Download PDF

1. Company Snapshot

1.a. Company Description

FTAI Aviation Ltd.owns and acquires infrastructure and related equipment for the transportation of goods and people worldwide.It operates through two segments, Aviation Leasing and Aerospace Products.


The Aviation Leasing segment owns and manages aviation assets, including aircraft and aircraft engines, which it leases and sells to customers.As of December 31, 2022, this segment owned and managed 330 aviation assets consisting of 106 commercial aircraft and 224 engines, including four aircraft and one engine that were located in Ukraine, and eight aircraft and seventeen engines that were located in Russia.The Aerospace Products segment develops, manufactures, repairs, and sells aircraft engines and aftermarket components for aircraft engines.


The company was founded in 2011 and is headquartered in New York, New York.

Show Full description

1.b. Last Insights on FTAI

FTAI Aviation's recent performance is driven by transformative growth initiatives, particularly its strategic pivot towards the AI and data center sector. The company's new Power business, which converts aircraft engines into power turbines, is expected to drive growth, with a target of 100 units annually. Recent Q4 results showed 32% YoY revenue growth, and 2026 adjusted EBITDA guidance was raised to $1.625B. Institutional investors, such as Aristotle Capital Boston LLC, have increased their holdings, while others, like Dynamic Technology Lab Private Ltd, have reduced theirs.

1.c. Company Highlights

2. FTAI's Strong 2025 Performance and Promising Outlook

FTAI reported a robust financial performance for 2025, with adjusted EBITDA reaching $1.2 billion, a 38% increase from $862 million in 2024. The company's Aerospace Products segment delivered $671 million of adjusted EBITDA, in line with the upwardly revised target of $650 million to $700 million. Earnings per share (EPS) came in at $1.08, below analyst estimates of $1.24. The company's margin expansion was evident, with Aerospace Products achieving a 35% margin in Q4, up 66% year-over-year. As Joseph Adams noted, "This was a year defined by execution, scale, and strategic progress across every part of our business."

Publication Date: Mar -01

📋 Highlights
  • Strategic Capital Initiative (SCI) Fund Launch: Raised $2 billion in equity commitments, with $6 billion total capital planned for investing in 737NG and A320ceo aircraft.
  • Aerospace Products EBITDA Growth: Delivered $671 million adjusted EBITDA in 2025, exceeding original $600–650 million target, with Q4 margin of 35%.
  • Module Production Expansion: 2026 production target increased to 1,050 modules (39% growth from 2025), leveraging AI for supply chain optimization.
  • FTAI Power Launch: Target to produce 100 Mod-1 aero-derived power turbines in 2027, building on CFM56 engine infrastructure.
  • EBITDA & Free Cash Flow Progress: Generated $1.2 billion adjusted EBITDA in 2025 (38% YoY growth), with $915 million free cash flow expected in 2026.

Segment Performance

The Aerospace Products segment was a key driver of growth, with $195 million of adjusted EBITDA in Q4, representing a 35% margin. Leasing also delivered strong results, posting approximately $113 million of adjusted EBITDA in Q4. The company's Aviation Leasing business is evolving into a high-quality fee-driven asset management platform, with a huge market for CFM56 engines.

Valuation and Outlook

FTAI's valuation metrics indicate a premium valuation, with a P/E Ratio of 62.6 and EV/EBITDA of 28.62. The company's ROE is exceptionally high at 256.98%, driven by its strong profitability. For 2026, FTAI expects to continue executing on its strategy, with a target of 1,050 modules, representing a 39% growth compared to 2025. The company is also launching FTAI Power, with a target of 100 units in 2027, leveraging its existing infrastructure and feedstock of engines.

Growth Initiatives

FTAI is investing in new growth initiatives, including the Strategic Capital Initiative (SCI) and FTAI Power. The SCI fund has secured $2 billion in equity commitments, and the company plans to invest $6 billion in total capital in Fund I. FTAI Power is expected to become a significant contributor to FTAI's long-term growth, with a target of 100 units in 2027. The company's investments in SCI and Power are expected to drive meaningful value into 2027 and beyond.

Dividend and Cash Flow

FTAI is increasing its dividend for the second consecutive quarter, from $0.35 to $0.40 per share per quarter. The company expects to generate $915 million of free cash flow, with an additional $152 million from increased cash flow in Aerospace Products and Leasing. The Dividend Yield is currently at 0.41%, which is relatively low compared to other industry players.

3. NewsRoom

Card image cap

Aristotle Capital Boston LLC Raises Stock Holdings in FTAI Aviation Ltd. $FTAI

Mar -16

Source: defenseworld.net

Card image cap

Royce SMid-Cap Total Return Fund FY 2025 What Worked

Mar -15

Source: seekingalpha.com

Card image cap

Centene, Paramount Skydance, And Ulta Beauty Are Among Top 10 Large Cap Losers Last Week (March 9-March 13): Are the Others in Your Portfolio?

Mar -15

Source: feeds.benzinga.com

Card image cap

FTAI Aviation Ltd. $FTAI Shares Sold by Dynamic Technology Lab Private Ltd

Mar -12

Source: defenseworld.net

Card image cap

Royce Small-Cap Total Return Fund FY 2025: What Worked

Mar -12

Source: seekingalpha.com

Card image cap

Here's Why Booming Aerospace and Data Center Markets Are Powering This Stock Higher in 2026

Mar -11

Source: fool.com

Card image cap

FTAI Aviation: I'm Adding To My Shares Despite It Recently Doubling

Mar -09

Source: seekingalpha.com

Card image cap

FTAI Aviation Ltd. $FTAI Shares Sold by Clearstead Advisors LLC

Mar -01

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.36%)

6. Segments

Aviation Leasing

Expected Growth: 8.5%

FTAI Aviation Ltd's 8.5% growth in aviation leasing is driven by increasing global air travel demand, rising aircraft replacement needs, and growing airline industry consolidation. Additionally, the company's diversified fleet, strong customer relationships, and efficient asset management capabilities contribute to its growth momentum.

Aerospace Products

Expected Growth: 5.77%

FTAi Aviation Ltd's 5.77% growth in Aerospace Products is driven by increasing demand for fuel-efficient aircraft, rising air travel, and growing military expenditures. Additionally, the company's focus on innovative products, such as lightweight composites and advanced avionics, has contributed to its growth. Furthermore, strategic partnerships and acquisitions have expanded its customer base and enhanced its market presence.

Corporate and Other

Expected Growth: 5.83%

FTAI Aviation Ltd's Corporate and Other segment growth of 5.83% is driven by increased demand for aviation services, strategic partnerships, and cost savings initiatives. Additionally, the company's diversification into new markets and expansion of its service offerings have contributed to the growth. Effective management of operating expenses and investments in digital transformation have also supported the segment's growth.

7. Detailed Products

Aircraft Leasing

FTA Aviation Ltd provides aircraft leasing services to airlines, offering a range of aircraft types and flexible lease terms to meet their operational needs.

Aircraft Trading

FTA Aviation Ltd facilitates the buying and selling of aircraft between airlines, lessors, and investors, providing market expertise and transaction management.

Aircraft Management

FTA Aviation Ltd offers comprehensive aircraft management services, including technical management, maintenance planning, and operational support.

Aircraft Maintenance

FTA Aviation Ltd provides aircraft maintenance services, including routine inspections, repairs, and modifications, to ensure aircraft airworthiness and safety.

Aircraft Parts Supply

FTA Aviation Ltd supplies aircraft parts and components to airlines, MROs, and other industry stakeholders, ensuring timely delivery and competitive pricing.

Aviation Consulting

FTA Aviation Ltd provides expert consulting services to airlines, airports, and aviation authorities, covering areas such as operations, safety, and strategy.

8. FTAI Aviation Ltd's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for FTAI Aviation Ltd is medium due to the availability of alternative modes of transportation, such as trains and buses, which can be used for shorter distances.

Bargaining Power Of Customers

The bargaining power of customers for FTAI Aviation Ltd is high due to the presence of a large number of customers who can easily switch to alternative airlines.

Bargaining Power Of Suppliers

The bargaining power of suppliers for FTAI Aviation Ltd is low due to the presence of multiple suppliers of aircraft and aviation fuel, which reduces their bargaining power.

Threat Of New Entrants

The threat of new entrants for FTAI Aviation Ltd is low due to the high barriers to entry, such as the need for significant capital investment and regulatory approvals.

Intensity Of Rivalry

The intensity of rivalry for FTAI Aviation Ltd is high due to the presence of several established airlines, which leads to intense competition in terms of prices, services, and routes.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 93.49%
Debt Cost 4.87%
Equity Weight 6.51%
Equity Cost 13.63%
WACC 5.44%
Leverage 1435.62%

11. Quality Control: FTAI Aviation Ltd passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Ryder System

A-Score: 5.9/10

Value: 7.2

Growth: 6.8

Quality: 3.0

Yield: 5.0

Momentum: 6.0

Volatility: 7.3

1-Year Total Return ->

View Full Report
Stock-Card
FTAI Aviation

A-Score: 5.5/10

Value: 3.0

Growth: 4.7

Quality: 6.9

Yield: 6.0

Momentum: 6.0

Volatility: 6.7

1-Year Total Return ->

View Full Report
Stock-Card
McGrath Rent

A-Score: 5.5/10

Value: 4.7

Growth: 7.7

Quality: 6.7

Yield: 4.0

Momentum: 2.0

Volatility: 8.0

1-Year Total Return ->

View Full Report
Stock-Card
Avis Budget Group

A-Score: 5.2/10

Value: 8.6

Growth: 5.8

Quality: 3.9

Yield: 1.0

Momentum: 8.5

Volatility: 3.7

1-Year Total Return ->

View Full Report
Stock-Card
Fortress Transportation

A-Score: 5.0/10

Value: 3.0

Growth: 4.7

Quality: 6.9

Yield: 6.0

Momentum: 6.0

Volatility: 3.3

1-Year Total Return ->

View Full Report
Stock-Card
FTAI Aviation

A-Score: 4.6/10

Value: 3.0

Growth: 4.7

Quality: 6.9

Yield: 5.0

Momentum: 6.0

Volatility: 2.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

230.03$

Current Price

230.03$

Potential

-0.00%

Expected Cash-Flows