FTAI Aviation's Q2 2025 Performance and Strategic Growth Justify Buy Rating: Analyst

FTAI Aviation's Q2 2025 performance exceeded expectations with an adjusted EBITDA of $347 million, surpassing the anticipated $284 million. The company also raised its free cash flow guidance for FY 2025 to $750 million, indicating a positive outlook. Strategic initiatives, such as asset acquisitions and the ramp-up of its Rome facility, further strengthen its market position.

FTAI Aviation Ltd. (NASDAQ: FTAI) reported its financial results for the second quarter of 2025, showcasing robust performance that exceeded market expectations. The company reported a net income of $161.689 million, up 80% compared to the first quarter of 2025, with earnings per ordinary share (EPS) of $1.58, a significant increase from the first quarter [1].

The company's adjusted EBITDA of $347.805 million surpassed the anticipated $284 million, reflecting strong operational efficiency and profitability. This performance was driven by a 26% increase in adjusted EBITDA from the first quarter to $164.9 million, primarily due to a significant ramp-up in production of CFM56 modules by 33% compared to the previous quarter [1].

FTAI Aviation also announced strategic initiatives that are set to bolster its market position. The company acquired 100% equity of Pacific Aerodynamic, a specialist in CFM56 compressor blade and vane repairs, expanding its repair capabilities. Additionally, the company's Rome facility has been ramping up production, contributing to the overall growth in the Aerospace Products segment [1].

The company's free cash flow guidance for fiscal year 2025 was raised to $750 million, indicating a positive outlook for the remainder of the year. FTAI Aviation also reported a strong financial position with $302 million in cash and $400 million available from its corporate revolving credit facility [1].

The SCI Partnership, a joint venture with a leading aircraft leasing company, is on track to deploy $4 billion of capital in 2025, with 145 aircraft now owned or under letters of intent compared to a target of 250 in total. This partnership is expected to drive significant growth for FTAI Aviation [1].

FTAI Aviation's Chairman and CEO, Joe Adams, stated, "FTAI delivered an excellent quarter, generating over $400 million in positive Adjusted Free Cash Flow. We ended the period in a strong financial position with $302 million in cash and $400 million fully undrawn from our corporate revolving credit facility." He further added, "Our Aerospace Products segment continued to perform, with 81% year-over-year growth in Adjusted EBITDA in Q2 2025 and an increase in market share to approximately 9% on an annualized basis, up from 5% last year. We remain confident in our ability to reach our long-term market share goal of 25%." [1]

The company's stock has shown resilience, reflecting investor confidence in its strategic initiatives and strong financial performance. FTAI Aviation's Q2 2025 results indicate a promising outlook for the remainder of the year, positioning the company for continued growth in the aerospace industry [1].

References:
[1] https://ir.ftaiaviation.com/news-releases/news-release-details/ftai-aviation-ltd-reports-second-quarter-2025-results-declares