Parts provider AerSale has predicted that 2026 will be a challenging year for sourcing feedstock, as intense competition for used aircraft and engine purchases persists in the aviation market. Despite investing $100 million in 2025, the company anticipates lower procurement levels this year due to elevated prices that limit their bidding success.
CEO Nicolas Finazzo explained that AerSale typically wins only about 10% of the deals it bids on, highlighting the tough environment they operate within. He emphasized the difficulty in making margins when buying and parting out used flight equipment, especially when competitors pay prices that erode potential profitability.
Financial and Operational Outlook
In 2025, AerSale's revenue remained flat at $335 million, with asset management contributing $212 million through sales of used serviceable material, flight equipment, and leasing. Maintenance sales accounted for $123 million but experienced a slight decline despite ongoing strong demand for MRO services. The decrease was attributed to reduced activity at on-airport MRO facilities, partially offset by growth in aerostructures and landing gear.
Looking forward, the company plans to shift focus toward storage and end-of-life fleet activities, notably at its New Mexico facility, to compensate for lost heavy check margins. The fully operational Millington, Tennessee site, established in December 2025 through a regional airline contract, marks another step in their strategy to stabilize earnings.
Finazzo stated that efforts to grow returnable revenue streams and enhance operational predictability are central to their plans for 2026. Initiatives include increasing capacity at MRO facilities, expanding USM sales, boosting component MRO revenue, and growing the lease pool of aircraft assets, all aimed at mitigating earnings volatility.
As the company adapts to market conditions, it remains committed to growing its recurring revenue streams and enhancing asset utilization to navigate the challenging environment effectively.
