AerSale Corporation Reports 27.4% Revenue Decline and $5.3 Million Net Loss in Q1 2025

AerSale Corporation reported a significant decline in financial performance for the first quarter of 2025, with total revenue falling to $65.8 million, a decrease of 27.4% from $90.5 million in the same period of 2024. The decline was primarily driven by a 33.8% drop in revenue from the Asset Management Solutions segment, which generated $39.2 million, down from $59.3 million. The TechOps segment also experienced a decrease, with revenue falling 15.1% to $26.6 million. The company's net loss for the quarter was $5.3 million, compared to a net income of $6.3 million in the prior year, resulting in a loss per share of $0.10.

The decrease in revenue was attributed to lower sales activity in key product lines, particularly in the Engine and Aircraft categories. Engine revenue decreased by 25.8% due to reduced Flight Equipment sales, while Aircraft revenue saw a more pronounced decline of 55.0%. The company noted that lower activity in the CFM56 and V2500 product lines contributed to the decline in Engine revenue, while reduced sales in the B737 product line impacted Aircraft revenue. Despite the overall revenue drop, leasing revenue increased to $7.5 million, up from $3.1 million, indicating a shift in the company's operational focus.

In terms of operational metrics, AerSale's inventory increased to $391.2 million as of March 31, 2025, compared to $355.8 million at the end of 2024. The company reported a gross profit of $18.0 million for the quarter, down 37.6% from $28.8 million in the previous year, reflecting the impact of lower sales volumes and changes in product mix. Selling, general, and administrative expenses rose slightly to $24.6 million, primarily due to increased share-based compensation, although this was partially offset by cost reduction initiatives.

Strategically, AerSale repurchased 6.4 million shares of its common stock for $45 million in March 2025, reducing the total shares outstanding to approximately 46.9 million. The company continues to focus on its dual business segments: Asset Management Solutions and TechOps, which provide a range of services from leasing to maintenance and repair. Looking ahead, AerSale anticipates that its liquidity, supported by cash flows from operations and available credit facilities, will be sufficient to sustain operations over the next twelve months, despite the challenges posed by market conditions and operational performance.