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Mar 31
AerSale Q1 2025 Earnings Report
AerSale reported a decrease in revenue and a net loss for the first quarter of 2025, primarily due to fewer whole asset sales compared to the prior year.
Key Takeaways
AerSale's first quarter 2025 results showed a significant decrease in total revenue to $65.8 million, down 27.4% from the prior year, mainly driven by fewer whole asset sales. The company reported a GAAP net loss of $5.3 million, compared to a net income of $6.3 million in the same period last year. Despite the overall decline, revenue excluding flight equipment sales increased by 23.4%, indicating strong commercial demand for Used Serviceable Material and AerSafe™ products.
Total revenue for Q1 2025 was $65.8 million, a 27.4% decrease from $90.5 million in Q1 2024.
GAAP net loss was $5.3 million in Q1 2025, a significant shift from a GAAP net income of $6.3 million in Q1 2024.
Adjusted net loss was $2.7 million, compared to an adjusted net income of $5.5 million in the prior year period.
Revenue excluding flight equipment sales increased 23.4% to $64.0 million, driven by strong commercial demand for USM and AerSafe™ products.
AerSale
AerSale
AerSale Revenue by Segment
Revenue by Segment
Asset Management Solutions Revenue
CapyFin.comTechOps Revenue
CapyFin.com Forward Guidance
AerSale anticipates significantly greater engine sales throughout the year, supported by strong commercial demand for USM parts, MRO services, and an expanding lease pool. The company is focused on monetizing feedstock investments, deploying freighter aircraft, and capitalizing on expanded MRO capacity.
Positive Outlook
- Anticipated significantly greater engine sales throughout the year.
- Strong commercial demand for Used Serviceable Material (USM) and AerSafe™ products.
- Expanding engine leasing portfolio.
- Ample ready-to-sell inventory to drive results through 2025 and into 2026.
- Focus on executing strategic initiatives to drive higher operating results, including monetizing feedstock investments and deploying 757- freighter aircraft.
Challenges Ahead
- Revenue is likely to fluctuate from quarter-to-quarter and year-to-year based on flight equipment sales.
- The company anticipated closing more engine sales in Q1 2025, but these closed shortly after the quarter ended.
- Lower revenues from the sale of component parts at MROs.
- Completion of a significant customer contract at Goodyear.
- Transitioning the Roswell facility from providing aircraft heavy maintenance to performing only lower volume but higher margin aircraft storage and part-out.
Revenue & Expenses
Visualization of income flow from segment revenue to net income