Got a big closing bell. Jeffrey Gunlock as usual following the Fed share and then we're going to take you right up to those big earnings reports. Got some great guests, some shareholders.We'll cover all of that for you. Why it's final. >> FTA, you have to buy it when it's slightly dislocated as it is now.>> Okay, Carrie. >> Uh, next year just reported good quarter and now it's a data center play. >> Thank you very much, Liz Thomas.>> I think software gets chased into year end in this tech play. >> Joey Donu ...

Group 1 - The market is currently experiencing a dislocation, presenting potential buying opportunities for certain assets [1] - A company has reported a strong quarterly performance and is now positioned as a data center play, indicating a shift in its business focus [1] - There is an expectation that software stocks will see increased interest as the year-end approaches, suggesting a bullish sentiment in the tech sector [2] Group 2 - The upcoming Federal Reserve decision is a significant event that is influencing market sentiment and trading strategies [2]

Group 1 - The article discusses the coverage of FTAI Aviation Ltd. initiated in January, highlighting supply chain issues in the commercial aircraft sector [1] - The author emphasizes extensive experience in analyzing various industries, including airlines, oil, retail, mining, fintech, and ecommerce, along with macroeconomic and political factors [1] - The narrative includes a reflection on past crises, such as the dot-com bubble, 9/11, the great recession, and the COVID-19 pandemic, showcasing a broad base of experience applicable across multiple disciplines [1]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $297.4 million for Q3 2025, up 28% from $232 million in Q3 2024, and in line with Q2 2025 results [18][19] - Adjusted free cash flow for Q3 was $268 million, contributing to a year-to-date total of $638 million, on track to meet the revised goal of $750 million for 2025 [14][16] - The aerospace products segment generated $180.4 million in EBITDA with a margin of 35%, reflecting a 77% increase year-over-year [9][19] Business Line Data and Key Metrics Changes - Aerospace products segment saw a significant increase in EBITDA, reaching $180 million, up from $101.8 million in Q3 2024 [9][19] - The leasing segment posted approximately $134 million in adjusted EBITDA, with pure leasing component at $122 million for Q3 [20][21] - The company refurbished 207 CFM56 modules in Q3, a 13% increase from the previous quarter, and is on track to produce 750 modules in 2025 [10][13] Market Data and Key Metrics Changes - The company is targeting a total portfolio size of approximately 375 aircraft, with full capital deployment anticipated by mid-2026 [7] - The market for aircraft engine assets is characterized by a significant number of older aircraft being sold by lessors, creating opportunities for the company to acquire assets [35][36] Company Strategy and Development Direction - The company aims to pivot to an asset-light model focused on aerospace products and strategic capital, expecting substantial growth in free cash flow [15][16] - The successful launch of the Strategic Capital Initiative (SCI) is expected to create significant value and position the company for long-term earnings growth [5][7] - The company plans to continue launching additional SCI partnerships each year, enhancing returns for equity partners [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a market share of 25% in the engine aftermarket maintenance sector in the coming years [10] - The company anticipates total business segment EBITDA of $1.525 billion in 2026, up from the original estimate of $1.4 billion [17] - Management highlighted the importance of maintaining strong relationships with airline customers and the benefits of their Maintenance Repair Exchange (MRE) model [39][40] Other Important Information - The company announced an increase in the quarterly dividend from $0.30 to $0.35 per share, marking its 42nd dividend as a public company [15] - The acquisition of ATOPS for approximately $15 million is expected to enhance production capacity and operational efficiency [12][30] Q&A Session Summary Question: Financial implications of the upsizing of SCI - Management indicated that the upsizing will accelerate growth under SCI, potentially increasing its contribution to aerospace products volume from 20% to 25% [25][26] Question: Details on the ATOPS acquisition - The ATOPS acquisition is aimed at increasing production capacity ahead of needs, with a focus on synergy with existing facilities [28][30] Question: Availability of aircraft engine assets - Management noted that there is a significant supply of older aircraft being sold by lessors, providing opportunities for acquisition [35][36] Question: Treatment of SCI in financials - The 19% equity portion of SCI will be reflected in the equity income line and will also generate servicing revenue [40][41] Question: Guidance for 2026 - Management expects growth in both volume and margin, driven by new and existing customer orders [68][70] Question: Management and performance fees for SCI - The asset management fee is market-based, typically around 1% of total assets, with incentive compensation tied to performance [76][77] Question: Long-term partnerships and margin impact - Future deals are expected to be similar to existing large programs, with margins improving as customer orders increase [84][86]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $297.4 million for Q3 2025, up 28% from $232 million in Q3 2024, and in line with Q2 2025 results [18][19] - Adjusted free cash flow for Q3 was $268 million, contributing to a year-to-date total of $638 million, with a target of $750 million for the full year [14][16] - The aerospace products segment generated $180.4 million in EBITDA, with a margin of 35%, reflecting a 77% year-over-year increase [9][19] Business Line Data and Key Metrics Changes - Aerospace products segment saw a significant increase in EBITDA, up 77% year-over-year, driven by strong global demand for pre-built engines [9][19] - The leasing segment posted approximately $134 million in adjusted EBITDA, with a pure leasing component of $122 million for Q3 [20][21] - The company refurbished 207 CFM56 modules in Q3, a 13% increase from the previous quarter, and is on track to produce 750 modules in 2025 [10][19] Market Data and Key Metrics Changes - The company is targeting a total portfolio size of approximately 375 aircraft, with full capital deployment anticipated by mid-2026 [6][7] - The company aims to achieve a 25% market share in the engine aftermarket maintenance sector in the coming years [10] Company Strategy and Development Direction - The company is pivoting to an asset-light model focused on aerospace products and strategic capital, with plans to launch additional SCI partnerships annually [15][16] - The acquisition of ATOPS for approximately $15 million is expected to enhance production capacity and operational efficiency [12][30] - The company is targeting growth in production to 1,000 CFM56 modules next year, a 33% increase compared to this year's production [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year 2025 estimates of $1.25 to $1.3 billion in business segment EBITDA, with significant growth expected in 2026 [16][17] - The company anticipates generating $1 billion in adjusted free cash flow in 2026, representing a 33% increase over the $750 million targeted for 2025 [17] Other Important Information - The company announced an increase in the quarterly dividend from $0.30 to $0.35 per share, marking its 42nd dividend as a public company [15] - The company is focused on enhancing margins and production capabilities through strategic acquisitions and partnerships [12][30] Q&A Session Summary Question: Financial implications of the upsizing of SCI - Management indicated that the upsizing will accelerate growth under SCI, potentially increasing its contribution to aerospace products volume from 20% to 25% [25][26] Question: Details on the ATOPS acquisition - The ATOPS acquisition is aimed at increasing production capacity ahead of needs, with a focus on synergy with existing facilities [28][30] Question: Availability of aircraft engine assets - Management noted that there is a significant supply of older aircraft being sold by lessors, which presents opportunities for acquisition [35][36] Question: Treatment of SCI in financials - The 19% equity portion of SCI will be reflected in the equity income line and will also generate servicing revenue [40][41] Question: Guidance for 2026 - Management expects growth in both volume and margins, driven by new and existing customer orders [68][70] Question: Management and performance fees for SCI - The asset management fee is market-based, typically around 1% or higher, with incentive compensation tied to performance [76][77] Question: Long-term partnerships and margin impact - Management anticipates continued growth in partnerships, with margins expected to improve to 40% next year [84][86]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $297.4 million for Q3 2025, a 28% increase from $232 million in Q3 2024, and consistent with Q2 2025 results after excluding one-time benefits [17][18] - Adjusted EBITDA from the aerospace product segment was $180.4 million, with a margin of 35%, up 77% year-over-year [17][18] - Year-to-date, the company generated $638 million in positive free cash flow, on track to meet the revised goal of $750 million for 2025 [12][15] Business Line Data and Key Metrics Changes - Aerospace products segment delivered $180 million in adjusted EBITDA, reflecting strong global demand for pre-built engines and modules [7][18] - The leasing segment posted approximately $134 million in adjusted EBITDA, with pure leasing component at $122 million for Q3 [19] - The company refurbished 207 CFM56 modules in Q3, a 13% increase from the previous quarter, and is on track to produce 750 modules in 2025 [8][11] Market Data and Key Metrics Changes - The company anticipates a total business segment EBITDA of $1.525 billion in 2026, up from the original estimate of $1.4 billion [16] - The aerospace products segment is expected to achieve EBITDA of $1 billion in 2026, significantly higher than the $650 to $700 million projected for 2025 [15][16] Company Strategy and Development Direction - The company successfully closed on the final round of equity commitments for its Strategic Capital Initiative (SCI), increasing total equity capital to $2 billion, with a target to deploy over $6 billion in capital through the partnership [4][5] - The company aims to achieve a 25% market share in the engine aftermarket maintenance sector in the coming years [8] - The acquisition of ATOPS for approximately $15 million is expected to enhance production capacity and operational efficiency [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth trajectory, emphasizing the strong demand for engine exchanges and the benefits of the Maintenance Repair Exchange (MRE) model [6][34] - The company expects to see margins grow to over 40% in the aerospace products segment next year, driven by optimized parts procurement and repair strategies [12][15] - Management highlighted the importance of maintaining a disciplined approach to capital allocation, focusing on high-impact growth initiatives [14][15] Other Important Information - The company announced an increase in the quarterly dividend from $0.30 to $0.35 per share, marking the 42nd dividend as a public company [14] - The company is actively pursuing investments in high-impact growth initiatives, with a focus on expanding margins and differentiating product offerings [13][14] Q&A Session Summary Question: Financial implications of the upsizing of SCI - Management indicated that the upsizing will accelerate growth under SCI, potentially increasing its contribution to aerospace products volume from 20% to 25% [24][25] Question: Details on the ATOPS acquisition - The ATOPS acquisition is aimed at increasing production capacity ahead of needs, with the main facility in Florida expected to process 150 modules [26][27] Question: Availability of aircraft engine assets - Management noted that there is a significant supply of older aircraft being sold by lessors, which presents opportunities for acquisition [31][32] Question: Treatment of SCI in financials - The 19% equity portion of SCI will be reflected in the equity income line and will contribute to adjusted EBITDA in the leasing segment [35][36] Question: Insights on the V2500 program - The company is halfway through its commitment to the V2500 program, with strong demand expected to continue [80]

FTAI AVIATION Q3 2025 Earnings Supplement OCTOBER 2025 Disclaimers IN GENERAL. This disclaimer applies to this document and the verbal or written comments of any person presenting it. This document, taken together with any such verbal or written comments, is referred to herein as the "Presentation." The information contained on, or accessible through, any websites included in this Presentation is not incorporated by reference into, and should not be considered a part of, this Presentation. FORWARD-LOOKING S ...

Core Insights - FTAI Aviation reported quarterly earnings of $1.1 per share, missing the Zacks Consensus Estimate of $1.19 per share, but showing an increase from $0.76 per share a year ago, resulting in an earnings surprise of -7.56% [1] - The company posted revenues of $667.06 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.69% and increasing from $465.79 million year-over-year [2] - FTAI Aviation shares have increased approximately 26.3% year-to-date, outperforming the S&P 500's gain of 15.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.30 on revenues of $705.33 million, and for the current fiscal year, it is $4.93 on revenues of $2.55 billion [7] - The estimate revisions trend for FTAI Aviation was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Aerospace - Defense Equipment industry, to which FTAI Aviation belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Another company in the same industry, Woodward, is expected to report quarterly earnings of $1.83 per share, reflecting a year-over-year increase of 29.8% [9]

Core Insights - FTAI Aviation Ltd. has successfully completed fundraising for its inaugural Strategic Capital Initiative vehicle, FTAI SCI I, reaching a hard cap of $2.0 billion in equity commitments, an increase from the original target of $1.5 billion [1][2] - FTAI SCI I is positioned to be the largest aircraft leasing vehicle focused on acquiring mid-life, current generation aircraft, with a total purchasing power exceeding $6 billion, including current and future debt financing [1][2] Company Strategy - The company made a strategic decision to launch an asset management business aimed at acquiring on-lease, mid-life aircraft, which has garnered support from a diverse group of institutional investors [2] - FTAI Aviation is recognized as a leader in aftermarket engine maintenance for CFM56 and V2500 engines and aims to become one of the largest lessors of these aircraft globally [2] Market Opportunity - The mid-life, current generation aircraft market is valued at approximately $300 billion and is in need of a well-capitalized buyer to support the engine requirements of airlines as they extend the operational life of their fleets [2] - FTAI's global engine maintenance capabilities will allow the company to leverage its aircraft investment expertise and operational strengths to provide attractive risk-adjusted returns for investors [2] Investment Progress - FTAI SCI I has already invested $1.4 billion in acquiring 101 aircraft and has an additional $2.1 billion of aircraft under contract, totaling 190 aircraft either closed or under letter of intent [2] - Full deployment of the vehicle is anticipated by the end of the first half of 2026 [2] Legal and Financial Advisory - Kirkland & Ellis LLP is serving as legal counsel for the formation of FTAI's Strategic Capital Initiative, while Lincoln International LLC is acting as financial advisor [3] Company Overview - FTAI Aviation Ltd. specializes in aftermarket power for CFM56 and V2500 engines, providing cost savings and flexibility to airlines through the lease, sale, and exchange of refurbished engines and modules [4] - The company also manages and co-invests in on-lease narrowbody aircraft in partnership with institutional investors through its Strategic Capital Initiative [4]

Financial Overview - The company reported a net income attributable to shareholders of $114.0 million for Q3 2025, representing a 46% increase compared to Q3 2024 [8] - Basic earnings per ordinary share were $1.11, while diluted earnings per share were $1.10 [2] - Adjusted EBITDA for the quarter was $297.4 million, reflecting a 65% increase from the previous year [8] Dividends - The Board declared a cash dividend of $0.35 per share for Q3 2025, up from $0.30 in the previous quarter [3] - Cash dividends for Series C and Series D Preferred Shares were declared at $0.52 and $0.59 per share, respectively [4] Business Highlights - The company experienced strong growth in the Aerospace Products segment, leading to an increase in guidance for 2026 Adjusted EBITDA from $1.4 billion to $1.525 billion [6][8] - The Strategic Capital Initiative's inaugural vehicle raised $2.0 billion in equity commitments, allowing the company to target over $6 billion in aircraft purchases [6][8] - A definitive agreement was announced to acquire ATOPS MRE to expand MRE operations in Miami [8] Revenue Breakdown - Total revenues for Q3 2025 were $667.1 million, compared to $465.8 million in Q3 2024 [18] - Aerospace products revenue was $459.2 million, a significant increase from $303.5 million in the same quarter last year [18] - MRE contract revenue was $58.7 million, with lease income at $55.1 million [18] Balance Sheet Highlights - As of September 30, 2025, total assets were $4.24 billion, up from $4.04 billion at the end of 2024 [22] - Cash and cash equivalents increased to $509.9 million from $115.1 million [22] - Total liabilities stood at $3.99 billion, slightly up from $3.96 billion at the end of 2024 [22]