AerSale Corp (ASLE) · Nov 5, 2026 · Earnings
Miss — Adjusted EPS -$0.02 vs ~$0.10 consensus
AerSale’s third-quarter earnings show strong revenue growth, but a sharp margin squeeze, adjusted loss and delayed aircraft sales keep the recovery unfinished.
AerSale is in the middle of a recovery plan built around monetizing a large aircraft-and-parts inventory, expanding leasing and scaling its MRO network; after a weak second quarter, management had already framed the second half of 2026 as the rebound window. The third quarter shows better activity, but not yet better economics.
Revenue recovery was real, but largely matched the setup. Revenue rose 28.6% year over year to $91.6 million, roughly in line with the published consensus near $91.2 million, while both operating segments grew. The quarter also benefited from $9.3 million of Flight Equipment sales, and the company says a Boeing 737 sale and additional engine sales slipped from the third quarter into the fourth.
| Metric | Q3 2026 | Q3 2025 | Consensus / prior |
|---|---|---|---|
| Revenue (Financial Highlights) | $91.6M (+28.6%) | $71.2M | ~$91.2M consensus |
| Adjusted diluted EPS (Financial Highlights) | $(0.02) | $0.04 | ~$0.10 consensus |
| Adjusted EBITDA (Financial Highlights) | $8.6M (-9.7%) | $9.5M | |
| Gross margin (Third Quarter 2026 Financial Results) | 22.5% | 30.2% | |
| Operating cash flow, nine months (Cash Flows) | $(42.7M) | $(34.3M) |
The earnings quality was the problem. Despite higher revenue, adjusted EBITDA fell to $8.6 million from $9.5 million and adjusted EPS turned to a $0.02 loss from $0.04 of adjusted profit, well below the roughly $0.10 published consensus. Gross margin dropped to 22.5% from 30.2%, with TechOps margin collapsing to 12.5% from 25.3%; that means the recovery is currently buying growth with weak conversion into profit.
The goodwill charge is non-cash, but it still confirms that the reset has a cost. AerSale recorded a $13.4 million goodwill impairment, driving a $15.0 million GAAP net loss and reducing goodwill on the balance sheet to $6.4 million from $19.9 million at year-end. The charge does not explain the adjusted miss, however: even after excluding it, the company remained unprofitable.
Liquidity remains dependent on execution, not internally generated cash. AerSale ended the quarter with only $3.9 million of cash and $19.2 million of undrawn revolver capacity, while using $42.7 million of operating cash in the first nine months as it funded inventory and repair work. The promised fourth-quarter aircraft and engine closings therefore matter operationally: they are not just upside opportunities, but part of the path to replenishing liquidity.
Bottom line: AerSale is generating the revenue rebound it had telegraphed, but the quarter missed on the metric that determines whether the strategy is working—profitability. The business is moving forward operationally, yet margin pressure, cash burn and delayed asset sales leave the recovery below expectations rather than validated.
Fourth-quarter Boeing 737 and engine sales before year-end
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