AerSale’s third quarter results were met with a significant negative market reaction, reflecting both a substantial revenue shortfall and profit miss compared to Wall Street expectations. Management attributed the underperformance primarily to the lack of engine or aircraft sales, a segment known to produce volatile quarter-to-quarter swings. CEO Nicolas Finazzo acknowledged that “the year-over-year decline was entirely driven by the absence of engine or aircraft sales in the quarter compared to 5 engine sales in the prior year period.” Despite this, management emphasized improved profitability within its core operations, citing stronger leasing activity and ongoing cost reduction efforts.

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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 5 Analyst Questions From AerSale’s Q3 Earnings Call

• Steven Strackhouse (RBC Capital): asked about baseline EBITDA expectations for the expanded MRO business. CFO Martin Garmendia projected approximately $25 million in revenue with $4–5 million in margins for 2026 as new facilities come online.

• Steven Strackhouse (RBC Capital): inquired about demand trends for the 757 passenger-to-freighter conversions. CEO Nicolas Finazzo explained that limited competition and strong operator interest have boosted confidence in placing remaining aircraft, with two more under letter of intent.

• Steven Strackhouse (RBC Capital): requested updates on USM strategy and supply. Finazzo said, “even though the market is very tight for USM, we still buy USM...we're disciplined in making sure we hit our target margin and IRR profiles.”

• Samuel Struhsaker (Truist Securities): asked about the transition status and growth outlook for Roswell and Goodyear facilities. Finazzo confirmed Roswell’s focus on teardown is largely complete and that Goodyear is nearly full with transition projects and new customer programs.

• Samuel Struhsaker (Truist Securities): questioned engine demand and repair timing. Finazzo described engine demand as “insatiable,” but noted prolonged shop turnaround times and the challenge of choosing between leasing and cash sales.

Catalysts in Upcoming Quarters

In coming quarters, the StockStory team will be focused on (1) the ramp-up of new MRO facilities and the ability to secure long-term contracts, (2) successful placement of remaining 757 freighter conversions with airline operators, and (3) continued robust AerSafe deliveries as FAA compliance deadlines approach. Additionally, the company’s performance in acquiring attractively priced feedstock and navigating supply chain constraints will be closely monitored as key drivers of future growth and margin stability.

AerSale currently trades at $5.91, down from $6.99 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free for active Edge members).

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