AirSale Conference Call Summary Company Overview - **Company**: AirSale - **Industry**: Aircraft asset management and maintenance, repair, and overhaul (MRO) Key Business Segments - **Asset Management**: Focuses on servicing large commercial aircraft, specifically Boeing and Airbus platforms. The company acquires midlife equipment (10-12 years old) and manages it through leasing, selling, or breaking down into components for their used serviceable material (USM) business [3][4] - **Tech Operations**: Includes MRO facilities and engineered solutions to improve aircraft operations, with three on-airport and three off-airport MROs in the U.S. [4] Financial Outlook - **2024 Expectations**: AirSale anticipates exceeding 2024 results due to a strong inventory position and growth in leasing, particularly in engine leasing [11][12] - **Revenue Growth**: The company expects revenue to ramp up from new expansion projects and increased capacity utilization in MRO facilities [13][14] Market Conditions - **Tariff Impact**: AirSale has managed to mitigate tariff impacts through strategies like using bonded warehouses and passing costs to customers. Currently, there is no significant impact from tariffs or supply chain issues [7][8] - **Used Serviceable Material (USM)**: Demand for USM has increased, especially post-COVID, as operators seek cost-effective alternatives to OEM parts [63][64] Asset Management Strategy - **Acquisition and Monetization**: The company employs proprietary models to assess asset value and determine the best monetization strategy, targeting a 25% internal rate of return [22][54] - **Market Dynamics**: The market for used aircraft and engines remains tight, with operators hesitant to retire assets until new OEM production stabilizes [19][24] MRO Capacity and Demand - **MRO Demand**: There is strong demand for MRO services, particularly from ultra-low-cost carriers and cargo operators. AirSale is expanding its MRO capabilities to meet this demand [39][42] - **Labor and Parts Availability**: While there are challenges in sourcing parts and labor, improvements have been noted, particularly in airframe repairs [43][44] Capital Deployment - **Share Buybacks**: AirSale has conducted stock buybacks to alleviate stock pressure and believes its shares are undervalued [46][47] - **M&A Strategy**: The company is cautious about M&A, preferring organic growth but remains open to opportunities that align with its business model [48][49] Competitive Advantage - **Multidimensional Extraction Process**: AirSale's ability to extract value from assets through leasing, selling, or parting out gives it a competitive edge in the market [50][52] Future Opportunities - **Freighter Conversion Market**: Demand for converted freighter aircraft is increasing, with AirSale actively marketing six converted 757s [69][70] - **Military Market**: Although currently a small part of the business, there are opportunities to grow in the military sector, particularly in MRO services [72][74] Conclusion - AirSale is well-positioned for growth in 2024, with strong inventory management, expanding MRO capabilities, and a strategic approach to capital deployment. The company is navigating market challenges effectively while exploring new opportunities in both commercial and military sectors.

With global fleet expansion driven by rising air traffic and supply-chain disruptions delaying new aircraft deliveries, aviation players like AerSale Corporation (ASLE) and Air Lease Corp. (AL) are well-positioned to benefit from sustained industry tailwinds. Airlines increasingly seek flexible financing and cost-effective fleet upgrades, placing aftermarket providers like ASLE and leasing giants like AL in strategic demand. AerSale specializes in aftermarket aircraft, engine parts, leasing, and MRO (Mainte ...

For the past couple of years, there's been an intriguing value case for AerSale Corporation (NASDAQ: ASLE ) stock — so intriguing, in fact, that I owned the stock for a time. ASLE didn't necessarily look attractive in terms of overallI've been contributing to Seeking Alpha and other investment websites since 2011, with a general (though far from rigid) focus on value over growth. I got my Series 7 and 63 back in 1999, and watched the dot-com bubble peak and then burst in real time at a small, tech-focused r ...

Core Viewpoint - AerSale Corporation (ASLE) has underperformed in the market, with a 5% decline in shares over the past month, contrasting with the 16.2% rise in the Zacks Aerospace-Defense Equipment industry and a 17% gain in the broader Zacks Aerospace sector [1][2]. Company Performance - ASLE's disappointing first-quarter 2025 financial results were the primary reason for its poor stock performance, with a 27.4% year-over-year decline in revenues, largely due to a significant drop in whole asset sales [5][6]. - The company sold only one engine in the quarter, compared to one aircraft and four engines in the same period of 2024 [5]. - ASLE's bottom line also showed deterioration from the previous year and missed analysts' estimates, leading to a 12.5% reduction in its price target by Royal Bank of Canada [6]. Management Outlook - Despite recent setbacks, ASLE's management remains optimistic, citing a 23.4% revenue increase in core business segments (excluding whole asset sales) driven by strong demand for Used Serviceable Material (USM) [7]. - The company ended the first quarter of 2025 with $11 million in cash and only $5 million in total debt, indicating strong solvency and the ability to invest in innovations like the AerAware Enhanced Flight Vision System [10]. Industry Trends - The global increase in air traffic and demand for maintenance, repair, and overhaul (MRO) services is expected to support future demand for ASLE's USMs and other offerings [8]. - However, the imposition of import tariffs by the U.S. government poses a risk to the global aerospace supply chain, potentially affecting demand for ASLE's USMs [11][12]. Financial Estimates - The Zacks Consensus Estimate for second and third-quarter 2025 sales suggests year-over-year growth, but the estimate for 2025 indicates a slight drop, while 2026 sales are projected to improve [13]. - Near-term earnings estimates show solid improvement, but recent downward revisions in estimates indicate a loss of investor confidence [14]. Valuation - ASLE's forward 12-month price-to-earnings (P/E) ratio is 10.92X, significantly lower than its peer group average of 36.06X, suggesting a discount in valuation [17]. - In contrast, industry peers like Astronics (ATRO) and Leonardo DRS (DRS) are trading at higher P/E ratios of 19.08X and 36.20X, respectively [18]. Investment Considerations - Despite trading at a discount, ASLE is perceived to be entering value trap territory due to weak performance and a low Value Score of D [19]. - The company's Zacks Rank of 4 (Sell) further supports the cautious outlook on ASLE stock [20].

Revenue Performance - Total revenue for the three months ended March 31, 2025, decreased by $24.8 million, or 27.4%, compared to the same period in 2024, driven by a decrease of $20.0 million, or 33.8%, in Asset Management Solutions and a decrease of $4.7 million, or 15.1%, in TechOps[105]. - Revenue from the Asset Management Solutions segment decreased by $20.0 million, or 33.8%, to $39.2 million, with a $11.1 million, or 25.8%, decrease in Engine revenue and a $9.0 million, or 55.0%, decrease in Aircraft revenue[106]. - TechOps revenue decreased by $4.7 million, or 15.1%, to $26.6 million, primarily due to lower sales volume in the Goodyear, Arizona facility[109]. Profitability - Gross profit for the Asset Management Solutions segment decreased by $10.6 million, or 46.8%, to $12.0 million for the three months ended March 31, 2025[107]. - Gross profit margin for Aircraft decreased to 21.4% for the three months ended March 31, 2025, from 29.6% in the prior year, while Engine gross profit margin decreased to 32.9% from 41.5%[108]. Expenses - Selling, general and administrative expenses increased by $0.5 million, or 2.0%, to $24.6 million for the three months ended March 31, 2025[111]. - Interest expense increased to $1.2 million for the three months ended March 31, 2025, compared to $0.9 million in the prior year period[113]. Cash Flow and Liquidity - The company used cash in operations of $45.2 million for the three months ended March 31, 2025[117]. - Net cash used in operating activities increased to $45.2 million for the three months ended March 31, 2025, compared to $21.5 million for the same period in 2024, reflecting an increase of $23.7 million[121]. - Net cash used in investing activities was $3.5 million for the three months ended March 31, 2025, compared to cash provided of $0.2 million in the same period for 2024[122]. - Net cash provided by financing activities was $48.8 million for the three months ended March 31, 2025, compared to $18.0 million for the same period in 2024[123]. - As of March 31, 2025, the company had $4.7 million in cash and cash equivalents and $133.1 million outstanding under the Revolving Credit Agreement[115][117]. - As of March 31, 2025, the company had $133.1 million outstanding under the Revolving Credit Agreement and $44.2 million of availability[127]. Shareholder Actions - The company repurchased 6,428,571 shares of common stock at a price of $7.00 per share for a total consideration of $45.0 million on March 18, 2025[120]. Debt and Compliance - The company had $1.9 million outstanding under the CIBC Equipment Loan as of March 31, 2025[129]. - The company was in compliance with its debt covenants for both the Revolving Credit Agreement and the CIBC Equipment Loan as of March 31, 2025[127][129]. - A ten percent increase in the average interest rate affecting the company's variable rate debt would increase annual interest expense by $0.5 million[134]. Taxation - The effective tax rate for the three months ended March 31, 2025, was 12.0%, compared to (6.8%) for the same period in 2024[114]. Commitments and Estimates - The company entered into a purchase commitment valued at $19.8 million for the acquisition of technical equipment for manufacturing the AerAwareTM product, expected to be satisfied in 2026[131]. - There were no material changes in the company's critical accounting estimates and policies during the three months ended March 31, 2025[132].

AerSale Corporation (ASLE) came out with a quarterly loss of $0.05 per share versus the Zacks Consensus Estimate of $0.13. This compares to earnings of $0.11 per share a year ago. These figures are adjusted for non- recurring items. This quarterly report represents an earnings surprise of -138.46%. A quarter ago, it was expected that this company would post earnings of $0.07 per share when it actually produced earnings of $0.09, delivering a surprise of 28.57%. Over the last four quarters, the company has s ...

AerSale (ASLE) Q1 2025 Earnings Call May 07, 2025 04:30 PM ET Company Participants Jackie Carlon - Vice President Marketing & CommunicationsNicolas Finazzo - Chairman & Chief Executive OfficerMartin Garmendia - Chief Financial OfficerKen Herbert - Managing Director Operator Day, and welcome to the AirSale Corporation First Quarter twenty twenty five Earnings Conference Call. All participants will be in listen only mode. After today's presentation, there will be an opportunity to ask questions. Please note t ...

AerSale (ASLE) Q1 2025 Earnings Call May 07, 2025 04:30 PM ET Speaker0 Day, and welcome to the AirSale Corporation First Quarter twenty twenty five Earnings Conference Call. All participants will be in listen only mode. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Jackie Carlin, Vice President of Marketing and Communication at AirSale. Please go ahead. Speaker1 Good afternoon. I'd like to ...

AerSale Reports First Quarter 2025 Results First Quarter 2025 Highlights MIAMI, Florida – AerSale Corporation (Nasdaq: ASLE) ("AerSale" or the "Company") today reported results for the first quarter ended March 31, 2025. The Company's revenue was $65.8 million, a decrease of 27.4% from $90.5 million in the prior year. Lower year-over-year revenue was primarily the result of fewer whole asset sales during the period, which tend to be volatile quarter-to-quarter. In the current period, the Company sold $1.8 m ...

AerSale Corporation (ASLE) is slated to release first-quarter 2025 results on May 7, after market close.   The Zacks Consensus Estimate for revenues is pegged at $88.1 million, implying a 2.7% decline from the year-ago quarter's reported figure. The consensus mark for earnings is pegged at 13 cents per share, suggesting a solid improvement of 18.2% from the prior-year quarter’s reported number. The bottom-line estimate has also moved 30% north in the past 60 days. (Find the latest EPS estimates and surprise ...