What is FTAI Aviation's gross profit margin?

What is the revenue and EPS growth rate for FTAI Aviation year over year?

What factors drove the changes in FTAI Aviation's revenue and profit?

What is the market's earnings forecast for FTAI Aviation next quarter?

What does FTAI Aviation do and what are its main business segments?

Did FTAI Aviation beat or miss consensus estimates last quarter?

What were the key takeaways from FTAI Aviation's earnings call?

What guidance did FTAI Aviation's management provide for the next earnings period?

- **SCI Expansion**: $6B deployment target, 19% equity stake, and 375 aircraft portfolio highlight strategic capital initiative success.
- **Aerospace Dominance**: 77% YoY EBITDA growth to $180M, 35% margin, and 207 modules refurbished, positioning for 25% market share.
- **Acquisition Impact**: ATOPS ($15M) adds 150 modules/year; Bauer JV saves $75K/shop visit, driving 2026 margin expansion to 40%+.
- **Financial Strength**: $638M free cash flow year-to-date, $1B 2026 target, and 42nd dividend increase to $0.35/share.
- **Growth Outlook**: 2026 EBITDA $1.525B (Aerospace $1B, Leasing $525M), reflecting asset-light model and SCI scalability.

**【CEO Summary】**
- **SCI Expansion**: Upsized total equity capital to $2B, targeting $6B deployment (double original $3B goal). 190 aircraft closed/under LOI, with full deployment by mid-2026. MRE agreement ensures fixed engine exchanges, generating predictable cash flows for LPs.
- **Aerospace Products Growth**: Q3 EBITDA of $180M (35% margin), up 77% YoY. 207 CFM56 modules refurbished, on track for 750 in 2025. Acquired ATOPS for $15M, adding 150 modules/year and a European logistics hub. JV with Bauer for $75K savings per shop visit.
- **Free Cash Flow & Dividends**: Q3 free cash flow $268M, year-to-date $638M. Dividend increased to $0.35/share, 42nd consecutive payout.
- **2026 Outlook**: Aerospace EBITDA $1B (vs. $650M-$700M in 2025), Leasing EBITDA $525M. Total EBITDA $1.525B, free cash flow $1B (33% increase vs. 2025 target).

**【CFO Financial Commentary】**
- **Q3 Financials**: Adjusted EBITDA $297.4M (28% YoY growth). Aerospace Products $180.4M (35% margin), Leasing $134.4M. Free cash flow $268M, including $88M from seed portfolio sale.
- **SCI Impact**: 19% equity interest in SCI generates $50.1M gains on seed portfolio sales. Servicing fees and minority equity offset declining on-balance sheet leasing.
- **Cash Flow Transition**: Moving to industrial accounting, operating cash flow includes asset sales proceeds ($722M for 9 months ended Q3).

**【Q&A Highlights】**
- **SCI Demand**: Investors prefer lower residual risk, higher cash flows. 375 aircraft target exceeds United's CFM fleet. FTAI's role as servicer enhances cross-selling opportunities.
- **ATOPS & Bauer JV**: ATOPS adds 150 modules/year, Bauer JV saves $75K/shop visit. Both acquisitions driven by margin expansion and capacity needs.
- **Asset Management Model**: Targeting $20B in managed assets. Management fees (1%+ incentive) and minority equity returns (low double digits) create dual earnings streams.
- **V2500 Program**: Halfway through 5-year deal, demand driven by GTF grounding. Expect continued growth in performance restorations.
- **2026 Margins**: Aerospace Products targeting 40%+ margins via PMA approvals and component repair vertical integration.

FTAI Aviation Ltd. (FTAI) Q3 2025 Earnings Call Transcript

- **Revenue and Margin Growth**: Aerospace Products EBITDA up 81% YoY to $165M (34% margin), driven by 33% QoQ module production increase to 184 units.
- **Strategic Acquisitions Pay Off**: $15M Pacific Aerodynamic acquisition delivers 1-year payback via $15M annual savings in blade repair.
- **Free Cash Flow Surges**: First-half $370M vs. $350M target, with 2025 target raised to $750M.
- **2026 Margin Target**: 40%+ margins via PMA part approvals, new repair capabilities, and scale efficiencies.
- **Chinese Market Expansion**: Rome joint venture targets engine exchanges for Chinese airlines, supported by CAAC license.
- **SCI 2 on Track**: Likely launched in Q3/Q4 2025, with SCI 1 50% aircraft investment target met and 50+ airline customers engaged.

**【CEO Summary Section】**
- **Revenue Growth and Market Share Expansion**: Aerospace Products reported $165M in adjusted EBITDA (34% margin), with market share doubling to 9% year-over-year. The company aims for 25% long-term market share.
- **Strategic Acquisitions**: Acquired Pacific Aerodynamic for $15M, enabling $15M annual savings through blade repair capabilities. Also closed a 50% joint venture in Rome (QuickTurn Europe) to expand into the Chinese market via CAAC license.
- **Free Cash Flow and Dividends**: Generated $370M in first-half free cash flow, raising 2025 target to $750M. Announced a $0.30 dividend for August 2025.
- **Production Ramp-Up**: Refurbished 184 CFM56 modules (+33% QoQ), with Montreal facility reducing turnaround time to 66 days. Rome facility expects 100 modules in 2025.
- **MRE Agreement Growth**: SCI contributed $70M in Q2 Aerospace Products revenue, 20% of first-half total. SCI's $4B 2025 investment target is 50% met with 145 aircraft under LOI.

**【CFO Financial Commentary】**
- **Q2 EBITDA**: Total $347.8M (+30% QoQ, +63% YoY), with Leasing ($199M) and Aerospace Products ($165M) driving growth. Aerospace margin improved to 34% vs. 26% in Q1.
- **Free Cash Flow**: First-half $370M vs. $350M target, with $380M expected in H2. 2025 EBITDA raised to $1.25B-$1.3B from $1.15B.
- **Leverage and Capital Allocation**: Targeting BB credit rating by year-end. Share buybacks and dividends likely as surplus cash is identified.

**【Q&A Highlights】**
- **Margin Expansion**: 2026 margins expected to reach 40%+ via PMA part approvals, new repair capabilities (e.g., Pacific Aerodynamic), and scale efficiencies.
- **Production Constraints**: Technician shortages addressed through training academies and AR simulations in Montreal and Rome.
- **Chinese Market Opportunity**: Rome joint venture leverages CAAC license to target engine exchanges for Chinese airlines, with initial customer engagement.
- **SCI 2 Outlook**: Likely launched in Q3/Q4 2025, with SCI 1 returns in line with expectations and 50+ airline customers engaged.
- **Debt Management**: No maturities until 2028; evaluating refinancing opportunities as cost of debt decreases.


FTAI Aviation Ltd. (FTAI) Q2 2025 Earnings Call Transcript

- **Record Q1 EBITDA Growth**: $268.6 million (7% QoQ, 64% YoY), driven by 36% margin in aerospace products.
- **SCI Strategic Win**: 20% of 2025 aerospace EBITDA allocated to SCI, with no demand trade-off.
- **Free Cash Flow Strength**: $350 million H1 target despite $200 million parts inventory investment.
- **Market Share Ambition**: 25% of engine restoration market by scaling to 200+ modules/quarter.
- **Debt Reduction Path**: 3x net leverage by year-end, setting stage for shareholder returns.

**【CEO Opening Remarks】**
- FTAI reported Q1 2025 adjusted EBITDA of $268.6 million, up 7% QoQ and 64% YoY, driven by aerospace products and leasing segments.
- Aerospace Products segment generated $130.9 million EBITDA (36% margin), with 138 CFM56 modules refurbished across Montreal and Miami facilities.
- Free cash flow guidance for H1 2025 is $300-350 million, targeting $650 million for the full year.
- SCI partnership progress: 30 aircraft acquired, with plans to deploy $4 billion+ in capital by year-end.
- Market share expansion goal: increase from 5% to 25% of engine restoration market.

**【CFO Financial Highlights】**
- Leasing segment contributed $162 million EBITDA, including $30 million Russian assets settlement.
- Aerospace Products segment margin improved 12% QoQ to 36%, with $130.9 million EBITDA.
- Q1 2025 GAAP net income: $420 million; Non-GAAP EPS exceeded expectations at $1.08.
- Adjusted free cash flow generation: $234 million from aviation equipment sales, with $440 million expected from SCI asset sales by Q2.

**【Q&A Key Takeaways】**
- **SCI Program Impact**: 20% of 2025 aerospace products EBITDA allocated to SCI, with no cannibalization of third-party demand. Expected to represent ~20% of annual activity moving forward.
- **Tariff Mitigation**: No material negative impact on business; operational flexibility across Montreal, Miami, and Rome facilities minimizes risk.
- **Production Ramp-Up**: Montreal facility to increase module production from 77 in Q1 to 90-100 in Q2, supporting 25% market share goal.
- **PMA Adoption**: Positive performance data driving PMA part acceptance; SCI partnership enhances residual value assurance for lessors.
- **Debt Reduction**: Targeting 3x net leverage by year-end, enabling shareholder returns (dividends/buybacks) if growth capex needs subside.

FTAI Aviation (FTAI)-1 May 25-2025 Q1 Earnings call transcript

- **Record Growth**: 2024 EBITDA up 44% to $862M, 2025 target $1.1B-$1.15B, 2026 outlook $1.4B.
- **SCI Breakthrough**: $2.5B debt commitment, $1B+ deals secured, targeting $4B annual SPV deployment.
- **Margin Expansion**: 34% Aerospace Products margin in Q4, 2025 targeting 35%-50% EBITDA margin range.
- **PMA Payoff**: Exclusive PMA access driving 5-10% margin uplift, 100,000+ hours of PMA part performance in service.
- **Global Expansion**: Rome facility adds European/Middle East capacity, Chinese certification for APAC growth.

**【CEO Opening Remarks】**
- Announced 39th dividend ($0.30/share) and 54th consecutive dividend since inception.
- Highlighted market opportunity: 600+ small/medium airlines with CFM56/V2500 engines, $22B annual maintenance spend.
- Emphasized green time optimization strategy: acquiring unserviceable engines, refurbishing modules, and reassembling right-sized engines.
- 2025 EBITDA guidance: $1.1B-$1.15B (excluding corporate), 2026 target: $1.4B.
- SCI update: $2.5B debt commitment from ATLAS, $1B+ deals already committed in 2025.

**【CFO Financial Highlights】**
- Q4 2024 EBITDA: $252M (up 9% QoQ, 55% YoY), full year 2024: $862M (44% YoY growth).
- Leasing segment: $134M Q4 EBITDA, 2024 total: $500M.
- Aerospace Products: $117M Q4 EBITDA (34% margin), 2024 total: $381M.
- 2025 free cash flow target: $650M, driven by SCI and reduced capital needs.

**【Q&A Key Takeaways】**
- **Competitive Moat**: Exclusive PMA access, scale in module optimization, and SCI institutional capital partnership.
- **SCI Capital Structure**: 70% debt ($2.8B), 20% FTAI equity ($240M), 80% third-party LPs for remaining equity.
- **Profit Drivers**: Green time optimization (mathematical scale benefits), PMA adoption (5-10% margin uplift), and SCI backlog visibility.
- **Rome Facility**: 40% European customer base, test cell reactivation, and Chinese certification for expansion.
- **2025 Margin Outlook**: 35%-50% EBITDA margin potential through module efficiency, PMA, and SCI synergies.

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