AerSale Corp Q4 2025 results

I'd like to welcome everyone to AerSale's fourth quarter and full year 2025 earnings call. A reconciliation of those Non-GAAP metrics to the nearest GAAP metric can be found in the earnings presentation materials made available on the Investors section of the AerSale website at ir.aersale.com. Our fourth quarter Adjusted EBITDA increased $2.2 million or 17.1% to $15.2 million, compared to $13 million in the fourth quarter of 2024. Fourth quarter revenue was $90.9 million, a 4% decrease from the prior year period.

Excluding flight equipment sales, which tend to be volatile quarter to quarter, fourth quarter revenue actually increased 9.8%, reflecting continued growth across our component MROs, USM, and leasing. This overall growth has improved profitability and provides more consistency in our quarter-over-quarter performance. This also led to improvement in our Adjusted EBITDA, supported by stronger operating performance and the continued benefits of the efficiency initiatives we implemented in early 2025. For the full year, we generated $335.3 million in total revenue, a decrease of $9.8 million or 2.8% year-over-year, primarily due to fewer flight equipment sales.

Excluding flight equipment sales, full year revenue increased 18.7%, driven by stronger USM demand, higher average lease rates and asset yields, and robust growth in sales at our component MROs and of AerSafe products. Full year Adjusted EBITDA also increased $12.8 million to $46.1 million, up 38.2% year-over-year, reflecting higher volumes, favorable mix, and margin and cost benefits from our efficiency program. During the fourth quarter of 2025, we acquired $15.4 million of feedstock, bringing full year acquisitions to $99.6 million. While the feedstock environment remains constrained, we have been steadfast in our disciplined acquisition pricing and believe opportunities will improve as OEM production normalizes.