FTAI Aviation Conference Summary Company Overview - FTAI Aviation aims to be the largest aftermarket engine power provider in commercial aviation, focusing on the V2500 and CFM56 engines [2][5] - The company operates maintenance shops to rebuild engines and offers them for sale, exchange, or lease, providing flexibility and reducing maintenance burdens for airlines [3][4] Market Position and Growth - The annual market for V2500 and CFM56 engine maintenance is approximately $22 billion [5] - FTAI Aviation has increased its market share from 5% to 9% over the past year, with a goal of achieving 25% market share [6][5] - The company has over 100 customers, with a growing acceptance of its business model [5][6] Production and Capacity - FTAI operates three facilities in Montreal, Rome, and Miami, with a combined capacity of 600 engines or 1,800 modules per year [17] - The company aims to produce approximately 750 modules this year, with a target of 1,000 modules next year, reflecting a 33% growth rate [17][26] - Recent acquisitions and expansions in production capabilities are expected to drive growth [19][26] Financial Performance and Margins - FTAI targets a margin of over 40% in 2026, up from 34% at the start of the year [20] - The company generates margins through ownership of both assets and maintenance facilities, optimizing operations to achieve additional margin contributions [21][22] - EBITDA per module has increased from $500,000 to $750,000, with expectations for further growth [23][27] PMA Parts Strategy - FTAI is focused on integrating PMA (Parts Manufacturer Approval) parts into its modules, which could lead to significant cost savings [29][30] - The adoption of PMA parts is expected to drive further expansion in the market, with the third turbine blade certification anticipated to be a key driver [30][32] Strategic Partnerships and Future Outlook - FTAI has established a partnership with Pratt for the V2500 engine, allowing for full overhauls and access to new parts [45][46] - The company is on track to acquire 250 aircraft through its partnership with SCI, with 145 already committed or closed [52][53] - FTAI aims to maintain a capital-light structure, focusing on generating free cash flow while minimizing investments in leasing assets [59][63] Conclusion - FTAI Aviation is positioned for significant growth in the aftermarket engine power sector, with a strong focus on customer satisfaction, production efficiency, and strategic partnerships to enhance its market presence and financial performance [2][5][66]