ASLE Overview

Management Insights: AerSale Corporation reported Q3 2025 revenue of $71.2 million, a decline attributed to the absence of engine or aircraft sales, but overall business grew 18.5% driven by leasing revenue and strong inventory. Adjusted EBITDA improved to $9.5 million, reflecting better margins from leasing and cost control efforts.

Strategic Shift: The company is focusing on recurring leasing revenue, balancing whole asset transactions with leased assets. Management expressed optimism about the 757 passenger to freighter conversion program and the completion of new MRO facilities, which are expected to drive revenue growth in 2026 and beyond.

Financial Performance: Q3 gross margin increased to 30.2%, with operating income at $2.9 million and a net loss of $0.1 million. The company ended the quarter with $58.9 million in liquidity, including cash and available credit.

Analyst Sentiment and Risks: Analysts displayed optimism regarding growth and operational execution, shifting focus from cost control to recurring revenue. However, challenges include limited supply of attractively priced feedstock and long engine repair turnaround times, alongside uncertainties related to regulatory deadlines for AerSafe.

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New Appointment: AerSale has appointed Paul Hechenberger as Senior Vice President, General Counsel & Corporate Secretary.

Experience and Background: Hechenberger brings over 40 years of legal and aerospace experience, having held various leadership roles in companies such as iAero Group and Spirit AeroSystems.

Military Service: He is a U.S. Navy veteran, retiring as a Captain after 30 years of service, and holds multiple degrees including a Juris Doctor.

Company Overview: AerSale specializes in providing aftermarket services and products for large jets, aiming to help aircraft owners save on operation and maintenance costs.

Stocks Added to Zacks Rank #5 List: Three stocks, AerSale (ASLE), Astrana Health, Inc. (ASTH), and AG Mortgage Investment Trust (MITT), have been added to the Zacks Rank #5 (Strong Sell) List due to significant downward revisions in their earnings estimates over the past 60 days.

Investment Opportunities: Despite being ranked as strong sells, these stocks were selected by Zacks experts for their potential to gain over 100% in 2024, highlighting an opportunity for investors to capitalize on lesser-known stocks that may yield high returns.