Second Quarter 2026
Filed Aug 6, 2026AerSale Reports Second Quarter 2026 Results
Revenue declined 33.9%, the Company reported a net loss of $5.6 million, adjusted EBITDA fell 87.9% to $2.2 million, and gross margin declined to 22.9%. Management attributed the period primarily to the absence of Flight Equipment sales and investment ahead of anticipated MRO demand.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $70.9 million | – | (33.9)% |
| Asset Management Solutions revenueGAAP | $37.1 million | – | (51.3)% |
| Technical Operations revenueGAAP | $33.8 million | – | 8.7% |
| Gross marginGAAP | 22.9% | – | – |
| Selling, general, and administrative expensesGAAP | $21.0 million | – | – |
| Share-based compensation expenseGAAP | $1.3 million | – | – |
| Loss from operationsGAAP | $4.8 million | – | – |
| Income tax benefitGAAP | $1.6 million | – | – |
| Effective tax rateGAAP | 22.6% | – | – |
| Net lossGAAP | $5.6 million | – | (165.0)% |
| Adjusted net lossnon-GAAP | $4.3 million | – | (145.1)% |
| Adjusted EBITDAnon-GAAP | $2.2 million | – | (87.9)% |
| Adjusted EBITDA marginnon-GAAP | 3.1% of total revenue | – | – |
| Diluted loss per shareGAAP | $0.12 | – | (166.7)% |
| Adjusted diluted loss per sharenon-GAAP | $0.09 | – | (145.0)% |
| Feedstock acquisitionsother | $5.6 million | – | (79.4)% |
| Six Months Ended June 30, 2026 total revenueGAAP | $ 141,546 (in thousands) | – | (18.3)% |
| Six Months Ended June 30, 2026 Asset Management Solutions revenueGAAP | $ 80,267 (in thousands) | – | (30.5)% |
| Six Months Ended June 30, 2026 Technical Operations revenueGAAP | 61,279 (in thousands) | – | 6.2% |
| Six Months Ended June 30, 2026 net lossGAAP | (9,020) (in thousands) | – | (373.5)% |
| Six Months Ended June 30, 2026 adjusted net lossnon-GAAP | (4,186) (in thousands) | – | (161.8)% |
| Six Months Ended June 30, 2026 adjusted EBITDAnon-GAAP | 9,571 (in thousands) | – | (55.4)% |
| Six Months Ended June 30, 2026 diluted loss per shareGAAP | (0.19) (in thousands, except per-share amount) | – | (371.4)% |
| Six Months Ended June 30, 2026 adjusted diluted loss per sharenon-GAAP | (0.09) (in thousands, except per-share amount) | – | (164.3)% |
| Six Months Ended June 30, 2026 feedstock acquisitionsother | $ 30,638 (in thousands) | – | (56.6)% |
| InventoryGAAP | $376.0 million | – | – |
| Aircraft and engines held for leaseGAAP | $133.0 million | – | – |
| Liquidityother | $34.0 million | – | – |
| Cash and cash equivalentsGAAP | $2.2 million | – | – |
| Available capacity on revolving credit facilityother | $31.8 million | – | – |
| Cash used in operating activities year to dateGAAP | $33.5 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Asset Management SolutionsRevenue declined primarily due to the absence of Flight Equipment sales. Excluding Flight Equipment sales, AMS revenue decreased 13.6% to $37.0 million from $42.9 million, driven by lower USM sales resulting from timing of feedstock acquisitions and utilization of material to build serviceable assets, partly offset by increased leasing revenue. | $37.1 million | – | (51.3)% |
| Technical OperationsGrowth was driven by the ramp-up of operations supporting a recently awarded long-term CRJ multi-line maintenance agreement, additional storage volume, landing gear and aerostructures overhaul activity, and continued AerSafe® demand. | $33.8 million | – | 8.7% |
What drove it
- The absence of Flight Equipment sales compared with $33.4 million of Flight Equipment sales in the prior-year quarter was the primary reason period-to-period comparisons were skewed.
- Lower USM sales volume reduced revenue, while material was consumed to build serviceable engines supporting increased leasing and Flight Equipment sales.
- Leasing revenue was supported by an expanded engine and B757 freighter lease portfolio.
- As of June 30, 2026, the Company had 18 engines and three B757 freighter aircraft on lease, compared to 16 engines and one B757 freighter aircraft on lease in the prior-year period.
- Technical Operations benefited from MRO activity, storage volume, landing gear and aerostructures overhaul activity, and AerSafe® demand.
- Gross margin was pressured by the absence of Flight Equipment sales, lower USM gross profit, labor investment at Goodyear, Arizona, and ramp-up activity for the Millington, Tennessee maintenance program.
Concerns
- Total revenue decreased 33.9% and AMS revenue decreased 51.3% from the prior-year period.
- Gross margin decreased to 22.9% from 32.9%, with prior-year Flight Equipment sales having generated $13.2 million of gross profit.
- Loss from operations was $4.8 million, compared to income from operations of $12.5 million in the prior-year period.
- Adjusted EBITDA decreased to $2.2 million, or 3.1% of total revenue, from $18.3 million, or 17.0% of total revenue.
- Cash used in operating activities year to date was $33.5 million.
- Feedstock acquisitions declined to $5.6 million from $27.1 million.
What to watch
- Management expects meaningful improvement to earnings and liquidity in the second half of 2026.
- The Company cited a Boeing 737 aircraft sale valued at approximately $35.0 million and commitments for an additional three 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 lease agreement for a fifth was executed with delivery scheduled for August.
- 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.
- Execution on monetizing the two remaining freighters, expanding the lease pool, and filling capacity across the MRO network remains central to the second-half outlook.
Balance sheet and cash flow
- Inventory of $376.0 million at June 30, 2026.
- Aircraft and engines held for lease of $133.0 million.
- Liquidity of $34.0 million, consisting of $2.2 million of cash and cash equivalents and available capacity of $31.8 million on its $180 million revolving credit facility.
- The revolving credit facility is 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, primarily reflecting operating results and continued investment in inventory through feedstock and make ready costs for USM and Flight Equipment.
Analysis
AerSale reported a materially weaker second quarter, with revenue of $70.9 million declining 33.9% from $107.4 million. The central driver was the absence of Flight Equipment sales, compared with $33.4 million of such sales in the prior-year period. AMS revenue fell 51.3% to $37.1 million, while Technical Operations revenue rose 8.7% to $33.8 million. Excluding Flight Equipment sales, total revenue decreased 4.2%, which the Company attributed to lower USM sales as material was consumed to build serviceable engines for leasing and Flight Equipment sales.
Profitability declined sharply. Gross margin fell to 22.9% from 32.9%, reflecting the absence of Flight Equipment sales that generated $13.2 million of gross profit in the prior-year period, lower USM gross profit, and labor and program ramp investments. The Company recorded loss from operations of $4.8 million, net loss of $5.6 million, and adjusted EBITDA of $2.2 million, or 3.1% of revenue. This compares with income from operations of $12.5 million, net income of $8.6 million, and adjusted EBITDA of $18.3 million, or 17.0% of revenue, in the prior-year quarter.
The mix within recurring businesses showed divergent trends. Leasing revenue benefited from the expanded engine and B757 freighter portfolio, with 18 engines and three B757 freighter aircraft on lease as of June 30, 2026, compared with 16 engines and one B757 freighter in the prior-year period. TechOps growth reflected the CRJ multi-line maintenance program, storage volume, landing gear and aerostructures work, and AerSafe® demand. However, AMS excluding Flight Equipment sales declined 13.6% to $37.0 million from $42.9 million because of lower USM sales and feedstock timing.
Liquidity ended at $34.0 million, including $2.2 million of cash and cash equivalents and $31.8 million of revolving-facility capacity. Cash used in operating activities year to date was $33.5 million as the Company funded operating results and inventory investment. Inventory was $376.0 million and aircraft and engines held for lease were $133.0 million, underscoring the balance-sheet commitment to future USM, Flight Equipment, and leasing monetization.
Management did not issue formal financial guidance, but described anticipated second-half improvement tied to a Boeing 737 aircraft sale valued at approximately $35.0 million, commitments for three additional engine sales, and additional B757 freighter lease activity. The key execution points are the timing of those sales, conversion of MRO capacity into revenue, realization of expected AerSafe® demand ahead of the FAA's November 2026 compliance deadline, and improvement in operating cash flow and liquidity.
Management, verbatim
Our second quarter results reflect timing, not trajectory. Results were impacted by Flight Equipment sales shifting into the second half of the year and the use of sellable USM to support the overhaul of Flight Equipment. We also continued to invest ahead of demand, adding labor at our Goodyear facility ahead of anticipated volume and building our workforce to support the ramp-up of our new CRJ multi-line program in Millington. This weighed on results in the near term, but we believe positions us well for the anticipated demand ahead. We remain encouraged by underlying demand across our platform and expect these benefits to materialize in the second half.
Nicolas Finazzo, Chief Executive Officer
We expect meaningful improvement to our earnings and liquidity in the second half of 2026, driven by several recent wins during and subsequent to the second quarter, including a Boeing 737 aircraft sale valued at approximately $35.0 million and commitments for an additional three engine sales which we expect to close in the late third or early fourth quarter. We also delivered a fourth B757 freighter on lease in July and executed a lease agreement for a fifth, scheduled for delivery in August. We remain confident in monetizing our two remaining freighters, expanding our lease pool, and filling capacity across our MRO network.
Nicolas Finazzo, Chief Executive Officer
Not in the filing
stated, not guessed- Formal financial guidance for revenue, gross margin, operating expenses, tax rate, EPS, adjusted EBITDA, operating cash flow, or free cash flow was not provided.
- Previous-release outlook was not provided, so comparison with prior guidance is unavailable.
- Prior-quarter comparisons were not provided for reported metrics.
- Free cash flow was not provided.
- Debt outstanding was not provided.
- Share repurchases and dividends were not provided.
- GAAP operating cash flow for the second quarter alone was not provided.
- Gross profit and gross margin comparisons for the six months ended June 30, 2026 were not provided.
- Capital-return activity was not provided.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.