ASLE

AerSale’s second quarter results were met with a significant negative reaction from the market, as both revenue and profitability fell well short of Wall Street’s expectations. Management attributed the underperformance primarily to the timing of flight equipment sales, with no transactions completed during the quarter, and ongoing ramp-up costs in new maintenance, repair, and overhaul (MRO) facilities. CEO Nicolas Finazzo described the period as one of “incremental improvements across most of our business units,” but acknowledged that investments in new capabilities and carrying extra labor weighed on margins. Management took a notably cautious tone in discussing the slow development of heavy maintenance work at the Goodyear facility, noting that results were “impacted by timing, not trajectory.” Is now the time to buy ASLE? Find out in our full research report (it’s free). Revenue: $70.93 million vs analyst estimates of $81.24 million (33.9% year-on-year decline, 12.7% miss) EPS (GAAP): -$0.12 vs analyst estimates of $0.04 (significant miss) Adjusted EBITDA: $2.21 million vs analyst estimates of $11.18 million (3.1% margin, 80.2% miss) Operating Margin: -6.7%, down from 11.7% in the same quarter last year Market Capitalization: $268.7 million While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Jeff Van Sinderen (B. Riley Securities) asked about MRO facility utilization rates. CFO Martin Garmendia explained that Millington still has capacity to add work lines, while Goodyear is operating at less than 20% capacity but expects substantial increases as aircraft storage converts to maintenance demand. Jeff Van Sinderen (B. Riley Securities) also questioned the lack of flight equipment sales in the quarter. CEO Nicolas Finazzo said several deals were delayed but expected to close in the next several months, with engines moving into either leasing or sales depending on market conditions. Jeff Van Sinderen (B. Riley Securities) inquired about the condition and future of stored aircraft at Goodyear. Finazzo said most ex-Spirit Airlines planes will require heavy maintenance before returning to service, creating a pipeline of MRO work, though some may be parted out based on engine availability. Stephen Strackhouse (RBC) pressed for details on the margin trade-off between selling used serviceable material and building leasing assets. Garmendia explained that leasing and complete flight equipment sales typically achieve higher margins than parting out for USM, both in percentage and dollar terms. Stephen Strackhouse (RBC) asked about product development beyond AerSafe. Finazzo said new product initiatives are under evaluation, but none are likely to materially impact results in the near term, emphasizing a disciplined approach to future product launches. In coming quarters, the StockStory team will focus on (1) the closure and margin contribution from delayed flight equipment and engine sales, (2) the pace of MRO facility ramp-up and absorption of stored aircraft maintenance demand, and (3) progress in growing recurring leasing revenues. Additionally, we will monitor execution on new product initiatives and regulatory-driven opportunities, such as compliance deadlines for safety products. AerSale currently trades at $5.62, down from $6.30 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members). ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 4:30 p.m. ET Chief Executive Officer - Nicolas Finazzo Chief Financial Officer - Martin Garmendia Senior Vice President of Marketing and Communications - Jacqueline Carlon Operator: Hello, and thank you for standing by. At this time, I would like to welcome everyone to the AerSale Inc. Second Quarter 2026 Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to Jackie Carlon, Senior Vice President of Marketing and Communications. You may begin. Jacqueline Carlon: Good afternoon. I'd like to welcome everyone to AerSale's Second Quarter 2026 Earnings Call. Conducting the call today are Nick Finazzo, Chief Executive Officer; and Martin Garmendia, Chief Financial Officer. Before we discuss this quarter's results, we want to remind you that all statements made on this call that do not relate to matters of historical fact should be considered forward-looking statements within the meaning of the federal securities laws, including statements regarding our current expectations for the business and our financial performance. These statements are neither promises nor guarantees but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results. Important factors that could cause actual results to differ materially from forward-looking statements are discussed in the Risk Factors section of the company's annual report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission, SEC, on March 10th, 2026, and its other filings with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those indicated by the forward-looking statements on this call. We'll also refer to non-GAAP measures that we view as important in assessing the performance of our business. A reconciliation of those non-GAAP metrics to the nearest GAAP metric can be found in the earnings presentation materials made available on the Investors section of the AerSale website at ir.aersale.com. After prepared remarks, we will open the call for questions. With that, I'll turn the call over to Nick Finazzo. Nicolas Finazzo: Thank you, Jackie, and good afternoon, everyone. Thank you for joining us today. I'll begin with a review of our second quarter financial and operational performance, including key developments during the quarter and then discuss the actions we're taking to advance our strategic priorities. I'll then turn the call over to Martin to walk through the financials in more detail. This quarter, we continued to focus on executing our strategic priorities, monetizing our asset base, scaling our MRO operations and growing recurring revenue streams to achieve more consistent earnings. We made progress against these priorities, giving me confidence in our momentum heading into the second half. That said, both revenue of $70.9 million and adjusted EBITDA of $2.2 million came in below the prior year period. These results reflect timing, not trajectory. There were no flight equipment sales for the quarter, masking incremental improvements across most of our business units. Disregarding flight equipment sales, overall revenue decreased 4.2% year-over-year from lower USM sales. First half margins were negatively impacted by a number of factors, including the cost of standing up new capacity and capabilities at Goodyear, Millington and landing gear as we prepare for the increased revenue opportunities that will follow. We view these as investments in future earnings power, not structural cost increases, and we're already seeing the operating leverage begin to improve. In anticipation of heavy maintenance work largely related to the Spirit shutdown, we continue to carry additional labor at our Goodyear facility that weighed on margins. This work has been slower to develop than we first expected, but we're starting to see an increase in stored aircraft at the facility that will accelerate growth in the second half of the year. In Millington, our new CRJ700-900 multiline maintenance program drove higher MRO revenue this quarter. But as noted, start-up costs from the ramp-up still weigh on margins, and we're already seeing significant improvement in labor efficiency and turn times. We expect both facilities to contribute to stronger results in the second half as volume continues to build and these operations gain scale and efficiencies. In landing gear, we received gear for 2 key customer programs during the quarter, including 737 MAX and 787, and that progress gives us increased confidence in the long-term trajectory of this business as volume continues to build. That momentum extends across the business, and we expect a meaningfully stronger second half. On the leasing side, we placed our fourth 757 converted freighter on lease in July and executed a lease for a fifth, which is scheduled for delivery this month. This leaves just 2 freighters from our P2F conversion program to monetize, and we're working on multiple opportunities for this remaining flight equipment. These transactions will support the improvement in earnings and add available liquidity in the second half. While we remain focused on growing our recurring revenue base through leasing and MRO, we're also deliberately executing on select flight equipment sales that provide higher margin realization, improved returns and a shortened monetization cycle. That has meant dedicating additional cash in the near term to get this material ready to sell, and we expect to recover those investments plus the associated returns in the second half of the year. This is evidenced by several wins secured during and subsequent to quarter end, which include a 737 aircraft sale to the U.S. Marshals Service for $35 million in addition to several engines, which we expect to close in the late third or early fourth quarter. Let me now turn to segment performance in order to provide more insight into the results. In our Asset Management segment, leasing remained a key driver. Leasing revenue grew approximately 50% year-over-year to $12.4 million, reflecting an expanded engine and freighter lease portfolio. We ended the quarter with 18 engines and 3 757 freighters on lease compared with 16 engines and 1 freighter a year ago. Higher lease rates and improved utilization continued to lift asset yields and support our goal of building a larger, more consistent recurring revenue base. This growth will also benefit from the addition of currently owned engines that are completing the repair cycle, as well as the revenue from the remaining 757 freighters. This growth was offset by lower USM revenue, which reflects, in parts, lower feedstock acquired in the first half of the year compared to the prior year. Feedstock acquisitions for the second quarter were $5.6 million, down from $27.1 million a year ago as we stayed disciplined in pricing in a hypercompetitive acquisition market. In addition, as we noted in the first quarter, we consumed USM material that could have been sold to build serviceable flight equipment for sale or lease as this reallocation will enable us to realize higher returns than by simply selling the material as USM piece parts. In our TechOps segment, revenue grew nearly 9% to $33.8 million. Growth was led by the continued ramp-up of our long-term CRJ700 and CRJ900 multiline maintenance program at Millington, additional storage volume at Goodyear and higher landing gear and aerostructures activity. Demand for our AerSafe product also remains strong and is expected to peak in the third quarter of this year, ahead of the FAA's November 2026 compliance deadline for the Fuel Tank Flammability Airworthiness Directive. TechOps margins this quarter decreased due to softer throughput at our accessory shop as well as due to the ramp-up costs previously noted for Goodyear and Millington. These factors are exaggerated at this reduced volume level. However, as the operations continue to scale, margins will improve as utilization increases. We also made changes across -- to TechOps across our sales organization this quarter to sharpen our commercial focus and better align coverage with our highest opportunity accounts, and we expect these changes to support improved throughput and margin recovery in the second half. Turning to our enhanced flight vision product, AerAware. We remain engaged with U.S. regulators and industry participants to highlight AerAware's unique capabilities to enhance situational awareness and support safer flight operations. We believe the growing regulatory and legislative focus on ADS-B In and pilot situational awareness supports the long-term opportunity for AerAware as operators increasingly evaluate solutions designed to improve flight safety. A head wearable display such as AerAware offers meaningful advantages over existing technologies, which we believe will have decades of utility. Stepping back, our priorities for the remainder of 2026 are unchanged. First, increase the number of assets deployed in our lease pool, including placing our remaining 757 freighters. Second, continue to strategically monetize our inventory. Third, build available capacity across our MRO network. And fourth, improve operational profitability as our recent expansion initiatives gain scale. Execution of these priorities will lead to higher profits and a more consistent revenue stream going forward. With an active leasing pipeline and expanded operational capabilities and a clear path to monetize the inventory we built, we believe AerSale is well positioned to deliver improved and more consistent earnings going forward. With that, I'll turn the call over to Martin. Martin Garmendia: Thanks, Nick, and good afternoon, everyone. I'll walk through our second quarter results in more detail and then cover cash flow and liquidity. Total revenue for the second quarter was $70.9 million compared with $107.4 million in the prior year period. The decline was driven primarily by the absence of flight equipment sales this quarter, which totaled $33.4 million a year ago related to 8 engines sold. As we remind investors each quarter, flight equipment sales can vary meaningfully from period to period and performance is best assessed over time with a focus on feedstock acquisition, the monetization of those investments and profitability trends. Excluding flight equipment sales, revenue was down 4.2% as lower USM sales offset the continued growth in leasing and MRO. Adjusted EBITDA was $2.2 million or 3.1% of revenue compared with $18.3 million or 17% of revenue in the prior year period. The decline was driven primarily by the absence of flight equipment sales in the current period. Turning to the segments. Asset Management Solutions revenue was $37.1 million, down 51.3% compared to $76.3 million last year, which included $33.4 million of flight equipment sales. Excluding flight equipment sales, asset management revenue was $37 million, down 13.6% as lower USM sales offset the higher leasing revenue from our expanded engine and freighter lease portfolio. TechOps revenue was $33.8 million, up 8.7%, driven by the ramp-up of our CRJ multiline program at Millington and higher component MRO volume. Overall gross margin was 22.9% compared with 32.9% last year. The decline reflects the absence of flight equipment sales, which normally carry higher margins and lower USM gross profit. It also reflects the standup investments supporting new capacity and programs, which Nick described, required us to carry incremental staff ahead of volume at Goodyear as well as incremental ramp-up costs related to the Millington CRJ line. We expect margins to improve as utilization increases, driving both higher revenue and margin. Selling, general and administrative expenses were $21 million, down from $22.8 million a year ago, primarily due to lower rent and variable expenses. SG&A included $1.3 million of share-based compensation compared with $700,000 in the prior year period. Net loss for the quarter was $5.6 million compared with net income of $8.6 million a year ago. Excluding share-based compensation, adjusted net loss was $4.3 million compared with adjusted net income of $9.4 million last year. The decline again is primarily attributable to the timing of flight equipment sales. On a per share basis, diluted loss per share was $0.12 and adjusted diluted loss per share was $0.09. Turning to cash flow and liquidity. Cash used in operating activities was $33.5 million year-to-date, primarily reflecting continued investment in inventory through both feedstock and make-ready costs to make flight equipment available for lease or sale. The majority of this outflow reflects deliberate capital deployment on flight equipment we expect to monetize at attractive margins in the second half of the year, which will improve both profitability and liquidity. We ended the quarter with $376 million of inventory and $133 million of aircraft and engines held for lease. Available liquidity was $34 million, consisting of $2.2 million of cash and cash equivalents and $31.8 million of availability on our $180 million revolving credit facility, which can be expanded to $200 million, subject to conditions and borrowing base availability. Our balance sheet remains well positioned to support our growth strategy, giving us the flexibility to continue to grow both our USM and leasing revenue streams as well as to continue to take advantage of market opportunities when they arise. In summary, our second quarter results reflect the timing of our asset monetization rather than a change in the underlying business. As we convert our asset base through the second half and grow our recurring revenue, we expect meaningfully stronger cash flow and liquidity and increasingly predictable financial profile over time. We entered the second half with a substantially stronger pipeline of asset sales and expanding lease portfolio and improving unit economics across our MRO facilities. We are confident this combination supported by a healthy balance sheet, positions us for meaningfully improved performance in the second half of the year. With that, operator, we are ready to take questions. Operator: [Operator Instructions] Your first question comes from the line of Jeff Van Sinderen with B. Riley Securities. Jeff Van Sinderen: I guess one of the questions I have, just on the MRO facilities. I know you're still in the process of kind of ramping those up. But at this point, what is the utilization rate running on those facilities? Nicolas Finazzo: Utilization on the MRO facilities as we're ramping up? Martin Garmendia: So as we're ramping up overall our Millington facility, we have 2 lines that are in work. We still have capacity to add an additional 2 lines of work at that overall facility. As we've noted in the overall comments, the biggest issue we're having there is just ramping up, getting the incremental, the labor, and to go through the learning curve in those overall -- doing those overall aircraft. What I can say is we have been seeing favorable improvements on that during the second half of the second quarter. So we are very optimistic that we are going to be able to get back to our expected profitability in the second half of the year. In our facility in Goodyear, Arizona, we do, and as we've noted in the comments, have been operating at probably less than 20% of our available capacity. However, our storage field is starting to fill up with a lot of yellow aircrafts, and we do expect as those operators and lessors start finding opportunities for those aircraft, to start getting a meaningful tick-up in hangar work at those facilities. At our landing gear shop, we have been working with 2 key accounts that are starting to bring volume into those facilities that started coming in, in the second -- at the latter month of the second quarter that, that facility has been operating at probably about 80% overall capacity at -- during one shift. With this incremental volume, we expect to increase that and add an additional shift. So we are seeing improvements in these facilities, but we do still have available capacity to be able to continue to grow those numbers significantly. Jeff Van Sinderen: Okay. Great to hear. And then maybe you could just touch on any thoughts you have on the reasons for no flight equipment sales in the quarter? Martin Garmendia: Sorry, can you repeat the question? Nicolas Finazzo: Well, he wanted to know where we're at on flight equipment sales for the quarter. So as I mentioned in my discussion, we have under contract several engines that we could have closed or might have closed this quarter, but for different reasons, didn't. And we were awarded a $35 million sale of a 737 to the U.S. Marshals Service that we're trying to get closed yet this quarter. It may move into the early fourth quarter. Besides that, we have 17 engines -- 17 engines in work, and it's been like that now for the better part of the year. And it feels like they're all going to start coming up one right after the other here in the next several months. And those engines will go into our lease pool, some of them will go on to aircraft that we've got that we're placing, whether it be 757 or the 737. They'll go into our engine leasing portfolio. Lots of demand for those engines. That's the frustrating part, is if we could've get -- got those engines out of the shop, we would have already had them on lease. So we have all these engines are -- most of these engines are coming out in the near term. So we expect to see revenue from those, whether it be through trading or lease. Preferably, we'll lease them. However, if a financial buyer comes along or if an airline comes along, and they'll pay us more to -- for that engine, and we feel we can realistically get at it -- get out of it by leasing it and then adjusting for time and risk, then we'll sell it. It's not our preference because then we're back to -- we've taken that piece of flight equipment that could have produced more recurring, consistent revenue, and if we've moved it into trading. However, I'm going to add one more comment here because we get this all the time, which is I think that the investors don't appreciate what it takes to produce these assets and how much we pull from available inventory to keep the cost down in putting these assets together. And then ultimately, when we trade them, we get an outsized margin because we get more revenue from an engine that we put together than we would if we didn't take that engine, put it together, broke it down and just sold it at the piece part level. So the trading that we do is really just a higher way of -- a greater way to achieve better net revenue than if we just broke the engine down at the piece part level. And that's the analysis we make on every engine that we have in our portfolio, which is at a given time, do we lease it where demand is high or do we sell it where demand is high. And that's where we're at. So we've got a substantial number of engines coming here in the next several months, and that's a big change from where we've been over the past year. Jeff Van Sinderen: Okay. That's great to hear. And then if I could squeeze one more in. Just curious, I know you mentioned some yellow aircraft that are being stored. And I'm wondering what you think the state of those aircraft is? Are they -- do you have a sense of the status? Are they ready to fly? Do they need MRO? What do you think happens there? Nicolas Finazzo: So all -- we refer to yellow airplanes, and I don't mind saying, these are ex Spirit Airlines aircraft. We have how many stored there now? Martin Garmendia: 84. Nicolas Finazzo: We have 84 stored there. I think we were over 90 at one point. All of those aircraft will need some level of maintenance as they come out. Many of them, the NEOs require engines. So they'll be stuck there until the engines come out. The expectation is that engines for those airplanes will all come out over the next year. All of them that we have now are owned by banks or leasing companies. So we're discussing with all of those companies, what are they going to do with their flight equipment? Some have actually been broken down and sold as airframes and the engines seem to have more value leasing a serviceable engine than you get for leasing the whole airplane. So we've seen some of these leasing companies keep the engines that come out of the shop, and then sell the aircraft for the airframe for part out. So some of those won't come back into service, and we're parting them out candidly. It's a shame. These are relatively new airplanes, less than 5 years old in many cases, and airplanes are being parted out. We've just not seen that before. And again, that's because of the value of the engines being so high today because they're so rare to get a decent engine out of the shop. So all of that flight equipment, the lessors are waiting if they can get their engines back, they're all hustling to get lease customers for them. So if they've decided they're going to leave them, they have engines, they've got a customer, and we're starting to get heavy checks because those airplanes have been sitting for quite a while. So that will keep us with a lot of heavy maintenance at the facility until all of those airplanes go through the process of either being -- and I would expect that most of them will be returned to service rather than parted out. So that's going to keep us busy. The frustrating part to that is engines -- the unavailability of engines is still holding airplanes on the ground. And candidly, there's so many airplanes there that every lessor asked us today to return those airplanes to service, we're not capable of doing. We have 8 bays, and we can't return 8 airplanes with heavy checks in a short amount of time. So we will -- our expectation is as the lessors find their lessees that we will fill up probably for the next year. And by the way, those Spirit airplanes and those aircraft lessors aren't our only customers there. We have other customers that we've been dealing with long term. So that's why we feel optimistic about filling up our capacity at Goodyear despite the fact that this issue with Spirit has really created a big glut of airplanes that are need maintenance. But as we did during COVID, storing almost 100 airplanes there. These are ready airplanes. These aren't airplanes that are going to get -- most of them are going to fly and they're not going to get parted out. So that provides a decent amount of revenue for us as well. Operator: Your next question comes from the line of Stephen Strackhouse with RBC. Stephen Strackhouse: Nick, I was hoping you might be able to just follow up on the part that you said that investors don't maybe appreciate in terms of what it takes to really put the assets together. Maybe kind of speaking to that trade-off of kind of foregoing the near-term USM piece part sales in favor of building the longer-term leasing assets kind of as a recurring strategic choice. Can you assign any value or numbers to that maybe in terms of the margins that you can kind of -- or maybe even the incremental margins between the 2 to kind of level set us there? Nicolas Finazzo: We have that information we can share. Martin Garmendia: Yes. I would say when we look at overall USM margins, we noted on our IR, margins are typically in the 25% overall range. When we've done flight equipment sales and when we look at the opportunity, we've achieved margins that have exceeded those amounts, sometimes by a large overall amount. And that's when we look at the opportunities that have been in front of us, whether it's the opportunity with the U.S. Marshals Service or various other opportunities to put overall engines, the economics are truly attractive to have made the investments because we have made, as Nick has noted, it's not just grabbing the engine. We have to have made significant investments to get these engines into serviceable condition and then sell those assets out. And that itself is providing not only the higher margin, but it's increasing our overall monetization cycle. So we're getting back our capital quicker, which again is important because it will also improve our liquidity position. Nicolas Finazzo: Let me add a little something else to that, which is as we view flight equipment purchases, the highest value we can get out of buying flight equipment is to keep the aircraft as a flyable asset. The next highest value is to keep the engines as flyable engines. When the airframe is not valued as a flyable airplane, it costs too much to keep it in service. You take the engines off. Now we have obviously plenty of opportunity to lease or sell the engines. When the engines have greater value at the piece part level because of the cost of returning them to service, then they go into the USM parts. Along all that, there are subcomponents. There's landing gear. There's APUs. There's other components that come off the aircraft as subassemblies that have higher value as subassemblies than they do at the piece part level. At the end of the day, USM, when you think about it, it's just purely piece parts. It's not components, it's not landing gear. It's just components. It's just piece parts, that's the lowest value you could get out of that because now it can move relatively quickly, and there are certain very high demand USM parts that can quickly be sold after you've torn it down, got it to the piece part level, then at the shop, got it back. And as soon as you predict all your scrap rates and yields and the sales value correctly, you'll get your value out of it. We strive for at least a 25% margin on USM parts. And sometimes, most of the time we get it. But when we take those parts and we sell and we put it together as part of the whole airplane or a whole engine and then are able to monetize the whole engine, we're not just getting value at a 25% margin off of or more off of the parts that are easy to sell, we also get value out of all the other things on the airframe or engines that we probably won't sell. And so that's why the total margin becomes much greater because some of that we wouldn't have otherwise been able to sell. And then when you look at the incremental dollars we're talking about, this is -- these are big transactions. These are transactions where we'll make $4 million, $5 million, $10 million or more on the sale of an asset. And do you know how many USM piece parts you have to sell to make that kind of margin? So when we can use our infrastructure to put together an asset and get a higher margin than selling it at the piece part level and a large incremental dollar amount with not so much additional effort because we're using our existing infrastructure to do it. But by just by piecing it back together rather than piecing it -- taking it apart at the piece level. That's why we pull USM and use it in the repair of our own -- our own flight equipment. We'll continue to do that as long as we feel that we're going to get a greater value out of it. Stephen Strackhouse: That is really, really helpful color. And a couple of questions here are really just around -- I can appreciate the investment that you guys are making to really kind of get the revenue model into a recurring stream and to really take advantage of the margin potential. So my second question is also in a similar line of thought where I know you talked about the CRJ ramp and the Goodyear labor investments that you're making, maybe not even kind of when they turn accretive to like the back half, but what can kind of some of the incremental margins or the margin capability look like on that MRO work in like 2027 or 2028? Martin Garmendia: So in our on-airport MRO margins have -- usually when we're running at full operations have been in the 20% to 30% overall range. Now margins improve, as you would understand, the more volume you have, the better absorption you have of your fixed cost. So one of the things that we're suffering from now is that as we're ramping up, volume is low. We have to ramp up and get the staffing that's needed to support that value, whether it's the Millington ramp-up or in Goodyear in preparation for the large amount of work that we're seeing ahead of us. And that's where we're seeing kind of a lower margin profile. As we start increasing that volume and give an example, as Nick noted on Goodyear, as there's this need to run aircraft and run them quickly through our pipeline, we'll add additional shifts, and that will start improving our margin profile going forward. And again, as Nick has noted, specifically for Goodyear, there's a large amount of aircraft that when those assets start becoming available, there's going to definitely be a need from our customers for us to ramp up to go through that increased volume. Stephen Strackhouse: That's helpful. And then very last question for me. I appreciate that there's a bit of a drop-off after AerSafe and the peak of like 3Q '26. But can you talk about the investment cycle that you could be making in new product offerings? We've heard a lot from a lot of other peer companies this quarter on their earnings calls talk about new product development. I was wondering if you could share any investments that you're making into other new products that could eventually replace AerSafe and drive some longer-term growth. Nicolas Finazzo: Apart from AerAware, which we've been discussing for many quarters now, we are looking at other PMA opportunities or even DER repairs where we're basically providing a solution to an airline that they can't get from the existing OEM of a part or they can't get the parts altogether, and we can manufacture parts for them because they can't get it. And what we're seeing is, especially with the current CRJ line that we're doing is there's a lot of need for additional services that will use our PMA capability and what we really need to understand is, okay, guys, what do you need? What can we do for you? So although in all candor, we don't have any additional PMA developments at this time. There's a number that we're working on that we will look to potentially develop and monetize on a go-forward basis. I don't expect any of that to make a substantial contribution. It takes a better part of the year to identify a product that you're going to develop and then go through the whole process of developing it and then assuming you have a customer that wants it because we're not going to develop anything on a -- just on a, hey, let's just -- we did that with AerAware. We didn't have a -- we had a very interested customer who just dragged and dragged and dragged. The next time we do something, when we develop it, it's going to be for a customer who says, give me this and I'll give you an order for hundreds of them. But don't have one yet. And I can't tell you that we have visibility on what we're going to see coming in the next year. Operator: There are no more further questions at this time. I will now turn the call back over to Nick Finazzo, CEO, for closing remarks. Nicolas Finazzo: Okay. Thank you. I really want to thank you, gentlemen, for your good questions and it gave me an opportunity -- Martin and I an opportunity to explain in a little more detail some of the things maybe we missed during the call. I want to thank everyone else who's expressed an interest by listening to AerSale today for your interest. Thank you very much. The numbers don't reflect the story. And we'll have to -- we're going to show you that the second half of this year is not going to look like the first half of this year. And you'll see that if you listen to us next quarter and in the last quarter of the year. So we remain optimistic and confident, and we're eager to make things happen here. So again, everyone, thanks for listening, and we hope you listen in next time we have our earnings call. I hope everyone has a really good night. Thank you. Operator: This concludes today's call. Thank you all for joining, and you may now disconnect. Before you buy stock in AerSale, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and AerSale wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,393!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 13, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends AerSale. The Motley Fool has a disclosure policy. AerSale (ASLE) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Aerospace and defense company AerSale (NASDAQ:ASLE) fell short of the market’s revenue expectations in Q2 CY2026, with sales falling 33.9% year on year to $70.93 million. Its non-GAAP loss of $0.09 per share was significantly below analysts’ consensus estimates. Is now the time to buy ASLE? Find out in our full research report (it’s free). Revenue: $70.93 million vs analyst estimates of $81.24 million (33.9% year-on-year decline, 12.7% miss) Adjusted EPS: -$0.09 vs analyst estimates of $0.07 (significant miss) Adjusted EBITDA: $2.21 million vs analyst estimates of $11.18 million (3.1% margin, 80.2% miss) Operating Margin: -6.7%, down from 11.7% in the same quarter last year Market Capitalization: $297.7 million AerSale’s second quarter results were met with a significant negative reaction from the market, as both revenue and profitability fell well short of Wall Street’s expectations. Management attributed the underperformance primarily to the timing of flight equipment sales, with no transactions completed during the quarter, and ongoing ramp-up costs in new maintenance, repair, and overhaul (MRO) facilities. CEO Nicolas Finazzo described the period as one of “incremental improvements across most of our business units,” but acknowledged that investments in new capabilities and carrying extra labor weighed on margins. Management took a notably cautious tone in discussing the slow development of heavy maintenance work at the Goodyear facility, noting that results were “impacted by timing, not trajectory.” Looking forward, management believes that AerSale’s earnings profile will improve as delayed asset sales close and newly expanded MRO capacity becomes fully utilized. The company expects increased activity in engine leasing and the completion of several high-value transactions, including a $35 million aircraft sale, to support stronger results in the second half of the year. CFO Martin Garmendia emphasized that “margins will improve as utilization increases,” while Finazzo highlighted the anticipated build-up in stored aircraft maintenance and the potential for higher recurring revenues. However, management also cautioned that realizing these improvements depends on timely execution, customer demand for stored aircraft, and the successful ramping of new business lines. Management cited the absence of flight equipment sales, increased investment in new MRO capacity, and evolving customer trends in aircraft storage as the key drivers behind the quarter’s performance. Flight equipment sales absence: There were no flight equipment sales in Q2, a departure from typical patterns, which management said masked incremental improvements across most business units. This timing issue, rather than a structural change, led to a significant revenue shortfall and lower margins. MRO facility ramp-up costs: The company continued investing in new capabilities at its Goodyear and Millington MRO sites. While this expanded maintenance capacity, it also required carrying extra labor and incurring start-up costs, particularly as heavy maintenance work at Goodyear developed slower than expected. Management views these as investments in future profitability. Leasing portfolio growth: Leasing revenue increased approximately 50% year over year, driven by a larger portfolio of engines and converted freighters under lease. Management highlighted higher lease rates and improved utilization, aiming to build a more consistent recurring revenue stream. USM and feedstock acquisition strategy: Used serviceable material (USM) sales declined as the company strategically shifted to using USM components internally to assemble flight equipment for future sale or lease. Feedstock acquisitions were deliberately reduced in response to a “hypercompetitive acquisition market.” Customer aircraft storage trends: The Goodyear facility has seen an influx of stored aircraft, particularly ex-Spirit Airlines jets owned by lessors and financial institutions. Management noted these aircraft will require significant maintenance before returning to service, providing a pipeline of future MRO work but also presenting operational challenges tied to engine availability and hangar capacity. AerSale’s outlook centers on converting delayed asset sales, ramping utilization at new MRO facilities, and capitalizing on recurring leasing revenues, while remaining sensitive to execution risks and industry trends. Asset monetization timing: Management expects several delayed flight equipment sales, including a $35 million aircraft sale and multiple engine transactions, to close in the second half. The timing and completion of these high-margin deals are critical for profitability recovery and liquidity improvement. MRO utilization and efficiency gains: The company anticipates that increased maintenance demand—especially for stored aircraft at Goodyear—and ongoing efficiency improvements at Millington will drive higher margins as fixed costs are absorbed over greater volumes. Full ramp-up is expected to materially improve operating leverage. Recurring leasing and regulatory drivers: Growth in engine and freighter leasing is expected to support more stable recurring revenues. Additionally, management pointed to regulatory deadlines, such as the FAA’s 2026 compliance requirement for AerSafe products, as catalysts for increased product demand, although this tailwind may moderate after the deadline passes. In coming quarters, the StockStory team will focus on (1) the closure and margin contribution from delayed flight equipment and engine sales, (2) the pace of MRO facility ramp-up and absorption of stored aircraft maintenance demand, and (3) progress in growing recurring leasing revenues. Additionally, we will monitor execution on new product initiatives and regulatory-driven opportunities, such as compliance deadlines for safety products. AerSale currently trades at $5.84, down from $6.30 just before the earnings. Is there an opportunity in the stock? Find out in our full research report (it’s free for active Edge members). WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. 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This article first appeared on GuruFocus. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Leasing revenue grew approximately 50% year-over-year to $12.4 million, driven by an expanded engine and freighter lease portfolio. TechOps segment revenue grew nearly 9% to $33.8 million, led by the ramp-up of the CRJ maintenance program and higher landing gear activity. Secured a $35 million 737 aircraft sale to the U.S. Marshals Service, expected to close in late Q3 or early Q4. Placed the fourth 757 converted freighter on lease in July and executed a lease for a fifth, leaving only two freighters to monetize. Demand for the AirSafe product remains strong and is expected to peak in Q3 2026 ahead of the FAA's November compliance deadline. Landing gear shop is operating at about 80% capacity during one shift, with plans to add an additional shift as volume builds. Total revenue declined to $70.9 million from $107.4 million in the prior year, primarily due to the absence of flight equipment sales. Adjusted EBITDA fell sharply to $2.2 million (3.1% of revenue) from $18.3 million (17% of revenue) in the prior year period. The company reported a net loss of $5.6 million for the quarter, compared to net income of $8.6 million a year ago. First-half margins were negatively impacted by ramp-up costs at Goodyear and Millington, including carrying additional labor ahead of volume. Feedstock acquisitions dropped significantly to $5.6 million from $27.1 million a year ago due to a hyper-competitive acquisition market. Cash used in operating activities was $33.5 million year-to-date, reflecting continued investment in inventory and make-ready costs. Warning! GuruFocus has detected 6 Warning Signs with ASLE. Is ASLE fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide more color on the trade-off between selling USM piece parts versus building and leasing or selling whole flight equipment assets, and can you assign any value or numbers to the incremental margins between the two?A: Martin Garmendia, CFO, explained that USM margins are typically in the 25% range, but flight equipment sales have achieved margins that exceed those amounts, sometimes by a large margin. Nick Sanazzo, CEO, added that the highest value from flight equipment purchases is keeping the aircraft as a flyable asset, followed by keeping engines as flyable engines. USM piece parts represent the lowest value. By assembling whole assets, the company captures value from components that might otherwise be unsellable, resulting in incremental dollars of $4 million to $10 million or more per transaction, far exceeding what could be made from selling piece parts. Q: What is the current utilization rate at your MRO facilities, and what is the outlook for improvement?A: Martin Garmendia, CFO, stated that the Millington facility has two lines in work with capacity for two more, and labor efficiency is improving. The Goodyear facility is operating at less than 20% of capacity, but the storage field is filling with "yellow" (ex-Spirit Airlines) aircraft, which is expected to drive a meaningful pickup in hangar work. The landing gear shop is operating at about 80% capacity on one shift, with plans to add a second shift. Management expects profitability to improve in the second half as volume builds. Q: Can you explain the reasons for the lack of flight equipment sales in the second quarter?A: Nick Sanazzo, CEO, explained that several engines were under contract but didn't close in the quarter, and a $35 million sale of a 737 to the U.S. Marshals Service is expected to close in the third or early fourth quarter. He noted that 17 engines are in work and are expected to come out of the shop in the coming months. These engines will either be placed on aircraft, added to the leasing portfolio, or sold, depending on which option yields the highest return. He emphasized that the company prefers leasing for recurring revenue but will sell if a buyer offers a premium. Q: What is the fate of the stored "yellow" aircraft at the Goodyear facility, and what does this mean for future MRO demand?A: Nick Sanazzo, CEO, confirmed these are ex-Spirit Airlines aircraft, with 84 currently stored. All will require maintenance before returning to service. Many NEOs are waiting on engines, which are expected to become available over the next year. Some lessors are parting out aircraft due to the high value of engines, but most are expected to return to service. The company has eight bays and expects the facility to be busy for the next year as lessors find lessees, which will drive heavy maintenance checks. Q: What do the incremental margins or margin capability look like for the MRO work in 2027 or 2028, given the current ramp-up investments?A: Martin Garmendia, CFO, stated that on-airport MRO margins typically range from 20% to 30% when running at full operations. The current lower margins are due to low volume during the ramp-up and the need to carry incremental staff ahead of volume. As volume increases and additional shifts are added, particularly at Goodyear, margins are expected to improve through better absorption of fixed costs. Q: Can you discuss the investment cycle for new product offerings, particularly as AirSafe demand peaks in Q3 2026?A: Nick Sanazzo, CEO, said that beyond AeroAware, the company is exploring other PMA opportunities and DER repairs to provide solutions airlines can't get from OEMs. The CRJ line has highlighted a need for additional services using PMA capability. However, there are no new PMA developments at this time, and any new product would take about a year to develop. The company will only develop products with a committed customer, learning from the AeroAware experience where a customer dragged the process out. Q: Can you elaborate on the strategic decision to consume USM material for building flight equipment rather than selling it as piece parts?A: Nick Sanazzo, CEO, explained that the company analyzes every engine to decide whether to lease or sell it. The trading of whole assets is a way to achieve better net revenue than breaking down engines into piece parts. By using USM material to build serviceable flight equipment, the company realizes higher returns, as evidenced by the $35 million U.S. Marshals sale and other engine transactions. This approach also shortens the monetization cycle and improves liquidity. Q: What is the current state of the leasing portfolio, and how does it support the company's recurring revenue goals?A: Nick Sanazzo, CEO, reported that leasing revenue grew approximately 50% year-over-year to $12.4 million, with 18 engines and three 757 freighters on lease at quarter end, up from 16 engines and one freighter a year ago. The company placed its fourth 757 converted freighter on lease in July and executed a lease for a fifth, leaving just two freighters to monetize. Higher lease rates and improved utilization are lifting asset yields, supporting the goal of building a larger, more consistent recurring revenue base. Q: How do you view the second-half outlook given the first-half results?A: Nick Sanazzo, CEO, emphasized that the second-quarter results reflect timing, not trajectory. The company expects a meaningfully stronger second half, driven by the monetization of flight equipment, including the U.S. Marshals sale and several engines, the continued ramp-up of MRO facilities, and the expansion of the leasing portfolio. Martin Garmendia, CFO, added that the company enters the second half with a substantially stronger pipeline of asset sales and improving unit economics across MRO facilities. Q: Can you provide details on the feedstock acquisition strategy and its impact on USM revenue?A: Nick Sanazzo, CEO, noted that feedstock acquisitions in Q2 were $5.6 million, down from $27.1 million a year ago, due to disciplined pricing in a hyper-competitive market. This lower feedstock, combined with the reallocation of USM material to build flight equipment, resulted in lower USM revenue. However, this strategy is expected to yield higher returns through the sale or lease of whole assets, which will be realized in the second half For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Second Quarter 2026 Highlights Revenue of $70.9 million versus $107.4 million in the prior year period Net loss of $5.6 million versus net income of $8.6 million in the prior year period Adjusted net loss1 of $4.3 million versus adjusted net income of $9.4 million in the prior year period Adjusted EBITDA1 of $2.2 million versus adjusted EBITDA of $18.3 million in the prior year period Feedstock acquisitions of $5.6 million versus $27.1 million in the prior year period Inventory of $376.0 million at June 30, 2026 Aircraft and engines held for lease2 of $133.0 million MIAMI, Aug. 06, 2026 (GLOBE NEWSWIRE) -- AerSale Corporation (Nasdaq: ASLE) (“AerSale” or the “Company”) today reported second quarter 2026 financial results. Second Quarter 2026 Results of Operations During the Second Quarter of 2026, we continued to work through our strategic initiatives that are focused on monetizing our asset base, scaling our MRO operations, and growing the more recurring revenue streams of our business. This has resulted in short-term impacts to our earnings. Comparisons to the second quarter of the prior year are skewed primarily due to $33.4 million of Flight Equipment sales in the prior year, compared to none in the current quarter. This decline is not due to a lack of market opportunities, but rather timing of transactions. We have also continued to incur expenses in anticipation of increased MRO demand that has impacted profitability for those units in the short term. Due to these reasons, period-to-period comparisons for this quarter are less representative of the Company’s operating momentum. The Company’s revenue for the second quarter of 2026 was $70.9 million, representing a 33.9% decrease compared to $107.4 million in the second quarter of 2025. The decline was primarily driven by the absence of Flight Equipment sales, as well as lower used serviceable material (“USM”) sales volume. These decreases were partially offset by continued strength in the Company’s leasing revenue supported by an expanded engine and B757 freighter lease portfolio, growing maintenance repair and overhaul (“MRO”) revenue, and strong commercial demand for the Company’s AerSafe® product. Adjusted EBITDA1 in the second quarter of 2026 decreased by $16.1 million to $2.2 million, or 3.1% of total revenue, representing a decrease of 87.9% compared to $18.3 million, or 17.0% of total revenue, in the comparable prior year period. The decline was primarily driven by the absence of Flight Equipment sales in the current period. As a reminder to investors, the Company’s revenue may significantly fluctuate from quarter-to-quarter and year-to-year based on the timing of Flight Equipment sales and, therefore, performance should also be monitored based on the more recurring aspects of our business, which includes leasing, USM and MRO activities. Excluding Flight Equipment sales, revenue decreased 4.2% due to lower USM sales as we consumed material to build serviceable engines to support increased leasing and Flight Equipment sales. Nicolas Finazzo, Chief Executive Officer at AerSale, stated, “Our second quarter results reflect timing, not trajectory. Results were impacted by Flight Equipment sales shifting into the second half of the year and the use of sellable USM to support the overhaul of Flight Equipment. We also continued to invest ahead of demand, adding labor at our Goodyear facility ahead of anticipated volume and building our workforce to support the ramp-up of our new CRJ multi-line program in Millington. This weighed on results in the near term, but we believe positions us well for the anticipated demand ahead. We remain encouraged by underlying demand across our platform and expect these benefits to materialize in the second half.” Mr. Finazzo continued, “We expect meaningful improvement to our earnings and liquidity in the second half of 2026, driven by several recent wins during and subsequent to the second quarter, including a Boeing 737 aircraft sale valued at approximately $35.0 million and commitments for an additional three engine sales which we expect to close in the late third or early fourth quarter. We also delivered a fourth B757 freighter on lease in July and executed a lease agreement for a fifth, scheduled for delivery in August. We remain confident in monetizing our two remaining freighters, expanding our lease pool, and filling capacity across our MRO network.” Asset Management Solutions Segment (“AMS”) revenue decreased 51.3% to $37.1 million during the second quarter of 2026 compared to $76.3 million in the second quarter of 2025, primarily due to the absence of Flight Equipment sales. Excluding Flight Equipment sales, AMS revenue decreased 13.6% to $37.0 million from $42.9 million in the prior year, driven by lower USM sales resulting from timing of feedstock acquisitions, and utilization of material to build serviceable assets, this was partially offset by increased leasing revenue from an expanded engine and B757 freighter lease portfolio. As of June 30, 2026, the Company had 18 engines and three B757 freighter aircraft on lease, compared to 16 engines and one B757 freighter on lease in the prior year period. Technical Operations (“TechOps”) revenue increased 8.7% to $33.8 million in the second quarter of 2026 compared to $31.1 million in the second quarter of 2025, driven primarily by the continued ramp-up of operations in support of a recently awarded long-term CRJ multi-line maintenance agreement, additional storage volume, landing gear and aerostructures overhaul activity, and continued AerSafe® demand, which is expected to peak in the third quarter of 2026 ahead of the FAA's November 2026 compliance deadline for the fuel tank safety Airworthiness Directive. Gross margin decreased to 22.9% for the second quarter of 2026 compared to 32.9% in the same period last year, due to the absence of Flight Equipment sales, which generated $13.2 million of gross profit in the prior-year period. Lower USM gross profit tied to reduced feedstock acquisitions also contributed to the decline. In addition, gross margin reflected continued investment in labor at our Goodyear, Arizona facility ahead of anticipated volume and continued ramp up in support of our new long-term maintenance program at Millington, Tennessee. Selling, general, and administrative expenses were $21.0 million in the second quarter of 2026, slightly below the $22.8 million in the second quarter of 2025 due to lower rent and variable expenses. AerSale incurred $1.3 million of share-based compensation expense in the second quarter of 2026 versus $0.7 million in the second quarter of 2025. Loss from operations was $4.8 million in the second quarter of 2026 compared to income from operations of $12.5 million in the second quarter of 2025. Income tax benefit was $1.6 million in the second quarter of 2026, compared to an income tax provision of $1.8 million in the second quarter of 2025. The Company's effective tax rate was 22.6% in the second quarter of 2026 compared to 17.0% in the second quarter of 2025. Net loss for the second quarter of 2026 was $5.6 million, compared to net income of $8.6 million in the prior-year period. During the second quarter of 2026, the Company recognized $1.3 million of share-based compensation expense within payroll expenses. Excluding this non-cash item and adjusted for tax, and other non-cash items in the prior year period, adjusted net loss¹ was $4.3 million in the second quarter of 2026, compared to adjusted net income¹ of $9.4 million in the second quarter of 2025. Diluted loss per share was $0.12 for the second quarter of 2026 compared to diluted earnings per share of $0.18 in the second quarter of 2025. Adjusted for the items noted above, adjusted diluted loss per share¹ was $0.09 for the second quarter of 2026, compared to adjusted diluted earnings per share¹ of $0.20 for the second quarter of 2025. AerSale ended the quarter with liquidity of $34.0 million consisting of $2.2 million of cash and cash equivalents and available capacity of $31.8 million on its $180 million revolving credit facility, expandable to $200 million, subject to conditions and the availability of lender commitments and borrowing base liabilities. Cash used in operating activities year to date was $33.5 million, primarily reflecting the Company's operating results for the period and continued investment in inventory through feedstock and make ready costs for USM and Flight Equipment. Conference Call Information The Company will host a conference call today, August 6, 2026 at 4:30 pm Eastern Time to discuss these results. A live audio webcast will be available to the public on a listen-only basis at https://ir.aersale.com/news-events/events. An archived replay of the webcast will also be available on the Investors portion of the AerSale website at https://ir.aersale.com/ for one year. Non-GAAP Financial Measures This press release includes non-GAAP financial measures, including adjusted EBITDA, adjusted net income (loss), and adjusted basic and diluted earnings (loss) per share. AerSale defines adjusted EBITDA as net income (loss) excluding interest expense, net, depreciation and amortization, income tax (expense) benefit, and other non-cash, non-recurring or unusual items. Adjusted net income (loss) is defined as net income (loss) excluding mark-to-market adjustments relating to our private warrants, share-based compensation expense, inventory write-offs and other non-cash, non-recurring or unusual items. Adjusted basic and diluted earnings (loss) per share is adjusted net income divided by the basic and diluted weighted average number of shares outstanding during the measurement period. AerSale believes these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to AerSale’s financial condition and results of operations. AerSale’s management uses certain of these non-GAAP measures to compare AerSale’s performance to that of prior periods for trend analyses and for budgeting and planning purposes. These non-GAAP measures should not be construed as an alternative to net income (loss) or net income (loss) margin as an indicator of operating performance or as an alternative to cash flow provided by operating activities as a measure of liquidity (each as determined in accordance with GAAP). You should review AerSale’s financial statements, and not rely on any single financial measure to evaluate AerSale’s business. Other companies may calculate adjusted EBITDA, adjusted net income (loss), or adjusted basic and diluted earnings (loss) per share differently, and therefore AerSale’s adjusted EBITDA, adjusted net income (loss), and adjusted basic and diluted earnings (loss) per share measures may not be directly comparable to similarly titled measures of other companies. Reconciliations of net income (loss) and basic and diluted earnings (loss) per share, the Company’s closest GAAP measures, to adjusted EBITDA, adjusted net income (loss), and adjusted basic and diluted earnings (loss) per share, are outlined in the tables below following the Company’s condensed consolidated financial statements. End Notes (1) Adjusted net income (loss), adjusted EBITDA and adjusted basic and diluted earnings (loss) per share are non-GAAP measures. See “Non-GAAP Financial Measures” above and “Adjusted EBITDA, Adjusted Net (Loss) Income and Adjusted Basic and Diluted (Loss) Earnings Per Share 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 their most directly comparable GAAP (Generally Accepted Accounting Principles) measures. (2) Aircraft and engines held for lease refers to the financial statement line item Aircraft and engines held for lease, net within the Condensed Consolidated Balance Sheet, which is comprised of the cost of the assets net of accumulated depreciation. Second Quarter 2026 Financial Results (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 improved financial results as a result of our recently awarded long-term CRJ maintenance contract and greater demand for AerSale’s USM business and fluctuations in our revenue including third quarter demand for AerSafe®; 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 SEC, including its subsequent quarterly reports on Form 10-Q. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Moreover, we operate in an evolving environment. New risk factors and uncertainties may emerge from time to time, and it is not possible for management to predict all risk factors and uncertainties. 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 AerSale is a global provider of integrated aviation aftermarket services and solutions, serving operators of Boeing, Airbus, and legacy McDonnell Douglas aircraft. The Company helps aircraft owners and operators optimize the value, safety, and operational efficiency of their fleets across the entire aircraft lifecycle. AerSale’s comprehensive capabilities include aircraft and engine sales and leasing, used serviceable material (USM) sales, component and airframe MRO services, and FAA-certified engineered solutions. Through internally developed products such as AerSafe®, AerTrak®, and the AerAware™ Enhanced Flight Vision System, AerSale delivers innovative technologies that enhance aircraft performance, improve safety, and reduce operating costs.With deep technical expertise and a fully integrated business model, AerSale provides everything customers need—through a single, trusted partner. Media:For more information about AerSale, please visit our website: www.AerSale.com.Follow us on: LinkedIn | Twitter | Facebook | Instagram AerSale: Jackie Carlon Telephone: (305) 764-3200 Email: [email protected] Investor: AerSale: [email protected] Source: AerSale Corporation

Interested in AerSale Corporation? Here are five stocks we like better. Second-quarter results weakened sharply: Revenue fell to $70.9 million from $107.4 million, adjusted EBITDA dropped to $2.2 million, and AerSale posted a $5.6 million net loss, largely because it recorded no flight equipment sales compared with $33.4 million of such sales a year earlier. Leasing and maintenance activity expanded: Leasing revenue increased about 50%, while Tech Ops revenue rose 8.7%; however, maintenance ramp-up costs, lower USM profits and underutilized Goodyear capacity pressured margins. Management expects a stronger second half: AerSale plans to monetize inventory, add leased engines and freighters, pursue a $35 million Boeing 737 sale and increase MRO utilization, while facing limited liquidity of $34 million and significant cash usage for equipment investments. AerSale (NASDAQ:ASLE) reported second-quarter revenue and adjusted EBITDA that declined from a year earlier, primarily because the company did not record any flight equipment sales during the period. Management said it expects a stronger second half as it monetizes inventory, expands leasing activity and increases utilization at its maintenance facilities. Revenue for the quarter totaled $70.9 million, compared with $107.4 million in the prior-year period. Adjusted EBITDA was $2.2 million, or 3.1% of revenue, versus $18.3 million, or 17% of revenue, a year earlier. Net loss was $5.6 million, compared with net income of $8.6 million in the second quarter of 2025. → 3 Drone Stocks That Should Soar After the Summer Slump Chief Executive Officer Nick Finazzo said the results reflected “timing, not trajectory,” pointing to the absence of flight equipment sales that contributed $33.4 million of revenue in the year-earlier quarter through the sale of eight engines. Excluding flight equipment sales, revenue declined 4.2% year over year, as lower used serviceable material, or USM, sales outweighed growth in leasing and maintenance operations. Asset management solutions revenue fell 51.3% to $37.1 million. Excluding flight equipment sales, however, segment revenue declined 13.6%, reflecting lower USM sales. The company said it acquired $5.6 million of feedstock during the second quarter, down from $27.1 million a year earlier, as it maintained pricing discipline in what Finazzo described as a highly competitive acquisition market. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Leasing revenue rose about 50% to $12.4 million, supported by a larger engine and converted freighter portfolio. AerSale ended the quarter with 18 engines and three Boeing 757 freighters on lease, compared with 16 engines and one freighter a year earlier. In July, AerSale placed its fourth converted 757 freighter on lease and signed a lease for a fifth freighter expected to be delivered in August. The company has two remaining freighters from its passenger-to-freighter conversion program to monetize. → Jersey Mike's Serves Fresh Gains After IPO Stumble Finazzo also said AerSale was awarded a $35 million sale of a Boeing 737 aircraft to the U.S. Marshals Service. The company expects the transaction to close in the third quarter or early in the fourth quarter. Management also cited several engine transactions expected to close in late third quarter or early fourth quarter. During the question-and-answer session, Finazzo said AerSale had 17 engines in work and expects many to emerge from repair facilities in the coming months. Depending on market conditions, the company may place those engines into its lease portfolio or sell them to customers offering better economic returns. Management said it is increasingly using USM inventory to restore aircraft engines and other flight equipment for sale or lease, rather than selling all material as individual piece parts. Chief Financial Officer Martin Garmendia said USM margins have typically been around 25%, while flight equipment transactions have at times generated higher margins and faster capital recovery. Tech Ops revenue increased 8.7% to $33.8 million. Growth was led by the ramp-up of AerSale’s CRJ700 and CRJ900 multi-line maintenance program in Millington, Tennessee, additional aircraft storage at its Goodyear, Arizona, operation, and higher landing gear and aerostructures activity. However, gross margin declined to 22.9% from 32.9% a year earlier. Garmendia said margins were affected by the lack of higher-margin flight equipment sales, lower USM gross profit, and the cost of staffing and building capacity ahead of expected work at Goodyear and Millington. At Millington, AerSale has two maintenance lines in operation and capacity to add two additional lines, Garmendia said. The company has seen improvements in labor efficiency and aircraft turnaround times as the program progresses. Goodyear was operating at less than 20% of available capacity during the quarter, according to Garmendia. But AerSale has been carrying additional labor in anticipation of heavy maintenance work related largely to aircraft formerly operated by Spirit Airlines. Finazzo said AerSale had 84 former Spirit aircraft in storage at Goodyear. The aircraft are now owned by banks or leasing companies, and each will require some level of maintenance before returning to service. Some aircraft may instead be dismantled for parts, particularly where engines have greater value as standalone leased assets. Management said it expects the maintenance demand associated with those aircraft, along with work from other customers, to help fill Goodyear’s capacity over the coming year. Garmendia said AerSale’s on-airport MRO operations have historically generated margins in the 20% to 30% range when operating at fuller utilization. AerSale’s landing gear facility was operating at about 80% capacity on one shift after receiving gear from customer programs involving Boeing 737 MAX and 787 aircraft. The company expects to add a second shift as volumes increase. Cash used in operating activities totaled $33.5 million year to date, driven largely by investments in feedstock and make-ready costs for equipment intended for lease or sale. AerSale ended the quarter with $376 million of inventory and $133 million of aircraft and engines held for lease. Available liquidity was $34 million, including $2.2 million of cash and cash equivalents and $31.8 million available under its $180 million revolving credit facility. The facility may be expanded to $200 million, subject to conditions and borrowing-base availability. Management said demand remains strong for its AerSafe product and expects activity to peak in the third quarter ahead of a November 2026 Federal Aviation Administration compliance deadline related to a fuel-tank flammability airworthiness directive. Regarding its AerAware enhanced flight vision product, Finazzo said the company continues to engage with regulators and industry participants but did not identify new customer commitments. He said AerSale is evaluating other parts-manufacturing-approval and repair opportunities, though it does not currently expect those efforts to make a substantial contribution in the near term. For the rest of 2026, AerSale said its priorities remain expanding its lease pool, strategically monetizing inventory, increasing MRO capacity and improving operational profitability as recent expansion investments gain scale. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "AerSale Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

FTAI Aviation (FTAI) came out with quarterly earnings of $1.13 per share, missing the Zacks Consensus Estimate of $1.32 per share. This compares to earnings of $1.57 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -14.39%. A quarter ago, it was expected that this transportation infrastructure company would post earnings of $1.61 per share when it actually produced earnings of $1.29, delivering a surprise of -19.88%. Over the last four quarters, the company has not been able to surpass consensus EPS estimates. FTAI Aviation, which belongs to the Zacks Aerospace - Defense Equipment industry, posted revenues of $953.09 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 10.91%. This compares to year-ago revenues of $676.24 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. FTAI Aviation shares have added about 7.9% since the beginning of the year versus the S&P 500's gain of 8.5%. While FTAI Aviation has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for FTAI Aviation was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.54 on $904.99 million in revenues for the coming quarter and $6.77 on $3.72 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Aerospace - Defense Equipment is currently in the top 29% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, AerSale Corporation (ASLE), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This company is expected to post quarterly earnings of $0.04 per share in its upcoming report, which represents a year-over-year change of -80%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. AerSale Corporation's revenues are expected to be $77.48 million, down 27.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report FTAI Aviation Ltd. (FTAI) : Free Stock Analysis Report AerSale Corporation (ASLE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at AerSale (NASDAQ:ASLE) and its peers. Aerospace companies often possess technical expertise and have made significant capital investments to produce complex products. It is an industry where innovation is important, and lately, emissions and automation are in focus, so companies that boast advances in these areas can take market share. On the other hand, demand for aerospace products can ebb and flow with economic cycles and geopolitical tensions, which can be particularly painful for companies with high fixed costs. The 15 aerospace stocks we track reported a very strong Q1. As a group, revenues beat analysts’ consensus estimates by 1.9% while next quarter’s revenue guidance was 0.7% below. Thankfully, share prices of the companies have been resilient as they are up 8.1% on average since the latest earnings results. Providing a one-stop shop that integrates multiple services and product offerings, AerSale (NASDAQ:ASLE) delivers full-service support to mid-life commercial aircraft. AerSale reported revenues of $70.61 million, up 7.4% year on year. This print fell short of analysts’ expectations by 18.9%. Overall, it was a softer quarter for the company with a significant miss of analysts’ revenue and adjusted operating income estimates. AerSale delivered the weakest performance against analyst estimates of the whole group. The market seems disappointed with the results as the stock is down 15.8% since reporting and currently trades at $6.18. Read our full report on AerSale here, it’s free. Becoming the first private company in the Southern Hemisphere to reach space, Rocket Lab (NASDAQ:RKLB) offers rockets designed for launching small satellites. Rocket Lab reported revenues of $200.3 million, up 63.5% year on year, outperforming analysts’ expectations by 4.9%. The business had an incredible quarter with EBITDA guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates. Rocket Lab scored the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 31.6% since reporting. It currently trades at $103.45. Is now the time to buy Rocket Lab? Access our full analysis of the earnings results here, it’s free. Based in Jacksonville, Florida, Redwire (NYSE:RDW) is a provider of systems and components used in space infrastructure. Redwire reported revenues of $96.97 million, up 57.9% year on year, falling short of analysts’ expectations by 7.4%. It was a slower quarter as it posted a significant miss of analysts’ revenue and EBITDA estimates. Interestingly, the stock is up 50.4% since the results and currently trades at $14.50. Read our full analysis of Redwire’s results here. Founded in 1957, HEICO (NYSE:HEI) manufactures and services aerospace and electronic components for commercial aviation, defense, space, and other industries. HEICO reported revenues of $1.38 billion, up 25.3% year on year. This number topped analysts’ expectations by 9.9%. Overall, it was an incredible quarter as it also logged an impressive beat of analysts’ EBITDA estimates. HEICO pulled off the biggest analyst estimate beat among its peers. The stock is up 3.6% since reporting and currently trades at $320.50. Read our full, actionable report on HEICO here, it’s free. With its materials flying in nearly every commercial and military aircraft in service today, ATI (NYSE:ATI) produces highly specialized materials and components for aerospace, defense, medical, and energy applications using advanced metallurgy and manufacturing processes. ATI reported revenues of $1.15 billion, flat year on year. This result came in 3% below analysts’ expectations. Zooming out, it was a satisfactory quarter as it also produced a solid beat of analysts’ adjusted operating income estimates but a significant miss of analysts’ revenue estimates. ATI had the slowest revenue growth among its peers. The stock is up 25% since reporting and currently trades at $182.81. Read our full, actionable report on ATI here, it’s free. Late in 2025 into early 2026, there was hand-wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure? These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability. Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. StockStory’s analyst team — all seasoned professional investors — uses quantitative analysis and automation to deliver market-beating insights faster and with higher quality.

AerSale’s first quarter was met with a significant negative market reaction, as revenue fell short of Wall Street expectations despite year-over-year growth. Management attributed the shortfall mainly to lower sales of used serviceable material (USM), as the company prioritized internal use of these components for its own engine builds. CEO Nicolas Finazzo highlighted that this decision, though reducing immediate USM sales, was taken to achieve higher total margins over time. Temporary margin pressures also emerged from ramping up new maintenance, repair, and overhaul (MRO) facilities, particularly in Millington and Hialeah Gardens, but these were described as transitional. Is now the time to buy ASLE? Find out in our full research report (it’s free). Revenue: $70.61 million vs analyst estimates of $102.5 million (7.4% year-on-year growth, 31.1% miss) Adjusted EPS: $0 vs analyst estimates of $0.03 ($0.03 miss) Adjusted EBITDA: $7.36 million vs analyst estimates of $7.23 million (10.4% margin, 1.8% beat) Operating Margin: -4.7%, up from -10.1% in the same quarter last year Market Capitalization: $306.2 million While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Kevin Liu (RBC Capital Markets) asked about the impact of Middle East conflict on USM demand and lease rates. CEO Nicolas Finazzo replied that no material impact has been seen, but noted possible long-term effects if aircraft groundings increase. Kevin Liu (RBC Capital Markets) inquired about the status and revenue implications of new MRO capacity. CFO Martin Garmendia detailed that both Millington and Goodyear are ramping up, with Millington expected to reach full capacity and improved margins as additional lines come online. Kevin Liu (RBC Capital Markets) requested further details on margins for new capacity and expected EBITDA contribution. Garmendia stated that margins are improving, especially as start-up costs subside, and expects gross margins above 20% at Millington when fully utilized. In the coming quarters, our team will watch (1) the pace at which AerSale fills available MRO and aerostructure facility capacity, (2) the successful placement of the remaining Boeing 757 freighters and expansion of the lease pool, and (3) the conversion rate of the engineered solutions backlog, particularly related to AirSafe. Progress on AeroWare regulatory milestones and customer adoption will also be key indicators of execution. AerSale currently trades at $6.47, down from $7.33 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members). WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week - FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.