AerSale(ASLE) - 2025 Q3 - Quarterly Results

Revenue Performance - Revenue for Q3 2025 was $71.2 million, down from $82.7 million in Q3 2024, primarily due to no sales of aircraft or engines this quarter [3] - Excluding flight equipment sales, revenue increased by 18.5% year-over-year, from $60.1 million in Q3 2024 to $71.2 million in Q3 2025 [3] - Asset Management Solutions revenue decreased to $39.2 million in Q3 2025 from $50.4 million in Q3 2024, but increased by 40.9% year-over-year when excluding flight equipment sales [4] Profitability Metrics - Adjusted EBITDA for Q3 2025 was $9.5 million, compared to $8.2 million in Q3 2024, reflecting higher leasing revenue and lower operating expenses [13] - GAAP net loss for Q3 2025 was $0.1 million, compared to a net income of $0.5 million in the prior year period [11] - Gross margin improved to 30.2% in Q3 2025 from 28.6% in Q3 2024, driven by higher leasing revenue and cost control measures [8] Cost Management - Selling, general, and administrative expenses decreased to $18.6 million in Q3 2025 from $21.7 million in Q3 2024, reflecting cost reduction efforts [9] Liquidity and Assets - The company ended the quarter with liquidity of $58.9 million, consisting of $5.3 million in cash and $53.6 million available on its revolving credit facility [14] - Total current assets increased to $322,975 thousand as of September 30, 2025, up from $284,030 thousand as of December 31, 2024, representing a growth of 13.7% [26] Year-to-Date Performance - Net income for the nine months ended September 30, 2025, was $3,178 thousand, slightly up from $3,149 thousand in the same period of 2024, reflecting a growth of 0.9% [28] - Adjusted EBITDA for the nine months ended September 30, 2025, was $30,924 thousand, an increase of 51.6% compared to $20,386 thousand for the same period in 2024 [29] - Cash and cash equivalents at the end of the period were $5,267 thousand, a decrease from $9,787 thousand at the end of the same period in 2024, indicating a decline of 46.3% [28] - Total liabilities rose to $229,195 thousand as of September 30, 2025, compared to $149,103 thousand as of December 31, 2024, marking an increase of 53.7% [26] - Adjusted net income for the nine months ended September 30, 2025, was $8,297 thousand, up from $4,745 thousand in the same period of 2024, representing a growth of 74.5% [29] - The company reported a net cash used in operating activities of $34,333 thousand for the nine months ended September 30, 2025, compared to $26,354 thousand for the same period in 2024, indicating an increase of 30.4% [28] - Proceeds from the revolving credit facility amounted to $256,469 thousand for the nine months ended September 30, 2025, compared to $132,294 thousand in the same period of 2024, reflecting a growth of 93.8% [28] - The company’s total stockholders' equity decreased to $417,081 thousand as of September 30, 2025, down from $455,620 thousand as of December 31, 2024, a decline of 8.4% [26] - Reported diluted earnings per share for the nine months ended September 30, 2025, was $0.16, compared to $0.09 for the same period in 2024, representing an increase of 77.8% [29] Strategic Focus and Outlook - The company placed an additional 757 freighter aircraft on lease during Q3 2025, indicating a strategic focus on increasing lease assets [4] - AerSale focuses on providing integrated aftermarket services and products for airlines operating large jets from Boeing, Airbus, and McDonnell Douglas [32] - The company anticipates greater demand for its USM business and MRO services, indicating a positive outlook for future financial performance [30] - AerSale expects improvements in lease pool, feedstock, and commercial demand, which may enhance operational capacity and service demand [30] - The company is well positioned to capitalize on current market dynamics and asset availability, suggesting a strong growth trajectory [30] - AerSale's offerings include Aircraft & Component MRO, Aircraft and Engine Sales and Leasing, and Engineered Solutions like AerSafe™, AerTrak™, and AerAware™ [32] Risk Factors and Forward-Looking Statements - The company emphasizes the importance of liquidity sufficiency in its future operations and growth plans [30] - AerSale's actual results may differ from expectations due to various risks and uncertainties outlined in their SEC filings [30] - The company does not plan to publicly update or revise forward-looking statements unless required by law, indicating a cautious approach to future projections [31] - AerSale aims to help aircraft owners and operators achieve significant savings in operation, maintenance, and monetization of their assets [32] - The evolving environment may introduce new risk factors that could impact AerSale's business and financial condition [30]