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Jun 30, 2024

AerSale Q2 2024 Earnings Report

AerSale's results improved over the prior year, driven by higher feedstock acquisitions, continued demand in MRO, and incremental volume of AerSafe™.

Key Takeaways

AerSale Corporation reported revenue of $77.1 million for the second quarter of 2024, compared to $69.3 million in the second quarter of 2023. The company reported a GAAP net loss of $3.6 million, compared to a GAAP net loss of $2.7 million in the prior year period. Adjusted EBITDA was $3.2 million versus $(0.5) million in the prior year period.

Revenue increased to $77.1 million versus $69.3 million in the prior year period.

GAAP net loss was $3.6 million versus $2.7 million in the prior year period.

Adjusted Net Loss of $2.6 million versus Adjusted Net Loss of $0.6 million in the prior year period.

Adjusted EBITDA increased to $3.2 million versus $(0.5) million in the prior year period.

Total Revenue
$77.1M
Previous year: $69.3M
+11.2%
EPS
-$0.05
Previous year: -$0.03
+66.7%
Gross Margin
28.2%
Gross Profit
$21.7M
Previous year: $20.1M
+7.8%
Cash and Equivalents
$4.29M
Previous year: $34.6M
-87.6%
Free Cash Flow
-$18.9M
Previous year: -$70.1M
-73.0%
Total Assets
$599M
Previous year: $550M
+8.9%

AerSale

AerSale

Forward Guidance

AerSale is focused on continued investment in feedstock, MRO capacity, and the advancement of its Engineered Solutions, particularly AerAware™.

Positive Outlook

  • Continued investment in feedstock to enhance asset management capabilities.
  • Expansion of MRO facilities and capabilities to drive future growth.
  • Expected rise in sales from Miami component MROs before year-end.
  • Strong liquidity position to enable acquisition of properly priced feedstock.
  • Progress with prospective customers on AerAware™ EFVS.

Challenges Ahead

  • Revenues are likely to fluctuate from quarter-to-quarter and year-to-year based on flight equipment sales.
  • Gross margin was lower due to lower margins at component MROs.
  • Cash used in operating activities was $36.8 million, mainly due to continued investment in inventory.
  • Constrained supply side environment has resulted from reduced OEM deliveries.
  • Net loss reported for the quarter.