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Jun 30, 2023
AerSale Q2 2023 Earnings Report
AerSale's Q2 2023 results were reported, revealing a decrease in revenue and a net loss compared to the prior-year period, primarily due to the pacing of flight equipment sales and soft demand in the freight market.
Key Takeaways
AerSale reported a decrease in revenue to $69.3 million compared to $139.6 million in the prior year period. GAAP net loss was $2.7 million, a significant shift from the $26.5 million net income in the prior year period. The company updated its 2023 guidance, expecting revenue in the range of $400 - $440 million and adjusted EBITDA in the range of $40 - $55 million.
Revenue decreased to $69.3 million from $139.6 million in the prior year period.
GAAP net loss was $2.7 million, compared to a net income of $26.5 million in the prior year period.
Adjusted Net Loss was $0.6 million versus Adjusted Net Income of $31.7 million in the prior year period.
Company expects revenue in the range of $400 - $440 million and adjusted EBITDA in the range of $40 - $55 million for 2023.
Forward Guidance
AerSale now expects to generate revenue of $400 - $440 million and adjusted EBITDA of $40 - $55 million in 2023.
Positive Outlook
- Robust feedstock already purchased or in the pipeline exceeding $200 million year-to-date
- Monetization of post-conversion 757s
- FAA Supplemental Type Certification (“STC”) of AerAware, our Enhanced Flight Vision System for the Boeing 737NG series of aircraft
- Strong commercial demand.
- Core business has continued to grow with greater demand for used serviceable material (“USM”) and MRO offerings.
Challenges Ahead
- Reducing full-year expectations for our 757 program
- Freight market has softened in response to higher interest rates and tightening economic conditions, which have eased demand for consumer products
- Adds some uncertainty to the timing and type of monetization of these assets
Historical Earnings Impact
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Avg. Return Before/After Earnings
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