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

Core Insights - Ftai Aviation reported strong Q2 2025 earnings, with diluted EPS of $1.57, exceeding analyst estimates of $1.29, and GAAP revenue of $676.2 million, up 52.5% year-over-year from $443.6 million in Q2 2024, indicating robust growth in aerospace products and effective execution of its asset-light strategy [1][2][5] Financial Performance - Q2 2025 GAAP net income attributable to shareholders surged to $161.7 million, a significant recovery from a loss of $228.2 million in Q2 2024 [2][5] - Adjusted EBITDA (non-GAAP) increased to $347.8 million, reflecting a 62.6% rise compared to $213.9 million in Q2 2024 [2][5] - Aerospace Products revenue reached $420.7 million in Q2 2025, up from $245.2 million, with an EBITDA margin of 39% [6][7] Business Overview - Ftai Aviation specializes in aircraft engine modules, particularly the CFM56 model, and offers asset management services including aircraft leasing and engine maintenance [3] - The company has focused on scaling production of CFM56 engine modules and enhancing repair operations, supported by partnerships like the Strategic Capital Initiative (SCI) [4] Production and Market Share - CFM56 engine module production increased to 184 units in Q2 2025, a 33% rise from the previous quarter, leading to an estimated market share increase to 9% from 5% year-over-year [8] - Management aims to achieve a 25% market share in the CFM56 module market in the coming years [8] Strategic Initiatives - The SCI partnership expanded to include 145 aircraft, up from 98, with a goal of 250 by the end of 2025, facilitating asset sales and fee-based income [9] - The company made a strategic acquisition of Pacific Aerodynamic, enhancing its repair capabilities for key engine components [12] Outlook - Management maintains a full-year EBITDA target of $1.1–1.15 billion for FY2025, with plans to invest approximately $200 million in parts inventory to support increased module output [14] - The company continues to prioritize growth capital expenditures and debt reduction, with potential for increased dividends or share buybacks as leverage decreases [15]

Market Performance - U.S. stocks showed mixed trading results, with the Nasdaq Composite gaining approximately 0.5% [1] - The Dow increased by 0.02% to 44,639.69, while the S&P 500 rose by 0.21% to 6,384.38 [1] - Utilities shares experienced a rise of 0.8%, while energy stocks fell by 1.2% [1] Commodities - Crude oil prices increased by 0.8% to $69.73, while gold rose by 1% to $3,356.50 [5] - Silver prices decreased by 1.3% to $37.775, and copper fell by 0.9% to $5.5750 [5] European Markets - European shares were mostly higher, with the eurozone's STOXX 600 gaining 0.01% and Spain's IBEX 35 Index rising by 0.21% [6] - London's FTSE 100 fell by 0.08%, while Germany's DAX 40 and France's CAC 40 rose by 0.20% and 0.26%, respectively [6] Asian Markets - Asian markets closed mixed, with Japan's Nikkei 225 down by 0.05% and Hong Kong's Hang Seng down by 1.36% [7] - China's Shanghai Composite rose by 0.17%, and India's BSE Sensex gained 0.18% [7] Company Earnings - Wingstop Inc. shares surged by 24% to $360.20 after reporting better-than-expected second-quarter EPS and sales [9] - FTAI Aviation Ltd. shares increased by 20% to $137.34 following strong quarterly EPS and sales [9] - Rocky Brands Inc. shares rose by 26% to $29.00 after announcing better-than-expected quarterly earnings [9] - Vyne Therapeutics Inc. shares plummeted by 74% to $0.3764 after failing to meet trial endpoints [9] - Sos Ltd. shares dropped by 55% to $2.7184 after announcing a $7.5 million registered direct offering [9] - Avis Budget Group, Inc. shares fell by 15% to $172.40 following worse-than-expected quarterly EPS and sales [9] Economic Indicators - The U.S. economy expanded at an annualized rate of 3% in the second quarter, recovering from a 0.5% contraction in the previous quarter [11] - Private businesses added 104,000 jobs in July, surpassing market estimates of a 75,000 increase [11] - Crude oil inventories in the U.S. rose by 7.698 million barrels, contrasting with market expectations of a 2 million barrel decline [11]

FTAI Aviation (FTAI) reported $676.24 million in revenue for the quarter ended June 2025, representing a year- over-year increase of 52.5%. EPS of $1.57 for the same period compares to $0.26 a year ago. View all Key Company Metrics for FTAI Aviation here>>> Shares of FTAI Aviation have returned +0.3% over the past month versus the Zacks S&P 500 composite's +3.4% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. Revenue- Aerospa ...

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $347.8 million in Q2 2025, up 30% from $268.6 million in Q1 2025 and up 63% from $213.9 million in Q2 2024 [19] - Adjusted free cash flow for the first half of 2025 was $370 million, exceeding the target of $350 million, with expectations to reach $750 million for the full year [14] - The company raised its EBITDA outlook for aviation leasing from $500 million to $600 million and for aerospace products from $600-650 million to $650-700 million for 2025 [15] Business Line Data and Key Metrics Changes - Aerospace products generated $165 million in adjusted EBITDA with a margin of 34%, reflecting a 26% increase from $130.9 million in Q1 2025 and an 81% increase from $91.2 million in Q2 2024 [21] - The leasing segment posted approximately $199 million of EBITDA, with the pure leasing component at $169 million, up from $152 million in Q1 2025 [20] - The company refurbished 184 CFM56 modules in Q2, a 33% increase from the previous quarter [11] Market Data and Key Metrics Changes - The company estimates its market share at 9%, approximately double from the previous year, with a long-term goal of reaching 25% [8] - The global demand for prebuilt engines and modules is increasing, providing a flexible and cost-effective alternative to traditional maintenance [9] Company Strategy and Development Direction - The company aims to expand its aerospace products margins to over 40% by 2026 through various strategies, including new procurement programs and the introduction of PMA parts [10][11] - The acquisition of Pacific Aerodynamic is expected to enhance operational efficiencies and further differentiate the company's offerings in the market [12] - The company is actively reviewing M&A opportunities to further enhance its capabilities and market position [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of the aerospace market, driven by the aging of aircraft and engines, which increases maintenance needs [18] - The company anticipates substantial growth in free cash flow in the coming years as it completes its pivot to an asset-light business model [14] - Management highlighted the positive reception from airline customers regarding their engine maintenance solutions, emphasizing the cost and risk advantages [41] Other Important Information - The company announced its 41st dividend as a public company, amounting to $0.30 per share, to be paid on August 19, 2025 [7] - The company has closed on additional equity partners for its Strategic Capital Initiative (SCI) and expects to invest $4 billion through the partnership [16] Q&A Session Summary Question: What are the margin improvements expected for Aerospace products in 2026? - Management indicated that margin improvements could be between 5 to 10 percentage points due to various factors, including new serviceable materials and PMA parts [25][26] Question: Can you elaborate on the Pacific Aerodynamic acquisition and its impact? - The acquisition is expected to save $50,000 per shop visit, leading to a payback period of about six months, enhancing the company's repair capabilities [27][28] Question: What is the customer reception of the modules and the potential for repeat business? - Customer feedback has been positive, with airlines recognizing the cost and risk advantages of outsourcing engine maintenance [41][42] Question: How does the company plan to address technician shortages? - The company has developed a training academy and immersive learning experiences to attract and train young technicians [48][50] Question: What is the outlook for the Strategic Capital Initiative? - Management is optimistic about the SCI's performance and plans to decide on a second initiative in the near future, given the current success [67][68] Question: What is the company's strategy regarding PMA parts? - The company is awaiting FAA approval for key PMA parts, which are expected to significantly contribute to cost savings [75] Question: How does the company view the value of legacy engines in the coming years? - Management expects a slowdown in growth but believes that market share gains and OEM price increases will drive future growth [104][106]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $347.8 million in Q2 2025, up 30% from $268.6 million in Q1 2025 and up 63% from $213.9 million in Q2 2024 [19] - The overall estimated EBITDA for 2025 has been raised from $1.1 billion to a new range of $1.25 billion to $1.3 billion [14] Business Line Data and Key Metrics Changes - Aerospace products generated $164.9 million in EBITDA with a margin of 34%, up 26% from $130.9 million in Q1 2025 and up 81% from $91.2 million in Q2 2024 [21] - The leasing segment posted approximately $199 million of EBITDA, with the pure leasing component at $169 million, an increase from $152 million in Q1 2025 [20] Market Data and Key Metrics Changes - The company estimates a market share of 9%, approximately double from the previous year, with a long-term goal of reaching 25% [7] - The demand for prebuilt engines and modules is growing globally, providing a cost-effective alternative to traditional maintenance [7] Company Strategy and Development Direction - The company is focusing on an asset-light business model, with plans to manage debt and achieve a strong BB rating by the end of the year [13] - The acquisition of Pacific Aerodynamic is expected to enhance operational efficiencies and further differentiate the company's offerings [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term sustainability of the aerospace products market, driven by the aging of current aircraft and engines [16] - The company anticipates significant growth in free cash flow in the coming years, with an adjusted free cash flow target increased from $650 million to $750 million for 2025 [13] Other Important Information - The company has executed a sizable engine exchange program with a major U.S. airline, which is expected to drive repeat business and higher volumes [8] - The company is actively reviewing other M&A opportunities in the global market [12] Q&A Session Summary Question: What are the margin improvements expected for Aerospace products? - Management indicated that margin improvements are expected to be multifaceted, with potential increases of 5 to 10 percentage points in 2026 due to various initiatives [26][27] Question: Can you elaborate on the Pacific Aerodynamic acquisition? - The acquisition is expected to provide significant savings and enhance the company's repair capabilities, with a payback period of about one year [29][30] Question: What is the customer reception for the CFM56 modules? - Customer reception has been positive, with airlines recognizing the benefits of outsourcing engine maintenance to avoid cost overruns [41][42] Question: How does the company view the Chinese market opportunity? - The company sees significant growth potential in the Chinese market, particularly for engine exchanges, due to the aging fleet and limited local capacity for shop visits [112][114] Question: What is the outlook for the Strategic Capital Initiative (SCI)? - The company is optimistic about the SCI's performance and plans to decide on SCI 2 in the near future, with a strong pipeline of activity [68][69]

Financial Performance - FTAI Aviation reported Q2 2025 Revenue of $676 million[10] - Net Income for Q2 2025 was $162 million[10] - Adjusted EBITDA for Q2 2025 reached $348 million[10] - The company generated $370 million in Adjusted Free Cash Flow in 1H 2025[10] Strategic Capital Initiative (SCI) - FTAI invested $109 million in 1H 2025 as a 20% minority equity interest in the 2025 Partnership[42] - SCI is targeting final closing by Q4 2025 and aims to deploy $4 billion in capital[42] - MRE Contract YTD Revenue from SCI reached $170 million[42] Aerospace Products - Q2 2025 Aerospace Products Revenue was $490 million, equivalent to an annualized ~9% industry market share[16] - Module production rose 33% to 184 CFM56 modules in Q2 2025[16] - Aerospace Products Adjusted EBITDA was $165 million in Q2 2025 with a 34% margin[11,27] Aviation Leasing - Aviation Leasing generated $199.3 million in Adjusted EBITDA for Q2 2025[11,64] - The company sold 45 aircraft to SCI from FTAI's balance sheet for approximately $475 million[44]

[Financial & Business Highlights](index=1&type=section&id=Financial%20%26%20Business%20Highlights) FTAI Aviation reported strong Q2 2025 results with an 80% sequential increase in Net Income and significant growth in Aerospace Products Adjusted EBITDA Selected Financial Results | Selected Financial Results | Q2'25 (in thousands) | | :--- | :--- | | Net Income Attributable to Shareholders | $161,689 | | Basic Earnings per Ordinary Share | $1.58 | | Diluted Earnings per Ordinary Share | $1.57 | | Adjusted EBITDA | $347,805 | - Net Income Attributable to Shareholders of **$161.7 million** represents an **80% increase** compared to Q1 2025[5](index=5&type=chunk) - The company ended the quarter with a strong liquidity position, holding **$302 million** in cash and having a fully undrawn **$400 million** corporate revolving credit facility[5](index=5&type=chunk) - Production of CFM56 Modules ramped up significantly to **184 units** in Q2 2025, a **33% increase** versus the prior quarter[5](index=5&type=chunk) - FTAI expanded its repair capabilities by acquiring **100%** of Pacific Aerodynamic, a specialist in CFM56 compressor blade and vane repairs[5](index=5&type=chunk) [Dividend Declaration](index=1&type=section&id=Dividend%20Declaration) The Board declared quarterly cash dividends for ordinary, Series C, and Series D preferred shares for Q2 2025 Dividend Details | Share Class | Dividend per Share | Record Date | Payable Date | | :--- | :--- | :--- | :--- | | Ordinary Shares | $0.30 | Aug 12, 2025 | Aug 19, 2025 | | Series C Preferred | $0.51563 | Aug 8, 2025 | Aug 15, 2025 | | Series D Preferred | $0.59375 | Aug 8, 2025 | Aug 15, 2025 | [Management Commentary & Business Update](index=2&type=section&id=Management%20Commentary%20%26%20Business%20Update) Management highlighted strong Aerospace Products segment performance and progress on the SCI Partnership's capital deployment - The Aerospace Products segment's Adjusted EBITDA grew **81%** year-over-year in Q2 2025[6](index=6&type=chunk) - Annualized market share increased to approximately **9%**, up from **5%** in the previous year, with a long-term goal of **25%**[6](index=6&type=chunk) - The SCI Partnership is on track to deploy **$4 billion** of capital in 2025, with **145 aircraft** now owned or under Letter of Intent (LOI) out of a total target of **250**[6](index=6&type=chunk) [Financial Statements](index=4&type=section&id=Financial%20Statements) Unaudited financial statements for Q2 2025 show a significant turnaround in profitability and a strengthened cash position [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) Q2 2025 total revenues increased to $676.2 million, resulting in a net income of $161.7 million, a significant improvement from Q2 2024's net loss | (in thousands, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Aerospace products revenue | $420,686 | $245,200 | | Total revenues | $676,237 | $443,594 | | Net income (loss) attributable to shareholders | $161,689 | $(228,205) | | Diluted Earnings (loss) per share | $1.57 | $(2.26) | [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets were $4.10 billion, with cash and cash equivalents increasing to $301.9 million and shareholders' equity rising to $164.9 million | (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $301,911 | $115,116 | | Total current assets | $1,759,385 | $1,226,018 | | Total assets | $4,101,075 | $4,037,952 | | Total liabilities | $3,936,131 | $3,956,584 | | Shareholders' equity | $164,944 | $81,368 | [Key Performance Measures (Non-GAAP)](](index=6&type=section&id=Key%20Performance%20Measures%20%28Non-GAAP%29) Consolidated Adjusted EBITDA significantly increased to $347.8 million in Q2 2025, driven by the Aerospace Products segment, with positive Adjusted Free Cash Flow [Adjusted EBITDA Reconciliation](index=6&type=section&id=Adjusted%20EBITDA%20Reconciliation) Q2 2025 Adjusted EBITDA was $347.8 million, a 62.6% year-over-year increase from $213.9 million in Q2 2024 | (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net income (loss) attributable to shareholders | $161,689 | $(228,205) | | **Adjusted EBITDA (non-GAAP)** | **$347,805** | **$213,904** | [Aerospace Products Segment Adjusted EBITDA](index=8&type=section&id=Aerospace%20Products%20Segment%20Adjusted%20EBITDA) Aerospace Products segment Adjusted EBITDA increased by 80.7% to $164.9 million in Q2 2025, up from $91.2 million in Q2 2024 | (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net income attributable to shareholders | $133,582 | $84,875 | | **Adjusted EBITDA (non-GAAP)** | **$164,864** | **$91,240** | [Adjusted Free Cash Flow](index=8&type=section&id=Adjusted%20Free%20Cash%20Flow) Adjusted Free Cash Flow for Q2 2025 was positive at $423.5 million, driven by investing activities and a joint venture adjustment - Adjusted Free Cash Flow for Q2 2025 was comprised of **$(110.3) million** in net cash used in operating activities, **$523.8 million** in net cash provided by investing activities, and a **$10.0 million** adjustment for the QuickTurn Europe joint venture investment[27](index=27&type=chunk) [Other Information](index=2&type=section&id=Other%20Information) This section provides investor details, including conference call information, company overview, and forward-looking statement disclaimers [Conference Call Information](index=2&type=section&id=Conference%20Call%20Information) A conference call to discuss Q2 2025 results is scheduled for July 30, 2025, with webcast and replay available - A conference call is scheduled for Wednesday, July 30, 2025, at 8:00 A.M. Eastern Time. A webcast will be available on the company's website, with a replay available through August 6, 2025[8](index=8&type=chunk)[9](index=9&type=chunk) [About FTAI Aviation Ltd.](index=2&type=section&id=About%20FTAI%20Aviation%20Ltd.) FTAI Aviation Ltd. specializes in owning and maintaining commercial jet engines, focusing on CFM56 and V2500 models, offering cost-saving solutions to customers - FTAI's core business involves owning and maintaining commercial jet engines, focusing on CFM56 and V2500 models, and providing cost-saving solutions to its customer base[11](index=11&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) The report includes cautionary forward-looking statements regarding future goals, which are subject to risks and uncertainties that may cause actual results to differ - The report contains forward-looking statements concerning goals like achieving a **25%** market share and the SCI Partnership's capital deployment, which are subject to risks and uncertainties[12](index=12&type=chunk)