AerSale (ASLE) investor relations material

Executive summary

• Revenue for Q1 2026 rose 7.4% year-over-year to $70.6 million, driven by growth in leasing, MRO services, and both Asset Management Solutions and TechOps segments.

• Adjusted EBITDA increased 131.9% to $7.4 million (10.4% margin), with margin improvement from higher leasing and flight equipment sales.

• Net loss narrowed to $3.5 million from $5.3 million in the prior year, with adjusted net income at breakeven or $0.1 million.

• Leasing demand surged, with three Boeing 757 freighters and 18 engines on lease at quarter-end.

• Expansion of MRO and aerostructures facilities contributed to higher TechOps revenue, despite temporary margin pressure from startup costs.

Financial highlights

• Asset Management Solutions revenue grew 10% to $43.1 million, with Engine and Aircraft subcategories up 8.1% and 18.3%, respectively.

• TechOps revenue increased 3.4% to $27.5 million, led by higher MRO activity at Goodyear and Millington.

• Gross margin was 26.7%, down from 27.3% due to startup and training costs and higher labor expenses.

• SG&A expenses fell to $22.2 million from $24.6 million, reflecting efficiency gains and lower payroll/severance costs.

• Cash and cash equivalents at quarter-end were $2.1 million, with $39.7 million available under the revolving credit facility.

Outlook and guidance

• Priorities for 2026 include deploying remaining 757 freighters, monetizing inventory, filling MRO capacity, and improving profitability.

• Margins expected to normalize and improve as new and expanded facilities ramp up and utilization increases.

• Management is confident in delivering improved financial performance for the remainder of 2026, supported by sufficient liquidity and debt facilities.

• Expansion initiatives expected to exceed $50 million in incremental revenue.