AerSale Corp Q1 FY2025 earnings call

• First quarter consolidated revenue $65.8M vs $90.5M prior year; excluding whole asset sales, underlying revenue $64.0M (+$23.4M). • Adjusted EBITDA $3.2M vs $9M prior year. • Asset Management acquired $43.4M feedstock, 10.4% win rate in quarter. • TechOps made strategic decision on MRO contracts, component MRO expansion projects near completion. • Engineered Solutions AerSafe backlog $11M, AerAware demoed to potential customers, product improvements ongoing.

Asset Management: Sales declined 33.8% due to lower whole asset sales; excluding whole assets, segment level revenue increased 81.7% to $37.5 million, driven by stronger USM sales and larger active lease pool. TechOps: Segment revenue declined 15.1% due to fewer aircraft in work at Goodyear and Roswell MROs. Engineered Solutions: Increase in AerSafe deliveries, backlog at $11 million. AerAware: Continued marketing, operated 737 test aircraft to demonstrate benefits, progressing on product improvements like foldable SkyLens and ADS-B-in capability.

• Expect significantly improved results incrementally each quarter. • Full year sales growth expected, EBITDA growth to exceed revenue growth. • Strong inventory position to drive USM sales and whole asset transactions. • Lease pool to grow further. • Component MRO projects to generate revenue in next 30-60 days. • AerSale backlog to build with installation volume increasing. • Efficiency measures to enhance profitability in second half.

Q: Ken Herbert asks about whole asset sales guidance and if whole asset sales could be at 2024 levels this year.

A: Nick Finazzo says it's hard to predict exactly, but has 21 engines in work to trade/lease, makes decisions based on risk-adjusted revenue generation.

Q: Ken asks about demand shift in assets.

A: Nick Finazzo says no lack of demand for engines, just lack of supply, time to get engines through shop is an issue.