AerSale lowers FY23 revenue view to $400M-$440M, consensus $468.11M

AerSale now expects to generate revenue of $400M-$440M and adjusted EBITDA of $40M-$55M in 2023. “This updated guidance takes into account soft demand in the freight market that is anticipated to extend the sales cycle of AerSale’s converted 757s as previously estimated by the Company. This reduced guidance for 2023 does not reflect potential sales of AerAware as the product is in its final stages of FAA approval,” the company said. Martin Garmendia, AerSale’s CFO, added: “As we had pointed out during our last earnings call, second quarter 2023 results were meaningfully impacted by fluctuations in high margin flight equipment sales. The second quarter of 2022 included $92.5M of such higher margin flight equipment sales while the second quarter of 2023 included only $13.3M. Looking ahead, we have reduced guidance to reflect soft demand in the freight market that is impacting the 757 P2F conversion program. Notwithstanding these short-term market dynamics, we believe the long-term underlying fundamentals of our business remain robust.”