AerSale Commits to Sell Boeing 737 for $35 Million Before End of 2026
Key Facts
AerSale said on November 5, 2026, that it had commitments to sell a Boeing 737 to the U.S. Marshals Service for $35 million, with the deal expected to close before year-end. The company presents the sale as part of its committed aviation equipment transactions, which it expects to support a much stronger fourth quarter. Management said: "We have commitments to sell a Boeing 737 for $35 million to the U.S. Marshals Service." That means the deal is still expected to close and has not yet been recognized as revenue. AerSale announced the outlook alongside third-quarter results that combined revenue growth with a net loss and margin pressure. The company's stock closed at $4.82 in the November 5 session.
Third-quarter revenue was $91.6 million, up 28.6% from $71.2 million in the same period a year earlier and also higher than $70.9 million in the second quarter of 2026. The company attributed the growth to leasing activity, sales of serviceable used material, maintenance, repair and overhaul work, and strong commercial demand for its AerSafe product. Aviation equipment sales also contributed to the increase, reaching $9.3 million in the third quarter, compared with $0.4 million a year earlier. The expected deal with the U.S. Marshals Service provides an example of the equipment sales management is counting on in the current quarter. But higher revenue did not translate into net profitability or stronger margins in the third quarter.
AerSale posted a net loss of $15.0 million in the third quarter, compared with a loss of $0.1 million in the same period of 2025. The latest quarter's loss included a noncash goodwill impairment charge of $13.4 million. Adjusted earnings before interest, taxes, depreciation and amortization were $8.6 million, versus $9.5 million a year earlier. The adjusted EBITDA margin fell to 9.3% from 13.3% in the year-earlier period, despite the increase in revenue. Gross margin also declined to 22.5% from 30.2%, while the technical operations segment margin dropped to 12.5% from 25.3%. These comparisons show that management's expectation of a stronger fourth quarter follows a quarter in which the company recorded pressure on margins and adjusted earnings.
AerSale's fourth-quarter outlook rests on committed aviation equipment sales, an expanded leasing portfolio and what management described as a clear path to monetizing the inventory the company has built. As of September 30, 2026, the company had 18 engines and five Boeing 757 freighters on lease, compared with three freighters of the same type on June 30, while the number of leased engines remained at 18. Leased assets provide an operating revenue base, while inventory and equipment sales can convert assets into cash. Management said these factors together allow it to expect a "much stronger fourth quarter." The company linked expected aviation equipment transactions to recovering investments and providing liquidity for growth, alongside leasing expansion and inventory monetization.
The company ended the third quarter with total liquidity of $23.1 million, including $3.9 million in cash and cash equivalents and $19.2 million available under a $180 million revolving credit facility. The facility can be expanded to $200 million subject to conditions. Meanwhile, net cash used in operating activities since the start of the year was $42.7 million for the nine months ended September 30, 2026. AerSale said cash use mainly reflected continued investment in inventory through purchases of initial assets and capitalized repair costs to prepare equipment for lease or sale. Initial asset purchases totaled $37.8 million in the first nine months of 2026, compared with $84.2 million in the same period of 2025. The company attributed the decline to a disciplined pricing approach amid a competitive seller market, while inventory was valued at $334.1 million and aircraft and engines held for lease at $165.9 million at the end of September.
In another move to support inventory, AerSale said it had been awarded seven A330 airframes, adding that it expects to complete the purchase of the first airframe in the weeks following the results announcement. Chief Executive Nicholas Finazzo said the company had used advanced analytics to identify factors affecting productivity and profitability at its Millington and Goodyear sites and component maintenance shops. He said the analysis is intended to improve workforce efficiency and utilization of available capacity. The third-quarter earnings call was scheduled for November 5, 2026, at 4:30 p.m. Eastern time. Management's outlook for the next period centers on committed deals, a larger leasing portfolio and converting inventory into liquidity, while completing the aircraft sale before year-end remains a stated target for the transaction.