AerSale — Second Quarter 2026 Earnings Summary

Financial Performance

• Total revenue for the quarter ended June 30, 2026, was $70.9 million, a 33.9% decrease from $107.4 million in the prior year period; year-to-date revenue was $141.5 million, down 18.3% from $173.2 million.
• Net loss for the quarter was $5.6 million compared to net income of $8.6 million in the prior year; year-to-date net loss was $9.0 million versus net income of $3.3 million.
• Adjusted net loss for the quarter was $4.3 million compared to adjusted net income of $9.4 million in the prior year; year-to-date adjusted net loss was $4.2 million versus adjusted net income of $6.8 million.
• Adjusted EBITDA for the quarter was $2.2 million (3.1% of revenue), a 87.9% decrease from $18.3 million (17.0% of revenue) in the prior year; year-to-date adjusted EBITDA was $9.6 million, down 55.4% from $21.4 million.
• Gross margin decreased to 22.9% in the quarter from 32.9% in the prior year period.
• Diluted loss per share was $0.12 for the quarter compared to $0.18 earnings per share in the prior year; year-to-date diluted loss per share was $0.19 versus $0.07.
• Adjusted diluted loss per share was $0.09 for the quarter compared to $0.20 in the prior year; year-to-date adjusted diluted loss per share was $0.09 versus $0.14.
• Feedstock acquisitions were $5.6 million for the quarter, down 79.4% from $27.1 million in the prior year; year-to-date acquisitions were $30.6 million, down 56.6%.
• Inventory stood at $376.0 million as of June 30, 2026.
• Aircraft and engines held for lease were $133.0 million as of June 30, 2026.
• Cash and cash equivalents were $2.2 million as of June 30, 2026; total liquidity was $34.0 million including $31.8 million available on the revolving credit facility.
• Cash used in operating activities year-to-date was $33.5 million.
• Revolving credit facility balance was $146.2 million as of June 30, 2026, with a total capacity of $180 million (expandable to $200 million).
• Selling, general, and administrative expenses were $21.0 million for the quarter, down from $22.8 million in the prior year.
• Share-based compensation expense was $1.3 million for the quarter, up from $0.7 million in the prior year.
• Loss from operations was $4.8 million for the quarter compared to income from operations of $12.5 million in the prior year.

Guidance and Future Outlook

• Management expects meaningful improvement in earnings and liquidity in the second half of 2026.
• Revenue fluctuations are expected to continue based on the timing of Flight Equipment sales.
• AerSafe® demand is expected to peak in the third quarter of 2026 ahead of the FAA's November 2026 compliance deadline for the fuel tank safety Airworthiness Directive.
• The company anticipates demand for its MRO network to increase as it ramps up operations.

Business Segments and Product Lines

• Asset Management Solutions (AMS) revenue decreased 51.3% to $37.1 million in the quarter; excluding Flight Equipment sales, AMS revenue decreased 13.6% to $37.0 million.
• Technical Operations (TechOps) revenue increased 8.7% to $33.8 million in the quarter, driven by a long-term CRJ multi-line maintenance agreement, additional storage volume, landing gear and aerostructures overhaul activity, and AerSafe® demand.
• The Company had 18 engines and three B757 freighter aircraft on lease as of June 30, 2026, compared to 16 engines and one B757 freighter in the prior year period.
• A Boeing 737 aircraft sale valued at approximately $35.0 million was secured during or subsequent to the second quarter.
• Commitments for three additional engine sales are expected to close in the late third or early fourth quarter.
• A fourth B757 freighter was delivered on lease in July, and a lease agreement for a fifth freighter was executed with delivery scheduled for August.
• The Company is investing in labor at its Goodyear, Arizona facility and ramping up its workforce in Millington, Tennessee, to support the new CRJ multi-line program.

Market and Competitive Landscape

• The decline in revenue is attributed to the timing of transactions, specifically the absence of Flight Equipment sales in the current quarter compared to $33.4 million in the prior year, rather than a lack of market opportunities.
• The Company continues to monetize its asset base and scale MRO operations to grow recurring revenue streams.
• Commercial demand for the AerSafe® product remains strong.

Risks and Challenges

• Revenue may significantly fluctuate from quarter-to-quarter and year-to-year based on the timing of Flight Equipment sales.
• Short-term earnings impacts are occurring due to strategic initiatives focused on monetizing assets and scaling MRO operations.
• Profitability for MRO units was impacted in the short term due to expenses incurred in anticipation of increased demand.
• Lower USM gross profit was tied to reduced feedstock acquisitions and the utilization of material to build serviceable assets.

Management Commentary and Tone

• CEO Nicolas Finazzo stated that second quarter results reflect timing, not trajectory, noting that results were impacted by Flight Equipment sales shifting into the second half of the year.
• Management expressed confidence in monetizing remaining freighters, expanding the lease pool, and filling capacity across the MRO network.
• The tone indicated that near-term investments in labor and workforce expansion are intended to position the company well for anticipated demand ahead.

Other Key Points

• The Company hosts a conference call on August 6, 2026, at 4:30 pm Eastern Time to discuss results, with a live audio webcast available at https://ir.aersale.com/news-events/events.
• The Company reported $1.3 million of share-based compensation expense within payroll expenses for the quarter.
• Income tax benefit for the quarter was $1.6 million, resulting in an effective tax rate of 22.6% compared to 17.0% in the prior year.
• The Company recognized $1.3 million of share-based compensation expense in the second quarter of 2026 versus $0.7 million in the prior year.
• Non-GAAP financial measures including adjusted EBITDA, adjusted net income (loss), and adjusted earnings per share are included in the release with reconciliations provided.