Financial Data and Key Metrics Changes - Total revenues for Q3 2025 reached a record $260.5 million, up 9.3% year over year, driven by strong organic growth in both single-family residential and multi-family commercial businesses [4][12] - Adjusted EBITDA for Q3 2025 was $79.1 million, representing an adjusted EBITDA margin of 30.4%, compared to $81.4 million and a 34.2% margin in the prior year [12][13] - Gross profit was $111.3 million, with a gross margin of 42.7%, down from a gross profit of $109.2 million and a 45.8% margin in the prior year [12][13] Business Line Data and Key Metrics Changes - Single-family residential revenue grew 3.4% year over year to a record $113.5 million, benefiting from pricing initiatives and market share gains [4][9] - Multi-family and commercial business revenue increased 14.3% year over year to a record $147 million, reflecting market share gains and project execution [5][8] - The backlog reached a record $1.3 billion, up over 20% year over year, indicating strong demand and project pipeline [5][8] Market Data and Key Metrics Changes - The company reported a healthy book-to-bill ratio of 1.3x for Q3, maintaining a ratio above 1.1x for 19 consecutive quarters [8] - The composition of the backlog has shifted towards high-end, large-sized projects, which are less sensitive to interest rate fluctuations [8][9] Company Strategy and Development Direction - The company is focused on geographic expansion and product diversification, with plans for a new fully automated facility in Florida to enhance manufacturing capabilities [10][11] - The board authorized an expansion of the share repurchase program to $150 million, reflecting confidence in the business and commitment to balanced capital allocation [6][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver exceptional shareholder value, supported by a strong balance sheet and record backlog [6][20] - The updated full-year 2025 financial guidance anticipates revenues in the range of $970 million to $990 million, reflecting approximately 10% growth at the midpoint [18][19] Other Important Information - The company generated operating cash flow of $40 million in Q3, driven by strong profitability and efficient working capital management [15][16] - Capital expenditures for the quarter were $18.8 million, with expectations for moderation through year-end [15][16] Q&A Session Summary Question: Context around 2026 double-digit growth visibility - Management highlighted a record backlog providing visibility, especially for larger projects, and growth driven by geographical expansion and vinyl product ramp-up [24] Question: Trends in aluminum costs and FX impacts - Management noted a significant increase in aluminum prices and U.S. aluminum premiums, with expectations for normalization as demand subsides [25][26] Question: Update on the vinyl business performance - The company expects vinyl business to grow significantly in 2026, with a complete product line and new dealer partnerships [28] Question: Pricing and tariff costs for 2026 - Management indicated that pricing adjustments have been implemented, and gross margins are expected to maintain a low to mid-40% range [33][34] Question: Capacity and CapEx for the new U.S. facility - The projected total cost for the new facility is around $350 million to $400 million, with a multi-year investment timeline [35][39] Question: Impact of slower invoicing in light commercial construction - Management estimated a $20 million reduction in revenue guidance, with half expected to shift to 2026 [43] Question: Market conditions for high-end space and backlog growth - The company is expanding geographically and capturing market share, particularly in Florida and other states [55]

Core Viewpoint - FTAI Aviation aims to be the largest provider of aftermarket engine power for the commercial aviation industry, focusing on the current generation 737NGs and A320CEO engines, which are widely used globally [1][2] Company Overview - FTAI Aviation operates as a vertically integrated company that owns and maintains airplanes, providing a full-service product that includes managing the entire asset class and maintenance activities [1] - The company offers airlines a combination of time and money savings, along with significant flexibility in their operations [1] Industry Position - FTAI Aviation positions itself as an outsourced engine maintenance provider for airlines that prefer not to manage maintenance in-house [2]

Financial Data and Key Metrics Changes - The company is on track to produce approximately $750 million in free cash flow for the year [70] - The company aims to achieve a strong BB rating from credit agencies, with a debt to total EBITDA ratio under three times [70] Business Line Data and Key Metrics Changes - The company has closed or is under letter of intent for 145 aircraft in its new leasing partnership, ahead of its target of 250 aircraft by year-end [8][9] - The goal for this year is to produce 750 modules across three facilities, with expectations to grow production to 1,000 modules by 2026 [27][28] Market Data and Key Metrics Changes - The addressable market for V2500 and CFM56 maintenance spend is approximately $22 billion annually, with the company currently holding about 9% market share, up from 5% a year ago [29] - The company expects to achieve a 25% market share in the future, indicating significant growth potential [29] Company Strategy and Development Direction - The company aims to be the largest provider of aftermarket engine power for the commercial aviation industry, focusing on the 737 NG and A320 engines [1][2] - The strategy includes vertical integration by owning maintenance facilities and managing the entire asset class, which differentiates it from traditional lessors and MROs [3][4] - Future partnerships and investments are planned annually, with a focus on maintaining good returns from the first partnership before proceeding to the next [12] Management's Comments on Operating Environment and Future Outlook - Management believes that the current aircraft market is tight, but they are confident in achieving return hurdles through efficient maintenance and inventory management [13][16] - The company sees a long-term demand for midlife aircraft, as airlines are extending the operational life of their fleets due to economic reasons [49][52] Other Important Information - The company has made strategic acquisitions, including Pacific Aerodynamic, to enhance its repair capabilities and reduce costs [35][36] - Management emphasizes the importance of solving customer problems, such as avoiding lengthy shop visits, which has led to positive customer reception and repeat business [40][42] Q&A Session Summary Question: How is the company achieving return hurdles in a tight aircraft market? - The company is achieving return hurdles primarily through efficient maintenance and inventory management, which allows for cost savings and quicker turnaround times [13][16] Question: What are the production goals and market share aspirations? - The company aims to produce 750 modules this year and grow to 1,000 modules by 2026, with a target of achieving a 25% market share in the future [27][29] Question: What is the company's capital allocation strategy? - The company plans to prioritize growth initiatives, including piece part repair and maintenance capacity investments, and may consider stock buybacks towards the end of the fourth quarter [70][71]

Financial Data and Key Metrics Changes - The company is on track to produce approximately $750 million in free cash flow for the year [66] - The company aims to achieve a strong BB rating from credit agencies, with a debt to total EBITDA ratio under three times [66] Business Line Data and Key Metrics Changes - The company has closed or is under letter of intent for 145 aircraft in its new leasing partnership, ahead of its target of 250 aircraft [8][9] - The goal for 2026 is to produce around 1,000 modules, representing a 33% growth in production [24] Market Data and Key Metrics Changes - The addressable market spend on V2500s and CFM56 engines is approximately $22 billion annually, with the company currently holding about 9% market share, up from 5% a year ago [26] - The company expects to achieve a market share of 25% or higher in the future [26] Company Strategy and Development Direction - The company aims to be the largest provider of aftermarket engine power for the commercial aviation industry, focusing on the 737 NG and A320 engines [1][2] - The strategy includes vertical integration by owning and maintaining engines, which differentiates it from traditional lessors and MROs [3][4] - Future growth initiatives include piece part repair and maintenance capacity investments, as well as potential acquisitions [67] Management's Comments on Operating Environment and Future Outlook - Management believes that the current aircraft market is tight, but they are confident in achieving return hurdles through efficient maintenance and inventory management [13][14] - The company sees significant opportunities in the market due to the aging fleet and the need for cost-effective maintenance solutions [48][50] Other Important Information - The company has made strategic acquisitions, including Pacific Aerodynamic, to enhance its repair capabilities and reduce costs [32][36] - The company is exploring the possibility of expanding its facilities geographically, particularly in Southeast Asia or the Middle East [28] Q&A Session Summary Question: How will the company achieve return hurdles in a tight aircraft market? - Management indicated that efficient maintenance and inventory management are key to achieving return hurdles, as they can provide immediate engine solutions to customers [13][14] Question: What are the production goals and market share aspirations? - The company aims to produce 750 modules this year and grow to 1,000 modules by 2026, targeting a market share of 25% [24][26] Question: What is the company's capital allocation strategy? - The company plans to prioritize growth initiatives, potential stock buybacks, and maintaining a strong credit rating [66][67]