AerSale's second quarter arrived with one transaction simply missing. A year ago, the Asset Management Solutions segment booked $33.4 million of Flight Equipment whole-asset sales, more than a third of total revenue. This quarter, that line was $0.1 million - and every other line in the P&L moved accordingly. Reported revenue fell 33.9% to $70.9 million, gross profit fell 53.9% to $16.3 million, and AerSale flipped from $8.6 million of net income to a $5.6 million net loss on a U.S. generally accepted accounting principles (GAAP) basis. Adjusted earnings before interest, tax, depreciation, and amortization (Adjusted EBITDA), which strips out non-cash and one-off items but still bears the absent sale, fell 87.9% to $2.2 million on a 3.1% margin - versus 17.0% a year ago. The company had warned the quarter was shaped by transaction timing, and it was.
Strip the missing sale and the picture softens but does not break. Recurring revenue (leasing, used serviceable material parts, maintenance repair and overhaul services, and product sales) fell 4.2%, and within that the engines-and-freighters leasing line grew 50.2% to $12.4 million. TechOps revenue grew 8.7% to $33.8 million on the new long-term CRJ multi-line maintenance contract and AerSafe demand ahead of a Federal Aviation Administration (FAA) November 2026 compliance deadline. The recurring engine business is doing what the company designed it to do. What is not yet doing it is the 17.0%-to-3.1% margin compression: the timing gap between the $33.4 million sale that did not land and the $33.4 million of growth expenses (Millington hiring, Goodyear ramp, USM used to build serviceable engines for the lease fleet) the company carried in the quarter.
Management's answer is H2 2026: a Boeing 737 sale valued at approximately $35.0 million committed during or just after Q2, three engine-sale commitments targeted for late Q3 or early Q4, a fourth B757 freighter delivered on lease in July with a fifth signed for August delivery, and AerSafe demand expected to peak in Q3 ahead of the FAA's fuel tank Airworthiness Directive. The thesis is that recurring leasing, USM, and MRO will keep growing while the H2 Asset Management Solutions sales resume - and that the 11.3% trailing-twelve-month (TTM) Adjusted EBITDA margin re-expands toward the 13.8% reported in full-year 2025. At $5.72 the stock is at 0.65x book value (price-to-book), 1.38x TTM enterprise value to sales (EV/Sales), and 12.2x TTM enterprise value to Adjusted EBITDA (EV/Adjusted EBITDA), with the 2-analyst consensus at $7.25 implying 27% upside. The single open question is whether the announced H2 transactions close on the schedule management is offering.