Companies

AerSale Posts a Loss After Flight Equipment Sales Vanish

The Tip Desk · October 21, 2026 · 3 min read

Second-quarter revenue was $70.9 million, down 33.9% from $107.4 million a year earlier, as the company booked no Flight Equipment sales.

AerSale Corporation (ASLE) reported a $5.6 million net loss for the second quarter of 2026, reversing an $8.6 million profit a year earlier, after the aviation aftermarket company recorded no Flight Equipment sales.

Revenue was $70.9 million, down 33.9% from $107.4 million in the second quarter of 2025. The year-ago quarter had included $33.4 million of Flight Equipment sales; the current quarter had none. The company said the decline was not due to a lack of market opportunities, but to the timing of transactions, and that period-to-period comparisons were less representative of operating momentum.

Asset Management Solutions was the source of the drop. Segment revenue fell 51.3% to $37.1 million from $76.3 million a year earlier. Excluding Flight Equipment sales, AMS revenue was $37.0 million, down 13.6% from $42.9 million, which the company attributed to lower used serviceable material sales due to the timing of feedstock acquisitions and the use of material to build serviceable assets. Company-wide revenue excluding Flight Equipment sales decreased 4.2%.

Technical Operations moved the other way. That segment’s revenue rose 8.7% to $33.8 million from $31.1 million, which the company said was driven by the ramp-up of a long-term CRJ multi-line maintenance agreement, additional storage volume, landing gear and aerostructures overhaul activity, and AerSafe demand. The company expects AerSafe demand to peak in the third quarter of 2026 ahead of the FAA’s November 2026 fuel-tank safety compliance deadline.

Leasing revenue was $12.4 million, up from $8.2 million a year earlier. Products revenue was $32.1 million and services revenue was $26.5 million. As of June 30, 2026, AerSale had 18 engines and three B757 freighter aircraft on lease, compared with 16 engines and one freighter a year earlier. Aircraft and engines held for lease were $133.0 million.

Adjusted EBITDA fell 87.9% to $2.2 million, or 3.1% of revenue, from $18.3 million, or 17.0% of revenue, a year earlier. Gross margin decreased to 22.9% from 32.9%. Flight Equipment sales had generated $13.2 million of gross profit in the prior-year period. Loss from operations was $4.8 million versus income from operations of $12.5 million. The company said gross margin also reflected labor added at Goodyear, Arizona, ahead of anticipated volume and continued ramp-up at Millington, Tennessee.

Feedstock acquisitions were $5.6 million in the quarter, versus $27.1 million a year earlier. Inventory was $376.0 million at June 30, 2026. Liquidity ended the quarter at $34.0 million, consisting of $2.2 million of cash and $31.8 million of available capacity on an $180 million revolving credit facility, expandable to $200 million, subject to conditions and the availability of lender commitments and borrowing base liabilities. Cash used in operating activities year to date was $33.5 million.

Chief Executive Officer Nicolas Finazzo said second-quarter results reflected timing, not trajectory, citing Flight Equipment sales shifting into the second half and the use of sellable USM to support overhauls. The company said it expects meaningful improvement in earnings and liquidity in the second half of 2026, citing a Boeing 737 aircraft sale valued at approximately $35.0 million and commitments for three additional engine sales expected to close in the late third or early fourth quarter.

A fourth B757 freighter was delivered on lease in July, and a fifth lease agreement was executed for August delivery. Finazzo said the company remains confident in monetizing its two remaining freighters, expanding the lease pool, and filling capacity across the MRO network.

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