AerSale Corporation (ASLE): Business Model Canvas [Dec-2025 Updated]

You're looking past the headlines to see the actual mechanics of how AerSale Corporation generates revenue, and after two decades in this space, I can tell you the real story is their successful pivot away from pure transactional sales toward sticky, recurring income. Honestly, the Q3 2025 figures make this defintely clear: while they hold $371.1 million in Used Serviceable Material (USM) inventory, the real strength is in their Technical Operations, which posted a 25.3% margin, and the growing lease book, especially when you see zero revenue from whole aircraft sales that quarter. This integrated lifecycle management approach is the core of their current strategy, so dive into the nine blocks below to see precisely how they've organized their key resources and customer relationships to support this shift.

AerSale Corporation (ASLE) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that fuel AerSale Corporation (ASLE)'s operations as of late 2025. These aren't just handshake deals; they are material financial and operational dependencies.

Strategic inventory acquisition from Sanad Group (Mubadala subsidiary)

AerSale Corporation (ASLE) executed a strategic acquisition of a parts portfolio from Sanad Group, which is wholly owned by Mubadala Investment Company PJSC, on January 16, 2025. This transaction specifically bolstered inventory for high-demand models including the 737NG, A320 Family, A330/340, Boeing 777, and Embraer E-Jet platforms. The acquired assets included various Quick Engine Change (QEC) kits and an overhauled A330 Enhanced landing-gear shipset noted for its top-tier traceability. This partnership is explicitly designed to strengthen Maintenance, Repair, and Overhaul (MRO) synergies between AerSale Corporation (ASLE) and Sanad Group.

Financial institutions for asset-backed financing and credit facilities

Access to capital via financial institutions is critical for feedstock acquisition and share management. As of the third quarter of 2025, AerSale Corporation (ASLE) maintained a $180 million revolving credit facility, which is expandable to $200 million under certain conditions. The company reported $53.6 million in available capacity on this facility at the end of Q3 2025. Total liquidity stood at $58.9 million, comprising $5.3 million in cash. Furthermore, in March 2025, AerSale Corporation (ASLE) executed a $45 million share repurchase, funded by cash and availability on this credit agreement.

Engine and airframe manufacturers for MRO service support

The TechOps segment, which handles MRO services, shows clear partnership benefits through margin expansion. TechOps margins surged to 25.3% in the third quarter of 2025, up from 13.6% in the prior year period. Management has set a forward-looking revenue target of $25 million for the MRO division in 2026, anticipating margins in the range of $4 million to $5 million for that year. The completion of expansion projects at both Aerostructures and pneumatics facilities is expected to drive revenue growth in 2026 and beyond.

Here's a quick look at the operational scale supporting these MRO and inventory partnerships as of late 2025:

Agreements with major global transportation companies for surplus parts

The strength of the Used Serviceable Material (USM) business is a direct result of securing feedstock through various channels, including transportation companies and leasing entities. Excluding volatile whole asset sales, the balance of AerSale Corporation (ASLE)'s business grew 18.5% in Q3 2025 to $71.2 million, driven by strong USM volume. The company continues to acquire feedstock to drive future growth; year-to-date acquisitions through Q3 2025 totaled $84.2 million, with $13.7 million acquired in the third quarter alone.

• Acquired feedstock year-to-date (through Q3 2025): $84.2 million.
• Q1 2025 feedstock acquired: $43.4 million.
• Q1 2025 feedstock under contract: $23.8 million.
• Total Q2 2025 feedstock acquisitions (including under contract): $27.1 million plus an additional $31.4 million under contract.

The ability to monetize this inventory is key. Finance: draft 13-week cash view by Friday.

AerSale Corporation (ASLE) - Canvas Business Model: Key Activities

AerSale Corporation (ASLE) focuses its key activities on maximizing the value of mid-life aircraft and components through a multi-faceted approach, as evidenced by its third quarter of 2025 financial results.

Acquiring mid-life aircraft and engines (feedstock)

Acquiring feedstock is a foundational activity, supporting both USM monetization and leasing growth. The company reported a significant inventory position to support future activities.

Feedstock inventory as of September 30, 2025, was valued at $371.1 million. For context on recent acquisition pace, feedstock acquisitions during the first quarter of 2025 totaled $43.4 million, with an additional $23.8 million under contract.

Disassembling assets and monetizing Used Serviceable Material (USM)

The monetization of assets, particularly through Used Serviceable Material (USM) sales and leasing, forms a core part of AerSale Corporation's revenue generation, especially when whole asset sales are absent. Excluding whole asset sales, the balance of the business grew 18.5% in the third quarter of 2025.

The Asset Management Solutions segment revenue in the third quarter of 2025 was $39.2 million, a decrease of 22.2% year-over-year, primarily due to no flight equipment sales. However, excluding flight equipment, sales in this segment increased 40.9%, driven by higher USM volume and leasing.

Here's a look at the revenue contribution from the main segments in Q3 2025:

Providing Maintenance, Repair, and Overhaul (MRO) services

Technical Operations (TechOps) is the segment housing MRO services. Management highlighted strategic investments in this area to drive future growth.

TechOps revenue in the third quarter of 2025 was $32.0 million. The focus on higher margin work is showing results in profitability metrics within this area.

• TechOps margins increased from 13.6% in the prior year period to 25.3% in the third quarter of 2025.
• New MRO facility expansions are expected to support revenue growth into 2026.

Developing and selling proprietary engineered solutions (e.g., AerSafe)

AerSale Corporation (ASLE) develops and sells proprietary engineered solutions, with AerSafe being a key product driven by regulatory requirements. Demand for this product line remains strong.

The company reported a $22 million backlog for AerSafe products, with deliveries expected to remain strong through 2026. Strong commercial demand for AerSafe products contributed to the 18.5% growth in the core business excluding whole asset sales in Q3 2025.

Converting passenger aircraft to freighters (e.g., Boeing 757s)

The passenger-to-freighter (P2F) conversion program, specifically for Boeing 757s, is a key activity contributing to the leasing revenue base. The company is actively marketing converted assets.

In the third quarter of 2025, AerSale Corporation placed a second 757 freighter on lease. Management noted seeing strong customer interest for the remaining converted 757 aircraft. During the second quarter of 2025, the company reported 1 aircraft on lease from its converted fleet.

AerSale Corporation (ASLE) - Canvas Business Model: Key Resources

You're looking at the tangible and intangible assets that make AerSale Corporation's business engine run, especially as they pivot toward more recurring revenue streams. Honestly, these resources are what allow them to service the mid-life aircraft market effectively.

The foundation of AerSale Corporation's operations rests heavily on its physical and intellectual assets. For instance, you have the Available inventory of USM (Used Serviceable Material) and flight equipment valued at $371.1 million as of Q3 2025. This inventory position is key to supporting their Used Serviceable Material (USM) business, which saw robust growth in recent quarters.

The company backs this up with significant technical infrastructure. While the prompt specifies six MRO facilities, the known, major U.S.-based repair stations provide concrete capacity data:

Collectively, these U.S.-based MRO facilities feature approximately 760,000 square feet of hangar space for heavy maintenance, modification, and disassembly operations. That's a lot of wrench time.

AerSale Corporation is also growing its fleet of leased aircraft, which is central to their strategy of balancing whole asset transactions with recurring income. This includes their focus on the 757 passenger to freighter conversion program. Here's the quick math on that fleet activity as of late 2025:

• 1 aircraft on lease during Q3 2025.
• An additional 757 freighter placed on lease for Q4 2025 revenue generation.
• Active discussions ongoing to place the remaining 5 757s.
• In Q2 2025, they were actively marketing the last 6 converted aircraft.

The company's proprietary intellectual property is a distinct resource, particularly the AerSafe fuel tank solution. This is an FAA-approved Ignition Mitigation Means (IMM) that uses reticulated polyurethane foam blocks to comply with Fuel Tank Flammability Reduction (FTFR) rules. It's a cost-effective retrofit for various Boeing and Airbus models, often costing approximately one quarter of a nitrogen inerting system over ten years. It's available for installation with lead times as short as 4 to 6 weeks for some kits, and once installed, it requires no maintenance.

Finally, you can't discount the human capital. The deep experience of the founding and management teams in the aftermarket is critical. Considering AerSale Corporation was founded in 2008, the leadership has navigated multiple cycles in the aviation aftermarket, which is definitely an asset when dealing with mid-life aircraft and complex regulatory changes like the FTFR deadline approaching in Q4 2026.

Finance: draft 13-week cash view by Friday.

AerSale Corporation (ASLE) - Canvas Business Model: Value Propositions

You're looking at the core value AerSale Corporation (ASLE) delivers to its customers, which is really about extending the life and maximizing the value of their mid-life aircraft assets. This isn't just about selling parts; it's about offering a complete solution set.

The first big piece is the integrated, end-to-end lifecycle management for mid-life aircraft. This means you can come to AerSale Corporation with an aging asset and they handle everything from teardown to MRO and getting components back into service. This comprehensive approach simplifies a complex process for airlines and lessors.

Next, you get the cost-effective supply of certified Used Serviceable Material (USM). The demand here is strong; for instance, in the third quarter of 2025, the Asset Management Solutions sales, driven by USM volume and leasing, hit $39.2 million. When you look at that segment excluding whole-asset sales, it showed a year-over-year growth of 40.9% in Q3 2025, showing how critical this supply chain is. Honestly, that growth rate shows you the market needs this material now.

For regulatory needs, AerSale Corporation offers specific solutions like AerSafe and AerTrak. AerSafe remains a steady contributor, and management expects it to continue supporting results right up to the regulatory compliance deadline in the fourth quarter of 2026.

The shift toward stable, recurring revenue from long-term aircraft and engine leasing is a key value driver for stability. You saw them place an additional 757 freighter aircraft on lease during the third quarter of 2025, with more customer interest following. This deployment strategy helps smooth out the lumpiness that comes from selling whole aircraft.

Finally, the high-margin component MRO services are a major value proposition, especially as they strategically shift focus. The TechOps margin in the third quarter of 2025 reached 25.3%. This is a significant improvement from the 13.6% seen in the same period last year, showing their focus on higher-margin teardown and decommissioning work is paying off. Here's the quick math on their Q3 2025 operational performance:

The MRO segment is set up for future growth, too. Management is targeting approximately $25 million in MRO revenue for 2026, expecting to generate strong margins of $4 million to $5 million from those new facilities. What this estimate hides is the near-term volatility from the lumpy nature of whole-asset sales, but the leasing and USM growth are clearly building a more predictable base for you.

• Integrated lifecycle management for mid-life aircraft.
• Cost-effective supply of certified Used Serviceable Material (USM).
• Regulatory compliance solutions like AerSafe and AerTrak.
• Stable, recurring revenue from long-term aircraft and engine leasing.
• High-margin component MRO services with TechOps margin at 25.3% (Q3 2025).

Finance: draft 13-week cash view by Friday.

AerSale Corporation (ASLE) - Canvas Business Model: Customer Relationships

You're looking at how AerSale Corporation (ASLE) manages its diverse customer base, which spans from long-term partners needing heavy maintenance to buyers looking for immediate parts. Honestly, the relationship type dictates the revenue predictability, and the numbers from late 2025 show a clear strategic pivot.

Dedicated account management for long-term MRO and leasing contracts

For Maintenance, Repair, and Overhaul (MRO) and leasing, the relationship is deep, aiming for steady, predictable income. This is where dedicated account management shines, ensuring repeat business and high-margin service delivery. The focus here is shifting toward higher-margin work, evidenced by operational changes at their facilities.

For instance, the Roswell facility is being strategically repurposed to focus on higher margin teardown and decommissioning work, moving away from lower-volume heavy maintenance. This signals a move to higher-value, likely contract-based, MRO relationships. Management has set a specific financial target for this area:

Also, the company is actively growing its lease base, which is the definition of a recurring revenue relationship. They placed a second Boeing 757 freighter on lease in the third quarter of 2025, with revenue expected to start in the fourth quarter.

Transactional relationships for one-off Used Serviceable Material (USM) sales

The Used Serviceable Material (USM) business is more transactional, relying on the availability of parts and immediate customer demand. Still, strong USM volume is a key driver when whole asset sales are absent. You see this in the segment performance when you strip out the volatile aircraft and engine sales.

Excluding flight equipment sales, the Asset Management Solutions segment saw sales increase by 40.9% in Q3 2025, largely due to higher USM volume and leasing activity. This shows that even the transactional side is being supported by the overall inventory strategy. Here's a look at the inventory supporting these sales:

• Available total feedstock inventory as of September 30, 2025: $371.1 million.
• Engines available for sale or lease as of September 30, 2025: 9.
• Engines currently undergoing repairs as of September 30, 2025: 10.

To be fair, the Q2 2025 results showed USM sales nearly doubled year-over-year, indicating strong, albeit transactional, demand.

Strategic focus on building recurring revenue through lease pool expansion

AerSale Corporation is clearly making a strategic shift to favor leasing over lumpy whole asset transactions. Management explicitly stated they are balancing transactions with assets deployed on lease, aiming for more stable quarter-over-quarter performance.

The lease pool expansion is tangible:

• The company had 1 aircraft on lease during Q3 2025.
• They placed a second 757 freighter on lease at the end of Q3 2025.
• Management noted strong customer interest in the remaining 757 converted aircraft.

This focus directly contributed to margin improvement; management credited 'stronger leasing contributions' for the Adjusted EBITDA rising to $9.5 million in Q3 2025, or 13.3% of sales.

Direct engagement with regulatory bodies for engineered solutions

The engineered solutions, specifically the AerSafe™ product, rely heavily on regulatory acceptance to drive sales, creating a unique customer relationship dynamic with governing bodies. This is a critical, time-bound driver for a specific product line.

AerSafe™ is expected to support results through the regulatory compliance deadline set for the fourth quarter of 2026. A major milestone supporting international market access was achieved when AerSale received Transport Canada Civil Aviation validation of its AerAware STC (Supplemental Type Certificate) on July 18, 2025. This validation directly impacts the addressable market for that engineered solution.

Finance: draft 13-week cash view by Friday.

AerSale Corporation (ASLE) - Canvas Business Model: Channels

You're looking at how AerSale Corporation (ASLE) gets its products and services-from whole jets to component repairs-into the hands of customers. It's a multi-pronged approach, balancing high-value, lumpy asset sales with more predictable service revenue. Honestly, the channel mix is what drives their margin story right now.

Direct Sales Force for Whole Aircraft and Engine Transactions

The direct sales force handles the big-ticket items: whole aircraft and engine transactions, which fall under the Asset Management Solutions segment. These deals are inherently volatile, as you can see from the quarterly figures. For example, in the second quarter of 2025, flight equipment sales were $33.4 million, which was a significant jump from the $17.9 million seen in the second quarter of 2024. However, by the third quarter of 2025, flight equipment sales dropped to $0 million, indicating that the direct sales channel was quiet that period. To give you a sense of the physical movement, AerSale Corp sold eight engines in Q2 2025, contrasting with Q1 2025 where they only sold one engine.

Global Parts Distribution Network for USM Sales

The global parts distribution network is key for Used Serviceable Material (USM) and AerSafe™ products. This channel is a major driver when whole asset sales are slow. When you strip out the volatile flight equipment sales, the underlying business-which heavily features USM-showed real strength. In Q2 2025, revenue excluding flight equipment sales grew 25.0% year-over-year to $74.0 million. This momentum continued into the third quarter; while the Asset Management Solutions segment revenue was $39.2 million, the portion driven by USM and leasing (excluding flight equipment sales) grew 40.9% year-over-year. They are definitely leaning on this network to stabilize results; their total inventory, which feeds this channel, stood at $371.1 million as of September 30, 2025.

Company-Owned MRO Facilities for Technical Services

AerSale Corporation uses its company-owned Maintenance, Repair, and Overhaul (MRO) facilities-part of the TechOps segment-to deliver technical services. This channel is central to their strategic pivot toward recurring revenue. The margins here are improving defintely. For the third quarter of 2025, the TechOps margin surged to 25.3%, up from 13.6% in the prior year period. While TechOps revenue saw a slight dip in Q1 2025 to $26.6 million, it recovered to $32.0 million in Q3 2025. Management has set a bold target for this channel, aiming for $25 million in MRO revenue for 2026.

Direct Leasing Agreements with Cargo and Passenger Airlines

Direct leasing agreements provide a crucial recurring revenue stream, balancing the transactional nature of asset sales. This activity is embedded in both segments but is a focus for deploying converted aircraft. As of the third quarter of 2025, AerSale Corporation had 1 aircraft on lease from its 757 passenger-to-freighter conversion program, with a second unit placed that was set to begin generating revenue in the fourth quarter. The company is in active discussions to place the remaining 5 757s from that program.

Here's a quick look at how the primary revenue-generating activities mapped to the channels performed in the latest reported quarter, Q3 2025, compared to the full-year 2024 segment split:

The Asset Management Solutions segment represented approximately 62% of total revenue for the full year 2024, while TechOps was about 38%.

AerSale Corporation (ASLE) - Canvas Business Model: Customer Segments

You're looking at the core buyers for AerSale Corporation's integrated aftermarket services and products as of late 2025. The customer base is segmented across the lifecycle of large jet aircraft, focusing heavily on the mid-life segment where maintenance and asset management drive value.

Commercial airlines operating mid-life Boeing and Airbus fleets are key consumers of AerSale Corporation's services, particularly through the TechOps segment, which includes maintenance, repair, and overhaul (MRO) activities, and the sale of Used Serviceable Material (USM). For the third quarter of 2025, the TechOps segment generated revenue of approximately $32.0 million. This segment is expected to be a significant driver of future growth, with management targeting approximately $25 million in MRO revenue for 2026.

Aircraft and engine lessors seeking asset management services form a substantial part of the Asset Management Solutions segment. This segment acquired flight equipment as feedstock to support sales, leasing, and disassembly for USM. In Q3 2025, Asset Management Solutions revenue was $39.2 million. A strategic focus is on recurring leasing revenue; AerSale Corporation had 1 757 freighter on lease during Q3 2025 and placed an additional one on lease expected to generate revenue in the fourth quarter.

Cargo and freight operators are primary targets for the 757 passenger-to-freighter conversion program, which is a key part of the Asset Management Solutions offering. Management noted high customer interest and active discussions to place the remaining 5 converted 757s. Excluding whole asset sales, the Asset Management segment revenue, which includes leasing, grew nearly 40.9% year-over-year in Q3 2025, showing strong leasing activity.

Third-party Maintenance, Repair, and Overhaul (MRO) providers are customers for component parts and services from the TechOps segment. The TechOps segment also includes engineered solutions like AerSafe™. The company expects its expanded MRO capacity, including completed expansion projects at its Aerostructures and pneumatics facilities, to be a significant revenue driver in 2026 and beyond.

Government and military entities represent an important growth market because their funding is stable and uncorrelated with the commercial aviation cycle. AerSale Corporation intends to increasingly focus on capturing additional USM parts sales and MRO service opportunities directly with these government customers or via subcontracting arrangements with government contractors. Historically, principal customers included governmental agencies.

Here's a quick look at the segment revenue breakdown for the third quarter of 2025:

To be fair, the overall customer base is broad, with AerSale Corporation selling to more than 1,000 customers worldwide as of 2023.

• Non-U.S. customers accounted for approximately 58% of total revenue for 2023.
• Asset Management Solutions represented approximately 62% of total revenue for the fiscal year ended December 31, 2024.
• AerSale Corporation sold 8 engines in Q2 2025, up from 5 in Q2 2024.
• The company expects to achieve its 2025 financial plan with AerSafe deliveries totaling more than $22 million, including the current backlog.

Finance: draft 13-week cash view by Friday.

AerSale Corporation (ASLE) - Canvas Business Model: Cost Structure

You're looking at the major financial outlays for AerSale Corporation as of late 2025. Honestly, the cost structure is heavily weighted toward asset acquisition to feed the Used Serviceable Material (USM) pipeline, which is the engine of their growth right now.

The most significant upfront cost driver is the capital deployed for acquiring aircraft and parts for teardown, which is feedstock. AerSale Corporation aggressively pursued these assets to support long-term growth objectives. The year-to-date total for feedstock acquisitions through the second quarter of 2025 reached $70.5 million.

Selling, General, and Administrative (SG&A) expenses show management's focus on cost control, though these costs are still substantial. For the third quarter of 2025, SG&A expenses totaled $18.6 million. To be fair, this included approximately $1.3 million related to non-cash stock-based compensation for that quarter.

The operational costs are tied directly to the company's physical footprint and service delivery. AerSale Corporation operates six MRO facilities in total. The Technical Operations (TechOps) segment, which houses much of this activity, stabilized its revenue at $32 million for the third quarter of 2025, with TechOps margins surging to 25.3% in that same period, signaling better efficiency from those operations.

Costs associated with MRO capacity expansion projects are moving from capital outlay to operational expense as facilities come online. Management confirmed that construction for expansion projects at both the Aerostructures and pneumatics facilities is now complete, and the company is in the process of transitioning to production in both locations.

Depreciation and amortization costs are embedded in the carrying value of the flight equipment and inventory held for future use or sale. The value of this inventory, which is subject to these non-cash charges, stood at $371.1 million as of September 30, 2025. This is a massive chunk of capital tied up awaiting monetization.

Here's a quick look at some of the key cost and related metrics we see from the recent filings:

The ongoing investment in inventory, which is a primary cost driver, is substantial, as shown by the asset base. You can see the quarterly investment ebb and flow:

• Feedstock acquisitions in Q2 2025 were $27.1 million.
• Feedstock acquisitions in Q1 2025 were $43.4 million.
• An additional $31.4 million in feedstock was under contract as of June 30, 2025.
• SG&A expenses in Q2 2025 were $22.8 million.

Also, the interest expense on debt facilities is rising, driven by higher borrowings to fund these increased feedstock acquisitions and a stock buyback executed earlier in 2025.

Finance: draft 13-week cash view by Friday.

AerSale Corporation (ASLE) - Canvas Business Model: Revenue Streams

You're looking at how AerSale Corporation (ASLE) actually brings in the money, which, as you know, is key to any valuation. Honestly, their revenue mix shows a clear split between services and asset monetization. Let's break down the numbers we have for the third quarter of 2025.

The services side is definitely showing up strong. Asset Management Solutions (AMS) brought in $39.2 million for Q3 2025. That's the steady drumbeat from managing assets for others. Right alongside that, Technical Operations (TechOps) contributed $32.0 million in the same period. So, between those two service lines, you're looking at a significant chunk of recurring or service-based revenue.

Then you have the asset sales, which can be a bit more lumpy. The sales of whole aircraft and engines, for instance, were $0 in Q3 2025. That volatility is something you always have to factor into your near-term projections; it's not a reliable monthly payment. What this estimate hides, though, is the revenue from the Used Serviceable Material (USM) parts, which is a critical component of their asset monetization strategy.

Here's the quick math on the reported service revenue streams for that quarter:

The leasing component is what we look at for that predictable, recurring stream you want to see in any mature aerospace service provider. It helps smooth out those big swings from selling a whole 737 or an engine set.

You should keep an eye on the mix of revenue derived from these core activities:

• Asset Management Solutions (AMS) revenue of $39.2 million (Q3 2025).
• Technical Operations (TechOps) revenue of $32.0 million (Q3 2025).
• Sales of Used Serviceable Material (USM) parts.
• Aircraft and engine leasing revenue (recurring stream).
• Sales of whole aircraft and engines (volatile, $0 in Q3 2025).

If onboarding takes 14+ days for new leasing contracts, churn risk rises, so tracking that leasing revenue growth is defintely important. Finance: draft 13-week cash view by Friday.