10-QPeriod: Q3 FY2025

FTAI Aviation Ltd. Quarterly Report for Q3 Ended Sep 30, 2025

Filed October 29, 2025For Securities:FTAIFTAIMFTAIN

Summary

FTAI Aviation Ltd. (FTAI) reported a significant increase in revenues for the nine months ended September 30, 2025, primarily driven by a substantial rise in Aerospace Products revenue due to increased engine and module sales. This growth was further bolstered by new MRE Contract revenue streams related to the 2025 Partnership. While total expenses also increased, largely due to higher cost of sales reflecting the revenue growth, the company achieved substantial net income and Adjusted EBITDA growth compared to the prior year's comparable period. The Aviation Leasing segment saw mixed results, with a decrease in lease income impacted by the sale of 'Seed Assets' but an increase in maintenance revenue. The Aerospace Products segment demonstrated robust performance, with significant revenue and profit increases. The company's liquidity appears adequate, supported by operating cash flows and asset sales, and it continues to explore strategic capital initiatives to maintain an asset-light model.

Financial Highlights

51 data points
Beta

Revenue

$667.06M

45.6% Gross Margin

Net Income

$117.72M

17.6% Net Margin

EPS (Diluted)

$1.10

Total Assets

$4.24B

Cash & Equivalents

$510.10M

Free Cash Flow

-$1.81M

Financial Statements
Beta
Revenue$667.06M
Cost of Revenue$362.92M
Gross Profit$304.14M
Operating Expenses$466.19M
Net Income$117.72M
EPS (Basic)$1.11
EPS (Diluted)$1.10
Shares Outstanding (Basic)102.57M
Shares Outstanding (Diluted)103.97M

Key Highlights

  • 1Total revenues increased by 49% for the nine months ended September 30, 2025, compared to the same period in 2024, reaching $1.845 billion.
  • 2Net income attributable to shareholders surged by over 200% to $365.6 million for the nine months ended September 30, 2025, compared to a net loss of $118.8 million in the prior year.
  • 3Aerospace Products revenue increased by 55% year-over-year to $1.144 billion for the nine months ended September 30, 2025.
  • 4The company generated substantial cash flows from investing activities, primarily driven by proceeds from asset sales, including significant sales to the 2025 Partnership.
  • 5FTAI Aviation Ltd. continues to strategically advance its 'Strategic Capital Initiative' with the 2025 Partnership, aiming for an asset-light business model.
  • 6The company reported strong Adjusted EBITDA growth, increasing by 50% to $913.7 million for the nine months ended September 30, 2025, compared to the prior year.

Frequently Asked Questions

The primary driver of FTAI Aviation's revenue growth is the significant increase in Aerospace Products revenue, which rose by 55% to $1.144 billion for the nine months ended September 30, 2025. This was primarily due to higher sales of CFM56-5B, CFM56-7B, and V2500 engines and modules, along with increased maintenance service revenues. The introduction of MRE Contract revenue from the 2025 Partnership also contributed significantly.

FTAI Aviation has experienced a substantial improvement in profitability. For the nine months ended September 30, 2025, the company reported a net income attributable to shareholders of $365.6 million, a significant turnaround from a net loss of $118.8 million in the same period of 2024. This improvement is reflected across both net income and Adjusted EBITDA, which grew by over 200% and 50%, respectively.

FTAI Aviation launched its Strategic Capital Initiative in collaboration with third-party institutional investors. The 2025 Partnership is the first initiative under this strategy, focused on acquiring 737NG and A320ceo aircraft. FTAI acts as the Servicer for this partnership, receiving market-based compensation, and also holds a minority investment. This initiative is intended to allow FTAI to maintain an asset-light business model.

The Aviation Leasing segment showed mixed results. While lease income decreased by $17.0 million for the nine months ended September 30, 2025, compared to the prior year, this was largely due to the sale of 'Seed Assets' to the 2025 Partnership. However, maintenance revenue increased by $18.2 million, driven by higher end-of-lease return compensation and recognition of maintenance deposits. Asset sales revenue decreased by $40.7 million due to a change in the product mix of assets sold.