AerSale Reverses Second-Quarter Revenue Decline

The Tip Desk · November 5, 2026 · 4 min read

Third-quarter revenue was $91.6 million, up 28.6% from a year earlier, after a 33.9% year-over-year drop in the second quarter.

AerSale Corporation (ASLE), a global provider of aviation aftermarket services, reported third-quarter 2026 revenue of $91.6 million, a 28.6% increase from $71.2 million a year earlier, reversing a 33.9% year-over-year decline in the second quarter.

The sequential rebound from $70.9 million in the second quarter was the quarter’s defining turn. Adjusted EBITDA recovered to $8.6 million from $2.2 million in the second quarter. The company said revenue and adjusted EBITDA improved sequentially from the second quarter.

Year-over-year, both reportable segments rose. Asset Management Solutions revenue increased 28.9% to $50.5 million from $39.2 million in the third quarter of 2025, after a 51.3% year-over-year decline in the second quarter. Technical Operations revenue increased 28.2% to $41.0 million from $32.0 million.

Flight Equipment sales were $9.3 million, versus $0.4 million in the third quarter of 2025, and consisted of one whole engine. Excluding Flight Equipment, revenue grew 16.2% to $82.3 million, with gains in leasing, used serviceable material, heavy MRO, and Engineered Solutions. The company attributed growth to leasing, USM sales, heavy MRO, demand for AerSafe, and the Flight Equipment sales. Excluding Flight Equipment, AMS revenue grew 6.4% to $41.3 million from $38.8 million, driven by higher leasing and USM revenue.

As of September 30, 2026, the company had 18 engines and five B757 freighter aircraft on lease, compared with 18 engines and three B757 freighters as of June 30, 2026. Aircraft and engines held for lease rose to $165.9 million from $133.0 million at June 30. Inventory declined to $334.1 million from $376.0 million.

Heavy MRO revenue grew as Millington generated revenue from two check lines awarded by a regional carrier, compared with none in the prior year. Goodyear revenue was in line with the prior year, and anticipated incremental maintenance has already begun in the fourth quarter. Roswell performed ahead of plan on storage and fixed-price check work. Component MRO revenue was flat year over year. Engineered Solutions revenue increased, driven by AerSafe kit deliveries as operators comply with the fuel tank flammability Airworthiness Directive.

Adjusted EBITDA margin was 9.3% of revenue, versus 13.3% in the third quarter of 2025. Gross margin compressed to 22.5% from 30.2% a year earlier. TechOps gross margin was 12.5%, versus 25.3%, and AMS gross margin was 30.5%, versus 34.1%.

Net loss widened to $15.0 million from a $0.1 million net loss in the third quarter of 2025, including a $13.4 million non-cash goodwill impairment charge. Diluted loss was $0.31 a share. Adjusted net loss was $1.1 million, versus adjusted net income of $1.5 million a year earlier. Adjusted diluted loss was $0.02 a share. Loss from operations was $11.6 million, which includes the goodwill impairment, compared with income from operations of $2.9 million a year earlier.

Feedstock acquisitions were $7.1 million, versus $13.7 million in the third quarter of 2025. The company said the year-to-date total of $37.8 million, compared with $84.2 million, reflected a disciplined approach to pricing in a competitive sellers’ market. It was awarded seven A330 airframes that meet return requirements, with the first anticipated to close in the coming weeks.

Chief Executive Officer Nicolas Finazzo said third-quarter operational results improved meaningfully over the second quarter and that five of seven 757 freighters are now on lease. He said the company enters the fourth quarter with a well-defined Flight Equipment pipeline expected to close before year end, including a $35 million commitment for a Boeing 737 sale to the U.S. Marshals Service and other customers for engines in final restoration. The company said it expects a significantly stronger fourth quarter.

Liquidity was $23.1 million, consisting of $3.9 million in cash and $19.2 million of available capacity on its $180 million revolving credit facility. Year-to-date cash used in operating activities was $42.7 million. The company said Flight Equipment transactions scheduled for the fourth quarter are expected to improve available liquidity.