Financial Performance - For the three months ended June 30, 2025, total revenues increased by 52.5% to $676.2 million compared to $443.6 million for the same period in 2024[160]. - Net income attributable to shareholders for the six months ended June 30, 2025, was $251.6 million, compared to a loss of $196.9 million in the same period of 2024[160]. - Total revenues increased by $232.6 million for the three months ended June 30, 2025, driven by a $175.5 million increase in aerospace products revenue and a $69.6 million increase in MRE contract revenue[164]. - Net income increased by $385.3 million and $448.0 million for the three and six months ended June 30, 2025, primarily due to higher revenues[168]. - Net income attributable to shareholders increased by $48.7 million for the three months ended June 30, 2025, totaling $133.6 million compared to $84.9 million in 2024[187]. Revenue Breakdown - Aerospace products revenue for the three months ended June 30, 2025, was $420.7 million, up 71.6% from $245.2 million in the prior year[160]. - Aerospace products revenue increased by $250.9 million for the six months ended June 30, 2025, mainly due to a $237.0 million increase in engine and module sales[166]. - Maintenance revenue increased by $21.9 million for the three months ended June 30, 2025, driven by higher aircraft maintenance revenue[164]. - Other revenue increased by $2.4 million due to servicing fees earned as the Servicer to the 2025 Partnership[179]. - Aerospace products revenue rose by $175.5 million, primarily driven by a $172.1 million increase in CFM56-5B, CFM56-7B, and V2500 engine and module sales[185]. Expenses and Costs - Total expenses for the three months ended June 30, 2025, decreased by 23.1% to $465.8 million from $606.2 million in the same period of 2024[160]. - Total expenses decreased by $140.4 million for the three months ended June 30, 2025, and by $23.1 million for the six months ended June 30, 2025[166]. - Total expenses for the three months ended June 30, 2025, increased by $176.8 million, totaling $331.6 million compared to $154.8 million in 2024[185]. - Cost of sales increased by $170.6 million, correlating with the rise in Aerospace products revenue[185]. - The provision for income taxes increased by $20.9 million during the three months ended June 30, 2025, primarily due to increased income from Aerospace Products activities[186]. Strategic Initiatives - The company launched a Strategic Capital Initiative on December 30, 2024, focusing on acquiring 737NG and A320ceo aircraft[153]. - The company expects to manage aircraft for and make minority investments in future partnerships under the Strategic Capital Initiative[154]. - The company acquired Lockheed Martin Commercial Engine Solutions to enhance its engine and module manufacturing capabilities[181]. - The company also acquired the remaining interest in Quick Turn Engine Center LLC, specializing in maintenance and testing for specific engine models[182]. - The company acquired a 50% equity interest in QuickTurn Europe, enhancing its engine services capabilities[183]. Asset Management - As of June 30, 2025, the company reported total consolidated assets of $4.1 billion and total equity of $164.9 million[147]. - As of June 30, 2025, the Aviation Leasing segment owns and manages 375 aviation assets, including 63 commercial aircraft and 312 engines[171]. - As of June 30, 2025, the aviation equipment was approximately 70% utilized, with a weighted average remaining lease term of 46 months for aircraft and 30 months for engines[172]. - Asset sales revenue decreased by $24.5 million for the three months ended June 30, 2025, due to a decrease in the number of sales transactions of commercial aircraft and engines[164]. - Proceeds from the sale of assets increased significantly to $986.5 million in the first half of 2025, up from $333.7 million in 2024[208]. Debt and Liquidity - As of June 30, 2025, the company had outstanding principal and interest payment obligations of $3.5 billion and $1.3 billion, respectively[206]. - Interest expense increased by $8.8 million for the three months ended June 30, 2025, reflecting an increase in average debt outstanding of approximately $657.4 million[170]. - The company expects to meet future short-term liquidity requirements through cash on hand, unused borrowing capacity, and net cash from current operations[210]. - The company is exposed to interest rate risk, particularly related to its Revolving Credit Facility, which is based on a variable interest rate index[214]. - Management believes adequate capital and borrowings are available to fund the company's commitments as required[210]. Shareholder Distributions - Distributions to shareholders, including cash dividends, were $71.4 million during the six months ended June 30, 2025, compared to $76.8 million in 2024[200]. - The company declared cash dividends totaling $123.0 million on ordinary shares and $25.9 million on preferred shares over the last twelve months[209]. - The company redeemed all outstanding Series B preferred shares at a price of $25.00 per share, plus $2.4 million in accumulated distributions[208]. Other Financial Metrics - Adjusted EBITDA increased by $133.9 million and $238.4 million for the three and six months ended June 30, 2025, compared to the prior year[169]. - Adjusted EBITDA for the three months ended June 30, 2025, increased by $74.3 million to $199.303 million[178]. - Adjusted EBITDA decreased by $9.1 million and $15.6 million during the three and six months ended June 30, 2025, respectively[196]. - Cash flows used in operating activities were $107.2 million for the six months ended June 30, 2025, compared to $165.3 million for the same period in 2024[208]. - Cash used for investments was $594.9 million during the six months ended June 30, 2025, compared to $563.1 million in the same period of 2024[200].
FTAI AVIATION(FTAIM) - 2025 Q2 - Quarterly Report