Good day, and thank you for standing by. Welcome to the AerSale Corp. Q4 2025 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, Jackie Carlon, Senior Vice President of Marketing.

Good afternoon. I'd like to welcome everyone to AerSale's Fourth Quarter and Full Year 2025 Earnings Call. Conducting the call today are Nick Finazzo, Chief Executive Officer; and Martin Garmendia, Chief Financial Officer. Before we discuss this quarter's results, we want to remind you that all statements made on this call that do not relate to matters of historical fact should be considered forward-looking statements within the meaning of the federal securities laws, including statements regarding our current expectations for the business and our financial performance. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results. Important factors that could cause actual results to differ materially from forward-looking statements are discussed in the Risk Factors section of the company's annual report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission, SEC, to be filed on March 9, 2026, and its other filings with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those indicated by the forward-looking statements on this call. We'll also refer to non-GAAP measures that we view as important in assessing the performance of our business. A reconciliation of those non-GAAP metrics to the nearest GAAP metric can be found in the earnings presentation materials made available on the Investors section of the AerSale website at ir.aersale.com. With that, I'll turn the call over to Nick Finazzo.

Thank you, Jackie. Good afternoon, everyone, and thank you for joining us today. I'll begin with an overview of our fourth quarter and full year 2025 results, highlight key operational developments, and then discuss our priorities for 2026 before turning the call over to Martin to review the numbers in greater detail. We finished 2025 on a strong note. Our fourth quarter adjusted EBITDA increased $2.2 million or 17.1% to $15.2 million, compared to $13 million in the fourth quarter of 2024. Fourth quarter revenue was $90.9 million, a 4% decrease from the prior year period. Excluding flight equipment sales, which tend to be volatile quarter-to-quarter, fourth quarter revenue actually increased 9.8%, reflecting continued growth across our component MROs, USM and leasing. Sales of our Engineered Solutions product, AerSafe, also increased as operators began upgrades in advance of a Federal Aviation Administration 2026 compliance deadline for a Fuel Quantity Indication System Airworthiness Directive related to fuel tank safety systems. You'll hear me refer to this as the FQISAD. This overall growth has improved profitability and provides more consistency in our quarter-over-quarter performance. This also led to improvement in our adjusted EBITDA, supported by stronger operating performance and the continued benefits of the efficiency initiatives we implemented in early 2025. For the full year, we generated $335.3 million in total revenue, a decrease of $9.8 million, or 2.8% year-over-year, primarily due to fewer flight equipment sales. Excluding flight equipment sales, full year revenue increased 18.7%, driven by stronger USM demand, higher average lease rates and asset yields and robust growth in sales at our component MROs and of AerSafe products. Full year adjusted EBITDA also increased $12.8 million to $46.1 million, up 38.2% year-over-year, reflecting higher volumes, favorable mix and margin and cost benefits from our efficiency program. During the fourth…

Thanks, Nick, and good afternoon, everyone. I'll walk through some additional details on our fourth quarter and full year financial results, then touch on cash flow and liquidity and close with our outlook for 2026. Fourth quarter revenue was $90.9 million, which includes $20.9 million of flight equipment sales consisting of 4 engines. This compares to $94.7 million in the fourth quarter of last year, which included $31 million of flight equipment sales consisting of 6 engines. As we note each quarter, flight equipment sales can vary meaningfully from period to period. As a result, we believe performance is best assessed over time with a focus on feedstock acquisition, monetization of those investments and profitability trends. Fourth quarter revenue for Asset Management declined approximately 11.1% year-over-year to $56.9 million due to fewer flight equipment sales. Excluding flight equipment sales, revenue increased 9.1%, driven by continued strength in USM and an expanded lease pool. For the full year, asset management revenue was $211.6 million, down 1.8% year-over-year. Excluding flight equipment sales, segment revenue increased 47.3%, supported by strong inventory levels and demand that allowed us to grow our USM and leasing activity. Turning to TechOps. Fourth quarter revenue increased 10.7% to $34 million, driven by higher sales in our aerostructures and landing gear MROs as we have been successful in winning new contracts. A focus on higher-margin opportunities and the efficiency measures taken in early 2025, allowed us to further improve our profitability and set the foundation to grow our on-airport MROs beyond historical levels and with a greater profit profile in 2026 and beyond. TechOps was also strengthened by strong demand from our component MROs and continued momentum in AerSafe products as customers prepare for the 2026 compliance deadline. For the full year, TechOps revenues declined 4.5% to $123.7 million,…

[Operator Instructions] Our first question comes from Michael Ciarmoli with Truist.

I guess, Nick or Martin, do you have a sort of a goal in mind of kind of how much material feedstock you think you can buy? I know you're being pretty conservative, and it's still a tight market out there. Just trying to get a sense of what do you think you can close and out of -- and maybe the other part, out of what you have on hand right now? Do you think you can move all of that product this year?

As far as feedstock -- this is Nick speaking. Thanks for the question, Mike. As far as feedstock purchases, we anticipate a lower level of feedstock purchases this year than we did last year. And why is that? The market is just hypercompetitive at this point. The pricing that we see, the reason that I mentioned the -- our win rate not that it's materially different from last year, it's just under 10%, which means that we lose 9 out of 10 deals that we bid on, not to mention the hundreds of deals that we don't bid on at all because we just don't think we would be competitive. And because of the extreme competition in the market for, I candidly believe less informed people who don't understand how difficult it is to make money buying used flight equipment, and then parting it out, and then finding a way to extract value out of it that we see people buying stuff at prices. And I've said this many quarters in a row at prices that are well beyond what we believe we can make in total margin based on what they have to pay for to win the deal. So we will continue to be disciplined on our buy side. And look, I've been doing this for a long time. This isn't the first company I've been with or that have been -- that I founded that buys -- that has bought in the aftermarket. And in my prior experience, lots of money moves into the space. uneducated investors don't know what they're buying, don't know how to properly monetize it. They spend too much money, and then eventually, they go away. And so we have to remain disciplined because overpaying kills companies. So as far as what do we think we could do this year? We think we could do -- if last year, we did $100 million. We don't think we'll do $100 million this year, but it could happen. And as far as monetizing the existing inventory that we have, I may defer a little bit of that to Martin, but we have ample inventory to continue to grow our business without buying as much as we did last year. I mean, I don't know, Martin, if you want to add any more color to that.

Yes. No, absolutely. I was going to say we're coming into starting 2026, with about $364 million of inventory, and that includes about -- almost roughly $150 million that's ready to be deployed in the USM channels as well as almost $118 million that's still in whole assets that we can put as USM or continue to grow our leasing portfolio. So on a positive, even as we're being very prudent as we always have been in deploying capital, we have more than enough to continue our growth trajectory, and that will increase our liquidity position. So when the opportunities are right, we'll continue to deploy capital.

Okay. Okay. Got it. That's really helpful. And then just on that growth trajectory. I think, the press release mentioned some of the storage revenues may have been benefiting from GTF. If I think about kind of GTF revenues and as that normalizes, and then you've got the AerSafe '26 deadline, which we kind of always see this dynamic across various end markets and industries. That probably is going to create a big uptick this year, but then maybe backfilling that. Should we think about GTF normalization, maybe AerSafe, kind of how you backfill that, maybe some of the new capacity coming online? And I guess, I'm thinking into '27, too, as maybe those trends normalize a bit with the GTF and AerSafe. Is that maybe the right way to think about it? .

Well, not 100% sure I got your question, but with regard to the GTF situation, we don't see that normalizing in '26 because we're hearing that before track and get the engines back to the aircraft that is going to drag into '27. So the opportunity for us isn't so much in the GTF storage as it is in returning the aircraft that have been parked now for several years, and returning those to service those aircraft require heavy checks. And we have -- I don't know how many, 70, 80 airplanes sitting in Goodyear and Roswell. So we've got -- we have got a lot of GTF-powered airplane sitting in our facility in Goodyear and Roswell. The Goodyear ones are going to require a return to service if they're not parted out, believe it or not. We are seeing the part out of brand new -- or relatively brand-new several-year-old A320Neos. But the opportunity for us is really yet to come. It's not through storing these airplanes and pulling engines off and putting engines on, it's that is helping. And at this point, because of the volume of it, it kind of reminds me of the COVID situation where we had 500 airplanes parked. And although you wouldn't think you make much money doing storage, you're removing engines, putting engines on, putting airplanes into storage, taking airplanes out of storage, and then prepping them for the next lessee. With that number of airplanes in one facility, that really creates a capacity issue, not so much a demand issue. So the demand is there. We see that, that will continue through '26 and '27 as we begin doing return to service work on the aircraft that are parked and are getting engines that are coming back from Pratt. Now -- the other part of your question was?

Just AerAware, does that create a big headwind next year as everybody preps for the deadline later this year?

With regard to -- it's AerSafe actually, with regards to AerSafe, the greatest amount of sales are going to happen this year. I mean, we have a backlog that already exceeds last year, sales for all of last year, and then we're still in the first quarter. As we -- it doesn't mean that it goes away altogether, but it will be significantly diminished. Now, it's not that we're sitting around waiting to sell these, and then we have nothing else to sell. We are working on other engineered products and STCs that airlines have asked us about to say, "Hey, can you make this product for us? Can you help us resolve this technical issue?" So we are -- our engineering group is working on airline demand for engineering products or engineered products that they need to keep their fleet flying because they're not getting -- it's not getting properly addressed by the OEMs that are producing those components. . So that is an active business that we are pursuing now, which will help us with our customers. Not to mention that we continue to look for opportunities to deploy our AerAware product not just across the 737, but we're talking across multiple other platforms, including 757 and even ATR 72.

And I'm not showing any further questions at this time. I would now like to turn the call back over to Nick Finazzo for any closing remarks. .

Okay. Thank you, Ben. Thanks again. So as we've explained and mentioned the last quarter, even with just a few whole asset trades, no AerAware sales and no incremental revenue from our facility expansion projects in the fourth quarter. Our operating margins have continued to grow. I believe this validates our unique multidimensional and fully integrated business model. And as our businesses continue to develop will put us in an excellent position to achieve substantial growth in the years ahead. As always, I want to thank Mike Ciarmoli for his questions, which I believe provides additional insight into our business model and progress to date. I very much appreciate your interest in listening to our call today and look forward to bringing you up to date during our next earnings call. I wish you all a good evening. Thank you.

This concludes the conference. Thank you for your participation. You may now disconnect.