FTAI Aviation(FTAI) - 2025 Q1 - Quarterly Results

First Quarter 2025 Results Overview 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 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 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] - 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] Business Highlights 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] - Generated $131 million of Aerospace Products Adjusted EBITDA at a 36% margin[6] - FTAI's Module Factory now serves over 100 customers worldwide[6] - 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] Company Information and Disclosures This section details FTAI Aviation's business model, offers investor resources, and includes cautionary notes on forward-looking statements About FTAI Aviation Ltd. 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] - 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] - FTAI invests in aviation assets and aerospace products to generate strong and stable cash flows with potential for earnings growth and asset appreciation[11] Investor Resources and Conference Call 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] - 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][9] Cautionary Note and Contacts 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] - 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] - Investor Relations contact: Alan Andreini at (646) 734-9414 or aandreini@ftaiaviation.com[13] Consolidated Financial Statements (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 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] Consolidated Balance Sheets 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] - 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] Key Performance Measures (Non-GAAP) This section provides reconciliations for non-GAAP financial measures, including Consolidated and Aerospace Products Adjusted EBITDA, highlighting operational performance Consolidated Adjusted EBITDA Reconciliation 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] 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 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% |