AerSale Corporation

Total revenue was $70.9 million versus $107.4 million a year ago. Adjusted EBITDA was $2.2 million, or 3.1% of revenue, versus $18.3 million, or 17% of revenue last year. Gross margin was 22.9% versus 32.9% a year ago. Asset Management Solutions revenue was $37.1 million, down 51.3%; excluding flight equipment sales, asset management revenue was $37.0 million, down 13.6%. TechOps revenue was $33.8 million, up 8.7%. SG&A was $21 million versus $22.8 million. Net loss was $5.6 million versus net income of $8.6 million; diluted loss per share was $0.12, and adjusted diluted loss per share was $0.09. Cash used in operating activities was $33.5 million year to date. The company ended the quarter with $376 million of inventory, $133 million of aircraft and engines held for lease, and $34 million of available liquidity, including $2.2 million of cash and $31.8 million available under its revolver. Management did not provide formal next-quarter or full-year financial guidance, but said it expects a meaningfully stronger second half as lease placements, asset sales, and MRO volume build.

Nick Finazzo framed the quarter as a timing issue rather than a demand issue, saying the company is focused on monetizing its asset base, scaling MRO, and growing recurring revenue. He emphasized that Goodyear, Millington, and landing gear are investments in future earnings power, and said the company is already seeing operating leverage improve. He was notably upbeat on the second half, pointing to more stored aircraft work, additional lease placements, and several engines and aircraft sales moving closer to closing.

Martin Garmendia highlighted that the revenue decline was driven mainly by the absence of $33.4 million of flight equipment sales that had been in last year’s quarter. He said margins were pressured by startup costs at Goodyear and Millington and by lower absorption, with overall gross margin at 22.9% versus 32.9% last year, but expects margins to improve as utilization rises. On liquidity, he pointed to $34 million available, $376 million of inventory, and $133 million of aircraft and engines held for lease, saying the balance sheet supports continued investment in monetization and growth.

Analysts pressed management on MRO utilization, the lack of flight equipment sales, and the economics of choosing leasing versus USM piece-part sales. Management said Millington has two lines running with room for two more, Goodyear is operating at less than 20% of capacity, and landing gear is already around 80% on one shift with room to add another shift. On monetization, management said several engines are in work, the company won a $35 million 737 sale to the U.S. Marshals Service, and it prefers leasing when economics justify it, but will sell when that creates better returns. Analysts also asked about new products; management said AerSafe is expected to peak in Q3 and that while there are PMA/DER ideas in development, none are yet expected to be a major contributor.