FTAI Aviation Announces the Launch of FTAI Power: FTAI Adapts the World’s Largest Aircraft Engine Platform to Meet AI-Driven Power Demand

Rhea-AI Summary

FTAI Aviation (NASDAQ: FTAI) launched FTAI Power, a platform to convert CFM56 aircraft engines into aeroderivative gas turbines targeting data-center and AI hyperscaler demand. Production is expected to begin in 2026 and the adapted unit is a 25-megawatt turbine designed for finer output control and grid flexibility. FTAI cites over 1,000 engines in its fleet, >1,000,000 sq ft of maintenance facilities, and a broader CFM56 base of 22,000 engines produced as supply advantages. The company says it expects to produce >b>100 units annually and provide modular service support to maximize uptime.

Positive

• Production expected to begin in 2026
• 25-megawatt aeroderivative turbine specification
• Capacity target of >b>100 units annually
• Existing fleet of >b>1,000 engines and >b>1,000,000 sq ft maintenance facilities

Negative

• No disclosed signed commercial orders or contracts for FTAI Power
• Production is expected in 2026 but has not yet begun

Key Figures

Maintenance footprint over one million square feet Global maintenance facilities referenced for CFM56 support

Engine ownership billions of dollars of engines Value of CFM56 engine holdings supporting FTAI Power

CFM56 engines produced over 22,000 engines Installed base underpinning scale of aeroderivative turbine concept

FTAI engine fleet over 1,000 engines Existing CFM56 fleet available for conversion

Unit output 25 megawatts Power rating of each CFM56-based aeroderivative unit

Annual capacity over 100 units Stated potential annual delivery capacity for power turbines

Production start 2026 Expected start of FTAI Power turbine production

Current share price $172.83 Price before this AI power platform announcement

Market Reality Check

$225.95 Last Close

Volume Volume 361,822 is below the 20-day average of 711,463 (relative volume 0.51). low

Technical Price at $172.83 is trading above the 200-day MA of $139.34 and 11.08% below the 52-week high.

Peers on Argus

FTAI was down 0.78% while key peers like AER, UHAL, URI, AL, and GATX also showed modest declines between about 0.12% and 1.4%, suggesting broader softness but without confirmed sector-wide momentum.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Nov 17	AI partnership	Positive	-3.5%	Multi-year partnership with Palantir to deploy AI platform across maintenance footprint.
Oct 27	Capital vehicle	Positive	+1.7%	Completed fundraising to <b>$2.0B</b> equity commitments for aircraft acquisitions.
Oct 27	Earnings & dividend	Positive	+1.7%	Strong Q3 results, dividend increase, and raised 2026 Adjusted EBITDA guidance.
Oct 13	Airline partnership	Positive	+0.9%	Perpetual Power Agreement with Finnair covering 36 CFM56-5B engine exchanges.
Sep 15	Earnings timing	Neutral	+0.5%	Announcement of Q3 2025 earnings release date and conference call schedule.

Pattern Detected

Recent news, especially partnerships and capital initiatives, often led to modest single-digit moves, with one notable negative reaction to an AI-focused partnership despite positive framing.

Recent Company History

Over the last few months, FTAI reported strong Q3 2025 results with higher dividends and raised 2026 Adjusted EBITDA guidance, alongside a strategic capital vehicle reaching $2.0B of equity commitments and over $6B intended deployment. It added airline-focused partnerships such as the Finnair Perpetual Power Agreement and a multi-year AI-driven maintenance partnership with Palantir, plus ongoing earnings communications. Today’s AI-linked power platform launch extends this pattern of leveraging CFM56 assets and maintenance capabilities into adjacent, capital-intensive opportunities.

Market Pulse Summary

The stock surged +14.4% in the session following this news. A strong positive reaction aligns with the company’s strategy of monetizing its large CFM56 base into adjacent markets. Prior AI-related and partnership news sometimes produced mixed moves, as seen with the Palantir deal’s -3.47% reaction, so sustained strength would have contrasted with that pattern. Investors would likely have focused on the stated ability to deliver over 100 units annually at 25 megawatts each, while watching execution risk and capital needs for scaling this new platform.

Key Terms

aeroderivative technical

"making it an ideal candidate for aeroderivative conversion which will further extend"

An aeroderivative is a type of gas turbine adapted from aircraft jet-engine technology for use in power plants and industrial drives; think of it like a high-performance car engine reworked to run a generator. Investors care because these turbines start quickly, are compact and modular, and can be more efficient for peaking or flexible power needs, which affects project costs, operating income, maintenance schedules and asset resale value.

aeroderivative gas turbine technical

"its use as an aeroderivative gas turbine. The aeroderivative adapted from the CFM56"

Aeroderivative gas turbines are power generators adapted from aircraft jet-engine designs: they are lighter, faster to start and more compact than industrial turbines, like using a high-performance car engine to run a portable generator. Investors care because these traits enable quick response to changing electricity demand, lower upfront installation space and potentially different fuel and maintenance costs, all of which affect project returns, operating flexibility and risk profiles for power and energy businesses.

CFM56 engine technical

"FTAI is uniquely positioned as one of the largest aftermarket maintenance providers and owners of the CFM56 engine"

A CFM56 engine is a widely used jet engine model that powers many commercial passenger and cargo airplanes; think of it as the airplane’s powerplant, similar to a car engine but built for flight. Investors care because an engine’s fuel efficiency, reliability, maintenance needs and overhaul costs directly affect an airline’s operating expenses, aircraft resale value and long-term contract commitments, so engine performance can influence profitability and asset valuations.

data centers technical

"solution for delivering reliable energy to data centers globally."

Large facilities that house rows of computer servers, storage devices, and networking equipment that store, process and move digital information for websites, cloud services and companies. Like a warehouse filled with powerful computers instead of boxes, they keep online services running around the clock. Investors care because demand, location, energy use and reliability drive revenue, costs, growth prospects and regulatory or operational risks for businesses that own or lease them.

AI hyperscalers technical

"The accelerating demand from AI hyperscalers has created an urgent need"

AI hyperscalers are the very large technology providers that build and operate massive compute and data centers specialized for artificial intelligence, offering services like model hosting, large-scale processing and APIs that other companies rent. They matter to investors because they dominate the infrastructure and customer relationships that power AI products—think of them as the utilities or highways of AI—so their pricing, capacity and partnerships strongly influence who wins or loses in AI markets.

AI-generated analysis. Not financial advice.

NEW YORK, Dec. 30, 2025 (GLOBE NEWSWIRE) -- FTAI Aviation Ltd. (NASDAQ: FTAI; the “Company”) today announced the launch of FTAI Power, a new platform focused on converting CFM56 engines to power turbines built to provide the most flexible, cost efficient and scaled solution for delivering reliable energy to data centers globally. FTAI is uniquely positioned as one of the largest aftermarket maintenance providers and owners of the CFM56 engine to bring a new power turbine to the market with production expected to begin in 2026.

“The CFM56 engine market is the largest and most reliable in the world, making it an ideal candidate for aeroderivative conversion which will further extend the engine’s life,” said Joe Adams, Chairman and CEO. “At FTAI, we have over one million square feet of maintenance facilities globally and billions of dollars of engines which we believe gives us unrivaled capabilities. After over a year in development, we plan to begin production of the FTAI Power aeroderivative using our proprietary conversion architecture offering the market an alternative to address the unprecedented need for electricity.”

“FTAI Power is built on the core belief that the future is electric and that the CFM56 engine will play a key role in delivering much needed power to the world,” said David Moreno, Chief Operating Officer. “The accelerating demand from AI hyperscalers has created an urgent need for immediate power solutions. We believe FTAI Power will be a critical partner for the AI economy, which requires unparalleled amounts of electricity faster and in a more flexible format.”

FTAI Power is reimagining the future application of the CFM56 engine and extending the engine’s life through its use as an aeroderivative gas turbine. The aeroderivative adapted from the CFM56 engine will provide the market with a 25-megawatt unit that offers grid operators greater flexibility and finer output control than larger units. With over 22,000 CFM56 engines produced, this power turbine will also bring a more scaled alternative to the market that is much needed as industries reliant on increased access to electricity face multi-year backlogs to secure power solutions.

FTAI Power is leveraging the maintenance capabilities built to serve the largest aircraft market in the world to remanufacture the CFM56 core turbine and adapt it with aeroderivative components to offer a fully integrated solution to the power market. By combining its existing fleet of over 1,000 engines with its future engine pipeline, FTAI expects it can predictably and cost-effectively produce CFM56 power turbines leveraging its differentiated in-house maintenance capabilities and parts supply agreements. We believe FTAI Power will have the capacity to deliver over 100 units annually and provide service support solutions that maximize uptime by applying its modular maintenance model to power turbines.

About FTAI Aviation Ltd.
FTAI owns and maintains CFM56 and V2500 aircraft engines that power the world’s most widely used commercial aircraft. FTAI’s differentiated Maintenance, Repair and Exchange (“MRE”) product offers time and cost savings to airlines and asset owners globally. In addition, FTAI acquires and manages on-lease aircraft and engines in partnership with institutional investors. Additional information is available at https://www.ftaiaviation.com.

Cautionary Note Regarding Forward-Looking Statements
Certain statements in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, production of the FTAI Power aeroderivative beginning in 2026, the ability to offer a 25-megawatt unit that offers grid operators greater flexibility and finer output control than larger units, that FTAI Power will be a critical partner for the AI economy, the ability to predictably and cost-effectively produce CFM56 power turbines, and the capacity to deliver over 100 units annually and provide service support solutions that maximize uptime. These statements are based on management's current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements, many of which are beyond the Company’s control. The Company can give no assurance that its expectations will be attained and such differences may be material. Accordingly, you should not place undue reliance on any forward-looking statements contained in this press release. For a discussion of some of the risks and important factors that could affect such forward-looking statements, see the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which are available on the Company’s website (www.ftaiaviation.com). In addition, new risks and uncertainties emerge from time to time, and it is not possible for the Company to predict or assess the impact of every factor that may cause its actual results to differ from those contained in any forward-looking statements. Such forward-looking statements speak only as of the date of this press release. The Company expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with regard thereto or change in events, conditions, or circumstances on which any statement is based. This release shall not constitute an offer to sell or the solicitation of an offer to buy any securities.

For further information, please contact:

Alan Andreini
Investor Relations
FTAI Aviation Ltd.
(646) 734-9414
aandreini@ftaiaviation.com

Media:

Tim Lynch / Aaron Palash / Kelly Sullivan
Joele Frank, Wilkinson Brimmer Katcher
(212) 355-4449

FAQ

What is FTAI announcing with FTAI Power (NASDAQ: FTAI) on December 30, 2025?

FTAI announced a new platform to convert CFM56 engines into 25-megawatt aeroderivative turbines, with production expected in 2026.

How many power turbines does FTAI expect to produce annually with FTAI Power?

FTAI expects the platform to have capacity to deliver over 100 units annually.

What assets will FTAI use to supply CFM56 power turbines for FTAI Power?

FTAI plans to leverage its existing fleet of over 1,000 engines, >b>1,000,000 sq ft of maintenance facilities and parts supply agreements.

When will FTAI begin production of the FTAI Power aeroderivative turbines?

FTAI says production is expected to begin in 2026.

What size unit will the FTAI Power aeroderivative turbine deliver?

The adapted CFM56 aeroderivative is described as a 25-megawatt unit aimed at grid flexibility and finer output control.

Does the December 30, 2025 announcement disclose any signed customer contracts for FTAI Power?

The announcement does not disclose any signed commercial contracts or orders for the FTAI Power turbines.