AerSale’s first quarter was met with a significant negative market reaction, as revenue fell short of Wall Street expectations despite year-over-year growth. Management attributed the shortfall mainly to lower sales of used serviceable material (USM), as the company prioritized internal use of these components for its own engine builds. CEO Nicolas Finazzo highlighted that this decision, though reducing immediate USM sales, was taken to achieve higher total margins over time. Temporary margin pressures also emerged from ramping up new maintenance, repair, and overhaul (MRO) facilities, particularly in Millington and Hialeah Gardens, but these were described as transitional.
Is now the time to buy ASLE? Find out in our full research report (it’s free for active Edge members).
AerSale (ASLE) Q1 CY2026 Highlights:
- Revenue: $70.61 million vs analyst estimates of $102.5 million (7.4% year-on-year growth, 31.1% miss)
- Adjusted EPS: $0 vs analyst estimates of $0.03 ($0.03 miss)
- Adjusted EBITDA: $7.36 million vs analyst estimates of $7.23 million (10.4% margin, 1.8% beat)
- Operating Margin: -4.7%, up from -10.1% in the same quarter last year
- Market Capitalization: $306.2 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top Analyst Questions From AerSale’s Q1 Earnings Call
- Kevin Liu (RBC Capital Markets) asked about the impact of Middle East conflict on USM demand and lease rates. CEO Nicolas Finazzo replied that no material impact has been seen, but noted possible long-term effects if aircraft groundings increase.
- Kevin Liu (RBC Capital Markets) inquired about the status and revenue implications of new MRO capacity. CFO Martin Garmendia detailed that both Millington and Goodyear are ramping up, with Millington expected to reach full capacity and improved margins as additional lines come online.
- Kevin Liu (RBC Capital Markets) requested further details on margins for new capacity and expected EBITDA contribution. Garmendia stated that margins are improving, especially as start-up costs subside, and expects gross margins above 20% at Millington when fully utilized.
Catalysts in Upcoming Quarters
In the coming quarters, our team will watch (1) the pace at which AerSale fills available MRO and aerostructure facility capacity, (2) the successful placement of the remaining Boeing 757 freighters and expansion of the lease pool, and (3) the conversion rate of the engineered solutions backlog, particularly related to AirSafe. Progress on AeroWare regulatory milestones and customer adoption will also be key indicators of execution.
AerSale currently trades at $6.47, down from $7.33 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).
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