  • Heavy MRO gained from Millington: Millington generated revenue from two check lines awarded by a regional carrier, with none in the prior-year quarter. Source
  • Goodyear flat, maintenance starting: Goodyear revenue was in line with the prior year, and anticipated incremental maintenance began in the fourth quarter. Source
  • Engineered Solutions grew on AerSafe: Engineered Solutions revenue rose on AerSafe kit deliveries, as operators must comply with the fuel tank flammability Airworthiness Directive. Component MRO revenue was flat year over year. Source

Margins and costs

  • Gross margin fell to 22.5%: Gross margin was 22.5%, against 30.2% in the same period last year. Source
  • TechOps and AMS margins lower: TechOps gross margin was 12.5%, against 25.3% in the prior-year period. AMS gross margin was 30.5%, against 34.1% a year earlier. Source
  • Leasing margins expected to improve: Management expects leasing margins to improve as B757 freighters are integrated, utilization rises, and more engines are placed on lease. Source
  • SG&A near prior-year level: SG&A was $18.8 million against $18.6 million. Share-based compensation within it was $0.5 million, versus $1.3 million a year earlier. Source

“Together with our expanded lease portfolio and a clear path to monetizing the inventory we have built, we expect a significantly stronger fourth quarter.”

Nicolas Finazzo, Chief Executive Officer at AerSale

Flight Equipment pipeline and inventory

  • Boeing 737 sale committed at $35M: The company has commitments for a $35 million sale of a Boeing 737 to the U.S. Marshals Service. Other customers have engines in final restoration. Source
  • Fourth-quarter pipeline before year end: Management describes the Flight Equipment pipeline as well defined and expected to close before year end. Source
  • Inventory down, held for lease up: Inventory was $334.1 million at September 30, down from $376.0 million at June 30, while aircraft and engines held for lease rose to $165.9 million. Source

Cash, liquidity and borrowing

  • Liquidity fell to $23.1 million: Liquidity was $23.1 million, made up of $3.9 million cash and $19.2 million of revolver capacity, down from $34.0 million at June 30. Source
  • Operating cash used year to date: Cash used in operating activities was $42.7 million for the nine months, mainly from inventory investment through feedstock and capitalized repair costs. Source
  • Feedstock purchases fell year to date: Feedstock acquisitions were $7.1 million in the quarter and $37.8 million year to date, against $84.2 million a year earlier, citing pricing discipline. Source
  • Fourth-quarter sales expected to add liquidity: Flight Equipment transactions scheduled for the fourth quarter are expected to improve available liquidity. Source

Earnings and goodwill charge

  • Net loss included goodwill charge: Net loss was $15.0 million, including a $13.4 million non-cash goodwill impairment, against a $0.1 million net loss a year earlier. Source
  • Operating loss against prior income: Loss from operations was $11.6 million, including the goodwill charge, against operating income of $2.9 million a year earlier. Source
  • Diluted loss per share of $0.31: Diluted loss per share was $0.31, against $0.00 a year earlier. Adjusted diluted loss per share was $0.02, compared with adjusted earnings of $0.04. Source
  • Effective tax rate was negative: The effective tax rate was negative 4.8%, with income tax expense of $0.7 million in both the current and prior-year quarters. Source

Strategy and organization

  • Initiatives described as taking hold: Management cited initiatives since early 2025 on inventory and Flight Assets readiness, the sales force, technology, and facilities expansion. Source
  • Sales and management organization optimized: Management says it significantly optimized its management and sales organization, with a full-service approach and cross selling. Source
  • Analytics aimed at USM readiness: Advanced analytics are used to find the most cost-efficient way to make USM ready for sale, and to identify factors affecting TechOps output. Source

Coming up, as management said on 5 November 2026

  • First A330 airframe closing: The first of seven A330 airframes is expected to close in the coming weeks. Source
  • Two B757 freighters being pursued: Management is pursuing the remaining two B757 freighters and is finalizing engines in repair with its engine MRO partners. Source

Figures management reported

FigureReported
B757 freighter aircraft on lease Source5 at September 30, 2026 (3 at June 30, 2026)
Engines on lease Source18 at September 30, 2026 and June 30, 2026
Check lines awarded to Millington by a regional carrier Source2

Risks management discussed

  • Financial: Revolver expansion to $200 million depends on conditions, lender commitments, and borrowing base availability. Source
  • Operational: Ramp-up costs of new programs weigh on profitability until they diminish over time, according to management. Source

Earlier plans management reported on

  • Ahead: Roswell storage and fixed-price check work was performed ahead of plan. Source
  • Not stated: The sale and engines moved from the third-quarter expectation to the fourth quarter. Source
  • Not stated: Anticipated incremental Goodyear maintenance has begun, according to management, in the fourth quarter. Source

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.