AerSale Q4 2022 Earnings Report
Key Takeaways
AerSale Corporation reported a decrease in revenue for Q4 2022, totaling $95.1 million compared to $116.8 million in Q4 2021, primarily due to lower flight equipment sales. GAAP net income was reported at $9.2 million, down from $11.2 million in the prior year period. The company's Technical Operations revenue improved by 17.2%, driven by better performance from landing gear and aerostructure MRO.
Q4 2022 revenue was $95.1 million, compared to $116.8 million in Q4 2021, with flight equipment sales contributing $51.4 million.
GAAP net income for Q4 2022 was $9.2 million, versus $11.2 million in the prior year period.
Asset Management Solutions revenue decreased to $67.9 million due to the pacing of flight equipment sales.
Technical Operations revenue increased by 17.2% to $27.1 million, driven by better performance in landing gear and aerostructure MRO.
AerSale
AerSale
Forward Guidance
AerSale anticipates revenue between $460 and $490 million and adjusted EBITDA between $70 and $80 million for 2023. The guidance does not include potential AerAware sales.
Positive Outlook
- Revenue is expected to be in the range of $460 to $490 million.
- Adjusted EBITDA is expected to be in the range of $70 to $80 million.
- The 757 P2F program is anticipated to be a strong contributor.
- Company will benefit from an improving backdrop in commercial aerospace.
- AerAware product is in its final stages of approval and will be updated once the STC is issued.
Challenges Ahead
- Guidance does not reflect potential sales of AerAware.
- Revenue variability may occur due to the timing of flight equipment sales.
- Lower leasing volume may impact Asset Management revenue.
- Lower revenue at the Roswell facility due to fewer customer aircraft in storage.
- Potential delays in FAA staffing and weather could impact AerAware certification.