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Mar 31, 2022

AerSale Q1 2022 Earnings Report

AerSale's Q1 2022 earnings were released, revealing revenue growth and increased profitability.

Key Takeaways

AerSale Corporation reported a strong first quarter in 2022 with a 110% increase in revenue to $122.8 million and a 72% increase in GAAP net income to $17.2 million. The company's performance was driven by flight equipment sales and increased demand for USM parts.

Revenue increased by 110% year-over-year to $122.8 million.

GAAP net income increased by 72% year-over-year to $17.2 million.

Adjusted EBITDA increased by 81% year-over-year.

The company reaffirms its 2022 revenue guidance in the range of $420 to $450 million and adjusted EBITDA guidance in the range of $80 to $90 million.

Total Revenue
$123M
Previous year: $58.4M
+110.2%
EPS
$0.41
Previous year: $0.23
+78.3%
Gross Profit
$46.7M
Previous year: $19.8M
+135.9%
Cash and Equivalents
$172M
Previous year: $19.6M
+775.7%
Free Cash Flow
$41.4M
Previous year: -$14.4M
-387.5%
Total Assets
$503M
Previous year: $400M
+25.6%

AerSale

AerSale

Forward Guidance

AerSale reaffirmed its guidance for revenue of $420 - $450 million and adjusted EBITDA of $80 - $90 million in 2022.

Positive Outlook

  • Improvement in the Company’s AMS segment
  • Ongoing demand for its on-airport MRO services
  • Accelerating demand in cargo and e-commerce markets
  • Continued requests for passenger-to-freighter conversions
  • Continued requests for other TechOps products and services

Challenges Ahead

  • Recent geopolitical events related to the Russian invasion of Ukraine may impact the global commercial aerospace industry
  • Extensive process of software validation needed for AerAware certification is expected to be ongoing through the second quarter of 2022.
  • Fluctuating market value of products
  • Shortage of skilled personnel
  • Highly competitive nature of the markets