With the global aerospace services sector soaring significantly (fueled by rising air traffic, greater aircraft utilization, and a booming Maintenance, Repair, and Overhaul [MRO] market), service providers like AerSale Corporation ASLE and AAR Corp. AIR have emerged as primary beneficiaries. As airlines, cargo operators and global defense departments race to keep their fleets airworthy and efficient, stocks like ASLE and AIR can be expected to benefit over the long run.
While AerSale operates a unique, diversified model offering aftermarket aircraft, engines, and MRO services, AIR leverages its strong footprint across MRO, supply chain and logistics support services. With the global aircraft fleet expanding and maintenance needs intensifying, both companies are well-positioned to capitalize on the sector’s momentum. In this article, we’ll delve into AerSale and AIR’s strengths, challenges and growth prospects to determine which stock could be the better buy in 2025.
Key Takeaways for ASLE
Recent Achievements: Strategic investments have been central to AerSale's growth. Notably, in 2024, the company expanded its MRO capabilities by opening a new facility in Millington, TN, and enhanced its Miami operations, including tripling the size of its aerostructures shop. These expansions are expected to contribute significantly to its future revenues.
More recently, in January 2025, AerSale announced the acquisition of a parts portfolio from the Sanad Group. The portfolio includes high-demand components for widely operated aircraft models, such as the 737NG, A320 Family, A330/340, Boeing 777, Embraer E-Jet and various Quick Engine Change kits. This strategic transaction will help AerSale in serving a diverse and growing global customer base by expanding its inventory breadth with top-quality parts for widely operated aircraft.
Financial Stability: ASLE’s cash and cash equivalents as of Dec. 31, 2024, totaled $12 million. Its current debt as of the same date was $1 million, while long-term debt was $4 million. A comparative analysis of these figures reflects that Aersale boasts a strong solvency position, which, in turn, should enable the company to invest in new products like its innovative AerAware Enhanced Flight Vision System and award its investors with hefty returns through programs like share repurchase, just like it did recently.
Evidently, in March 2025, the company signed an agreement to repurchase approximately 6.428 million shares from its long-term private equity sponsor Leonard Green & Partners, L.P.
Challenges to Note: While AerSale presents strong growth opportunities, it faces several investment risks. A key concern is its reliance on feedstock availability for Used Serviceable Material (“USM”) sales. Tight supply conditions for end-of-life aircraft and engines could constrain AerSale’s ability to scale its USM business, thereby affecting its revenues and margins. Moreover, while innovations like AerAware offer competitive advantages, its commercial adoption rates could be slower than anticipated, limiting expected revenue gains.
Key Takeaways for AIR
Recent Achievements: With increasing demand for aircraft maintenance, MRO spending has reached record levels over the past few years. This, in turn, has been benefiting AIR, with its Repair & Engineering segment offering MRO services for aircraft airframes and components. Notably, in April 2025, Amerijet International Airlines, selected eMRO and eMobility suite of AIR’s subsidiary, Trax, to enhance its maintenance operations and support its digital transformation journey.
In the same month, Trax announced that it will fully digitalize the MRO platform of SIA Engineering Company’s state-of-the-art heavy maintenance facility in Malaysia. These announcements are indicative of the solid presence that AIR’s MRO business enjoys in the global market.
Financial Stability: As of Feb. 28, 2025, AAR’s cash and cash equivalents (including restricted cash) amounted to $101 million, which improved sequentially. Its long-term debt totaled $1,022 million at the end of third-quarter fiscal 2025. Its cash and cash equivalents were considerably lower than its long-term debt level. However, its current debt was nil. Hence, we can safely conclude that the stock holds a solid solvency position for the near term, which, in turn, should help the company invest in expanding its manufacturing capacity and meet the growing demand for aircraft parts.
In line with this, AIR broke ground on additional hangars in Miami, FL, and Oklahoma City, OK, in March and April of 2024. These hangars are projected to become operational in the second half of 2025.
Challenges to Note: Although the commercial aerospace market has been benefiting from steady growth in air travel in recent times, supply-chain issues remain a major headwind for the global aerospace sector. With severe supply-chain issues expected to persist in 2025, disruptions arising from that can lead to significant delays in obtaining raw materials to build aircraft parts like those made by AIR. This, in turn, may cause production delays and thereby a slowdown in deliveries of finished products, leading to sluggish cash flow for parts suppliers like AIR.
How Do Zacks Estimates Compare for ASLE & AIR?
The Zacks Consensus Estimate for AerSale’s 2025 sales and earnings per share (EPS) implies an improvement of 6.8% and 288.9%, respectively, from the year-ago quarter’s reported figures. The stock’s EPS estimates have also been trending upward over the past 60 days.
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The Zacks Consensus Estimate for AIR’s fiscal 2025 sales implies a year-over-year improvement of 17.2%, while that for earnings suggests an improvement of 12.6%. The stock’s bottom-line estimates have moved southward over the past 60 days.
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Stock Price Performance: ASLE Vs AIR
ASLE (down 0.6%) has outperformed AIR (down 22.6%) over the past three months and has done the same in the past year. While ASLE’s shares have lost 4.8%, AIR plunged 23.6%.
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Valuation of AerSale More Attractive Than That of AIR
AerSale is trading at a forward earnings multiple of 8.98X, below AIR’s forward earnings multiple of 11.94X.
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Final Call
In conclusion, while both AerSale and AIR are poised to benefit from the aerospace services sector's strong momentum, the former currently stands out as the more compelling investment choice for 2025. Although AIR maintains a solid global presence and has achieved notable digital transformation wins, lingering supply-chain challenges, declining earnings estimates and weaker stock performance may limit its near-term upside.
On the other hand, ASLE’s attractive valuation and consistent outperformance relative to AIR strengthen its investment case. Its diversified model — spanning aircraft, engines, MRO services and innovative technologies like AerAware — positions it well to capture growing demand across multiple aerospace segments. Therefore, investors seeking exposure to the booming MRO market with a focus on growth and value may find AerSale a better buy in 2025.
AerSale sports a Zacks Rank #1 (Strong Buy) at present, while AIR carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 stocks here.
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