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1. Company Snapshot

1.a. Company Description

FTAI Aviation Ltd.owns and acquires infrastructure and related equipment for the transportation of goods and people worldwide.It operates through two segments, Aviation Leasing and Aerospace Products.


The Aviation Leasing segment owns and manages aviation assets, including aircraft and aircraft engines, which it leases and sells to customers.As of December 31, 2022, this segment owned and managed 330 aviation assets consisting of 106 commercial aircraft and 224 engines, including four aircraft and one engine that were located in Ukraine, and eight aircraft and seventeen engines that were located in Russia.The Aerospace Products segment develops, manufactures, repairs, and sells aircraft engines and aftermarket components for aircraft engines.


The company was founded in 2011 and is headquartered in New York, New York.

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1.b. Last Insights on FTAI

Breaking News: FTAI Aviation Ltd recently made headlines in a report titled 3 High Risk Stocks That Soared in 2025 But Can Still Fly Higher released on 2026 02 06. The growing sentiment that high risk stocks particularly some high growth tech stocks will be out of favor in 2026 was noted. Investors are advised to be cautious. No recent earnings release data is available. Analysts at various firms have not publicly released a buy hold or sell recommendation for FTAI Aviation Ltd based on the provided data.

1.c. Company Highlights

2. FTAI's Q3 Earnings: Strong Performance and Growth Prospects

The company reported a robust financial performance in Q3, with adjusted EBITDA margin of 35% in Aerospace Products, generating $180 million, up 77% year-over-year. The actual EPS came out at $1.1, slightly below estimates of $1.19. Revenue growth is expected to be 23.0% next year, according to analysts' estimates. The company's adjusted free cash flow was $268 million, including $88 million from the sale of the final 8 aircraft from the 45 aircraft seed portfolio. Year-to-date, FTAI has generated $638 million in positive free cash flow, positioning it on track to meet its revised goal of $750 million for all of 2025.

Publication Date: Oct -31

📋 Highlights
  • SCI Equity Upsizing:: Final equity commitments closed at $2 billion, with FTAI co-investing ~$380M (19% stake), aiming to deploy $6 billion in capital via 2025 partnership, doubling the 2023 target.
  • Aerospace EBITDA Growth:: Generated $180M adjusted EBITDA (35% margin) in Q3, up 77% YoY, driven by MRE adoption and CFM56 module production of 207 units (13% QoQ increase).
  • Module Production Expansion:: Targeting 1,000 CFM56 modules in 2025 (33% growth), supported by $15M ATOPS acquisition and a 50-50 joint venture with Bauer, Inc., projecting $75K per engine savings.
  • Free Cash Flow Momentum:: Q3 FCF of $268M (including $88M from aircraft sales), with $638M year-to-date toward a $750M 2025 target, ahead of SCI 1 expansion.
  • EBITDA Guidance Raised:: 2025 EBITDA now targeting $1.25–$1.3B (Aerospace: $650–$700M, Aviation Leasing: $600M), with 2026 EBITDA up to $1.525B (+10% growth).

Business Segment Performance

Aerospace Products delivered another strong performance, driven by the adoption of FTAI's aerospace products across new and existing customers. The company refurbished 207 CFM56 modules this quarter, a 13% increase versus the last quarter, and remains on track to produce 750 modules in 2025. The acquisition of ATOPS, an MRO with extensive CFM56 engine operations, is expected to strengthen FTAI's presence in Miami.

Growth Prospects and Outlook

FTAI is confident in its full-year 2025 estimates of $1.25 billion to $1.3 billion business segment EBITDA. For 2026, the company is estimating $1 billion in EBITDA for Aerospace Products and $525 million in EBITDA for Aviation Leasing, resulting in total business segment EBITDA of $1.525 billion, up from the original estimate of $1.4 billion. As David Moreno noted, "We're one of the larger pools of capital focused solely on NGs and CEOs, and we expect to capture a significant share of the market."

Valuation and Dividend

With a P/E Ratio of 40.6 and an EV/EBITDA ratio of 19.82, the market seems to be pricing in significant growth prospects for FTAI. The company's ROE is 358.03%, indicating high profitability. FTAI has also announced an increase in its dividend to $0.35 per share, representing a Dividend Yield of 0.64%. The company's ROIC is 20.84%, suggesting efficient use of capital.

Strategic Initiatives

FTAI's strategic capital initiative #1 (SCI) has seen significant interest from institutional investors, with the total equity capital of the 2025 partnership upsized to $2 billion. The company expects to deploy over $6 billion in capital through the 2025 partnership, up from the previous target of $4 billion. This expanded partnership corresponds to a larger total portfolio size of approximately 375 aircraft, with full deployment of capital now anticipated by mid-2026.

3. NewsRoom

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3 High-Risk Stocks That Soared in 2025 But Can Still Fly Higher

Feb -06

Source: marketbeat.com

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Tourlite Capital Fourth Quarter 2025 Gainers & Detractors

Feb -05

Source: seekingalpha.com

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Aviation Leader Harnesses Aerospace Tailwinds as Stock Surges 170%

Feb -03

Source: zacks.com

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How Palantir and GE Aerospace Helped FTAI Aviation Stock Soar in January

Feb -03

Source: fool.com

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Why FTAI Aviation Stock Jumped 36.7% in 2025 and Can Fly Higher in 2026

Feb -02

Source: fool.com

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Harbor Small Cap Growth Fund Q4 2025 Portfolio Performance

Jan -30

Source: seekingalpha.com

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Meet the Under-the-Radar AI Stock and Palantir Partner That's Up 219%

Jan -25

Source: fool.com

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Willis Lease Finance: Shift To Asset-Light Model Should Drive Shares Higher

Jan -13

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.36%)

6. Segments

Aviation Leasing

Expected Growth: 8.5%

FTAI Aviation Ltd's 8.5% growth in aviation leasing is driven by increasing global air travel demand, rising aircraft replacement needs, and growing airline industry consolidation. Additionally, the company's diversified fleet, strong customer relationships, and efficient asset management capabilities contribute to its growth momentum.

Aerospace Products

Expected Growth: 5.77%

FTAi Aviation Ltd's 5.77% growth in Aerospace Products is driven by increasing demand for fuel-efficient aircraft, rising air travel, and growing military expenditures. Additionally, the company's focus on innovative products, such as lightweight composites and advanced avionics, has contributed to its growth. Furthermore, strategic partnerships and acquisitions have expanded its customer base and enhanced its market presence.

Corporate and Other

Expected Growth: 5.83%

FTAI Aviation Ltd's Corporate and Other segment growth of 5.83% is driven by increased demand for aviation services, strategic partnerships, and cost savings initiatives. Additionally, the company's diversification into new markets and expansion of its service offerings have contributed to the growth. Effective management of operating expenses and investments in digital transformation have also supported the segment's growth.

7. Detailed Products

Aircraft Leasing

FTA Aviation Ltd provides aircraft leasing services to airlines, offering a range of aircraft types and flexible lease terms to meet their operational needs.

Aircraft Trading

FTA Aviation Ltd facilitates the buying and selling of aircraft between airlines, lessors, and investors, providing market expertise and transaction management.

Aircraft Management

FTA Aviation Ltd offers comprehensive aircraft management services, including technical management, maintenance planning, and operational support.

Aircraft Maintenance

FTA Aviation Ltd provides aircraft maintenance services, including routine inspections, repairs, and modifications, to ensure aircraft airworthiness and safety.

Aircraft Parts Supply

FTA Aviation Ltd supplies aircraft parts and components to airlines, MROs, and other industry stakeholders, ensuring timely delivery and competitive pricing.

Aviation Consulting

FTA Aviation Ltd provides expert consulting services to airlines, airports, and aviation authorities, covering areas such as operations, safety, and strategy.

8. FTAI Aviation Ltd's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for FTAI Aviation Ltd is medium due to the availability of alternative modes of transportation, such as trains and buses, which can be used for shorter distances.

Bargaining Power Of Customers

The bargaining power of customers for FTAI Aviation Ltd is high due to the presence of a large number of customers who can easily switch to alternative airlines.

Bargaining Power Of Suppliers

The bargaining power of suppliers for FTAI Aviation Ltd is low due to the presence of multiple suppliers of aircraft and aviation fuel, which reduces their bargaining power.

Threat Of New Entrants

The threat of new entrants for FTAI Aviation Ltd is low due to the high barriers to entry, such as the need for significant capital investment and regulatory approvals.

Intensity Of Rivalry

The intensity of rivalry for FTAI Aviation Ltd is high due to the presence of several established airlines, which leads to intense competition in terms of prices, services, and routes.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 93.49%
Debt Cost 4.87%
Equity Weight 6.51%
Equity Cost 13.63%
WACC 5.44%
Leverage 1435.62%

11. Quality Control: FTAI Aviation Ltd passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Ryder System

A-Score: 5.9/10

Value: 7.2

Growth: 6.8

Quality: 3.0

Yield: 5.0

Momentum: 6.0

Volatility: 7.3

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FTAI Aviation

A-Score: 5.5/10

Value: 3.0

Growth: 4.7

Quality: 6.9

Yield: 6.0

Momentum: 6.0

Volatility: 6.7

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McGrath Rent

A-Score: 5.5/10

Value: 4.7

Growth: 7.7

Quality: 6.7

Yield: 4.0

Momentum: 2.0

Volatility: 8.0

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Avis Budget Group

A-Score: 5.2/10

Value: 8.6

Growth: 5.8

Quality: 3.9

Yield: 1.0

Momentum: 8.5

Volatility: 3.7

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Fortress Transportation

A-Score: 5.0/10

Value: 3.0

Growth: 4.7

Quality: 6.9

Yield: 6.0

Momentum: 6.0

Volatility: 3.3

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FTAI Aviation

A-Score: 4.6/10

Value: 3.0

Growth: 4.7

Quality: 6.9

Yield: 5.0

Momentum: 6.0

Volatility: 2.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

275.38$

Current Price

275.38$

Potential

-0.00%

Expected Cash-Flows