FTAI Aviation (FTAI) closed the last trading session at $89.95, gaining 1.9% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $173.92 indicates a 93.4% upside potential.The mean estimate comprises 12 short-term price targets with a standard deviation of $46.31. While the lowest estimate of $123 indicates a 36.7% increase from the current price level, the most optimistic analyst expe ...

Core Viewpoint - FTAI Aviation Ltd. is set to present its 2025 Adjusted Free Cash Flow outlook at the Barclays Americas Select Franchise Conference, highlighting key financial metrics and strategic initiatives [1][5]. Financial Performance - The company projects an Adjusted Free Cash Flow of $650 million for 2025, with $350 million expected in the first half and $300 million in the second half [2]. - Adjusted EBITDA is estimated at $1.1 billion for 2025, with $500 million in the first half and $600 million in the second half [2]. - The company anticipates proceeds from aviation leasing asset sales to total $145 million for the year, with $75 million in the first half and $70 million in the second half [2]. Strategic Initiatives - FTAI is completing the sale of its Seed Portfolio to SCI by Q2 2025, which is expected to enhance its cash flow [2]. - The company plans to recycle $300 million of proceeds into attractive leasing assets, aligning with its Strategic Capital Initiative [2][5]. - FTAI is focusing on an asset-light business model, which is expected to improve operational efficiency and cash generation [5]. Operational Insights - The company is targeting an average production of 100 modules per quarter at its Montréal facility in fiscal year 2025 [2]. - FTAI expects to engage in 25 to 35 V2500 engine MRE transactions during the fiscal year [2]. Company Overview - FTAI Aviation Ltd. specializes in owning and maintaining commercial jet engines, particularly CFM56 and V2500 engines, and provides cost savings and flexibility to its customers [3]. - The company also invests in aviation assets and aerospace products that generate strong and stable cash flows, with potential for earnings growth and asset appreciation [3].

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $268.6 million in Q1 2025, up 7% from $252 million in Q4 2024 and up 64% from $164.1 million in Q1 2024 [9][10] - Adjusted free cash flow is expected to be in the range of $300 million to $350 million for the first half of the year, aligning with the target of $650 million for all of 2025 [6][9] Business Line Data and Key Metrics Changes - The Leasing segment generated approximately $162 million of EBITDA, with the pure leasing component at $152 million, up from $128 million in Q4 2024 [10] - Aerospace Products segment achieved $130.9 million of EBITDA with a margin of 36%, up 12% from $117.3 million in Q4 2024 and up 86% from $70.3 million in Q1 2024 [11] Market Data and Key Metrics Changes - The company anticipates a significant ramp in production in Q2, particularly in Montreal, to meet growing demand for aerospace products and services [5][8] - The company aims to increase its market share of restorations from the current 5% to 25% [5][21] Company Strategy and Development Direction - The company is focused on expanding production capabilities and enhancing operational efficiency through partnerships, including a joint venture with IAG Engine Center Europe [8] - The Strategic Capital Initiative (SCI) is expected to deploy over $4 billion in capital by the end of the year, with a focus on engine exchanges to improve asset ownership and operational efficiency [6][7] Management's Comments on Operating Environment and Future Outlook - Management does not foresee any material negative effects from tariffs, citing the nature of their business and the ability to pass on price increases to customers [31] - The company remains confident in achieving its EBITDA goal of $1.1 billion to $1.15 billion for 2025, with expectations to rise to approximately $1.4 billion in 2026 [8] Other Important Information - The company announced a dividend of $0.30 per share, marking its 40th dividend as a public company [4] - The company has recovered $30 million in insurance claims in Q1 and expects to recover an additional $24 million in Q2, with remaining claims of approximately $100 million still to be settled [78] Q&A Session Summary Question: Insights on Aerospace Product Segment Revenue Related to SCI Program - Management confirmed that approximately 30% of Q1 activity was related to the SCI program, with expectations that this will represent about 20% of total activity for 2025 [20][21] Question: Impact of Tariffs on Aerospace Products Margins - Management stated that they do not see any material negative effects from tariffs due to the nature of their business and their ability to pass on price increases [29][31] Question: Growth CapEx and Inventory Investment - The company plans to invest about $200 million in parts inventory in the first half of the year to avoid missing sales opportunities, while still expecting to generate $350 million in free cash flow [32][35] Question: Adoption of PMA Parts by Airlines - Management noted that airlines are increasingly focused on cost-saving techniques, leading to greater adoption of PMA parts, which is expected to enhance margins [49][56] Question: Update on SCI Aircraft Ownership and Target Customers - The majority of the aircraft owned or under MOUs are powered by CFM engines, with sourcing primarily from lessors and airlines looking to offload older equipment [98][100]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $268.6 million in Q1 2025, up 7% from $252 million in Q4 2024 and up 64% from $164.1 million in Q1 2024 [9][10] - The adjusted free cash flow is expected to be in the range of $300 million to $350 million for the first half of the year, aligning with the target of $650 million for the entire year [7][9] - The company announced a dividend of $0.30 per share, marking the 40th dividend as a public company [5] Business Line Data and Key Metrics Changes - The Leasing segment generated approximately $162 million of EBITDA, with the pure leasing component at $152 million, up from $128 million in Q4 2024 [10] - Aerospace Products segment achieved $130.9 million of EBITDA with a margin of 36%, up 12% from $117.3 million in Q4 2024 and up 86% from $70.3 million in Q1 2024 [11] - The company aims to grow its market share of restorations from 5% to 25% [6] Market Data and Key Metrics Changes - The company expects to generate $600 million to $650 million in EBITDA from Aerospace Products in 2025, up from $381 million in 2024 [11] - The company is experiencing strong demand for rebuilt engines across the industry, with production constrained by current capacity [16][20] Company Strategy and Development Direction - The company is focused on increasing production capacity and operational efficiency, particularly in Montreal and Miami, with plans to ramp up production significantly in Q2 [6][8] - The Strategic Capital Initiative (SCI) is expected to deploy over $4 billion in capital by the end of the year, with a focus on engine exchanges to enhance operational efficiency [7][20] - The company is committed to maintaining a strong balance sheet, targeting a debt-to-EBITDA ratio of around three times by the end of the year [60][64] Management's Comments on Operating Environment and Future Outlook - Management does not foresee any material negative effects from tariffs, citing the nature of their business and geographic diversification as mitigating factors [31] - The company remains optimistic about the growth in demand for aerospace products and services, reiterating guidance for both 2025 and 2026 [8][31] Other Important Information - The company has been actively working on operational plans with IAG Engine Center Europe to ramp up production following an acquisition [8] - The company has recovered $30 million in insurance claims this quarter, with additional recoveries expected [82] Q&A Session Summary Question: Insights on Aerospace product segment revenue related to SCI program - Management confirmed that approximately 30% of Q1 activity was related to SCI, with significant demand for rebuilt engines across the industry [20][16] Question: Impact of tariffs on Aerospace products margins - Management stated that tariffs are not expected to have a material negative effect due to the nature of their business and ability to pass on price increases [31][30] Question: Growth CapEx and inventory management - The company plans to invest about $200 million in parts inventory in the first half of the year to avoid missing sales opportunities [34][36] Question: Adoption of PMA parts by airlines - Management noted increasing focus on cost-saving techniques among airlines, leading to greater adoption of PMA parts [50][51] Question: Update on SCI ownership assets and customer base - The majority of assets in the SCI partnership are powered by CFM engines, with significant activity expected from both lessors and airlines [104][105] Question: Future capital deployment strategy - The company prioritizes growth CapEx, debt repayment, and shareholder returns, with plans to focus on shareholder returns towards the end of the year [60][61]

Core Insights - FTAI Aviation reported revenue of $502.08 million for the quarter ended March 2025, reflecting a year-over-year increase of 53.7% [1] - The earnings per share (EPS) for the quarter was $0.87, up from $0.31 in the same quarter last year [1] - The reported revenue fell short of the Zacks Consensus Estimate of $533.8 million by 5.94%, while the EPS was also below the consensus estimate of $0.94 by 7.45% [1] Revenue Breakdown - Asset sales revenue was reported at $18.94 million, significantly below the three-analyst average estimate of $78.83 million, marking a year-over-year decline of 50.9% [4] - Aerospace products revenue reached $365.06 million, exceeding the three-analyst average estimate of $355.77 million, with a year-over-year increase of 93.1% [4] - Maintenance revenue was reported at $49.61 million, slightly above the two-analyst average estimate of $47.17 million, representing a year-over-year growth of 8.3% [4] Stock Performance - FTAI Aviation's shares have returned -3.9% over the past month, compared to a -0.2% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential outperformance against the broader market in the near term [3]

FTAI Aviation (FTAI) came out with quarterly earnings of $0.87 per share, missing the Zacks Consensus Estimate of $0.94 per share. This compares to earnings of $0.31 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -7.45%. A quarter ago, it was expected that this transportation infrastructure company would post earnings of $0.83 per share when it actually produced earnings of $0.84, delivering a surprise of 1.20%.Over the last ...

[First Quarter 2025 Results Overview](index=1&type=section&id=First%20Quarter%202025%20Results%20Overview) FTAI Aviation Ltd. reported strong Q1 2025 financial results, including significant increases in net income and Adjusted EBITDA, alongside dividend declarations and key business milestones [Financial Highlights](index=1&type=section&id=Financial%20Overview) FTAI Aviation Ltd. reported strong financial results for the first quarter of 2025, with significant increases in net income attributable to shareholders and Adjusted EBITDA Financial Highlights (in thousands) | Metric | Q1'25 Value | | :----------------------------- | :---------- | | Net Income Attributable to Shareholders | $89,944 | | Basic Earnings per Ordinary Share | $0.88 | | Diluted Earnings per Ordinary Share | $0.87 | | Adjusted EBITDA | $268,558 | [Dividend Declaration](index=1&type=section&id=First%20Quarter%202025%20Dividends) The Company's Board of Directors declared cash dividends for both ordinary shares and preferred shares for the quarter ended March 31, 2025 - Cash dividend of **$0.30 per ordinary share** declared for Q1 2025, payable on May 23, 2025, to holders of record on May 16, 2025[3](index=3&type=chunk) - Cash dividends declared for Series C Preferred Shares (**$0.51563 per share**) and Series D Preferred Shares (**$0.59375 per share**), payable on May 19, 2025, to holders of record on May 12, 2025[4](index=4&type=chunk) [Business Highlights](index=1&type=section&id=Business%20Highlights) FTAI Aviation achieved notable operational and financial milestones in Q1 2025, including strong Aerospace Products Adjusted EBITDA and expansion of its Module Factory customer base and Strategic Capital Initiative - Net Income Attributable to Shareholders reached **$89.9 million**[6](index=6&type=chunk) - Generated **$131 million** of Aerospace Products Adjusted EBITDA at a **36% margin**[6](index=6&type=chunk) - FTAI's Module Factory now serves over **100 customers** worldwide[6](index=6&type=chunk) - FTAI's inaugural Strategic Capital Initiative 2025 partnership has **98 aircraft** owned or under letters of intent to be acquired as of March 31, 2025[6](index=6&type=chunk) [Company Information and Disclosures](index=2&type=section&id=Company%20Information%20and%20Disclosures) This section details FTAI Aviation's business model, offers investor resources, and includes cautionary notes on forward-looking statements [About FTAI Aviation Ltd.](index=2&type=section&id=About%20FTAI%20Aviation%20Ltd.) FTAI Aviation Ltd. specializes in owning and maintaining commercial jet engines, particularly CFM56 and V2500, leveraging proprietary products like the Module Factory to offer cost savings and flexibility to its diverse customer base - FTAI owns and maintains commercial jet engines, with a focus on **CFM56 and V2500 engines**[11](index=11&type=chunk) - Proprietary products, including the Module Factory and a joint venture for engine PMA, provide cost savings and flexibility to airline, lessor, and MRO customers[11](index=11&type=chunk) - FTAI invests in aviation assets and aerospace products to generate strong and stable cash flows with potential for earnings growth and asset appreciation[11](index=11&type=chunk) [Investor Resources and Conference Call](index=2&type=section&id=Additional%20Information%20and%20Conference%20Call) FTAI Aviation provides investors with access to additional information through its website and SEC filings, and hosts a conference call to discuss its financial results - Additional information for investors is available on the Company's website (https://www.ftaiaviation.com/) and in its Annual Report on Form 10-K and Quarterly Report on Form 10-Q[7](index=7&type=chunk) - A conference call to discuss Q1 2025 results will be held on Thursday, May 1, 2025, at 8:00 A.M. Eastern Time, accessible via registration link and simultaneous webcast[8](index=8&type=chunk)[9](index=9&type=chunk) [Cautionary Note and Contacts](index=2&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements%20and%20Contacts) The press release includes a cautionary note regarding forward-looking statements, advising investors about inherent risks and uncertainties, and provides contact details for investor relations and media inquiries - Forward-looking statements are subject to trends and uncertainties that could cause actual results to differ materially, and investors should not place undue reliance on them[12](index=12&type=chunk) - For a discussion of risks and important factors, refer to the 'Risk Factors' and 'Management's Discussion and Analysis of Financial Condition and Results of Operations' sections in the Company's 10-K and 10-Q reports[12](index=12&type=chunk) - Investor Relations contact: Alan Andreini at **(646) 734-9414** or aandreini@ftaiaviation.com[13](index=13&type=chunk) [Consolidated Financial Statements (Unaudited)](index=4&type=section&id=Consolidated%20Financial%20Statements%20(Unaudited)) This section presents the unaudited consolidated statements of operations and balance sheets, detailing the company's Q1 2025 financial performance and position [Consolidated Statements of Operations](index=4&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) The unaudited consolidated statements of operations for Q1 2025 show substantial year-over-year growth in total revenues and net income attributable to shareholders, primarily driven by a significant increase in aerospace products revenue Consolidated Statements of Operations (in thousands) | Metric | Q1 2025 | Q1 2024 | Change (YoY) | | :-------------------------------- | :-------- | :-------- | :----------- | | Total Revenues | $502,080 | $326,694 | +53.7% | | Aerospace products revenue | $365,063 | $189,057 | +93.1% | | Lease income | $68,471 | $53,240 | +28.6% | | Maintenance revenue | $49,607 | $45,790 | +8.3% | | Asset sales revenue | $18,939 | $38,607 | -50.9% | | Total Expenses | $351,122 | $233,760 | +50.2% | | Income before income taxes | $125,245 | $45,194 | +177.1% | | Net Income Attributable to Shareholders | $89,944 | $31,287 | +187.5% | | Basic Earnings per Share | $0.88 | $0.31 | +183.9% | | Diluted Earnings per Share | $0.87 | $0.31 | +180.6% | - Aerospace products revenue for Q1 2025 includes **$100,638 thousand** from sales to the 2025 Partnership, compared to **$0** in Q1 2024[15](index=15&type=chunk) [Consolidated Balance Sheets](index=5&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) The unaudited consolidated balance sheets as of March 31, 2025, show an increase in total assets and liabilities compared to December 31, 2024, while shareholders' equity decreased significantly Consolidated Balance Sheets (in thousands) | Metric | March 31, 2025 | December 31, 2024 | Change (QoQ) | | :-------------------------- | :------------- | :---------------- | :----------- | | Total Assets | $4,268,144 | $4,037,952 | +5.7% | | Total Liabilities | $4,239,811 | $3,956,584 | +7.1% | | Shareholders' Equity | $28,333 | $81,368 | -65.2% | | Cash and cash equivalents | $112,133 | $115,116 | -2.6% | | Inventory, net | $645,163 | $551,156 | +17.0% | | Assets held for sale | $465,725 | $0 | N/A | | Long-term debt, net | $3,642,527 | $3,440,478 | +5.9% | - Accounts receivable from the 2025 Partnership were **$69,140 thousand** as of March 31, 2025, compared to **$0** as of December 31, 2024[20](index=20&type=chunk) - Other current assets include receivables from the 2025 Partnership of **$34,110 thousand** as of March 31, 2025, compared to **$0** as of December 31, 2024[19](index=19&type=chunk) [Key Performance Measures (Non-GAAP)](index=6&type=section&id=Key%20Performance%20Measures) This section provides reconciliations for non-GAAP financial measures, including Consolidated and Aerospace Products Adjusted EBITDA, highlighting operational performance [Consolidated Adjusted EBITDA Reconciliation](index=6&type=section&id=Adjusted%20EBITDA%20(non-GAAP)) The company provides a reconciliation of net income attributable to shareholders to Adjusted EBITDA, a key non-GAAP performance measure used by management, showing a significant increase in consolidated Adjusted EBITDA for Q1 2025 compared to Q1 2024 - Adjusted EBITDA is defined as net income (loss) attributable to shareholders, adjusted for various non-cash and non-operating items, and including the pro-rata share of Adjusted EBITDA from unconsolidated entities[22](index=22&type=chunk) Consolidated Adjusted EBITDA Reconciliation (in thousands) | Metric | Q1 2025 | Q1 2024 | Change (YoY) | | :-------------------------------- | :-------- | :-------- | :----------- | | Net income attributable to shareholders | $89,944 | $31,287 | +187.5% | | Adjusted EBITDA (non-GAAP) | $268,558 | $164,101 | +63.7% | [Aerospace Products Adjusted EBITDA Reconciliation](index=7&type=section&id=Adjusted%20EBITDA%20(non-GAAP)%20Aerospace%20Products) The Aerospace Products segment demonstrated robust performance in Q1 2025, with its Adjusted EBITDA showing substantial year-over-year growth Aerospace Products Adjusted EBITDA Reconciliation (in thousands) | Metric | Q1 2025 | Q1 2024 | Change (YoY) | | :-------------------------------- | :-------- | :-------- | :----------- | | Net income attributable to shareholders (Aerospace Products) | $106,643 | $66,433 | +60.5% | | Adjusted EBITDA (non-GAAP) (Aerospace Products) | $130,945 | $70,277 | +86.3% |

Q1 2025 Earnings Supplement FTAI AVIATION Disclaimers Presentation. IN GENERAL. This disclaimer applies to this document and the verbal or written comments of any person presenting it. This document, taken together with any such verbal or written comments, is referred to herein as the "Presentation." The information contained on, or accessible through, any websites included in this Presentation is not incorporated by reference into, and should not be considered a part of, this FORWARD-LOOKING STATEMENTS. Ce ...

Core Viewpoint - FTAI Aviation Ltd. reported strong financial results for Q1 2025, highlighting significant growth in net income and adjusted EBITDA, alongside the declaration of dividends for shareholders [1][2][3]. Financial Overview - Net income attributable to shareholders for Q1 2025 was $89.944 million, compared to $31.287 million in Q1 2024, representing a year-over-year increase of 187% [2][10]. - Basic earnings per ordinary share were $0.88, while diluted earnings per share were $0.87 for Q1 2025 [2]. - Adjusted EBITDA for the quarter was $268.558 million, up from $164.101 million in the same period last year, marking a 64% increase [2][24]. Dividends - The Board declared a cash dividend of $0.30 per ordinary share for Q1 2025, payable on May 23, 2025, to shareholders of record on May 16, 2025 [3]. - Cash dividends for Series C and Series D Preferred Shares were declared at $0.51563 and $0.59375 per share, respectively, payable on May 19, 2025 [4]. Business Highlights - FTAI generated $131 million of adjusted EBITDA from aerospace products, achieving a margin of 36% [10]. - The company's Module Factory has over 100 customers globally, indicating strong market demand [10]. - As of March 31, 2025, FTAI owned or had letters of intent for 98 aircraft under its Strategic Capital Initiative 2025 partnership [10]. Additional Information - The company focuses on maintaining commercial jet engines, particularly CFM56 and V2500 engines, and offers a proprietary portfolio of products that provide cost savings and flexibility to its clients [12]. - FTAI invests in aviation assets and aerospace products that generate strong and stable cash flows, with potential for earnings growth and asset appreciation [12].

Core Viewpoint - FTAI Aviation Ltd. is expected to report strong revenue growth for the first quarter of 2025, driven by solid performance in both its Aviation Leasing and Aerospace Products segments, despite some challenges in the Offshore Energy business [1][4][5]. Revenue Performance - The Aviation Leasing unit is projected to see revenues of $154.8 million, reflecting a 14.4% increase year-over-year [2]. - The Aerospace Products segment is estimated to generate revenues of $355.8 million, indicating significant growth of 88.1% compared to the previous year [3]. - Overall, FTAI's first-quarter sales are anticipated to reach $533.8 million, representing a 63.4% increase from the same quarter last year [4]. Earnings Expectations - The consensus estimate for FTAI's earnings is set at 94 cents per share, which suggests a remarkable growth of 203.2% from the year-ago quarter [6]. - Despite the positive revenue outlook, the model does not predict a definitive earnings beat for FTAI, as it has an Earnings ESP of -0.88% [7]. Company Ranking - FTAI currently holds a Zacks Rank of 2 (Buy), indicating a favorable outlook compared to other stocks in the industry [8].