FTAI Aviation Ltd. Reports Fourth Quarter and Full Year 2024 Results, Declares Dividend of $0.30 per Ordinary Share, Announces Agreement to Expand Maintenance Capacity with QuickTurn Europe
Rhea-AI Summary
FTAI Aviation reported strong Q4 and full year 2024 results, declaring a quarterly dividend of $0.30 per ordinary share. The company achieved significant growth in Aerospace Products, with net income of $346 million for fiscal year 2024, representing a 92% year-over-year increase, while Adjusted EBITDA grew 138%.
FTAI announced an agreement to acquire a 50% stake in IAG Engine Center, forming QuickTurn Europe. This joint venture will add a third CFM56 engine maintenance facility to FTAI's network, with capacity for 450 modules annually. The company projects 2025 Adjusted EBITDA of $1.1-1.15 billion and increased its 2026 forecast to $1.4 billion, up from $1.25 billion previously.
Positive
- Net income up 92% YoY to $346M in 2024
- Adjusted EBITDA growth of 138% YoY
- 2026 Adjusted EBITDA guidance increased to $1.4B from $1.25B
- 50% acquisition of new maintenance facility adding 450 module capacity
- Consistent quarterly dividend of $0.30 per share maintained
Negative
- None.
News Market Reaction
On the day this news was published, FTAI declined 7.62%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
NEW YORK, Feb. 26, 2025 (GLOBE NEWSWIRE) -- FTAI Aviation Ltd. (NASDAQ: FTAI) (the “Company” or “FTAI”) today reported financial results for the fourth quarter and full year 2024. The Company’s consolidated comparative financial statements and key performance measures are attached as an exhibit to this press release.
Financial Overview
| (in thousands, except per share data) | ||
| Selected Financial Results | Q4’24 | |
| Net Income Attributable to Shareholders | $ | 86,692 |
| Basic Earnings per Ordinary Share | $ | 0.85 |
| Diluted Earnings per Ordinary Share | $ | 0.84 |
| Adjusted EBITDA(1) | $ | 252,015 |
Fourth Quarter 2024 Dividends
On February 26, 2025, the Company’s Board of Directors (the “Board”) declared a cash dividend on our ordinary shares of
Additionally, on February 26, 2025, the Board declared cash dividends on its Fixed-Rate Reset Series C Cumulative Perpetual Redeemable Preferred Shares (“Series C Preferred Shares”) and Fixed-Rate Reset Series D Cumulative Perpetual Redeemable Preferred Shares (“Series D Preferred Shares”) of
Business Highlights
- Continued growth in Aerospace Products, with net income attributable to shareholders of
$346 million for fiscal year 2024, up92% year over year, and Adjusted EBITDA up138% year over year(1) - 2025 target adjusted free cash flow(1)(2) of approximately
$650 million following significant growth investment undertaken in 2024, coupled with the Strategic Capital Initiative (“SCI”) commencing operations in 2025 - Expanding Maintenance Capacity with QuickTurn Europe
A subsidiary of FTAI has entered into an agreement to acquire a50% ownership stake in IAG Engine Center Europe S.r.l. (“IAG Engine Center”), an Italian company operating a 200,000 square-foot CFM56 engine maintenance repair and overhaul facility located at the Rome Fiumicino Airport, forming a joint venture which will be rebranded as Quick Turn Engine Center Europe S.r.l. (“QuickTurn Europe”). Completion of this transaction is expected to add a third owned and managed CFM56 engine shop to the FTAI network, complementing the Company’s existing facilities in Montréal and Miami. This new joint venture is also expected to help address the strong demand from the Company’s global customer base in a key geography.
In total, the joint venture operating at full capacity is expected to add capacity to maintain 450 modules (150 engines) per year, bringing FTAI’s maintenance capacity to 1,800 CFM56 modules (600 engines) and over 600 engine tests annually. The facility’s CFM56 engine test-cell is expected to be fully operational within 24 months and its piece-part repair capabilities are expected to be operational in the second half of 2025.
The transaction is expected to close in the first half of 2025, subject to the satisfaction of certain closing conditions.
“In the last quarter, we delivered outstanding financial performance across the board, and I am pleased to see the continued strength of our Aerospace Products and Aviation Leasing segments,” said Joe Adams, Chairman of the Board and CEO of FTAI. “We significantly expanded our Maintenance, Repair and Exchange capabilities and added financial firepower and flexibility with the successful launch of our Strategic Capital Initiative. Looking ahead to 2025, we are confident in our ability to take advantage of the tremendous market opportunity in our Aerospace Products business and deliver strong returns for our shareholders.”
Outlook
FTAI continues to expect 2025 Adjusted EBITDA of approximately
Additionally, FTAI is increasing its 2026 Adjusted EBITDA from its reportable segments from its previously projected
| (1) | For definitions and reconciliations of non-GAAP measures, please refer to the exhibit to this press release. |
| (2) | 2025 target adjusted free cash flow is based on management’s current expectations and means target 2025 Adjusted EBITDA excluding gains on sales, including SCI sale proceeds, less estimated equity in SCI and replacement capital expenditures, related interest expense, maintenance capital expenditures, corporate expenses and working capital. |
Additional Information
For additional information that management believes to be useful for investors, please refer to the presentation posted on the Investor Center section of the Company’s website, https://www.ftaiaviation.com/, and the Company’s Annual Report on Form 10-K, when available on the Company’s website.
Conference Call
In addition, management will host a conference call on Thursday, February 27, 2025 at 8:00 A.M. Eastern Time. The conference call may be accessed by registering via the following link https://register.vevent.com/register/BId401ec69ff8f491fb21444c5bbd87f54/. Once registered, participants will receive a dial-in and unique pin to access the call.
A simultaneous webcast of the conference call will be available to the public on a listen-only basis at https://www.ftaiaviation.com/. Please allow extra time prior to the call to visit the site and download the necessary software required to listen to the internet broadcast.
A replay of the conference call will be available after 11:30 A.M. on Thursday, February 27, 2025 through 11:30 A.M. on Thursday, March 6, 2025 on https://ir.ftaiaviation.com/news-events/presentations/.
The information contained on, or accessible through, any websites included in this press release is not incorporated by reference into, and should not be considered a part of, this press release.
About FTAI Aviation Ltd.
FTAI owns and maintains commercial jet engines with a focus on CFM56 and V2500 engines. FTAI’s propriety portfolio of products, including the Module Factory and a joint venture to manufacture engine PMA, enables it to provide cost savings and flexibility to our airline, lessor, and maintenance, repair, and operations customer base. Additionally, FTAI owns and leases jet aircraft which often facilitates the acquisition of engines at attractive prices. FTAI invests in aviation assets and aerospace products that generate strong and stable cash flows with the potential for earnings growth and asset appreciation.
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, 2025 target adjusted free cash flow of approximately
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
Exhibit - Financial Statements
| FTAI AVIATION LTD. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Dollar amounts in thousands, except share and per share data) | |||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Total revenues | $ | 498,819 | $ | 312,737 | $ | 1,734,901 | $ | 1,170,896 | |||||||
| Expenses | |||||||||||||||
| Cost of sales | 257,727 | 135,223 | 825,884 | 502,132 | |||||||||||
| Operating expenses | 34,587 | 28,945 | 115,861 | 110,163 | |||||||||||
| General and administrative | 3,566 | 3,430 | 14,263 | 13,700 | |||||||||||
| Acquisition and transaction expenses | 8,757 | 4,999 | 32,296 | 15,194 | |||||||||||
| Management fees and incentive allocation to affiliate | — | 4,900 | 8,449 | 18,037 | |||||||||||
| Internalization fee to affiliate | — | — | 300,000 | — | |||||||||||
| Depreciation and amortization | 54,678 | 46,478 | 218,064 | 169,877 | |||||||||||
| Asset impairment | — | 901 | 962 | 2,121 | |||||||||||
| Gain on sale of assets, net | (18,705 | ) | — | (18,705 | ) | — | |||||||||
| Total expenses | 340,610 | 224,876 | 1,497,074 | 831,224 | |||||||||||
| Other income (expense) | |||||||||||||||
| Equity in (losses) income of unconsolidated entities | (401 | ) | 63 | (2,200 | ) | (1,606 | ) | ||||||||
| Interest expense | (60,881 | ) | (43,663 | ) | (221,721 | ) | (161,639 | ) | |||||||
| Loss on extinguishment of debt | (3,181 | ) | — | (17,101 | ) | — | |||||||||
| Other income | 14,319 | 6,713 | 17,364 | 7,590 | |||||||||||
| Total other expense | (50,144 | ) | (36,887 | ) | (223,658 | ) | (155,655 | ) | |||||||
| Income before income taxes | 108,065 | 50,974 | 14,169 | 184,017 | |||||||||||
| Provision for (benefit from) income taxes | 5,617 | (67,386 | ) | 5,487 | (59,800 | ) | |||||||||
| Net income | 102,448 | 118,360 | 8,682 | 243,817 | |||||||||||
| Less: Dividends on preferred shares | 7,758 | 8,335 | 32,763 | 31,795 | |||||||||||
| Less: Loss on redemption of preferred shares | 7,998 | — | 7,998 | — | |||||||||||
| Net income (loss) attributable to shareholders | $ | 86,692 | $ | 110,025 | $ | (32,079 | ) | $ | 212,022 | ||||||
| Earnings (loss) per share: | |||||||||||||||
| Basic | $ | 0.85 | $ | 1.10 | $ | (0.32 | ) | $ | 2.12 | ||||||
| Diluted | $ | 0.84 | $ | 1.09 | $ | (0.32 | ) | $ | 2.11 | ||||||
| Weighted average shares outstanding: | |||||||||||||||
| Basic | 102,549,890 | 100,239,011 | 101,538,835 | 99,908,214 | |||||||||||
| Diluted | 103,603,350 | 100,853,151 | 101,538,835 | 100,425,777 | |||||||||||
| FTAI AVIATION LTD. CONSOLIDATED BALANCE SHEETS (Dollar amounts in thousands, except share and per share data) | |||||||
| December 31, | |||||||
| 2024 | 2023 | ||||||
| Assets | |||||||
| Current Assets | |||||||
| Cash and cash equivalents | $ | 115,116 | $ | 90,756 | |||
| Accounts receivable, net | 150,823 | 115,156 | |||||
| Inventory, net | 551,156 | 316,637 | |||||
| Other current assets | 408,923 | 148,885 | |||||
| Total current assets | 1,226,018 | 671,434 | |||||
| Leasing equipment, net | 2,373,730 | 2,032,413 | |||||
| Property, plant, and equipment, net | 107,451 | 45,175 | |||||
| Investments | 19,048 | 22,722 | |||||
| Intangible assets, net | 42,205 | 50,590 | |||||
| Goodwill | 61,070 | 4,630 | |||||
| Other non-current assets | 208,430 | 137,721 | |||||
| Total assets | $ | 4,037,952 | $ | 2,964,685 | |||
| Liabilities | |||||||
| Current Liabilities | |||||||
| Accounts payable | $ | 69,119 | $ | 41,590 | |||
| Accrued liabilities | 96,910 | 71,317 | |||||
| Current maintenance deposits | 62,552 | 39,455 | |||||
| Current security deposits | 18,100 | 17,735 | |||||
| Other current liabilities | 100,565 | 11,746 | |||||
| Total current liabilities | 347,246 | 181,843 | |||||
| Long-term debt, net | 3,440,478 | 2,517,343 | |||||
| Non-current maintenance deposits | 44,179 | 25,932 | |||||
| Non-current security deposits | 26,830 | 23,330 | |||||
| Other non-current liabilities | 97,851 | 40,354 | |||||
| Total liabilities | $ | 3,956,584 | $ | 2,788,802 | |||
| Commitments and contingencies | |||||||
| Equity | |||||||
| Ordinary shares ( | $ | 1,026 | $ | 1,002 | |||
| Preferred shares ( | 117 | 159 | |||||
| Additional paid in capital | 153,328 | 255,973 | |||||
| Accumulated deficit | (73,103 | ) | (81,785 | ) | |||
| Shareholders' equity | 81,368 | 175,349 | |||||
| Non-controlling interest in equity of consolidated subsidiaries | — | 534 | |||||
| Total equity | $ | 81,368 | $ | 175,883 | |||
| Total liabilities and equity | $ | 4,037,952 | $ | 2,964,685 | |||
Key Performance Measures
In addition to net income (loss), the Chief Operating Decision Maker (“CODM”) utilizes Adjusted EBITDA as a key performance measure.
Adjusted EBITDA provides the CODM with the information necessary to assess operational performance, as well as make resource and allocation decisions. Adjusted EBITDA is defined as net income (loss) attributable to shareholders, adjusted (a) to exclude the impact of provision for (benefit from) income taxes, equity-based compensation expense, acquisition and transaction expenses, losses on the modification or extinguishment of debt and preferred shares and capital lease obligations, changes in fair value of non-hedge derivative instruments, asset impairment charges, incentive allocations, depreciation and amortization expense, dividends on preferred shares and interest expense, internalization fee to affiliate, (b) to include the impact of our pro-rata share of Adjusted EBITDA from unconsolidated entities and (c) to exclude the impact of equity in earnings (losses) of unconsolidated entities and the non-controlling share of Adjusted EBITDA, if any.
Reconciliations of forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures are not included in this press release because the most directly comparable GAAP financial measures are not available on a forward-looking basis without unreasonable effort.
The following table sets forth a reconciliation of net income (loss) attributable to shareholders to Adjusted EBITDA for the three and twelve months ended December 31, 2024 and 2023:
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net income (loss) attributable to shareholders | $ | 86,692 | $ | 110,025 | $ | (32,079 | ) | $ | 212,022 | ||||||
| Add: Provision for (benefit from) income taxes | 5,617 | (67,386 | ) | 5,487 | (59,800 | ) | |||||||||
| Add: Equity-based compensation expense | 3,428 | 510 | 6,006 | 1,638 | |||||||||||
| Add: Acquisition and transaction expenses | 8,757 | 4,999 | 32,296 | 15,194 | |||||||||||
| Add: Losses on the modification or extinguishment of debt and preferred shares and capital lease obligations | 11,179 | — | 25,099 | — | |||||||||||
| Add: Changes in fair value of non-hedge derivative instruments | — | — | — | — | |||||||||||
| Add: Asset impairment charges | — | 901 | 962 | 2,121 | |||||||||||
| Add: Incentive allocations | — | 4,576 | 7,456 | 17,116 | |||||||||||
| Add: Depreciation & amortization expense (1) | 67,647 | 56,557 | 262,031 | 213,641 | |||||||||||
| Add: Interest expense and dividends on preferred shares | 68,639 | 51,998 | 254,484 | 193,434 | |||||||||||
| Add: Internalization fee to affiliate | — | — | 300,000 | — | |||||||||||
| Add: Pro-rata share of Adjusted EBITDA from unconsolidated entities (2) | (345 | ) | 214 | (1,892 | ) | 310 | |||||||||
| Less: Equity in losses (earnings) of unconsolidated entities | 401 | (63 | ) | 2,200 | 1,606 | ||||||||||
| Less: Non-controlling share of Adjusted EBITDA | — | — | — | — | |||||||||||
| Adjusted EBITDA (non-GAAP) | $ | 252,015 | $ | 162,331 | $ | 862,050 | $ | 597,282 | |||||||
____________________
| (1) | Includes the following items for the three months ended December 31, 2024 and 2023: (i) depreciation and amortization expense of Includes the following items for the years ended December 31, 2024 and 2023: (i) depreciation and amortization expense of |
| (2) | Includes the following items for the three months ended December 31, 2024 and 2023: (i) net (loss) income of Includes the following items for the years ended December 31, 2024 and 2023: (i) net loss of |
The following table sets forth a reconciliation of net income attributable to shareholders to Adjusted EBITDA for Aerospace Products for the twelve months ended December 31, 2024 and 2023:
| Year Ended December 31, | |||||||
| (in thousands) | 2024 | 2023 | |||||
| Net income attributable to shareholders | $ | 346,346 | $ | 180,177 | |||
| Add: Provision for (benefit from) income taxes | 22,221 | (24,440 | ) | ||||
| Add: Equity-based compensation expense | 309 | 225 | |||||
| Add: Acquisition and transaction expenses | 4,906 | 1,722 | |||||
| Add: Losses on the modification or extinguishment of debt and preferred shares and capital lease obligations | — | — | |||||
| Add: Changes in fair value of non-hedge derivative instruments | — | — | |||||
| Add: Asset impairment charges | — | — | |||||
| Add: Incentive allocations | — | — | |||||
| Add: Depreciation and amortization expense | 6,630 | 661 | |||||
| Add: Interest expense and dividends on preferred shares | — | — | |||||
| Add: Pro-rata share of Adjusted EBITDA from unconsolidated entities (1) | (1,769 | ) | 206 | ||||
| Less: Equity in losses of unconsolidated entities | 1,993 | 1,458 | |||||
| Less: Non-controlling share of Adjusted EBITDA | — | — | |||||
| Adjusted EBITDA (non-GAAP) | $ | 380,636 | $ | 160,009 | |||
________________________
| (1) | Includes the following items for the years ended December 31, 2024 and 2023: (i) net loss of |
FAQ
What is FTAI's projected Adjusted EBITDA for 2025?
How much capacity will QuickTurn Europe add to FTAI's maintenance operations?
What dividend did FTAI declare for Q4 2024?
How much did FTAI's Aerospace Products net income grow in 2024?
When will QuickTurn Europe's engine test-cell be fully operational?
