Aersale Corporation ( (ASLE) ) has released its Q3 earnings. Here is a breakdown of the information Aersale Corporation presented to its investors.
AerSale Corporation is a company that provides integrated aftermarket services and products to airlines operating large jets manufactured by Boeing, Airbus, and McDonnell Douglas, focusing on aircraft maintenance, sales, leasing, and engineered solutions.
In the third quarter of 2024, AerSale Corporation reported revenues of $82.7 million, down from $92.5 million in the same period last year. Despite the decrease in revenue, the company turned a profit with a GAAP net income of $0.5 million, compared to a net loss of $0.1 million in the previous year. The company highlighted strong growth in its base business, excluding flight equipment sales, with a 26% year-over-year increase, driven by robust demand in the commercial sector and improved feedstock availability.
Key financial highlights include an adjusted net income of $1.8 million, a significant improvement from $0.9 million in the previous year, and an adjusted EBITDA of $8.2 million, up from $1.9 million. The company’s gross margin increased to 28.6%, benefiting from higher-margin engine and airframe sales. However, AerSale experienced a decline in asset management revenue to $50.4 million, attributed to fewer whole asset sales compared to the prior year.
Looking ahead, AerSale Corporation is strategically positioned for substantial cash generation as it focuses on monetizing feedstock and expanding its 757 conversion program. The company aims to increase revenue through its maintenance, repair, and overhaul (MRO) facilities as expansion projects become operational, reflecting a positive outlook on the commercial aerospace market.
