FTAI Aviation Soars: Net Income Jumps to $385M on Strong Revenue Growth

TL;DR

**FTAI Aviation is flying high, with massive revenue growth and a net income turnaround that makes it a strong buy in the aviation services space.**

AI Summary

FTAI Aviation Ltd. reported a significant increase in net income to $385.502 million for the nine months ended September 30, 2025, a substantial improvement from a net loss of $93.766 million in the prior year period. Total revenues surged by 49.3% to $1.845 billion for the nine months ended September 30, 2025, up from $1.236 billion in the same period of 2024, primarily driven by a 55.1% increase in Aerospace products revenue to $1.144 billion and the introduction of $228.886 million in MRE Contract revenue. Despite this, lease income slightly decreased to $185.951 million from $189.365 million. The company's cash and cash equivalents dramatically increased to $509.945 million as of September 30, 2025, from $115.116 million at December 31, 2024. Key business changes include the acquisition of Lockheed Martin Commercial Engine Solutions, contributing to a goodwill increase to $83.012 million, and significant investment in unconsolidated entities totaling $188.698 million. Risks include exposure to volatile oil and gas prices and the ability to maintain its Investment Company Act exemption. The strategic outlook focuses on expanding its full-service provider role for CFM56-5B, CFM56-7B, and V2500 aircraft engines.

Why It Matters

FTAI Aviation's robust financial performance, marked by a significant turnaround from a net loss to a substantial net income, signals strong operational execution and market demand for its aerospace products and services. This positive shift, especially in aerospace products revenue, could attract more investors seeking growth in the aviation sector, potentially driving up share prices. For employees, this growth could mean increased job security and opportunities, particularly in its engine maintenance facilities. Customers benefit from FTAI's expanded capabilities as a full-service provider, enhancing reliability and efficiency in engine maintenance and parts. Competitively, FTAI's strategic acquisitions and joint ventures, like QuickTurn Europe, position it strongly against rivals in the narrowbody aircraft engine market.

Risk Assessment

Risk Level: medium — The risk level is medium due to the company's significant increase in total liabilities to $3.987 billion as of September 30, 2025, from $3.956 billion at December 31, 2024, and its exposure to volatile oil and gas prices, as stated in the 'Forward-Looking Statements and Risk Factors Summary'. While net income is strong, the substantial debt load of $3.446 billion and the inherent volatility of the aviation and energy sectors present notable risks.

Analyst Insight

Investors should consider FTAI Aviation's strong revenue growth and net income turnaround as a positive indicator. However, they should closely monitor the company's debt levels and its ability to integrate recent acquisitions effectively. A deeper dive into the profitability of the new MRE Contract revenue stream and the 2025 Partnership is warranted.

Financial Highlights

debt To Equity

15.77

revenue

$1,845,381,000

operating Margin

N/A

total Assets

$4,240,200,000

total Debt

$3,446,733,000

net Income

$385,502,000

eps

$3.57

gross Margin

N/A

cash Position

$509,945,000

revenue Growth

+49.3%

Revenue Breakdown

Key Numbers

• $385.502M — Net income (Increased from a net loss of $93.766 million in 2024 for the nine months ended September 30.)
• $1.845B — Total revenues (Increased by 49.3% from $1.236 billion in 2024 for the nine months ended September 30.)
• $1.144B — Aerospace products revenue (Increased by 55.1% from $737.726 million in 2024 for the nine months ended September 30.)
• $228.886M — MRE Contract revenue (New revenue stream for the nine months ended September 30, 2025.)
• $509.945M — Cash and cash equivalents (Increased significantly from $115.116 million at December 31, 2024.)
• $83.012M — Goodwill (Increased from $61.070 million at December 31, 2024, partly due to acquisitions.)
• $188.698M — Investment in unconsolidated entities (Significant investment for the nine months ended September 30, 2025.)
• $3.446B — Long-term debt, net (Slightly increased from $3.440 billion at December 31, 2024.)
• $1.11 — Basic EPS (Q3 2025) (Increased from $0.76 in Q3 2024.)
• $3.57 — Basic EPS (YTD 2025) (Turnaround from a loss of $1.17 in YTD 2024.)

Key Players & Entities

• FTAI Aviation Ltd. (company) — registrant
• Lockheed Martin Commercial Engine Solutions (company) — acquired business
• FIG LLC (company) — Former Manager
• QuickTurn Europe (company) — 50% equity ownership
• Nasdaq Global Select Market (regulator) — exchange for securities
• CFM56-5B (other) — aircraft engine type
• CFM56-7B (other) — aircraft engine type
• V2500 (other) — aircraft engine type
• 2025 Partnership (company) — affiliate for sales and receivables
• SEC (regulator) — filing oversight

FAQ

Risk Factors

• Economic and Industry Volatility [high — market]: Changes in general economic conditions and specific industry sectors, including global economic risks and geopolitical events like the Russia-Ukraine conflict, can materially adversely affect the company's business, financial condition, results of operations, and cash flows.
• Financing Market Access [medium — financial]: Adverse changes in the financing markets can affect the company's ability to finance acquisitions. The relative spreads between asset yields and financing costs are also critical.
• Customer Defaults and Contract Renewals [medium — operational]: Customer or lessee defaults on their obligations pose a risk. The company's ability to renew existing contracts and enter into new ones with lessees is crucial for sustained revenue.
• Asset Liquidity and Debt Covenants [medium — financial]: A lack of liquidity surrounding assets could impede portfolio adjustments. Reductions in cash flows from assets and contractual limitations on using aviation assets to secure debt are significant concerns.
• Acquisition Opportunities [medium — market]: The company's ability to take advantage of acquisition opportunities at favorable prices is a key growth driver and a potential risk if such opportunities are not realized.
• Realization of Strategic Initiatives [medium — operational]: The ability to realize the anticipated benefits from strategic initiatives, such as the acquisition of Lockheed Martin Commercial Engine Solutions, is critical for future performance.

Industry Context

FTAI Aviation operates in the aviation aftermarket services sector, focusing on CFM56-5B, CFM56-7B, and V2500 aircraft engines, which power a significant portion of the global narrowbody fleet. The company competes by offering a full-service model including leasing, repair, and parts manufacturing. The addressable market is large, with hundreds of small to medium-sized airlines operating these engine types worldwide.

Regulatory Implications

FTAI Aviation's business model relies on maintaining its exemption under the Investment Company Act of 1940. Any change in regulatory status or interpretation could significantly impact its operations and ability to conduct business as usual. Compliance with aviation safety regulations and international trade policies also remains critical.

What Investors Should Do

1. Monitor MRE Contract Revenue Growth
2. Assess Integration of Lockheed Martin Acquisition
3. Evaluate Debt Levels and Refinancing Risk
4. Track Lease Income Trends

Key Dates

• 2025-09-30: Nine Months Ended — Reported significant revenue growth of 49.3% and a turnaround to net income of $385.5 million, compared to a net loss in the prior year. Cash position dramatically increased.
• 2025-09-30: Acquisition of Lockheed Martin Commercial Engine Solutions — Contributed to a substantial increase in goodwill, indicating strategic expansion in the engine services market.
• 2024-12-31: Fiscal Year End — Company had a net loss of $93.766 million and a cash balance of $115.116 million, providing a baseline for the significant improvements seen in 2025.

Glossary

PMA parts

Parts Manufacturer Approval parts, which are aftermarket aircraft components that have been approved by the FAA for use in repairs and overhauls. (FTAI Aviation develops and manufactures these parts through a joint venture, contributing to its aftermarket services revenue.)

Goodwill

An intangible asset that arises when a company acquires another company for a price greater than the fair value of its identifiable net assets. It represents the future economic benefits arising from assets acquired in a business combination that are not individually identified and recognized. (The increase in goodwill to $83.012 million reflects the acquisition of Lockheed Martin Commercial Engine Solutions, signaling strategic expansion.)

Unconsolidated entities

Investments in companies where FTAI Aviation does not have control but exercises significant influence, accounted for using the equity method. (A significant investment of $188.698 million in these entities indicates strategic partnerships or joint ventures that are important to the company's growth strategy.)

Investment Company Act exemption

A regulatory exemption that allows certain companies to avoid the stringent registration and regulation requirements of the Investment Company Act of 1940. (Maintaining this exemption is crucial for FTAI Aviation's business model, and any threat to it represents a significant risk.)

MRE Contract revenue

Revenue generated from 'Maintenance, Repair, and Overhaul' contracts, likely related to aircraft engines and components. (This is a new and significant revenue stream for the nine months ended September 30, 2025, contributing $228.886 million.)

Aerospace products revenue

Revenue generated from the sale of aerospace products, which for FTAI Aviation includes engines, aftermarket components, and PMA parts. (This is the largest revenue segment, showing substantial growth of 55.1% to $1.144 billion, indicating strong performance in its core business.)

Year-Over-Year Comparison

FTAI Aviation has demonstrated a remarkable turnaround in performance compared to the prior year. Total revenues for the nine months ended September 30, 2025, surged by 49.3% to $1.845 billion, a substantial increase from $1.236 billion in the same period of 2024. This top-line growth translated into a significant profit turnaround, with net income reaching $385.5 million, a stark contrast to a net loss of $93.8 million in the prior year. The company's cash position has also strengthened considerably, rising to $509.9 million from $115.1 million, indicating improved liquidity and operational efficiency.

Key Financial Figures

• $0.01 — on which registered: Ordinary shares, $0.01 par value per share FTAI The Nasdaq Glo

Filing Documents

• ftai-20250930.htm (10-Q) — 2429KB
• ftai9302025exhibit311.htm (EX-31.1) — 9KB
• ftai9302025exhibit312.htm (EX-31.2) — 9KB
• ftai9302025exhibit321.htm (EX-32.1) — 5KB
• ftai9302025exhibit322.htm (EX-32.2) — 5KB
• ftai-20250930_g1.jpg (GRAPHIC) — 30KB
• 0001590364-25-000041.txt ( ) — 11560KB
• ftai-20250930.xsd (EX-101.SCH) — 71KB
• ftai-20250930_cal.xml (EX-101.CAL) — 110KB
• ftai-20250930_def.xml (EX-101.DEF) — 404KB
• ftai-20250930_lab.xml (EX-101.LAB) — 761KB
• ftai-20250930_pre.xml (EX-101.PRE) — 590KB
• ftai-20250930_htm.xml (XML) — 2055KB

FORWARD-LOOKING STATEMENTS AND RISK FACTORS SUMMARY

FORWARD-LOOKING STATEMENTS AND RISK FACTORS SUMMARY This report contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact but instead are based on our present beliefs and assumptions and on information currently available to us. You can identify these forward-looking statements by the use of forward-looking words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "could," "seeks," "approximately," "predicts," "intends," "plans," "estimates," "anticipates," "target," "projects," "contemplates" or the negative version of those words or other comparable words. Any forward-looking statements contained in this report are based upon our historical performance and on our current plans, estimates and expectations in light of information currently available to us. The inclusion of this forward-looking information should not be regarded as a representation by us, that the future plans, estimates or expectations contemplated by us will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions relating to our operations, financial results, financial condition, business, prospects, growth strategy and liquidity. Accordingly, there are or will be important factors that could cause our actual results to differ materially from those indicated in these statements. The following is a summary of the principal risk factors that make investing in our securities risky and may materially adversely affect our business, financial condition, results of operations and cash flows. This summary should be read in conjunction with the more complete discussion of the risk factors we face, which are set forth in Part II, Item 1A. "Risk Factors" of this report. We believe that these factors include, but are not limited to: changes in economic conditions generally and specifically in our

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Unaudited Consolidated Financial Statements of FTAI Aviation Ltd

Item 1. Unaudited Consolidated Financial Statements of FTAI Aviation Ltd. 5 Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024 5 Consolidated Statements of Operations for the three and nine months ended September 30, 2025 and 2024 6 Consolidated Statements of Changes in Equity for the three and nine months ended September 30, 2025 and 2024 7 Consolidated Statements of Cash Flows for the nine months ended September 30, 2025 and 2024 9

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 11 Note 1: Organization 11 Note 2: Summary of Significant Accounting Policies 11 Note 3: Acquisition of Lockheed Martin Commercial Engine Solutions 11 Note 4: Leasing Equipment, net 16 Note 5: Investments 17 Note 6: Intangible Assets and Liabilities, net 18 Note 7: Debt, net 19 Note 8: Fair Value Measurements 19 Note 9: Equity-Based Compensation 20 Note 10: Income Taxes 22 Note 11: Affiliate Transactions and Former Management Agreement 22 Note 12: Segment Information 24 Note 13: Earnings per Share and Equity 31 Note 14: Commitments and Contingencies 31 Note 15: Restructuring Charges 32 Note 16: Subsequent Events 32

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 33

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 50

Controls and Procedures

Item 4. Controls and Procedures 50

- OTHER INFORMATION

PART II - OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 51

Risk Factors

Item 1A. Risk Factors 51

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 66

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 67

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 67

Other Information

Item 5. Other Information 67

Exhibits

Item 6. Exhibits 68 4

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements FTAI AVIATION LTD. CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except share and per share data) (Unaudited) Notes September 30, 2025 December 31, 2024 Assets Current Assets Cash and cash equivalents 2 $ 509,945 $ 115,116 Accounts receivable, net (1) 2 214,889 150,823 Inventory, net 2 897,216 551,156 Other current assets (2) 2 412,779 408,923 Total current assets 2,034,829 1,226,018 Leasing equipment, net 4 1,669,634 2,373,730 Property, plant, and equipment, net 2 113,951 107,451 Investments 5 164,346 19,048 Intangible assets, net 6 18,682 42,205 Goodwill 3 83,012 61,070 Other non-current assets 2 155,746 208,430 Total assets $ 4,240,200 $ 4,037,952 Liabilities Current Liabilities Accounts payable $ 147,350 $ 69,119 Accrued liabilities 128,936 96,910 Current maintenance deposits 2 14,650 62,552 Current security deposits 16,012 18,100 Other current liabilities 2 41,285 100,565 Total current liabilities 348,233 347,246 Long-term debt, net 7 3,446,733 3,440,478 Non-current maintenance deposits 2 49,982 44,179 Non-current security deposits 2 15,991 26,830 Other non-current liabilities 126,797 97,851 Total liabilities $ 3,987,736 $ 3,956,584 Commitments and contingencies 14 Equity Ordinary shares ($ 0.01 par value per share; 2,000,000,000 shares authorized; 102,572,000 and 102,550,975 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively) $ 1,026 $ 1,026 Preferred shares ($ 0.01 par value per share; 200,000,000 shares authorized; 6,800,000 and 11,740,000 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively) 68 117 Additional paid in capital ( 26,549 ) 153,328 Retained earnings (accumulated deficit) 277,919 ( 73,103 ) Shareholders' equity 252,464 81,368 Total liabilities and equity $ 4,240,200 $ 4,037,952 ______________________________________________________ (1) Includes accounts receivable from the 2025 Partn

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) (Dollars in tables in thousands, unless otherwise noted) 1. ORGANIZATION This report on Form 10-Q should be read in conjunction with the FTAI Aviation Ltd.("FTAI", "FTAI Aviation" or "the Company") Annual Report on Form 10-K for the fiscal year ended December 31, 2024 ("Form 10-K"). FTAI Aviation is a Cayman Islands exempted company, which through its subsidiaries, is a leading full-service provider for CFM56-5B, CFM56-7B and V2500 aircraft engines, which power the majority of the world's fleet of narrowbody aircraft. The Company owns and leases aircraft and engines to airlines and asset owners globally. Additionally, the Company repairs and sells refurbished engines and aftermarket components of engines as well as develops and manufactures Parts Manufacturer Approval ("PMA") parts through a joint venture. The Company has two reportable segments, (i) Aviation Leasing and (ii) Aerospace Products (see Note 12). The Company conducts engine maintenance at its 100% owned facilities in Montral, Miami, and Orange, as well as through its 50 % equity ownership in QuickTurn Europe, located in Rome. Collectively, these facilities span over 950,000 square feet and are equipped with advanced tooling, engine test cells, and engineering capabilities to support a wide range of component repairs and service requirements. In addition, the Company also supports global operations through exclusive arrangements and strategic partnerships at key locations worldwide. The Company's principal corporate location is in New York City, and has a global presence through offices in Cardiff, Dubai, Dublin and Singapore, in addition to Montral, Miami, Orange and Rome. The majority of FTAI's target customers are small and medium sized airlines which have narrowbody fleets powered by CFM56-5B, CFM56-7B and V2500 engines. There are hundreds of these operators worldwide, which creates a large addressable market in which FTAI focuses and can

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) (Dollars in tables in thousands, unless otherwise noted) Revenues — Revenues are within the scope of ASC 842, Leases, and ASC 606, Revenue from contracts with customers . The Company has elected to exclude sales tax and other similar taxes from revenues. Operating Leases — The Company leases equipment pursuant to operating leases. Operating leases with fixed rentals and step rentals are recognized on a straight-line basis

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