10-QPeriod: Q1 FY2026

FTAI Aviation Ltd. Quarterly Report for Q1 Ended Mar 31, 2026

Filed May 1, 2026For Securities:FTAIFTAIMFTAIN

Summary

FTAI Aviation Ltd. (FTAI) reported a significant increase in total revenues to $830.7 million for the three months ended March 31, 2026, up from $502.1 million in the prior year period. This growth was primarily driven by a substantial rise in Aerospace Products revenue, which more than doubled, and a strong increase in MRE Contract revenue, both benefiting from increased engine and module sales, particularly to the 2025 Partnership. Despite the revenue surge, total expenses also increased considerably, largely due to higher cost of sales aligning with increased sales volumes. Net income attributable to shareholders rose to $134.2 million from $89.9 million in the prior year, indicating improved profitability. The company's balance sheet shows total assets of $4.5 billion and total equity of $431.7 million as of March 31, 2026. The company highlighted sufficient liquidity and is actively evaluating potential transactions and financings.

Financial Highlights

49 data points
Beta

Revenue

$830.70M

36.9% Gross Margin

Net Income

$137.90M

16.6% Net Margin

EPS (Diluted)

$1.29

Total Assets

$4.53B

Cash & Equivalents

$412.39M

Free Cash Flow

-$166.72M

Financial Statements
Beta
Revenue$830.70M
Cost of Revenue$524.27M
Gross Profit$306.43M
Operating Expenses$660.32M
Net Income$137.90M
EPS (Basic)$1.31
EPS (Diluted)$1.29
Shares Outstanding (Basic)102.58M
Shares Outstanding (Diluted)104.26M

Key Highlights

  • 1Total revenues increased by 65.5% to $830.7 million in Q1 2026 compared to $502.1 million in Q1 2025.
  • 2Aerospace Products revenue saw a substantial increase of 97.6% to $522.6 million, driven by higher engine and module sales.
  • 3MRE Contract revenue nearly doubled, increasing by 120.3% to $221.2 million, attributed to increased sales to the 2025 Partnership.
  • 4Net income attributable to shareholders grew by 49.2% to $134.2 million for the first quarter of 2026.
  • 5Adjusted EBITDA (a non-GAAP measure) increased by 21.2% to $325.6 million.
  • 6The company's balance sheet shows total assets of $4.53 billion and total equity of $431.7 million as of March 31, 2026.
  • 7FTAI reported that it has sufficient liquidity and is evaluating potential financing transactions.

Frequently Asked Questions

The substantial increase in total revenues was primarily driven by a significant rise in Aerospace Products revenue, which more than doubled, and a strong increase in MRE Contract revenue. Both segments benefited from higher sales volumes of CFM56-5B, CFM56-7B, and V2500 engines and modules, particularly from sales to the 2025 Partnership.

Net income attributable to shareholders increased by 49.2% to $134.2 million for the three months ended March 31, 2026, compared to $89.9 million in the same period of 2025. This improvement reflects the strong revenue growth, although it was partially offset by a proportional increase in expenses.

FTAI Aviation Ltd. reported having sufficient liquidity to meet its cash needs. The company is actively evaluating potential transactions and financings, including debt and equity offerings, within the next 12 months. They believe they have access to adequate capital and borrowings to fund their commitments and strategic opportunities.

The 2025 Partnership has had a significant positive impact, particularly on MRE Contract revenue and Aerospace Products revenue, due to increased engine and module sales to the partnership. Additionally, asset sales revenue and lease income in the Aviation Leasing segment have been affected by sales to the 2025 Partnership, with the sale of Seed Assets impacting lease revenue. The company also provides aircraft management services to the 2025 Partnership, contributing to 'Other revenue'.