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]