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AerSale (NASDAQ:ASLE) Beats Expectations in Strong Q2, Stock Jumps 19.1%

By: StockStory

August 06, 2025 at 17:56 PM EDT

ASLE Cover Image

Aerospace and defense company AerSale (NASDAQ: ASLE) reported Q2 CY2025 results topping the market’s revenue expectations, with sales up 39.3% year on year to $107.4 million. Its non-GAAP profit of $0.20 per share was significantly above analysts’ consensus estimates.

Is now the time to buy AerSale? Find out by accessing our full research report, it’s free.

AerSale (ASLE) Q2 CY2025 Highlights:

Revenue: $107.4 million vs analyst estimates of $86.33 million (39.3% year-on-year growth, 24.4% beat)
Adjusted EPS: $0.20 vs analyst estimates of $0.03 (significant beat)
Adjusted EBITDA: $18.27 million vs analyst estimates of $6.99 million (17% margin, significant beat)
Operating Margin: 11.7%, up from -2.4% in the same quarter last year
Free Cash Flow was $18.61 million, up from -$18.94 million in the same quarter last year
Market Capitalization: $286.3 million

Company Overview

Providing a one-stop shop that integrates multiple services and product offerings, AerSale (NASDAQ: ASLE) delivers full-service support to mid-life commercial aircraft.

Revenue Growth

Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Unfortunately, AerSale’s 3.7% annualized revenue growth over the last five years was sluggish. This fell short of our benchmark for the industrials sector and is a tough starting point for our analysis.

We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. AerSale’s annualized revenue growth of 9.3% over the last two years is above its five-year trend, suggesting its demand recently accelerated. AerSale Year-On-Year Revenue Growth

We can dig further into the company’s revenue dynamics by analyzing its most important segments, Products and Services, which are 69.5% and 22.9% of revenue. Over the last two years, AerSale’s Products revenue averaged 8.3% year-on-year growth. On the other hand, its Services revenue averaged 10.6% declines. AerSale Quarterly Revenue by Segment

This quarter, AerSale reported wonderful year-on-year revenue growth of 39.3%, and its $107.4 million of revenue exceeded Wall Street’s estimates by 24.4%.

Looking ahead, sell-side analysts expect revenue to grow 8.8% over the next 12 months, similar to its two-year rate. This projection is above the sector average and indicates its newer products and services will help support its recent top-line performance.

Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.

Operating Margin

Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals.

AerSale was profitable over the last five years but held back by its large cost base. Its average operating margin of 7.9% was weak for an industrials business.

Looking at the trend in its profitability, AerSale’s operating margin decreased by 17.5 percentage points over the last five years. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. AerSale’s performance was poor no matter how you look at it - it shows that costs were rising and it couldn’t pass them onto its customers.

AerSale Trailing 12-Month Operating Margin (GAAP)

In Q2, AerSale generated an operating margin profit margin of 11.7%, up 14.1 percentage points year on year. This increase was a welcome development and shows it was more efficient.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

AerSale’s full-year EPS dropped 128%, or 22.9% annually, over the last four years. We tend to steer our readers away from companies with falling revenue and EPS, where diminishing earnings could imply changing secular trends and preferences. If the tide turns unexpectedly, AerSale’s low margin of safety could leave its stock price susceptible to large downswings.

AerSale Trailing 12-Month EPS (Non-GAAP)

Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.

AerSale’s EPS grew at a weak 1.8% compounded annual growth rate over the last two years, lower than its 9.3% annualized revenue growth. This tells us the company became less profitable on a per-share basis as it expanded.

In Q2, AerSale reported adjusted EPS at $0.20, up from negative $0.05 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects AerSale to perform poorly. Analysts forecast its full-year EPS of $0.28 will hit $0.33.

Key Takeaways from AerSale’s Q2 Results

We were impressed by how significantly AerSale blew past analysts’ EPS expectations this quarter. We were also excited its EBITDA outperformed Wall Street’s estimates by a wide margin. Zooming out, we think this was a good print with some key areas of upside. The stock traded up 19.1% to $7.35 immediately following the results.

AerSale had an encouraging quarter, but one earnings result doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.

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