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Dec 31, 2025
AerSale Q4 2025 Earnings Report
AerSale reported its fourth quarter 2025 financial results, showing improved profitability despite a slight revenue decline due to the timing of flight equipment sales.
Key Takeaways
AerSale's Q4 2025 saw revenue decrease 4% to $90.9 million, yet GAAP net income nearly doubled to $5.4 million. The company benefited from improved MRO profitability and effective cost-cutting initiatives, leading to a 17.1% increase in Adjusted EBITDA. Growth in recurring revenue streams like USM sales and leasing helped offset the volatility of engine sales.
Revenue of $90.9 million decreased 4% YoY primarily due to fewer engine sales (4 vs 6 in the prior year).
Adjusted EBITDA increased 17.1% to $15.2 million, driven by MRO profitability and cost-cutting initiatives.
Gross margin expanded to 34.1% from 31.4% in the prior year period.
Non-flight equipment revenue grew 9.8%, reflecting strength in the recurring parts of the business like USM and leasing.
Revenue by Segment
Forward Guidance
AerSale enters 2026 focused on growth momentum by monetizing its strong inventory position and expanding MRO capabilities.
Positive Outlook
- Monetizing strong inventory position
- Expanding MRO capabilities and capacity
- Anticipated greater demand for USM business
- Strong commercial demand for USM expected to continue
- Benefit from upcoming FAA 2026 compliance requirements for AerSafe product
Challenges Ahead
- Revenue likely to fluctuate quarter-to-quarter based on flight equipment sales
- Inherent volatility of flight equipment sales
- Expiration of customer contracts (e.g., Goodyear facility)
- Ongoing GTF engine reliability issues affecting industry stability
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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