PresentationGood afternoon, everyone. My name is Sheila Kahyaoglu, the Jefferies Aerospace Defense and Airlines Equity Research Team. Thanks so much for being here for our last fireside chat of the day. We have Joe Adams from FTAI Aviation. Joe is going to start with a few minutes of prepared remarks, and then we'll get to Q&A.Joseph AdamsChairman, CEO & Director Thanks very much, Sheila. Appreciate being here once again. It's a great conference, and it's a great way to kick off the fall season with a lot o ...

FTAI Aviation (FTAI) 2025 Conference September 04, 2025 03:30 PM ET Company ParticipantsSheila Kahyaoglu - Aerospace & Defense & Airlines Equity ResearchJoseph Adams - Chairman & CEOSheila KahyaogluGood afternoon, everyone. My name is Sheila Kahyaoglu with the Jefferies Airspace Defense and Airline's Equity Research team. Thanks so much for being here. For our last fireside chat of the day, we have Joe Adams from F High Aviation. Joe can start with a few minutes of prepared remarks and then we'll get to Q a ...

Question-and-Answer SessionSo Joe, I think most investors here are familiar with your business. But for those that are not, could you give us a brief description of your business and talk about how you're different from traditional lessors and how you're different from traditional MROs?Joseph AdamsChairman, CEO & Director Yes. Well, thank you very much. Thanks again for having us this year. It's a great conference and happy to be here. Just to give you a recap, FTAI Aviation, our mission is to be the larges ...

FTAI Aviation (FTAI) FY 2025 Conference September 03, 2025 02:30 PM ET Company ParticipantsJoseph Adams - Chairman & CEOAisling McCarthy - Managing DirectorNoneI would like to introduce Joe Adams, CEO of F TY, and thank you everyone for joining us today. So Joe, I think most investors here are familiar with your business. But for those that are not, could you give us a brief description of your business and talk about how you're different from traditional lessors and how you're different from traditional MR ...

FTAI Aviation (FTAI) FY 2025 Conference September 03, 2025 02:30 PM ET Speaker0I would like to introduce Joe Adams, CEO of F TY, and thank you everyone for joining us today. So Joe, I think most investors here are familiar with your business. But for those that are not, could you give us a brief description of your business and talk about how you're different from traditional lessors and how you're different from traditional MROs?Speaker1Yes. Well, thank you very much. Thanks again for having us this year. ...

NEW YORK, Sept. 02, 2025 (GLOBE NEWSWIRE) -- FTAI Aviation Ltd. (NASDAQ:FTAI) (the “Company”) today announced that Joe Adams, Chief Executive Officer, will present at the Deutsche Bank 15th Annual Aviation Forum at 2:30PM (ET) on Wednesday, September 3, 2025 in New York, New York. The presentation will be webcast live at https://ir.ftaiaviation.com/. About FTAI Aviation Ltd. FTAI owns and maintains commercial jet engines with a focus on CFM56 and V2500 engines. FTAI’s propriety portfolio of products, includ ...

Core Points - FTAI Aviation Ltd. will present at the Jefferies 2025 Industrials Conference on September 4, 2025, at 3:30 PM ET [1] - The presentation will be available via live webcast [1] Company Overview - FTAI Aviation Ltd. specializes in owning and maintaining commercial jet engines, particularly CFM56 and V2500 engines [2] - The company offers a proprietary portfolio of products, including the Module Factory and a joint venture for engine PMA manufacturing, which provides cost savings and flexibility to its customers [2] - FTAI also owns and leases jet aircraft, facilitating the acquisition of engines at competitive prices [2] - The company invests in aviation assets and aerospace products that yield strong and stable cash flows, with potential for earnings growth and asset appreciation [2]

Company Overview - FTAI Aviation focuses on narrow-body airplane parts, repair, and leasing, utilizing advanced technologies such as 3D printing to enhance its operations [1]. Investment Strategy - The investment approach involves analyzing earnings reports to identify potential growth opportunities, with successful identification of companies like OPRX, OTRK, FUBO, and PLUG during the pandemic [1].

Market Overview - The S&P 500 index has experienced an increase of over 8% year-to-date despite a significant decline in early April due to tariff announcements from the Trump administration, indicating underlying market uncertainty [1] - Investor sentiment was affected in late July following the Federal Reserve's decision to maintain interest rates amid persistent inflation [1] Qifu Technology - Qifu Technology Inc. (NASDAQ: QFIN) is undergoing a rebranding to Qfin Holdings and has shown strong year-over-year profit growth, with a non-GAAP net income increase of 59.9% in the latest quarter [3] - The company has established new partnerships with mid-to-large municipal banks in China, resulting in a 144% year-over-year growth in loan volume for its technology solutions business [4] - Current stock price is $33.65, with a 12-month price forecast of $51.73, indicating a potential upside of 53.74% [2] Expand Energy - Expand Energy Corp. (formerly Chesapeake, NASDAQ: EXE) is positioned to benefit from increasing natural gas demand, particularly in the AI and data center sectors [7] - The company reported revenue of $3.7 billion, significantly exceeding analyst expectations of $2.1 billion, although it missed EPS estimates by 4 cents [8] - Current stock price is $101.97, with a 12-month price forecast of $129.50, suggesting a 27% upside potential [6] FTAI Aviation - FTAI Aviation Ltd. (NASDAQ: FTAI) has transitioned from losses to profitability, reporting a major EPS beat of 24 cents per share, driven by strong aerospace product performance [11] - The company has increased revenue by over 52% in the last year and is expected to continue double-digit growth [11] - Current stock price is $137.32, with a 12-month price forecast of $174.33, indicating a potential upside of 26.95% [10]

[PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Unaudited Consolidated Financial Statements](index=5&type=section&id=Item%201.%20Unaudited%20Consolidated%20Financial%20Statements%20of%20FTAI%20Aviation%20Ltd.) The unaudited statements show significant revenue growth and a return to profitability in H1 2025, driven by the Aerospace Products segment [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$4,101,075** | **$4,037,952** | | Cash and cash equivalents | $301,911 | $115,116 | | Leasing equipment, net | $1,849,116 | $2,373,730 | | Inventory, net | $752,866 | $551,156 | | **Total Liabilities** | **$3,936,131** | **$3,956,584** | | Long-term debt, net | $3,444,612 | $3,440,478 | | **Total Shareholders' Equity** | **$164,944** | **$81,368** | - Key changes from year-end 2024 include a **significant increase in cash and inventory**, a decrease in net leasing equipment, and a **doubling of shareholders' equity**[14](index=14&type=chunk) [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | **$676,237** | **$443,594** | **$1,178,317** | **$770,288** | | Aerospace products revenue | $420,686 | $245,200 | $685,111 | $434,257 | | MRE Contract revenue | $69,585 | $— | $170,223 | $— | | **Total Expenses** | **$465,753** | **$606,189** | **$816,875** | **$839,949** | | Internalization fee to affiliate | $— | $300,000 | $— | $300,000 | | **Net Income (Loss) Attributable to Shareholders** | **$161,689** | **$(228,205)** | **$251,633** | **$(196,918)** | | **Diluted EPS** | **$1.57** | **$(2.26)** | **$2.44** | **$(1.96)** | - The company reported a significant turnaround in profitability, driven by a **52% YoY increase in total revenues for Q2 2025** and the absence of the **$300 million internalization fee** paid in Q2 2024[16](index=16&type=chunk) [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Consolidated Cash Flow Summary (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(136,284) | $(187,636) | | Net cash provided by (used in) investing activities | $496,148 | $(219,383) | | Net cash (used in) provided by financing activities | $(173,069) | $485,748 | | **Net increase in cash** | **$186,795** | **$78,729** | - Investing activities shifted from a net use of cash to a significant source of cash, primarily due to **$397.1 million in proceeds from asset sales** to the 2025 Partnership and **$589.3 million from other asset sales**[22](index=22&type=chunk) - Financing activities became a net use of cash, mainly due to **lower debt proceeds ($430M vs $1.84B YoY)** and a **$124.2 million redemption of preferred shares** in 2025[24](index=24&type=chunk) [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) - On May 28, 2024, the company **terminated its external management agreement** and internalized its management functions, involving a **$150.0 million cash payment** and share issuance[31](index=31&type=chunk) - The company launched a Strategic Capital Initiative, creating the "2025 Partnership" to acquire aircraft, selling **37 aircraft to this partnership in H1 2025 for a gain of $45.5 million**[47](index=47&type=chunk)[48](index=48&type=chunk) - In September 2024, the company **acquired Lockheed Martin Commercial Engine Solutions (LMCES) for $170.0 million** to enhance its MRE business[66](index=66&type=chunk) Segment Net Income (Loss) Attributable to Shareholders (in thousands) | Segment | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Aviation Leasing | $183,457 | $95,377 | | Aerospace Products | $240,225 | $151,308 | | Corporate and Other | $(160,164) | $(443,603) | | Eliminations | $(11,885) | $— | | **Total** | **$251,633** | **$(196,918)** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes improved financial results to strong Aerospace Products performance, the elimination of external management fees, and a new asset-light strategy [Results of Operations](index=36&type=section&id=Results%20of%20Operations) Consolidated Results of Operations Summary (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | **$676,237** | **$443,594** | **$1,178,317** | **$770,288** | | **Net Income (Loss) Attributable to Shareholders** | **$161,689** | **$(228,205)** | **$251,633** | **$(196,918)** | | **Adjusted EBITDA (Non-GAAP)** | **$347,805** | **$213,904** | **$616,363** | **$378,005** | - Total revenues for H1 2025 increased by **$408.0 million YoY**, primarily due to a **$250.9 million increase in Aerospace products revenue** and **$170.2 million from new MRE Contract revenue**[166](index=166&type=chunk) - Total expenses for H1 2025 decreased by **$23.1 million YoY**, mainly because of the **$300.0 million internalization fee incurred in 2024**[166](index=166&type=chunk) [Segment Analysis](index=41&type=section&id=Segment%20Analysis) Aviation Leasing Segment Results (in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total Revenues | $322,979 | $319,747 | | Net Income Attributable to Shareholders | $183,457 | $95,377 | | Adjusted EBITDA (Non-GAAP) | $361,292 | $229,788 | Aerospace Products Segment Results (in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total Revenues | $855,334 | $434,257 | | Net Income Attributable to Shareholders | $240,225 | $151,308 | | Adjusted EBITDA (Non-GAAP) | $295,809 | $161,517 | - The **Aerospace Products segment nearly doubled its revenue** in H1 2025 compared to H1 2024, driven by strong engine and module sales and the new MRE contract[185](index=185&type=chunk) [Liquidity and Capital Resources](index=48&type=section&id=Liquidity%20and%20Capital%20Resources) - The company launched a Strategic Capital Initiative to maintain an **asset-light model**, with partnerships acquiring on-lease aircraft while FTAI acts as servicer[197](index=197&type=chunk) - Principal uses of liquidity include aircraft/engine acquisitions, shareholder dividends, and debt service, while sources are revenues, asset sales, and borrowings[198](index=198&type=chunk)[201](index=201&type=chunk) Historical Cash Flow Summary (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(136,284) | $(187,636) | | Net cash provided by (used in) investing activities | $496,148 | $(219,383) | | Net cash (used in) provided by financing activities | $(173,069) | $485,748 | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=49&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk from its variable-rate debt, though no borrowings were outstanding as of June 30, 2025 - The company's main market risk exposure is to **interest rate fluctuations** on its variable-rate debt, primarily the Revolving Credit Facility[214](index=214&type=chunk) - As of June 30, 2025, there were **no outstanding borrowings on the floating rate debt**, meaning a hypothetical 100-basis point interest rate change would have no immediate impact[217](index=217&type=chunk) [Item 4. Controls and Procedures](index=50&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls during the quarter - The CEO and CFO concluded that the company's **disclosure controls and procedures were effective** as of the end of the quarter[218](index=218&type=chunk) - **No material changes** occurred during the fiscal quarter that affected the company's internal control over financial reporting[219](index=219&type=chunk) [PART II - OTHER INFORMATION](index=50&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=51&type=section&id=Item%201.%20Legal%20Proceedings) The company does not expect current legal proceedings to have a material adverse effect on its business or financial results - Management does not anticipate that current or threatened legal proceedings will have a **material adverse effect** on the company's financial results[221](index=221&type=chunk) [Item 1A. Risk Factors](index=51&type=section&id=Item%201A.%20Risk%20Factors) The company identifies key business, taxation, and share-related risks, including macroeconomic uncertainty, reliance on specific engine types, and its past PFIC status - Business risks include macroeconomic conditions, geopolitical instability, industry oversupply, and **high concentration in CFM56/V2500 engines**[223](index=223&type=chunk)[225](index=225&type=chunk)[226](index=226&type=chunk)[236](index=236&type=chunk) - The new Strategic Capital Initiative introduces risks such as market, liquidity, and **potential conflicts of interest** in allocating investment opportunities[248](index=248&type=chunk)[251](index=251&type=chunk) - Taxation risks are significant, with the company having been a **Passive Foreign Investment Company (PFIC) in 2022 and 2023**, which has lingering adverse U.S. tax implications[296](index=296&type=chunk)[297](index=297&type=chunk) - Share-related risks include market price volatility, potential dilution, and **anti-takeover provisions** that could deter a change in control[305](index=305&type=chunk)[312](index=312&type=chunk)[319](index=319&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=66&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities during the period - None[321](index=321&type=chunk) [Item 3. Defaults Upon Senior Securities](index=66&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities during the period - None[321](index=321&type=chunk) [Item 5. Other Information](index=66&type=section&id=Item%205.%20Other%20Information) There is no other information to report for the period - None[321](index=321&type=chunk) [Item 6. Exhibits](index=66&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including governance documents, debt agreements, and officer certifications