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

1. FTAI reported Q2 2025 net income of $161.7 million. 2. Company's adjusted EBITDA rose 26% from Q1 to $347.8 million. 3. Production ramped to 184 CFM56 Modules, a 33% increase from Q1. 4. Dividends declared at $0.30 per share for Q2 2025. 5. Acquisition of Pacific Aerodynamic expands repair capabilities.

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FAQ

Why Very Bullish?

FTAI's strong Q2 earnings, significant EBITDA growth, and production ramp indicate robust operational health, potentially driving stock prices upward.

How important is it?

The combined financial performance, dividend declaration, and strategic growth initiatives paint a very favorable outlook for FTAI, indicating a strong likelihood of stock price movement.

Why Short Term?

Immediate reaction likely as market reacts to strong earnings and dividend announcements, akin to past earnings surges in similar earnings performance.

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CFM56V2500BALMT
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 ResultsQ2’25Net Income Attributable to Shareholders$161,689Basic Earnings per Ordinary Share$1.58Diluted Earnings per Ordinary Share$1.57Adjusted 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 AndreiniInvestor RelationsFTAI Aviation Ltd.(646) 734-9414aandreini@ftaiaviation.com Media Tim Lynch / Aaron Palash / Kelly SullivanJoele 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, 2024Assets   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 EndedJune 30, Change Six Months EndedJune 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 EndedJune 30, Change Six Months EndedJune 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.

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