FORTRESS TRSP(FTAIN) - 2025 Q2 - Quarterly Results

Executive Summary & Key Highlights Q2 2025 Financial Overview FTAI Aviation Ltd. reported strong financial results for the second quarter of 2025, with significant net income and adjusted EBITDA, indicating robust performance Selected Financial Results (Q2'25) (in thousands) | Selected Financial Results (Q2'25) | Amount (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 | Dividend Declaration The Company's Board of Directors declared cash dividends for ordinary and preferred shares for the quarter ended June 30, 2025 - Cash dividend of $0.30 per ordinary share declared for Q2 2025, payable on August 19, 2025, to holders of record on August 12, 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 August 15, 2025, to holders of record on August 8, 2025[4] Business Highlights FTAI delivered an excellent quarter with strong financial position and significant operational achievements, including growth in Aerospace Products and strategic acquisitions - Net Income Attributable to Shareholders of $161.7 million ($1.58 EPS), an 80% increase versus Q1 2025[5] - Aerospace Products Adjusted EBITDA increased 26% from Q1 to $164.9 million, and 81% year-over-year in Q2 2025[5][6] - Significant ramp in production to 184 CFM56 Modules in Q2 2025, a 33% increase versus prior quarter[5] - Acquired 100% equity of Pacific Aerodynamic, expanding CFM56 compressor blade and vane repair capabilities[5] - Aerospace Products market share increased to approximately 9% on an annualized basis, up from 5% last year, with a long-term goal of 25%[6] - SCI Partnership is on-track to deploy $4 billion of capital in 2025, with 145 aircraft now owned or under LOI compared to a target of 250[6] Company Information About FTAI Aviation Ltd. FTAI Aviation Ltd. specializes in owning and maintaining commercial jet engines, focusing on CFM56 and V2500 models, and invests in aviation assets for cash flow and appreciation - FTAI owns and maintains commercial jet engines, with a primary focus on CFM56 and V2500 engines[11] - The company utilizes proprietary products, including the Module Factory and a joint venture for engine PMA, to provide cost savings and flexibility to its airline, lessor, and MRO customer base[11] - FTAI invests in aviation assets and aerospace products designed to generate strong and stable cash flows, with potential for earnings growth and asset appreciation[11] Additional Information & Conference Call Further investor information is available on the company's website and SEC filings, and details for the Q2 2025 earnings conference call are provided - Additional information for investors is available on the Investor Center section of 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 was scheduled for Wednesday, July 30, 2025, at 8:00 A.M. Eastern Time, with registration and webcast details provided[8][9] Cautionary Statements & Contacts The press release includes a cautionary note regarding forward-looking statements and provides contact information for investor relations and media inquiries - The press release contains forward-looking statements, including goals for annual maintenance market share (25%) and SCI Partnership capital deployment ($4 billion in 2025), which are subject to risks and uncertainties[12] - Investors are advised to refer to the 'Risk Factors' and 'Management's Discussion and Analysis of Financial Condition and Results of Operations' sections in the Company's 10-K and 10-Q reports for a discussion of potential risks[12] - Contact information for Investor Relations (Alan Andreini) and Media (Joele Frank, Wilkinson Brimmer Katcher) is provided[13] Consolidated Financial Statements Consolidated Statements of Operations FTAI Aviation Ltd. demonstrated significant revenue growth and a return to profitability in Q2 2025 and for the six months ended June 30, 2025, primarily driven by aerospace products and new MRE contracts Consolidated Statements of Operations Highlights (in thousands) | Metric | Q2 2025 | Q2 2024 | YoY Change ($) | YoY Change (%) | | :-------------------------------------- | :---------- | :---------- | :------------- | :------------- | | Aerospace products revenue | $420,686 | $245,200 | $175,486 | 71.57% | | MRE Contract revenue | $69,585 | $— | $69,585 | N/A | | Lease income | $62,439 | $70,754 | $(8,315) | -11.75% | | Maintenance revenue | $73,104 | $51,187 | $21,917 | 42.83% | | Asset sales revenue | $47,915 | $72,433 | $(24,518) | -33.85% | | Total revenues | $676,237| $443,594| $232,643 | 52.46% | | Total expenses | $465,753 | $606,189 | $(140,436) | -23.17% | | Net income (loss) attributable to shareholders | $161,689 | $(228,205) | $389,894 | N/A | | Basic Earnings per Ordinary Share | $1.58 | $(2.26) | $3.84 | N/A | | Diluted Earnings per Ordinary Share | $1.57 | $(2.26) | $3.83 | N/A | Consolidated Statements of Operations Highlights (Six Months Ended June 30, in thousands) | Metric | 6M 2025 | 6M 2024 | YoY Change ($) | YoY Change (%) | | :-------------------------------------- | :------------ | :------------ | :------------- | :------------- | | Aerospace products revenue | $685,111 | $434,257 | $250,854 | 57.76% | | MRE Contract revenue | $170,223 | $— | $170,223 | N/A | | Lease income | $130,879 | $123,915 | $6,964 | 5.62% | | Maintenance revenue | $122,711 | $96,977 | $25,734 | 26.54% | | Asset sales revenue | $66,854 | $111,040 | $(44,186) | -39.80% | | Total revenues | $1,178,317| $770,288 | $408,029 | 53.00% | | Total expenses | $816,875 | $839,949 | $(23,074) | -2.75% | | Net income (loss) attributable to shareholders | $251,633 | $(196,918) | $448,551 | N/A | | Basic Earnings per Ordinary Share | $2.45 | $(1.96) | $4.41 | N/A | | Diluted Earnings per Ordinary Share | $2.44 | $(1.96) | $4.40 | N/A | Consolidated Balance Sheets As of June 30, 2025, FTAI Aviation Ltd. significantly improved its liquidity and strengthened its equity position compared to December 31, 2024, while managing liabilities effectively Consolidated Balance Sheets Highlights (in thousands) | Metric | June 30, 2025 | Dec 31, 2024 | Change ($) | Change (%) | | :-------------------------- | :------------ | :----------- | :--------- | :--------- | | Cash and cash equivalents | $301,911 | $115,116 | $186,795 | 162.26% | | Total current assets | $1,759,385 | $1,226,018 | $533,367 | 43.50% | | Total assets | $4,101,075 | $4,037,952 | $63,123 | 1.56% | | Total current liabilities | $350,940 | $347,246 | $3,694 | 1.06% | | Long-term debt, net | $3,444,612 | $3,440,478 | $4,134 | 0.12% | | Total liabilities | $3,936,131 | $3,956,584 | $(20,453) | -0.52% | | Shareholders' equity | $164,944 | $81,368 | $83,576 | 102.71% | Non-GAAP Financial Measures Adjusted EBITDA Reconciliation (Consolidated) Consolidated Adjusted EBITDA saw substantial year-over-year growth in Q2 2025 and for the six-month period, reflecting strong operational performance after various adjustments - Adjusted EBITDA is a key performance measure used by the Chief Operating Decision Maker to assess operational performance and make resource allocation decisions[20][21] Consolidated Adjusted EBITDA (in thousands) | Metric | Q2 2025 | Q2 2024 | YoY Change ($) | YoY Change (%) | | :-------------------------------------- | :---------- | :---------- | :------------- | :------------- | | Net income (loss) attributable to shareholders | $161,689 | $(228,205) | $389,894 | N/A | | Adjusted EBITDA | $347,805 | $213,904 | $133,901 | 62.60% | | Metric | 6M 2025 | 6M 2024 | YoY Change ($) | YoY Change (%) | | :-------------------------------------- | :------------ | :------------ | :------------- | :------------- | | Net income (loss) attributable to shareholders | $251,633 | $(196,918) | $448,551 | N/A | | Adjusted EBITDA | $616,363 | $378,005 | $238,358 | 63.06% | Adjusted EBITDA Reconciliation (Aerospace Products) The Aerospace Products segment demonstrated exceptional growth in Adjusted EBITDA, significantly contributing to the company's overall performance for both the quarter and year-to-date Aerospace Products Adjusted EBITDA (in thousands) | Metric | Q2 2025 | Q2 2024 | YoY Change ($) | YoY Change (%) | | :-------------------------------------- | :---------- | :---------- | :------------- | :------------- | | Net income attributable to shareholders | $133,582 | $84,875 | $48,707 | 57.39% | | Adjusted EBITDA | $164,864 | $91,240 | $73,624 | 80.69% | | Metric | 6M 2025 | 6M 2024 | YoY Change ($) | YoY Change (%) | | :-------------------------------------- | :------------ | :------------ | :------------- | :------------- | | Net income attributable to shareholders | $240,225 | $151,308 | $88,917 | 58.76% | | Adjusted EBITDA | $295,809 | $161,517 | $134,292 | 83.14% | Adjusted Free Cash Flow Adjusted Free Cash Flow for Q2 2025 was positive, primarily driven by investing activities, offsetting cash used in operations - Adjusted Free Cash Flow for the three months ended June 30, 2025, was positive, exceeding $400 million[5] - Components of Adjusted Free Cash Flow for Q2 2025 included net cash used in operating activities of $(110.3) million, net cash provided by investing activities of $523.8 million, and an adjustment for FTAI's 50% joint venture investment in QuickTurn Europe of $10.0 million[27]