Financial Performance - Total revenues increased by $564.0 million, reaching $1,734.9 million in 2024, driven primarily by a $624.9 million increase in aerospace products revenue[195]. - Net income from continuing operations decreased by $235.1 million, resulting in a net income of $8.7 million in 2024[198]. - Adjusted EBITDA increased by $264.8 million, reaching $862.1 million in 2024, reflecting improved operational performance[199]. - Total expenses increased by $665.9 million, totaling $1,497.1 million in 2024, primarily due to higher costs associated with sales and operations[197]. - Net income attributable to shareholders decreased by $81.4 million to $210.2 million in 2024, compared to $291.6 million in 2023[215]. - Net income from continuing operations increased by $354.4 million, reflecting improved operational performance[204]. - Adjusted EBITDA increased by $169.2 million, indicating stronger earnings before interest, taxes, depreciation, and amortization[206]. - Total revenues decreased by $53.2 million, primarily due to a $111.0 million decrease in asset sales revenue, with three aircraft and 14 engines sold in 2024 compared to 13 aircraft and 41 engines in 2023[212]. - Net loss attributable to shareholders from continuing operations was $588.7 million in 2024, compared to a loss of $259.8 million in 2023[237]. - Adjusted EBITDA for the corporate segment was $(18.6) million in 2024, an improvement from $(30.1) million in 2023[237]. Revenue Breakdown - Aerospace products revenue growth was mainly due to a $546.0 million increase in sales of CFM56-7B, CFM56-5B, and V2500 engines and modules[195]. - Aerospace products revenue surged to $1.08 billion in 2024, a significant increase from $455.0 million in 2023[222]. - Total Aerospace products revenue increased by $624.9 million in 2024, driven by a $546.0 million increase in engine and module sales[225]. - Lease income rose by $47.4 million, attributed to a $37.3 million increase in engine lease revenue and a $17.5 million increase in aircraft lease revenue[195]. - Maintenance revenue increased by $9.5 million, driven by a $43.2 million rise in engine maintenance revenue[195]. - Lease income in the Aviation Leasing segment rose to $234.4 million, up from $179.7 million in 2023[210]. - Other revenue decreased by $6.7 million, primarily due to a reduction in end-of-lease redelivery compensation[196]. Expenses and Costs - Total expenses increased by $206.7 million, with cost of sales rising by $253.7 million, primarily in the Aerospace Products segment[201]. - Total expenses in the Aerospace Products segment rose to $709.3 million in 2024, up from $303.1 million in 2023[222]. - Acquisition and transaction expenses increased by $5.2 million, driven by higher costs associated with the acquisition of aviation leasing equipment[223]. - Total expenses increased by $406.1 million in 2024, with a significant rise in cost of sales by $393.6 million[226]. - Cost of sales for Aerospace products increased by $393.6 million, correlating with the revenue growth in the same segment[229]. - Acquisition and transaction expenses rose by $3.2 million in 2024, mainly due to higher professional fees for strategic transactions[229]. Asset Management - As of December 31, 2024, the company had total consolidated assets of $4.0 billion and total equity of $81.4 million[175]. - The Aviation Leasing segment owns and manages aviation assets, while the Aerospace Products segment develops and manufactures aircraft engines and components[186]. - As of December 31, 2024, the Aviation Leasing segment owned and managed 421 aviation assets, including 109 commercial aircraft and 312 engines[207]. - The company launched a Strategic Capital Initiative on December 30, 2024, focusing on acquiring 737NG and A320ceo aircraft, maintaining an asset-light business model[185]. - The company expects to provide aircraft management services and make minority investments in future partnerships under the Strategic Capital Initiative[185]. - The insured value of aircraft and engines remaining in Russia is $210.7 million, with uncertain timing and amount of recoveries under insurance policies[179]. - Asset sales revenue decreased by $111.0 million, with three aircraft and 14 engines sold in 2024 compared to 13 aircraft and 41 engines in 2023[195]. - Asset sales revenue increased by $119.6 million, with 13 aircraft and 41 engines sold in 2023 compared to eight aircraft and 71 engines sold in 2022[202]. Tax and Interest - The provision for income taxes increased by $65.3 million, reflecting higher tax obligations due to increased income from leasing and aerospace activities[197]. - The provision for income taxes increased by $69.2 million, reflecting higher tax obligations due to increased income from leasing activities[214]. - The company established a deferred tax asset of $72.2 million due to a tax law change in Bermuda, contributing to a $65.1 million increase in the benefit from income taxes[203]. - Interest expense increased by $60.1 million, reflecting an increase in average debt outstanding of approximately $779.3 million[200]. - Interest rate risk is present due to variable interest rate agreements, with potential increases in interest rates impacting net income without corresponding increases in cash flow[281]. - A hypothetical 100-basis point increase or decrease in variable interest rates would not have affected interest expense over the next 12 months[284]. Cash Flow and Financing - Cash used for investments was $1,526.2 million in 2024, compared to $861.5 million in 2023[252]. - Proceeds from the sale of assets were $969.3 million in 2024, up from $477.9 million in 2023[260]. - Cash flow from operating activities decreased by $316.9 million, reflecting a decrease in net income and changes in working capital[259]. - Net cash provided by financing activities increased by $399.6 million, primarily due to proceeds from debt of $1,630.2 million and maintenance deposits of $19.0 million[261]. - Outstanding principal and interest payment obligations as of December 31, 2024, total $3.5 billion and $1.4 billion, respectively, with $229.8 million due in the next twelve months[264]. - Cash dividends declared during 2024 amounted to $121.6 million on ordinary shares and $32.8 million on preferred shares[266]. - The company expects to meet future short-term liquidity requirements through cash on hand, unused borrowing capacity, and net cash from current operations[267]. - On October 9, 2024, the company issued $500.0 million in senior unsecured notes due 2033, using proceeds to redeem $130.5 million of Senior Notes due 2027[250]. Management and Internalization - The company internalized its management function on May 28, 2024, eliminating management fees to the Former Manager[176]. - The company entered into a Transition Services Agreement with the Former Manager, requiring services until October 31, 2024, with a fee structure based on costs plus a 10% markup[177]. - The company internalized its management functions on May 28, 2024, resulting in a one-time payment of $150.0 million to the former manager[247].
FTAI AVIATION(FTAIM) - 2024 Q4 - Annual Report