AerSale (NASDAQ:ASLE) reported higher profitability in the fourth quarter and full year 2025, driven by growth in its more recurring businesses and contributions from cost and efficiency initiatives implemented earlier in the year, management said on the company’s earnings call.
Fourth quarter: EBITDA growth despite lower reported revenue
Chief Executive Officer Nick Finazzo said AerSale “finished 2025 on a strong note,” with fourth-quarter adjusted EBITDA rising $2.2 million, or 17.1%, to $15.2 million, compared with $13.0 million in the fourth quarter of 2024.
Excluding flight equipment sales, management said fourth-quarter revenue increased, reflecting growth across component MRO operations, used serviceable material (USM), and leasing. Finazzo also pointed to increased sales of the company’s AerSafe engineered solutions product as operators began upgrades ahead of a Federal Aviation Administration compliance deadline in November 2026 tied to a fuel tank safety airworthiness directive related to fuel quantity indication systems (FQIS AD).
Full-year 2025: revenue down on fewer flight equipment sales, margins improved
For the full year, AerSale reported total revenue of $335.3 million, down $9.8 million, or 2.8%, primarily due to fewer flight equipment sales. Finazzo said that excluding flight equipment sales, full-year revenue increased 18.7%, driven by stronger USM demand, higher average lease rates and asset yields, and growth in component MRO and AerSafe product sales.
Adjusted EBITDA for 2025 increased $12.8 million to $46.1 million, up 38.2% from 2024. Management attributed the increase to higher volumes, favorable mix, and margin and cost benefits from its efficiency program.
Garmendia added that income from operations was $15.8 million for 2025, compared with $9.7 million in the prior year. On an adjusted basis, net income was $15.8 million versus $9.5 million last year, and adjusted diluted earnings per share was $0.33 compared with $0.18 in 2024.
Segment performance: Asset Management mix shift and TechOps margin gains
In Asset Management, fourth-quarter revenue declined 11.1% year over year to $56.9 million due to fewer flight equipment sales. Excluding those sales, Garmendia said Asset Management revenue increased 9.1% on strength in USM and an expanded lease pool. For the year, Asset Management revenue was $211.6 million, down 1.8%, but excluding flight equipment sales, segment revenue increased 47.3%, supported by inventory levels and demand that enabled higher USM and leasing activity.
TechOps fourth-quarter revenue increased 10.7% to $34.0 million, driven by higher sales in aerostructures and landing gear MROs and new contracts. For the full year, TechOps revenue declined 4.5% to $123.7 million due primarily to lower on-airport MRO activity, but gross margin improved to 25.6% from 16.6% in the prior year. Garmendia attributed the margin improvement to a better mix and the benefits of efficiency measures implemented in early 2025.
Selling, general and administrative expenses for the year were $90.0 million, including $4.9 million of non-cash equity-based compensation, compared with $94.2 million (including $4.3 million of non-cash equity compensation) in 2024. The decrease was primarily driven by lower payroll-related expenses tied to the company’s efficiency initiatives, the CFO said.
Operational updates: feedstock discipline, freighters, and facility expansions
Finazzo said AerSale acquired $15.4 million of feedstock in the fourth quarter, bringing full-year acquisitions to $99.6 million. He described the feedstock environment as constrained and “hypercompetitive,” and highlighted the company’s “disciplined acquisition pricing.” AerSale’s win rate in the quarter was 4.8% versus 17.2% in the fourth quarter of 2024, and the full-year win rate was 6.0% in 2025 versus 8.6% in 2024.
On the call’s Q&A, Finazzo said the company expects a lower level of feedstock purchases in 2026 than in 2025, though he noted it “could happen” that spending approaches last year’s level. Garmendia said AerSale started 2026 with about $364 million of inventory, including roughly $150 million ready for the USM channel and about $118 million in whole assets that can be used for USM or leasing.
The CEO also provided updates on AerSale’s Boeing 757 passenger-to-freighter conversion program. AerSale ended 2025 with two aircraft on lease and five converted aircraft remaining in inventory. Finazzo said the company was in discussions with potential customers and expects to deploy all 757 freighters in 2026, with two under letters of intent at year-end. He cited increased cargo demand and the FAA’s recent grounding of the MD-11 freighter fleet as factors supporting his outlook.
Across its on-airport MRO operations, AerSale said it transitioned its Goodyear facility from an expiring contract to new business at higher rates, improving profitability. In Roswell, the company shifted to storage and end-of-life fleet activities, which Finazzo said largely offset lost heavy check margin. AerSale’s Millington, Tennessee expansion is now fully operational, with heavy check work beginning in December after a multiyear maintenance agreement with a regional airline; management said the facility is positioned to contribute more meaningfully to profitability in 2026.
In component MRO, Finazzo said the company moved into a new 90,000-square-foot aerostructures facility in January 2026 and expects volumes to ramp throughout the year as customer approvals progress. The pneumatic expansion project has completed construction and is expected to come online by the end of the first quarter. Management reiterated that previously communicated incremental annualized opportunity of about $50 million may be exceeded at full capacity.
Finazzo also said the company’s landing gear shop received FAA approval to overhaul Boeing 737 MAX and 787 landing gear, supplementing existing authority for 737 Classic and NG, 757, 767, and Airbus A320 aircraft.
Liquidity and 2026 outlook: focus on recurring revenue
For cash flow, Garmendia said cash used in operating activities was $23.0 million in 2025, primarily related to feedstock acquisitions. AerSale ended the year with $71.6 million of total liquidity, including $4.4 million in cash and $67.2 million of revolver availability under its $180 million asset-backed revolver, which can be expanded by an additional $20 million.
Looking to 2026, management said it expects both revenue and profitability to increase versus 2025 as the company emphasizes “more recurring and predictable” parts of the business and continues to realize benefits from efficiency initiatives. Finazzo said priorities include filling capacity across on-airport MRO facilities, growing USM sales, increasing component MRO revenue from expanded capacity and new capabilities, expanding the lease pool, and sustaining AerSafe momentum as the November 2026 FQIS AD compliance deadline approaches.
In response to a question about the durability of AerSafe revenue beyond the deadline, Finazzo said the greatest amount of AerSafe sales should occur in 2026 and that the company’s backlog early in the year already exceeded total AerSafe sales for all of last year. He added that AerSale is working on other engineered products and supplemental type certificates (STCs) requested by airlines, and continues to explore opportunities to deploy its Enhanced Flight Vision System product, AerAware, across additional aircraft platforms.
About AerSale (NASDAQ:ASLE)
AerSale Inc is an integrated aftermarket solutions provider serving the global commercial, defense and business aviation markets. The company specializes in aircraft and engine maintenance, repair and overhaul (MRO), asset leasing and aviation parts distribution. Its key offerings include airframe heavy maintenance, engine tear‐down and component overhaul, used serviceable material programs and end‐of‐life aircraft disassembly. Through these services, AerSale supports operators seeking to optimize fleet availability, extend asset life cycles and reduce maintenance costs.
Founded in 2009 and headquartered in Coral Gables, Florida, AerSale has grown through strategic acquisitions and organic expansion.
