[PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Unaudited Consolidated Financial Statements](index=5&type=section&id=Item%201.%20Unaudited%20Consolidated%20Financial%20Statements%20of%20FTAI%20Aviation%20Ltd.) The unaudited statements show significant revenue growth and a return to profitability in H1 2025, driven by the Aerospace Products segment [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$4,101,075** | **$4,037,952** | | Cash and cash equivalents | $301,911 | $115,116 | | Leasing equipment, net | $1,849,116 | $2,373,730 | | Inventory, net | $752,866 | $551,156 | | **Total Liabilities** | **$3,936,131** | **$3,956,584** | | Long-term debt, net | $3,444,612 | $3,440,478 | | **Total Shareholders' Equity** | **$164,944** | **$81,368** | - Key changes from year-end 2024 include a **significant increase in cash and inventory**, a decrease in net leasing equipment, and a **doubling of shareholders' equity**[14](index=14&type=chunk) [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | **$676,237** | **$443,594** | **$1,178,317** | **$770,288** | | Aerospace products revenue | $420,686 | $245,200 | $685,111 | $434,257 | | MRE Contract revenue | $69,585 | $— | $170,223 | $— | | **Total Expenses** | **$465,753** | **$606,189** | **$816,875** | **$839,949** | | Internalization fee to affiliate | $— | $300,000 | $— | $300,000 | | **Net Income (Loss) Attributable to Shareholders** | **$161,689** | **$(228,205)** | **$251,633** | **$(196,918)** | | **Diluted EPS** | **$1.57** | **$(2.26)** | **$2.44** | **$(1.96)** | - The company reported a significant turnaround in profitability, driven by a **52% YoY increase in total revenues for Q2 2025** and the absence of the **$300 million internalization fee** paid in Q2 2024[16](index=16&type=chunk) [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Consolidated Cash Flow Summary (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(136,284) | $(187,636) | | Net cash provided by (used in) investing activities | $496,148 | $(219,383) | | Net cash (used in) provided by financing activities | $(173,069) | $485,748 | | **Net increase in cash** | **$186,795** | **$78,729** | - Investing activities shifted from a net use of cash to a significant source of cash, primarily due to **$397.1 million in proceeds from asset sales** to the 2025 Partnership and **$589.3 million from other asset sales**[22](index=22&type=chunk) - Financing activities became a net use of cash, mainly due to **lower debt proceeds ($430M vs $1.84B YoY)** and a **$124.2 million redemption of preferred shares** in 2025[24](index=24&type=chunk) [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) - On May 28, 2024, the company **terminated its external management agreement** and internalized its management functions, involving a **$150.0 million cash payment** and share issuance[31](index=31&type=chunk) - The company launched a Strategic Capital Initiative, creating the "2025 Partnership" to acquire aircraft, selling **37 aircraft to this partnership in H1 2025 for a gain of $45.5 million**[47](index=47&type=chunk)[48](index=48&type=chunk) - In September 2024, the company **acquired Lockheed Martin Commercial Engine Solutions (LMCES) for $170.0 million** to enhance its MRE business[66](index=66&type=chunk) Segment Net Income (Loss) Attributable to Shareholders (in thousands) | Segment | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Aviation Leasing | $183,457 | $95,377 | | Aerospace Products | $240,225 | $151,308 | | Corporate and Other | $(160,164) | $(443,603) | | Eliminations | $(11,885) | $— | | **Total** | **$251,633** | **$(196,918)** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes improved financial results to strong Aerospace Products performance, the elimination of external management fees, and a new asset-light strategy [Results of Operations](index=36&type=section&id=Results%20of%20Operations) Consolidated Results of Operations Summary (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | **$676,237** | **$443,594** | **$1,178,317** | **$770,288** | | **Net Income (Loss) Attributable to Shareholders** | **$161,689** | **$(228,205)** | **$251,633** | **$(196,918)** | | **Adjusted EBITDA (Non-GAAP)** | **$347,805** | **$213,904** | **$616,363** | **$378,005** | - Total revenues for H1 2025 increased by **$408.0 million YoY**, primarily due to a **$250.9 million increase in Aerospace products revenue** and **$170.2 million from new MRE Contract revenue**[166](index=166&type=chunk) - Total expenses for H1 2025 decreased by **$23.1 million YoY**, mainly because of the **$300.0 million internalization fee incurred in 2024**[166](index=166&type=chunk) [Segment Analysis](index=41&type=section&id=Segment%20Analysis) Aviation Leasing Segment Results (in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total Revenues | $322,979 | $319,747 | | Net Income Attributable to Shareholders | $183,457 | $95,377 | | Adjusted EBITDA (Non-GAAP) | $361,292 | $229,788 | Aerospace Products Segment Results (in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total Revenues | $855,334 | $434,257 | | Net Income Attributable to Shareholders | $240,225 | $151,308 | | Adjusted EBITDA (Non-GAAP) | $295,809 | $161,517 | - The **Aerospace Products segment nearly doubled its revenue** in H1 2025 compared to H1 2024, driven by strong engine and module sales and the new MRE contract[185](index=185&type=chunk) [Liquidity and Capital Resources](index=48&type=section&id=Liquidity%20and%20Capital%20Resources) - The company launched a Strategic Capital Initiative to maintain an **asset-light model**, with partnerships acquiring on-lease aircraft while FTAI acts as servicer[197](index=197&type=chunk) - Principal uses of liquidity include aircraft/engine acquisitions, shareholder dividends, and debt service, while sources are revenues, asset sales, and borrowings[198](index=198&type=chunk)[201](index=201&type=chunk) Historical Cash Flow Summary (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(136,284) | $(187,636) | | Net cash provided by (used in) investing activities | $496,148 | $(219,383) | | Net cash (used in) provided by financing activities | $(173,069) | $485,748 | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=49&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk from its variable-rate debt, though no borrowings were outstanding as of June 30, 2025 - The company's main market risk exposure is to **interest rate fluctuations** on its variable-rate debt, primarily the Revolving Credit Facility[214](index=214&type=chunk) - As of June 30, 2025, there were **no outstanding borrowings on the floating rate debt**, meaning a hypothetical 100-basis point interest rate change would have no immediate impact[217](index=217&type=chunk) [Item 4. Controls and Procedures](index=50&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls during the quarter - The CEO and CFO concluded that the company's **disclosure controls and procedures were effective** as of the end of the quarter[218](index=218&type=chunk) - **No material changes** occurred during the fiscal quarter that affected the company's internal control over financial reporting[219](index=219&type=chunk) [PART II - OTHER INFORMATION](index=50&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=51&type=section&id=Item%201.%20Legal%20Proceedings) The company does not expect current legal proceedings to have a material adverse effect on its business or financial results - Management does not anticipate that current or threatened legal proceedings will have a **material adverse effect** on the company's financial results[221](index=221&type=chunk) [Item 1A. Risk Factors](index=51&type=section&id=Item%201A.%20Risk%20Factors) The company identifies key business, taxation, and share-related risks, including macroeconomic uncertainty, reliance on specific engine types, and its past PFIC status - Business risks include macroeconomic conditions, geopolitical instability, industry oversupply, and **high concentration in CFM56/V2500 engines**[223](index=223&type=chunk)[225](index=225&type=chunk)[226](index=226&type=chunk)[236](index=236&type=chunk) - The new Strategic Capital Initiative introduces risks such as market, liquidity, and **potential conflicts of interest** in allocating investment opportunities[248](index=248&type=chunk)[251](index=251&type=chunk) - Taxation risks are significant, with the company having been a **Passive Foreign Investment Company (PFIC) in 2022 and 2023**, which has lingering adverse U.S. tax implications[296](index=296&type=chunk)[297](index=297&type=chunk) - Share-related risks include market price volatility, potential dilution, and **anti-takeover provisions** that could deter a change in control[305](index=305&type=chunk)[312](index=312&type=chunk)[319](index=319&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=66&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities during the period - None[321](index=321&type=chunk) [Item 3. Defaults Upon Senior Securities](index=66&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities during the period - None[321](index=321&type=chunk) [Item 5. Other Information](index=66&type=section&id=Item%205.%20Other%20Information) There is no other information to report for the period - None[321](index=321&type=chunk) [Item 6. Exhibits](index=66&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including governance documents, debt agreements, and officer certifications

Core Insights - Ftai Aviation reported strong Q2 2025 earnings, with diluted EPS of $1.57, exceeding analyst estimates of $1.29, and GAAP revenue of $676.2 million, up 52.5% year-over-year from $443.6 million in Q2 2024, indicating robust growth in aerospace products and effective execution of its asset-light strategy [1][2][5] Financial Performance - Q2 2025 GAAP net income attributable to shareholders surged to $161.7 million, a significant recovery from a loss of $228.2 million in Q2 2024 [2][5] - Adjusted EBITDA (non-GAAP) increased to $347.8 million, reflecting a 62.6% rise compared to $213.9 million in Q2 2024 [2][5] - Aerospace Products revenue reached $420.7 million in Q2 2025, up from $245.2 million, with an EBITDA margin of 39% [6][7] Business Overview - Ftai Aviation specializes in aircraft engine modules, particularly the CFM56 model, and offers asset management services including aircraft leasing and engine maintenance [3] - The company has focused on scaling production of CFM56 engine modules and enhancing repair operations, supported by partnerships like the Strategic Capital Initiative (SCI) [4] Production and Market Share - CFM56 engine module production increased to 184 units in Q2 2025, a 33% rise from the previous quarter, leading to an estimated market share increase to 9% from 5% year-over-year [8] - Management aims to achieve a 25% market share in the CFM56 module market in the coming years [8] Strategic Initiatives - The SCI partnership expanded to include 145 aircraft, up from 98, with a goal of 250 by the end of 2025, facilitating asset sales and fee-based income [9] - The company made a strategic acquisition of Pacific Aerodynamic, enhancing its repair capabilities for key engine components [12] Outlook - Management maintains a full-year EBITDA target of $1.1–1.15 billion for FY2025, with plans to invest approximately $200 million in parts inventory to support increased module output [14] - The company continues to prioritize growth capital expenditures and debt reduction, with potential for increased dividends or share buybacks as leverage decreases [15]

All right, Weiss has some moves. Maybe this first one won't surprise anybody. You You sold UNH.Yeah, as I said, I I I sold um I had to stop one. So, I stopped selling it at 287 and it went uh 267 rather and it went straight through. You defended it numerous times. You bought more on numerous occasions.What finally changed your mind. I just think it's going to be dead money. I think the management's doing all the right things.Um I have a very small position left. Not because I wanted to, instead because it w ...

Core Insights - FTAI Aviation reported a revenue of $676.24 million for the quarter ended June 2025, marking a year-over-year increase of 52.5% and an EPS of $1.57 compared to $0.26 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $754.75 million, resulting in a surprise of -10.4%, while the EPS exceeded expectations by 18.05% [1] Revenue Breakdown - Aerospace products revenue reached $420.69 million, surpassing the three-analyst average estimate of $390.3 million, with a year-over-year change of +71.6% [4] - Aviation Leasing revenue was reported at $185.97 million, below the three-analyst average estimate of $308.04 million, showing a year-over-year change of +0.8% [4] - Asset sales revenue in Aviation Leasing was $47.92 million, significantly lower than the two-analyst average estimate of $281.25 million, reflecting a year-over-year decline of -33.9% [4] Adjusted EBITDA Performance - Adjusted EBITDA for Corporate and Other was reported at -$11.43 million, better than the three-analyst average estimate of -$18.59 million [4] - Adjusted EBITDA for Aerospace Products was $164.86 million, exceeding the average estimate of $150.4 million from three analysts [4] - Adjusted EBITDA for Aviation Leasing was $199.3 million, compared to the average estimate of $169.96 million from three analysts [4] Stock Performance - FTAI Aviation shares have returned +0.3% over the past month, while the Zacks S&P 500 composite has changed by +3.4% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $347.8 million in Q2 2025, up 30% from $268.6 million in Q1 2025 and up 63% from $213.9 million in Q2 2024 [19] - Adjusted free cash flow for the first half of 2025 was $370 million, exceeding the target of $350 million, with expectations to reach $750 million for the full year [14] - The company raised its EBITDA outlook for aviation leasing from $500 million to $600 million and for aerospace products from $600-650 million to $650-700 million for 2025 [15] Business Line Data and Key Metrics Changes - Aerospace products generated $165 million in adjusted EBITDA with a margin of 34%, reflecting a 26% increase from $130.9 million in Q1 2025 and an 81% increase from $91.2 million in Q2 2024 [21] - The leasing segment posted approximately $199 million of EBITDA, with the pure leasing component at $169 million, up from $152 million in Q1 2025 [20] - The company refurbished 184 CFM56 modules in Q2, a 33% increase from the previous quarter [11] Market Data and Key Metrics Changes - The company estimates its market share at 9%, approximately double from the previous year, with a long-term goal of reaching 25% [8] - The global demand for prebuilt engines and modules is increasing, providing a flexible and cost-effective alternative to traditional maintenance [9] Company Strategy and Development Direction - The company aims to expand its aerospace products margins to over 40% by 2026 through various strategies, including new procurement programs and the introduction of PMA parts [10][11] - The acquisition of Pacific Aerodynamic is expected to enhance operational efficiencies and further differentiate the company's offerings in the market [12] - The company is actively reviewing M&A opportunities to further enhance its capabilities and market position [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of the aerospace market, driven by the aging of aircraft and engines, which increases maintenance needs [18] - The company anticipates substantial growth in free cash flow in the coming years as it completes its pivot to an asset-light business model [14] - Management highlighted the positive reception from airline customers regarding their engine maintenance solutions, emphasizing the cost and risk advantages [41] Other Important Information - The company announced its 41st dividend as a public company, amounting to $0.30 per share, to be paid on August 19, 2025 [7] - The company has closed on additional equity partners for its Strategic Capital Initiative (SCI) and expects to invest $4 billion through the partnership [16] Q&A Session Summary Question: What are the margin improvements expected for Aerospace products in 2026? - Management indicated that margin improvements could be between 5 to 10 percentage points due to various factors, including new serviceable materials and PMA parts [25][26] Question: Can you elaborate on the Pacific Aerodynamic acquisition and its impact? - The acquisition is expected to save $50,000 per shop visit, leading to a payback period of about six months, enhancing the company's repair capabilities [27][28] Question: What is the customer reception of the modules and the potential for repeat business? - Customer feedback has been positive, with airlines recognizing the cost and risk advantages of outsourcing engine maintenance [41][42] Question: How does the company plan to address technician shortages? - The company has developed a training academy and immersive learning experiences to attract and train young technicians [48][50] Question: What is the outlook for the Strategic Capital Initiative? - Management is optimistic about the SCI's performance and plans to decide on a second initiative in the near future, given the current success [67][68] Question: What is the company's strategy regarding PMA parts? - The company is awaiting FAA approval for key PMA parts, which are expected to significantly contribute to cost savings [75] Question: How does the company view the value of legacy engines in the coming years? - Management expects a slowdown in growth but believes that market share gains and OEM price increases will drive future growth [104][106]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $347.8 million in Q2 2025, up 30% from $268.6 million in Q1 2025 and up 63% from $213.9 million in Q2 2024 [19] - The overall estimated EBITDA for 2025 has been raised from $1.1 billion to a new range of $1.25 billion to $1.3 billion [14] Business Line Data and Key Metrics Changes - Aerospace products generated $164.9 million in EBITDA with a margin of 34%, up 26% from $130.9 million in Q1 2025 and up 81% from $91.2 million in Q2 2024 [21] - The leasing segment posted approximately $199 million of EBITDA, with the pure leasing component at $169 million, an increase from $152 million in Q1 2025 [20] Market Data and Key Metrics Changes - The company estimates a market share of 9%, approximately double from the previous year, with a long-term goal of reaching 25% [7] - The demand for prebuilt engines and modules is growing globally, providing a cost-effective alternative to traditional maintenance [7] Company Strategy and Development Direction - The company is focusing on an asset-light business model, with plans to manage debt and achieve a strong BB rating by the end of the year [13] - The acquisition of Pacific Aerodynamic is expected to enhance operational efficiencies and further differentiate the company's offerings [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term sustainability of the aerospace products market, driven by the aging of current aircraft and engines [16] - The company anticipates significant growth in free cash flow in the coming years, with an adjusted free cash flow target increased from $650 million to $750 million for 2025 [13] Other Important Information - The company has executed a sizable engine exchange program with a major U.S. airline, which is expected to drive repeat business and higher volumes [8] - The company is actively reviewing other M&A opportunities in the global market [12] Q&A Session Summary Question: What are the margin improvements expected for Aerospace products? - Management indicated that margin improvements are expected to be multifaceted, with potential increases of 5 to 10 percentage points in 2026 due to various initiatives [26][27] Question: Can you elaborate on the Pacific Aerodynamic acquisition? - The acquisition is expected to provide significant savings and enhance the company's repair capabilities, with a payback period of about one year [29][30] Question: What is the customer reception for the CFM56 modules? - Customer reception has been positive, with airlines recognizing the benefits of outsourcing engine maintenance to avoid cost overruns [41][42] Question: How does the company view the Chinese market opportunity? - The company sees significant growth potential in the Chinese market, particularly for engine exchanges, due to the aging fleet and limited local capacity for shop visits [112][114] Question: What is the outlook for the Strategic Capital Initiative (SCI)? - The company is optimistic about the SCI's performance and plans to decide on SCI 2 in the near future, with a strong pipeline of activity [68][69]

Financial Performance - FTAI Aviation reported Q2 2025 Revenue of $676 million[10] - Net Income for Q2 2025 was $162 million[10] - Adjusted EBITDA for Q2 2025 reached $348 million[10] - The company generated $370 million in Adjusted Free Cash Flow in 1H 2025[10] Strategic Capital Initiative (SCI) - FTAI invested $109 million in 1H 2025 as a 20% minority equity interest in the 2025 Partnership[42] - SCI is targeting final closing by Q4 2025 and aims to deploy $4 billion in capital[42] - MRE Contract YTD Revenue from SCI reached $170 million[42] Aerospace Products - Q2 2025 Aerospace Products Revenue was $490 million, equivalent to an annualized ~9% industry market share[16] - Module production rose 33% to 184 CFM56 modules in Q2 2025[16] - Aerospace Products Adjusted EBITDA was $165 million in Q2 2025 with a 34% margin[11,27] Aviation Leasing - Aviation Leasing generated $199.3 million in Adjusted EBITDA for Q2 2025[11,64] - The company sold 45 aircraft to SCI from FTAI's balance sheet for approximately $475 million[44]

[Financial & Business Highlights](index=1&type=section&id=Financial%20%26%20Business%20Highlights) 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](index=5&type=chunk) - 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](index=5&type=chunk) - Production of CFM56 Modules ramped up significantly to **184 units** in Q2 2025, a **33% increase** versus the prior quarter[5](index=5&type=chunk) - FTAI expanded its repair capabilities by acquiring **100%** of Pacific Aerodynamic, a specialist in CFM56 compressor blade and vane repairs[5](index=5&type=chunk) [Dividend Declaration](index=1&type=section&id=Dividend%20Declaration) 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](index=2&type=section&id=Management%20Commentary%20%26%20Business%20Update) 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](index=6&type=chunk) - Annualized market share increased to approximately **9%**, up from **5%** in the previous year, with a long-term goal of **25%**[6](index=6&type=chunk) - 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](index=6&type=chunk) [Financial Statements](index=4&type=section&id=Financial%20Statements) Unaudited financial statements for Q2 2025 show a significant turnaround in profitability and a strengthened cash position [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) 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](index=5&type=section&id=Consolidated%20Balance%20Sheets) 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](index=6&type=section&id=Adjusted%20EBITDA%20Reconciliation) 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](index=8&type=section&id=Aerospace%20Products%20Segment%20Adjusted%20EBITDA) 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](index=8&type=section&id=Adjusted%20Free%20Cash%20Flow) 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](index=27&type=chunk) [Other Information](index=2&type=section&id=Other%20Information) This section provides investor details, including conference call information, company overview, and forward-looking statement disclaimers [Conference Call Information](index=2&type=section&id=Conference%20Call%20Information) 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](index=8&type=chunk)[9](index=9&type=chunk) [About FTAI Aviation Ltd.](index=2&type=section&id=About%20FTAI%20Aviation%20Ltd.) 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](index=11&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) 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](index=12&type=chunk)

Core Viewpoint - FTAI Aviation reported quarterly earnings of $1.57 per share, exceeding the Zacks Consensus Estimate of $1.33 per share, and showing significant growth from $0.26 per share a year ago, indicating a strong earnings surprise of +18.05% [1] Financial Performance - The company posted revenues of $676.24 million for the quarter ended June 2025, which was 10.4% below the Zacks Consensus Estimate, compared to $443.59 million in the same quarter last year [2] - Over the last four quarters, FTAI Aviation has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance - FTAI Aviation shares have declined approximately 20.6% since the beginning of the year, contrasting with the S&P 500's gain of 8.6% [3] - The current Zacks Rank for FTAI Aviation is 5 (Strong Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $1.24 on revenues of $593.54 million, and for the current fiscal year, it is $4.97 on revenues of $2.49 billion [7] - The trend of estimate revisions for FTAI Aviation was unfavorable prior to the earnings release, which may impact future stock movements [5][6] Industry Context - The Aerospace - Defense Equipment industry, to which FTAI Aviation belongs, is currently ranked in the bottom 38% of over 250 Zacks industries, suggesting potential challenges for stock performance [8]

Financial Overview - The company reported a net income attributable to shareholders of $161.7 million for Q2 2025, with basic earnings per share of $1.58 and diluted earnings per share of $1.57, representing an 80% increase compared to Q1 2025 [2][9] - Adjusted EBITDA for the quarter was $347.8 million, reflecting a 26% increase from Q1 2025 [2][9] Dividends - The Board declared a cash dividend of $0.30 per ordinary share for the quarter ended June 30, 2025, payable on August 19, 2025 [3] - Cash dividends for Series C and Series D Preferred Shares were declared at $0.51563 and $0.59375 per share, respectively, payable on August 15, 2025 [4] Business Highlights - The company generated over $400 million in positive Adjusted Free Cash Flow and ended the quarter with $302 million in cash and $400 million fully undrawn from its corporate revolving credit facility [6] - The Aerospace Products segment experienced 81% year-over-year growth in Adjusted EBITDA in Q2 2025, increasing its market share to approximately 9% from 5% the previous year [6] - The SCI Partnership is on track to deploy $4 billion of capital in 2025, with 145 aircraft owned or under letter of intent, compared to a target of 250 [6] Revenue Breakdown - Total revenues for Q2 2025 were $676.2 million, up from $443.6 million in Q2 2024 [17] - Aerospace products revenue was $420.7 million, while MRE Contract revenue was $69.6 million [17] Cash Flow - Adjusted Free Cash Flow for the three months ended June 30, 2025, was comprised of net cash used in operating activities of $(110.3) million, net cash provided by investing activities of $523.8 million, and an adjustment for a joint venture investment of $10.0 million [32]