FTAI Aviation(FTAI) - 2025 Q2 - Quarterly Results

Financial & Business Highlights 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] - 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] - Production of CFM56 Modules ramped up significantly to 184 units in Q2 2025, a 33% increase versus the prior quarter[5] - FTAI expanded its repair capabilities by acquiring 100% of Pacific Aerodynamic, a specialist in CFM56 compressor blade and vane repairs[5] Dividend Declaration 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 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] - Annualized market share increased to approximately 9%, up from 5% in the previous year, with a long-term goal of 25%[6] - 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] Financial Statements Unaudited financial statements for Q2 2025 show a significant turnaround in profitability and a strengthened cash position Consolidated Statements of Operations 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 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 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 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 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] Other Information This section provides investor details, including conference call information, company overview, and forward-looking statement disclaimers Conference Call Information 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][9] About FTAI Aviation Ltd. 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] Forward-Looking Statements 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]