10-QPeriod: Q2 FY2026

FTAI Aviation Ltd. Quarterly Report for Q2 Ended Jun 30, 2026

Filed July 31, 2026For Securities:FTAIFTAIMFTAIN

Summary

FTAI Aviation Ltd. reported a mixed financial performance for the six months ended June 30, 2026, with significant revenue growth primarily driven by its Aerospace Products segment, while the Aviation Leasing segment experienced a decline. Total revenues surged by approximately $605.5 million, largely attributed to a substantial increase in aerospace product sales, including engines and modules, and MRE Contract revenue related to the 2025 Partnership. However, Lease income and Maintenance revenue within the Aviation Leasing segment saw a decrease, impacted by a reduced number of revenue-generating assets on lease and the sale of certain assets to the 2025 Partnership. Despite the top-line growth, net income attributable to shareholders saw a slight increase of $142 thousand year-over-year, indicating pressure on profitability due to increased cost of sales and operating expenses. The company's liquidity remains a key focus, with cash used in operating activities increasing significantly. FTAI Aviation continues to manage its capital through debt, asset sales, and its strategic capital initiative, aiming to maintain an asset-light model. Investors should monitor the ongoing strategic initiatives, the performance of the Aerospace Products segment, and the impact of market conditions on the Aviation Leasing segment.

Key Highlights

  • 1Total revenues increased by $605.5 million for the six months ended June 30, 2026, compared to the prior year, primarily driven by a $529.7 million increase in Aerospace Products revenue and a $233.8 million rise in MRE Contract revenue.
  • 2The Aerospace Products segment showed robust growth with net income attributable to shareholders increasing by $137.8 million, reflecting strong demand for engines and modules.
  • 3The Aviation Leasing segment experienced a revenue decrease of $158.0 million for the six months ended June 30, 2026, mainly due to declines in Lease Income and Maintenance Revenue.
  • 4Net income attributable to shareholders for the six months ended June 30, 2026, was $251.8 million, a slight increase of $0.1 million from the prior year's $251.7 million.
  • 5Cash used in operating activities increased by $129.0 million for the six months ended June 30, 2026, compared to the same period in 2025, indicating higher cash outflows for operations.
  • 6The company successfully managed its debt obligations, with total debt remaining relatively stable at approximately $3.45 billion as of June 30, 2026.
  • 7FTAI Aviation continues to advance its Strategic Capital Initiative, including the 2025 Partnership, to facilitate an asset-light business model for acquiring on-lease aircraft.

Frequently Asked Questions

The primary driver of FTAI Aviation's revenue growth in the first half of 2026 is the substantial increase in its Aerospace Products segment, particularly in the sales of CFM56-5B, CFM56-7B, and V2500 engines and modules, along with MRE Contract revenue from sales to the 2025 Partnership.

The Aviation Leasing segment's revenue declined due to fewer revenue-generating assets on lease, leading to decreases in Lease Income and Maintenance Revenue. Additionally, the sale of certain 'Seed Assets' to the 2025 Partnership and a general decrease in aircraft and engine sales transactions also contributed to the decline.

FTAI Aviation's cash used in operating activities increased significantly in the first half of 2026. The company is managing its liquidity through debt financing, asset sales, and its Strategic Capital Initiative, which aims to maintain an asset-light model. Despite the increase in operating cash outflows, the company believes it has sufficient liquidity to meet its cash needs through existing cash, borrowing capacity, and future financings.

The Strategic Capital Initiative, including the 2025 Partnership, continues to be a key strategic focus. The 2025 Partnership is the primary buyer of on-lease narrowbody aircraft (737NG and A320ceo). FTAI Aviation acts as the Servicer for this partnership, providing aircraft management services and receiving market-based compensation. The company also made minority capital commitments to the 2025 Partnership and anticipates similar roles in future partnerships.