10-KPeriod: FY2025

FTAI Aviation Ltd. Annual Report, Year Ended Dec 31, 2025

Filed February 27, 2026For Securities:FTAIFTAIMFTAIN

Summary

FTAI Aviation Ltd. reported a significant increase in total revenues to $2.51 billion for the year ended December 31, 2025, up from $1.73 billion in the prior year, primarily driven by robust growth in its Aerospace Products segment. This segment saw a substantial jump in revenue by $520.6 million, fueled by increased engine and module sales, alongside new MRE contract revenue generated from the 2025 Partnership. The Aviation Leasing segment experienced a slight revenue decrease, mainly due to a reduction in asset sales. The company's operational efficiency improved with a 27% increase in Adjusted EBITDA to $1.19 billion, reflecting strong performance across both core segments. FTAI Aviation also successfully managed its operational costs, despite increased expenses in the Aerospace Products segment, which were largely offset by the absence of the significant one-time internalization fee paid in the prior year. The company's balance sheet shows total assets of $4.4 billion and total equity of $334.2 million as of December 31, 2025.

Financial Highlights

52 data points
Beta

Revenue

$2.51B

46.2% Gross Margin

Net Income

$501.06M

20.0% Net Margin

EPS (Diluted)

$4.60

Total Assets

$4.37B

Cash & Equivalents

$300.63M

Free Cash Flow

-$338.46M

Financial Statements
Beta
Revenue$2.51B
Cost of Revenue$1.35B
Gross Profit$1.16B
Operating Expenses$1.77B
Net Income$501.06M
EPS (Basic)$4.66
EPS (Diluted)$4.60
Shares Outstanding (Basic)102.56M
Shares Outstanding (Diluted)103.85M

Key Highlights

  • 1Total revenues increased significantly by 45% to $2.51 billion in 2025, driven by strong performance in the Aerospace Products segment.
  • 2Adjusted EBITDA grew by 38% to $1.19 billion, indicating improved operational profitability.
  • 3Aerospace Products revenue surged by 48% to $1.94 billion, boosted by engine and module sales and MRE contracts.
  • 4The Aviation Leasing segment reported revenues of $571 million, a slight decrease of 9% from the prior year, primarily due to lower asset sales.
  • 5The company announced the launch of its Strategic Capital Initiative in late 2024, a move towards an asset-light business model for future growth, with its first partnership raising $2 billion in equity commitments.
  • 6FTAI Aviation completed the internalization of its management functions, leading to the cessation of management and incentive fees.
  • 7The company continues to hold a significant number of aviation assets, with 47 aircraft and 243 engines on its books as of December 31, 2025.

Frequently Asked Questions

The primary driver of FTAI Aviation's significant revenue growth in 2025 was the robust performance of its Aerospace Products segment, which experienced a substantial increase in engine and module sales, along with new MRE contract revenue generated from the 2025 Partnership. This segment's revenue grew by 48% to $1.94 billion.

The Strategic Capital Initiative, launched in late 2024, represents a strategic shift towards an asset-light business model. The first partnership under this initiative, the 2025 Partnership, raised $2.0 billion in equity commitments and focuses on acquiring narrowbody aircraft. While the full financial impact will unfold over time, it allows FTAI to manage third-party capital for investments, potentially reducing its own capital outlays while generating management and servicing fees.

As of December 31, 2025, FTAI Aviation Ltd. reported total consolidated assets of $4.37 billion and total equity of $334.2 million. The company had total debt of $3.45 billion, with interest expenses of $247.8 million for the year. The company's liquidity appears sufficient, with $300.5 million in cash and cash equivalents.

Key risks identified include macroeconomic uncertainties affecting the aviation industry, potential customer defaults, the competitive landscape for asset acquisition and services, risks associated with joint ventures and strategic partnerships, and the impact of geopolitical events. Additionally, the company is exposed to interest rate fluctuations and changes in regulatory environments. The company also notes risks related to its Strategic Capital Initiative, including market, liquidity, and valuation risks.