Financial Data and Key Metrics Changes - In Q4 2025, adjusted EBITDA reached $277.2 million, a 10% increase from $252 million in Q4 2024 [24] - For the full year 2025, adjusted EBITDA was $1.2 billion, up 38% from $862 million in 2024 [24] - The company generated $724 million of adjusted free cash flow in 2025, exceeding the original guidance of $650 million [27] Business Line Data and Key Metrics Changes - Aerospace products generated $195 million of Q4 adjusted EBITDA at a 35% margin, a 66% year-over-year increase [7] - For the full year, aerospace products delivered $671 million of adjusted EBITDA, aligning with the revised target of $650 million to $700 million [25] - Aviation leasing posted approximately $113 million of adjusted EBITDA in Q4, including $20 million from SCI management fees [26] Market Data and Key Metrics Changes - Total maintenance spend is expected to grow at a double-digit rate to approximately $25 billion per annum, up from $22 billion projected last year [9] - The company aims to achieve a 25% market share in the aerospace aftermarket through new and repeat customers [10] Company Strategy and Development Direction - The company launched the Strategic Capital Initiative (SCI), raising $2 billion in equity commitments for acquiring narrow-body aircraft [5] - Plans to start investing from SCI Two by June 30, 2026, with an anchor equity commitment already in place [12] - The company is revising its 2026 production target upward from 1,000 to 1,050 modules, representing a 39% growth compared to 2025 [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the updated guidance for 2026, expecting total EBITDA of $1.625 billion, up from $1.525 billion [31] - The company anticipates strong demand and a robust production pipeline, with significant growth opportunities in both aerospace and power sectors [34] Other Important Information - The company announced an increase in its quarterly dividend from $0.35 to $0.40 per share, marking its 43rd dividend as a public company [33] - The integration of Palantir's AI platform is expected to enhance productivity and optimize the supply chain [15] Q&A Session Summary Question: On aerospace products margins and support from PMA blades - Management discussed initiatives to grow margins from 35% to 40%, including access to lower-cost parts and enhanced repair capabilities [38] Question: On FTAI Power and production ramp-up - Management confirmed confidence in achieving 100 units of production by 2027, leveraging existing infrastructure and workforce [42] Question: On sourcing environment for SCI One and SCI Two - Management highlighted a favorable sourcing environment, focusing on high engine shop visit intensity assets [50] Question: On the power initiative and delivery ramp - Management indicated plans for a smooth ramp-up in production, with multiple locations considered for assembly [82] Question: On margins in the power business - Management expects margins in the power business to be as good or better than those in aerospace products, leveraging nearly fully depreciated assets [88]

Financial Data and Key Metrics Changes - In Q4 2025, adjusted EBITDA reached $277.2 million, a 10% increase from $252 million in Q4 2024, with aerospace products contributing $195 million and leasing segment $113.2 million [24][25] - For the full year 2025, adjusted EBITDA was $1.2 billion, up 38% from $862 million in 2024 [24][25] - The company generated $724 million of adjusted free cash flow in 2025, exceeding original guidance of $650 million [27] Business Line Data and Key Metrics Changes - Aerospace products segment generated $195 million of adjusted EBITDA in Q4 2025, with a 35% margin, up 66% year-over-year [6][25] - Leasing segment produced approximately $113 million of adjusted EBITDA in Q4 2025, including $20 million from SEI management fees [25][26] - For the full year, aerospace products delivered $671 million of adjusted EBITDA, aligning with revised targets [25] Market Data and Key Metrics Changes - The total maintenance spend in the aerospace market is expected to grow at a double-digit rate to approximately $25 billion annually, up from $22 billion projected last year [9] - The company aims to achieve a 25% market share in the aerospace aftermarket through new and repeat customers [10] Company Strategy and Development Direction - The company launched the Strategic Capital Initiative (SCI), raising $2 billion in equity commitments for acquiring narrow-body aircraft, positioning itself for market leadership [4][5] - Plans to start investing from SCI Two by June 30, 2026, with an anchor equity commitment already in place [12][13] - The company is integrating AI-driven insights to optimize operations and reduce downtime, enhancing productivity [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a total EBITDA of $1.625 billion for 2026, up from previous guidance of $1.525 billion, driven by strong demand and operational efficiencies [30] - The company anticipates continued growth in both aerospace products and leasing segments, with a focus on high-return opportunities [31][32] Other Important Information - The company announced an increase in quarterly dividends from $0.35 to $0.40 per share, marking its 43rd dividend as a public company [32] - The company is targeting approximately $250 million of working capital to support its new power initiative, with significant investments in inventory and facility readiness [19][20] Q&A Session Summary Question: On aerospace products margins and support from PMA blades - Management discussed three key factors for margin growth: PMA HPT blades, lower-cost parts supplies, and enhanced piece part repair capabilities [36][37] Question: On FTAI Power and production ramp-up - Management confirmed confidence in achieving production targets for the power initiative, leveraging existing infrastructure and workforce [40][41] Question: On sourcing environment for SEI One and SEI Two - Management highlighted a favorable sourcing environment for narrow-body aircraft, with a focus on high engine shop visit intensity [46][49] Question: On the impact of OEM supply chain struggles - Management noted that the durability and reliability of existing fleets are driving demand, with no significant negative impact from supply chain issues [77] Question: On margins in the power business - Management expects margins in the power business to be as good or better than those in aerospace products, citing unmatched input costs and repair capabilities [88]

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 ...