FTAI Aviation Ltd. Reports Second Quarter 2025 Results, Declares Dividend of $0.30 per Ordinary Share

Rhea-AI Summary

FTAI Aviation (NASDAQ: FTAI) reported strong Q2 2025 financial results, with net income of $161.7 million and earnings per share of $1.58, marking an 80% increase from Q1 2025. The company's Aerospace Products segment showed remarkable performance with a 26% quarter-over-quarter increase in Adjusted EBITDA to $164.9 million.

Key operational highlights include a 33% increase in CFM56 Module production to 184 units and the strategic acquisition of Pacific Aerodynamic. The company declared a quarterly dividend of $0.30 per ordinary share, alongside preferred share dividends. FTAI ended the quarter with $302 million in cash and a fully undrawn $400 million credit facility.

The company's market share grew to 9% from 5% year-over-year, with management expressing confidence in reaching their 25% long-term market share goal. The SCI Partnership progressed with 145 aircraft owned or under LOI, working toward deploying $4 billion of capital in 2025.

Positive

• Net income increased 80% quarter-over-quarter to $161.7 million
• Aerospace Products Adjusted EBITDA grew 26% to $164.9 million
• CFM56 Module production increased 33% to 184 units
• Market share nearly doubled from 5% to 9% year-over-year
• Strong liquidity position with $302 million cash and $400 million undrawn credit facility
• Strategic acquisition of Pacific Aerodynamic enhancing repair capabilities
• Generated over $400 million in positive Adjusted Free Cash Flow

Negative

• Significant capital deployment of $4 billion planned for 2025 could strain resources
• Still considerable gap between current 9% market share and 25% long-term goal

Insights

Aviation Financial Analyst

FTAI delivers exceptional Q2 with 80% profit growth, 33% production increase, and strategic acquisition strengthening its aerospace market position.

FTAI Aviation has delivered outstanding Q2 2025 results that significantly outpace its recent performance trajectory. Net income reached $161.7 million ($1.58 per share), representing a remarkable 80% increase compared to Q1 2025. This substantial earnings growth demonstrates accelerating momentum in FTAI's core operations.

The company's Aerospace Products segment performed exceptionally well, with Adjusted EBITDA surging 26% quarter-over-quarter to $164.9 million, while showing an even more impressive 81% year-over-year growth. This performance reflects FTAI's strengthening competitive position within the aerospace aftermarket.

Most notably, FTAI achieved a 33% production increase for CFM56 Modules, manufacturing 184 units this quarter. This substantial production ramp-up is critical because the CFM56 remains one of the most widely used jet engines globally, creating a massive addressable market. The company's market share has nearly doubled from 5% to 9% year-over-year, showing rapid penetration of this lucrative segment.

The acquisition of Pacific Aerodynamic represents a strategic vertical integration move, bringing specialized CFM56 compressor blade and vane repair capabilities in-house. This enhances FTAI's value proposition by controlling more of the repair supply chain while potentially improving margins and turnaround times.

From a financial perspective, FTAI generated over $400 million in Adjusted Free Cash Flow, maintaining a robust balance sheet with $302 million in cash and $400 million in untapped credit. This financial strength provides significant flexibility for continued acquisitions, dividend growth, or accelerated production expansion.

The declared quarterly dividend of $0.30 per ordinary share maintains the company's commitment to shareholder returns while balancing growth investments. The SCI Partnership's progress toward deploying $4 billion of capital in 2025 also positions FTAI for additional revenue streams through its aircraft leasing operations.

NEW YORK, July 29, 2025 (GLOBE NEWSWIRE) -- FTAI Aviation Ltd. (NASDAQ: FTAI) (the “Company” or “FTAI”) today reported financial results for the second quarter 2025. 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	Q2’25
Net Income Attributable to Shareholders	$	161,689
Basic Earnings per Ordinary Share	$	1.58
Diluted Earnings per Ordinary Share	$	1.57
Adjusted EBITDA(1)	$	347,805

____________________
⁽¹⁾ For definitions and reconciliations of non-GAAP measures, please refer to the exhibit to this press release.

Second Quarter 2025 Dividends

On July 29, 2025, the Company’s Board of Directors (the “Board”) declared a cash dividend on our ordinary shares of $0.30 per share for the quarter ended June 30, 2025, payable on August 19, 2025 to the holders of record on August 12, 2025.

Additionally, on July 29, 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 $0.51563 and $0.59375 per share, respectively, for the quarter ended June 30, 2025, payable on August 15, 2025 to the holders of record on August 8, 2025.

Business Highlights

• Net Income Attributable to Shareholders of $161.7 million, $1.58 EPS, an increase of 80% versus Q1 2025.
• Aerospace Products Adjusted EBITDA increased 26% from Q1 to $164.9 million.⁽¹⁾
• Significant ramp in production to 184 CFM56 Modules in Q2 2025, an increase of 33% versus prior quarter.
• Acquired 100% equity of Pacific Aerodynamic, a specialist in CFM56 compressor blade and vane repairs, expanding FTAI’s repair capabilities.
  
  

“FTAI delivered an excellent quarter, generating over $400 million in positive Adjusted Free Cash Flow,” said Joe Adams, Chairman and CEO⁽¹⁾. “We ended the period in a strong financial position with $302 million in cash and $400 million fully undrawn from our corporate revolving credit facility.”

“Our Aerospace Products segment continued to perform, with 81% year-over-year growth in Adjusted EBITDA in Q2 2025 and an increase in market share to approximately 9% on an annualized basis, up from 5% last year⁽¹⁾. We remain confident in our ability to reach our long-term market share goal of 25%.”

“The SCI Partnership also progressed well this quarter, on-track toward its goal of deploying $4 billion of capital in 2025 with 145 aircraft now owned or under LOI compared to a target of 250 in total.”

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 and Quarterly Report on Form 10-Q, when available on the Company’s website. Nothing on the Company’s website is included or incorporated by reference herein.

Conference Call

In addition, management will host a conference call on Wednesday, July 30, 2025 at 8:00 A.M. Eastern Time. The conference call may be accessed by registering via the following link https://register-conf.media-server.com/register/BI1c535d79815a4f5c936d9220ef1246d0. 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 Wednesday, July 30, 2025 through 11:30 A.M. on Wednesday, August 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, the ability to reach our annual maintenance market share goal of 25%, and whether the SCI Partnership will be able to deploy $4 billion of capital in 2025 and close on aircraft under letters of intent (LOI). 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

Exhibit - Financial Statements

FTAI AVIATION LTD. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Dollar amounts in thousands, except share and per share data)
	Three Months Ended June 30,								Six Months Ended June 30,
		2025				2024				2025				2024
Revenues
Aerospace products revenue	$	420,686			$	245,200			$	685,111			$	434,257
MRE Contract revenue		69,585				—				170,223				—
Lease income		62,439				70,754				130,879				123,915
Maintenance revenue		73,104				51,187				122,711				96,977
Asset sales revenue		47,915				72,433				66,854				111,040
Other revenue (1)		2,508				4,020				2,539				4,099
Total revenues		676,237				443,594				1,178,317				770,288
Expenses
Cost of sales		369,258				205,857				617,972				348,661
Operating expenses		34,328				29,099				66,766				54,416
General and administrative		2,442				2,969				5,558				6,652
Acquisition and transaction expenses		4,489				8,019				11,781				14,198
Management fees and incentive allocation to affiliate		—				3,554				—				8,449
Internalization fee to affiliate		—				300,000				—				300,000
Depreciation and amortization		55,236				56,691				114,798				106,611
Asset impairment		—				—				—				962
Total expenses		465,753				606,189				816,875				839,949
Other (expense) income
Interest expense		(63,965	)			(55,196	)			(126,005	)			(102,903	)
Loss on extinguishment of debt		—				(13,920	)			—				(13,920	)
Equity in losses of unconsolidated entities (2)		(5,003	)			(694	)			(12,617	)			(1,361	)
Gain on sale to the 2025 Partnership		34,604				—				45,474				—
Other income (expense)		27,156				(498	)			60,227				136
Total other expense		(7,208	)			(70,308	)			(32,921	)			(118,048	)
Income (loss) before income taxes		203,276				(232,903	)			328,521				(187,709	)
Provision for (benefit from) income taxes		37,878				(13,033	)			60,737				(7,461	)
Net income (loss)		165,398				(219,870	)			267,784				(180,248	)
Less: Dividends on preferred shares		3,709				8,335				9,824				16,670
Less: Loss on redemption of preferred shares		—				—				6,327				—
Net income (loss) attributable to shareholders	$	161,689			$	(228,205	)		$	251,633			$	(196,918	)
Earnings (loss) per share:
Basic	$	1.58			$	(2.26	)		$	2.45			$	(1.96	)
Diluted	$	1.57			$	(2.26	)		$	2.44			$	(1.96	)
Weighted average shares outstanding:
Basic		102,558,777				100,958,524				102,555,644				100,602,214
Diluted		103,147,860				100,958,524				103,144,727				100,602,214

____________________
⁽¹⁾ Includes servicing fees of $2,052 and $2,600 for the three and six months ended June 30, 2025, respectively, from the 2025 Partnership.
⁽²⁾ Includes the profit elimination of $(4,935) and $(11,885) for the three and six months ended June 30, 2025, respectively, and $0 and $0 for the three and six months ended June 30, 2024, respectively, for sales to the 2025 Partnership.

FTAI AVIATION LTD. CONSOLIDATED BALANCE SHEETS (Dollar amounts in thousands, except share and per share data)
	(Unaudited)
	June 30, 2025				December 31, 2024
Assets
Current Assets
Cash and cash equivalents	$	301,911			$	115,116
Accounts receivable, net (1)		239,535				150,823
Inventory, net		752,866				551,156
Assets held for sale		121,848				—
Other current assets (2)		343,225				408,923
Total current assets		1,759,385				1,226,018
Leasing equipment, net		1,849,116				2,373,730
Property, plant, and equipment, net		110,484				107,451
Investments		125,713				19,048
Intangible assets, net		14,449				42,205
Goodwill		75,634				61,070
Other non-current assets		166,294				208,430
Total assets	$	4,101,075			$	4,037,952
Liabilities
Current Liabilities
Accounts payable	$	83,391			$	69,119
Accrued liabilities		131,166				96,910
Current maintenance deposits		44,647				62,552
Current security deposits		17,231				18,100
Liabilities held for sale		30,883				—
Other current liabilities		43,622				100,565
Total current liabilities		350,940				347,246
Long-term debt, net		3,444,612				3,440,478
Non-current maintenance deposits		27,772				44,179
Non-current security deposits		14,693				26,830
Other non-current liabilities		98,114				97,851
Total liabilities	$	3,936,131			$	3,956,584
Commitments and contingencies
Equity
Ordinary shares ($0.01 par value per share; 2,000,000,000 shares authorized; 102,560,867 and 102,550,975 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively)	$	1,026			$	1,026
Preferred shares ($0.01 par value per share; 200,000,000 shares authorized; 6,800,000 and 11,740,000 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively)		68				117
Additional paid in capital		(30,831	)			153,328
Retained earnings (accumulated deficit)		194,681				(73,103	)
Shareholders' equity		164,944				81,368
Total liabilities and equity	$	4,101,075			$	4,037,952

____________________
⁽¹⁾ Includes accounts receivable from the 2025 Partnership of $93,576 and $0 as of June 30, 2025 and December 31, 2024, respectively.
⁽²⁾ Includes receivables from the 2025 Partnership of $18,141 and $0 as of June 30, 2025 and December 31, 2024, respectively.

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.

The following table sets forth a reconciliation of net income (loss) attributable to shareholders to Adjusted EBITDA for the three and six months ended June 30, 2025 and 2024:

	Three Months Ended June 30,							Change				Six Months Ended June 30,							Change
(in thousands)		2025			2024								2025			2024
Net income (loss) attributable to shareholders	$	161,689		$	(228,205	)		$	389,894			$	251,633		$	(196,918	)		$	448,551
Add: Provision for (benefit from) income taxes		37,878			(13,033	)			50,911				60,737			(7,461	)			68,198
Add: Equity-based compensation expense		5,515			638				4,877				10,404			1,148				9,256
Add: Acquisition and transaction expenses		4,489			8,019				(3,530	)			11,781			14,198				(2,417	)
Add: Losses on the modification or extinguishment of debt and preferred shares and capital lease obligations		—			13,920				(13,920	)			6,327			13,920				(7,593	)
Add: Changes in fair value of non-hedge derivative instruments		—			—				—				—			—				—
Add: Asset impairment charges		—			—				—				—			962				(962	)
Add: Incentive allocations		—			3,148				(3,148	)			—			7,456				(7,456	)
Add: Depreciation and amortization expense (1)		65,677			65,809				(132	)			134,064			124,931				9,133
Add: Interest expense and dividends on preferred shares		67,674			63,531				4,143				135,829			119,573				16,256
Add: Internalization fee to affiliate		—			300,000				(300,000	)			—			300,000				(300,000	)
Add: Pro-rata share of Adjusted EBITDA from unconsolidated entities (2)		4,815			(617	)			5,432				4,856			(1,165	)			6,021
Less: Equity in losses of unconsolidated entities (3)		68			694				(626	)			732			1,361				(629	)
Less: Non-controlling share of Adjusted EBITDA		—			—				—				—			—				—
Adjusted EBITDA (non-GAAP)	$	347,805		$	213,904			$	133,901			$	616,363		$	378,005			$	238,358

_____________________
⁽¹⁾ Includes the following items for the three months ended June 30, 2025 and 2024: (i) depreciation and amortization expense of $55,236 and $56,691, (ii) lease intangible amortization of $2,153 and $3,786 and (iii) amortization for lease incentives of $8,288 and $5,332, respectively. Includes the following items for the six months ended June 30, 2025 and 2024: (i) depreciation and amortization expense of $114,798 and $106,611, (ii) lease intangible amortization of $5,359 and $7,762 and (iii) amortization for lease incentives of $13,907 and $10,558, respectively.
⁽²⁾ Includes the following items for the three months ended June 30, 2025 and 2024: (i) net loss of $68 and $694, (ii) interest expense of $1,490 and $0, (iii) depreciation and amortization expense of $3,470 and $77, and (iv) acquisition and transaction expenses of $(77) and $0, respectively. Includes the following items for the six months ended June 30, 2025 and 2024: (i) net loss of $732 and $1,361, (ii) interest expense of $1,490 and $0, (iii) depreciation and amortization expense of $3,628 and $196, and (iv) acquisition and transaction expenses of $470 and $0, respectively.
⁽³⁾ Excludes the profit elimination of $4,935 and $11,885 for the three and six months ended June 30, 2025, respectively, and $0 and $0 for the three and six months ended June 30, 2024, respectively, for sales to the 2025 Partnership.

In addition, the following table sets forth a reconciliation of net income attributable to shareholders to Adjusted EBITDA for Aerospace Products for the three and six months ended June 30, 2025 and 2024:

	Three Months Ended June 30,								Change				Six Months Ended June 30,								Change
(in thousands)		2025				2024								2025				2024
Net income attributable to shareholders	$	133,582			$	84,875			$	48,707			$	240,225			$	151,308			$	88,917
Add: Provision for income taxes		25,827				4,918				20,909				45,202				7,457				37,745
Add: Equity-based compensation expense		168				(72	)			240				323				(2	)			325
Add: Acquisition and transaction expenses		1,414				525				889				2,546				771				1,775
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		3,704				938				2,766				7,288				1,871				5,417
Add: Interest expense and dividends on preferred shares		—				—				—				—				—				—
Add: Internalization fee to affiliate		—				—				—				—				—				—
Add: Pro-rata share of Adjusted EBITDA from unconsolidated entities (1)		883				(577	)			1,460				1,052				(1,042	)			2,094
Less: Equity in (earnings) losses of unconsolidated entities		(714	)			633				(1,347	)			(827	)			1,154				(1,981	)
Less: Non-controlling share of Adjusted EBITDA		—				—				—				—				—				—
Adjusted EBITDA (non-GAAP)	$	164,864			$	91,240			$	73,624			$	295,809			$	161,517			$	134,292

____________________
⁽¹⁾ Includes the following items for the three months ended June 30, 2025 and 2024: (i) net income of $714 and net loss of $633 and (ii) depreciation and amortization expense of $169 and $56, respectively. Includes the following items for the six months ended June 30, 2025 and 2024: (i) net income of $827 and net loss of $1,154 and (ii) depreciation and amortization expense of $225 and $112, respectively.

Adjusted Free Cash Flow for the three months ended June 30, 2025:

Comprised of net cash used in operating activities of $(110.3) million, net cash provided by investing activities of $523.8 million and an adjustment for FTAI’s 50% joint venture investment in QuickTurn Europe of $10.0 million for the three months ended June 30, 2025.

FAQ

What were FTAI's Q2 2025 earnings per share?

FTAI reported basic earnings of $1.58 per share and diluted earnings of $1.57 per share for Q2 2025, representing an 80% increase from Q1 2025.

What dividend did FTAI declare for Q2 2025?

FTAI declared a cash dividend of $0.30 per ordinary share for Q2 2025, payable on August 19, 2025 to shareholders of record on August 12, 2025.

How much did FTAI's CFM56 Module production increase in Q2 2025?

FTAI's CFM56 Module production increased by 33% to 184 units in Q2 2025 compared to the previous quarter.

What is FTAI's current market share and target?

FTAI's market share grew to approximately 9% from 5% year-over-year, with a long-term goal of reaching 25% market share.

How much cash and credit availability does FTAI have?

FTAI ended Q2 2025 with $302 million in cash and a fully undrawn $400 million corporate revolving credit facility.

What was FTAI's Aerospace Products segment performance in Q2 2025?

FTAI's Aerospace Products segment achieved Adjusted EBITDA of $164.9 million, representing a 26% increase from Q1 2025 and 81% year-over-year growth.