Financial Performance - For the three months ended March 31, 2025, total revenues increased to $502.1 million, up 53.7% from $326.7 million in the same period of 2024 [150]. - Aerospace products revenue for the same period was $365.1 million, a significant increase of 93.1% compared to $189.1 million in 2024 [150]. - Adjusted EBITDA for the three months ended March 31, 2025, was $268.6 million, representing a 63.7% increase from $164.1 million in 2024 [152]. - Net income attributable to shareholders for the three months ended March 31, 2025, was $89.9 million, up 187.0% from $31.3 million in 2024 [150]. - Total revenues increased by $175.4 million, primarily driven by a $176.0 million increase in Aerospace products revenue [153]. - Net income increased by $62.8 million, reflecting the overall positive changes in revenue and expenses [155]. - Adjusted EBITDA increased by $104.5 million, indicating strong operational performance [156]. - Net income attributable to shareholders increased by $40.2 million, reaching $106.6 million for the three months ended March 31, 2025, compared to $66.4 million in 2024 [170]. - Adjusted EBITDA (non-GAAP) increased by $60.7 million to $130.9 million for the three months ended March 31, 2025, compared to $70.3 million in 2024 [174]. Asset Management - As of March 31, 2025, the company had total consolidated assets of $4.3 billion and total equity of $28.3 million [137]. - As of March 31, 2025, the Aviation Leasing segment owned and managed 425 aviation assets, including 107 commercial aircraft and 318 engines [159]. - The average remaining lease term for aircraft is 44 months, while engines currently on lease have an average remaining lease term of 24 months [160]. - The company launched a Strategic Capital Initiative on December 30, 2024, focusing on acquiring 737NG and A320ceo aircraft [144]. - The company launched a Strategic Capital Initiative to acquire 737NG and A320ceo aircraft, allowing for an asset-light business model [182]. Expenses and Income Tax - Total expenses increased by $117.4 million, with cost of sales rising by $105.9 million due to higher engine and module sales [153]. - Total expenses rose by $119.6 million, with cost of sales increasing by $117.8 million, primarily due to higher sales of CFM56-5B, CFM56-7B, and V2500 engines [175]. - The provision for income taxes increased by $17.3 million, driven by higher income generated in the Aircraft Leasing and Aerospace Products segments [154]. - The provision for income taxes increased by $16.8 million, primarily due to higher income from Aerospace Products activities [172]. Cash Flow and Investments - Cash used for investments was $339.4 million for the three months ended March 31, 2025, compared to $303.0 million in 2024 [185]. - Net cash used in operating activities increased by $25.6 million, totaling $(25,966) thousand in Q1 2025 compared to $(345) thousand in Q1 2024 [188]. - Net cash used in investing activities decreased by $141.6 million, totaling $(27,627) thousand in Q1 2025 compared to $(169,213) thousand in Q1 2024 [189]. - Net cash provided by financing activities decreased by $93.4 million, totaling $50,610 thousand in Q1 2025 compared to $144,026 thousand in Q1 2024 [190]. Impairment and Losses - The company recognized an impairment charge of $120.0 million for leasing equipment assets related to the impact of Russia's invasion of Ukraine [140]. - The insured value of aircraft and engines remaining in Russia is $210.7 million, with uncertain recovery timing [141]. - Net loss attributable to shareholders in the Corporate and Other segment was $86.8 million for the three months ended March 31, 2025, compared to $77.7 million in 2024 [176]. Interest and Debt - Interest expense increased by $14.3 million, reflecting an increase in average debt outstanding of approximately $955.7 million [178]. - As of March 31, 2025, the company had outstanding principal and interest payment obligations of $3.7 billion and $1.4 billion, respectively [191]. - A hypothetical 100-basis point increase in variable interest rates would result in an increase of approximately $2.0 million in interest expense over the next 12 months [202]. Lease Income - Lease income for the three months ended March 31, 2025, was $68.5 million, an increase of 28.6% from $53.2 million in 2024 [150]. - Lease income rose by $15.2 million, attributed to an increase in aircraft lease revenue of $11.6 million and engine lease revenue of $6.0 million [153].
FTAI AVIATION(FTAIM) - 2025 Q1 - Quarterly Report