FTAI Aviation(US:FTAI)2025-10-29 20:17Financial Performance - For the three months ended September 30, 2025, total revenues increased by 43.1% to $667.1 million compared to $465.8 million in the same period of 2024[159]. - Net income attributable to shareholders for the nine months ended September 30, 2025, was $365.6 million, compared to a loss of $118.8 million in 2024[159]. - Total revenues increased by $201.3 million for the three months ended September 30, 2025, and by $609.3 million for the nine months ended September 30, 2025, primarily driven by aerospace products revenue, which increased by $406.6 million[161]. - Net income attributable to shareholders increased by $31.2 million for the three months ended September 30, 2025, and by $479.3 million for the nine months ended September 30, 2025[167]. - Adjusted EBITDA increased by $65.4 million for the three months ended September 30, 2025, and by $303.7 million for the nine months ended September 30, 2025[168]. - Net income attributable to shareholders increased by $54.8 million for the three months ended September 30, 2025, totaling $148.6 million compared to $93.8 million in 2024, a growth of 58.5%[187]. - Adjusted EBITDA for the three months ended September 30, 2025, increased by $78.6 million, reaching $180.4 million compared to $101.8 million in 2024, a rise of 77.1%[188]. Revenue Breakdown - Aerospace products revenue for the nine months ended September 30, 2025, was $1.1 billion, up 55.9% from $737.7 million in 2024[159]. - Aerospace products revenue for the three months ended September 30, 2025, increased by $155.7 million, mainly due to a $145.7 million increase in CFM56-5B, CFM56-7B, and V2500 engine and module sales[162]. - MRE Contract revenue increased by $58.7 million for the three months ended September 30, 2025, primarily due to increased engine and module sales[185]. Expenses and Costs - The company incurred total expenses of $1.3 billion for the nine months ended September 30, 2025, an increase of 11% from $1.2 billion in 2024[159]. - Total expenses increased by $149.7 million for the three months ended September 30, 2025, primarily due to a $143.4 million increase in cost of sales[163]. - Total expenses for the three months ended September 30, 2025, increased by $138.4 million, totaling $343.2 million compared to $204.8 million in 2024, a growth of 67.6%[186]. - Interest expense increased by $25.9 million, reflecting higher expenses from various senior notes, partially offset by decreases in other notes[202]. Asset Management - As of September 30, 2025, total consolidated assets were $4.2 billion and total equity was $252.5 million[147]. - As of September 30, 2025, the Aviation Leasing segment owned and managed 323 aviation assets, including 48 commercial aircraft and 275 engines[170]. - The company has eight aircraft and seventeen engines still located in Russia, with an insured value of $210.7 million[151]. - The company acquired Lockheed Martin Commercial Engine Solutions to enhance its aerospace products segment and establish permanent engine and module manufacturing capabilities[181]. - The company acquired a 50% equity interest in QuickTurn Europe, enhancing its engine services capabilities[183]. Taxation - The provision for income taxes increased by $19.0 million for the three months ended September 30, 2025, and by $87.2 million for the nine months ended September 30, 2025, primarily due to higher income generated in the Aerospace Products segment[164]. - The provision for income taxes increased by $5.6 million for the three months ended September 30, 2025, primarily due to changes in income from leasing activities[176]. - The provision for income taxes increased by $22.4 million for the three months ended September 30, 2025, totaling $26.8 million compared to $4.4 million in 2024[186]. Strategic Initiatives - The Strategic Capital Initiative launched on December 30, 2024, aims to acquire 737NG and A320ceo aircraft, allowing the company to maintain an asset-light business model[153]. - The company expects to manage aircraft for and make minority investments in future partnerships under the Strategic Capital Initiative[199]. Cash Flow and Investments - Cash used for investments was $757.4 million during the nine months ended September 30, 2025, compared to $1.0 billion in the same period of 2024[203]. - Proceeds from the sale of assets were $1.375 billion during the nine months ended September 30, 2025, compared to $542.9 million in 2024[203]. - Cash flows used in operating activities were $89.8 million for the nine months ended September 30, 2025, compared to $108.7 million in 2024[203]. Impairments and Losses - The company recognized an impairment charge of $120.0 million for leasing equipment assets due to the impact of sanctions related to Russia's invasion of Ukraine[150]. - Net loss attributable to shareholders was $72.3 million for the three months and $232.5 million for the nine months ended September 30, 2025, showing a decrease of $286.4 million compared to the prior period[191]. Interest Rate Sensitivity - The company’s borrowing agreements are tied to variable interest rate indices like SOFR, which may lead to increased debt costs without a corresponding rise in rents or cash flow[216]. - A sensitivity analysis indicates that changes in interest rates could impact the company's financial condition, but it is limited by various factors and should not be viewed as a forecast[217]. - As of September 30, 2025, a hypothetical 100-basis point increase or decrease in the variable interest rate on borrowings would not affect interest expense over the next 12 months[218].