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 has been driven by several positive factors. The company's Q3 results, released on October 28, showed strong growth, with management raising 2026 EBITDA guidance and dividend. Additionally, the closure of its $6B Strategic Capital Initiative fund has bolstered investor confidence. Insiders have been buying shares, with 569,525 shares changing hands on November 15, a surge that drove prices up 8.3%. Institutional investors, such as ARS Investment Partners LLC and Advisors Capital Management LLC, have also increased their stakes, with 2,000 and 18,390 shares purchased respectively.

1.c. Company Highlights

2. FTAI's Q3 Earnings: Strong Performance and Growth Prospects

The company reported a robust financial performance in Q3, with adjusted EBITDA margin of 35% in Aerospace Products, generating $180 million, up 77% year-over-year. The actual EPS came out at $1.1, slightly below estimates of $1.19. Revenue growth is expected to be 23.0% next year, according to analysts' estimates. The company's adjusted free cash flow was $268 million, including $88 million from the sale of the final 8 aircraft from the 45 aircraft seed portfolio. Year-to-date, FTAI has generated $638 million in positive free cash flow, positioning it on track to meet its revised goal of $750 million for all of 2025.

Publication Date: Oct -31

📋 Highlights
  • SCI Equity Upsizing:: Final equity commitments closed at $2 billion, with FTAI co-investing ~$380M (19% stake), aiming to deploy $6 billion in capital via 2025 partnership, doubling the 2023 target.
  • Aerospace EBITDA Growth:: Generated $180M adjusted EBITDA (35% margin) in Q3, up 77% YoY, driven by MRE adoption and CFM56 module production of 207 units (13% QoQ increase).
  • Module Production Expansion:: Targeting 1,000 CFM56 modules in 2025 (33% growth), supported by $15M ATOPS acquisition and a 50-50 joint venture with Bauer, Inc., projecting $75K per engine savings.
  • Free Cash Flow Momentum:: Q3 FCF of $268M (including $88M from aircraft sales), with $638M year-to-date toward a $750M 2025 target, ahead of SCI 1 expansion.
  • EBITDA Guidance Raised:: 2025 EBITDA now targeting $1.25–$1.3B (Aerospace: $650–$700M, Aviation Leasing: $600M), with 2026 EBITDA up to $1.525B (+10% growth).

Business Segment Performance

Aerospace Products delivered another strong performance, driven by the adoption of FTAI's aerospace products across new and existing customers. The company refurbished 207 CFM56 modules this quarter, a 13% increase versus the last quarter, and remains on track to produce 750 modules in 2025. The acquisition of ATOPS, an MRO with extensive CFM56 engine operations, is expected to strengthen FTAI's presence in Miami.

Growth Prospects and Outlook

FTAI is confident in its full-year 2025 estimates of $1.25 billion to $1.3 billion business segment EBITDA. For 2026, the company is estimating $1 billion in EBITDA for Aerospace Products and $525 million in EBITDA for Aviation Leasing, resulting in total business segment EBITDA of $1.525 billion, up from the original estimate of $1.4 billion. As David Moreno noted, "We're one of the larger pools of capital focused solely on NGs and CEOs, and we expect to capture a significant share of the market."

Valuation and Dividend

With a P/E Ratio of 40.6 and an EV/EBITDA ratio of 19.82, the market seems to be pricing in significant growth prospects for FTAI. The company's ROE is 358.03%, indicating high profitability. FTAI has also announced an increase in its dividend to $0.35 per share, representing a Dividend Yield of 0.64%. The company's ROIC is 20.84%, suggesting efficient use of capital.

Strategic Initiatives

FTAI's strategic capital initiative #1 (SCI) has seen significant interest from institutional investors, with the total equity capital of the 2025 partnership upsized to $2 billion. The company expects to deploy over $6 billion in capital through the 2025 partnership, up from the previous target of $4 billion. This expanded partnership corresponds to a larger total portfolio size of approximately 375 aircraft, with full deployment of capital now anticipated by mid-2026.

3. NewsRoom

Card image cap

Edgestream Partners L.P. Purchases 11,036 Shares of FTAI Aviation Ltd. $FTAI

Dec -04

Source: defenseworld.net

Card image cap

FTAI Aviation Ltd. $FTAI is Advantage Alpha Capital Partners LP’s Largest Position

Nov -28

Source: defenseworld.net

Card image cap

FTAI Aviation Ltd. (NASDAQ:FTAI) Given Average Rating of “Moderate Buy” by Brokerages

Nov -27

Source: defenseworld.net

Card image cap

Insider Alert: Palantir Director Dumps $57 Million in Stock

Nov -25

Source: gurufocus.com

Card image cap

Artisan Partners Limited Partnership Has $148.65 Million Position in FTAI Aviation Ltd. $FTAI

Nov -20

Source: defenseworld.net

Card image cap

ARS Investment Partners LLC Makes New $230,000 Investment in FTAI Aviation Ltd. $FTAI

Nov -20

Source: defenseworld.net

Card image cap

FTAI Aviation Ltd. $FTAI Stake Increased by Catalyst Funds Management Pty Ltd

Nov -20

Source: defenseworld.net

Card image cap

FTAI Aviation: Short-Term Consolidation Creates Buying Opportunity

Nov -19

Source: seekingalpha.com

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
McGrath Rent

A-Score: 6.4/10

Value: 4.6

Growth: 7.8

Quality: 6.6

Yield: 4.0

Momentum: 6.5

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
Ryder System

A-Score: 6.3/10

Value: 7.5

Growth: 6.8

Quality: 3.1

Yield: 5.0

Momentum: 8.0

Volatility: 7.3

1-Year Total Return ->

View Full Report
Stock-Card
FTAI Aviation

A-Score: 5.6/10

Value: 3.0

Growth: 4.7

Quality: 8.5

Yield: 6.0

Momentum: 5.0

Volatility: 6.7

1-Year Total Return ->

View Full Report
Stock-Card
Avis Budget Group

A-Score: 5.6/10

Value: 9.6

Growth: 5.8

Quality: 5.0

Yield: 1.0

Momentum: 9.5

Volatility: 2.7

1-Year Total Return ->

View Full Report
Stock-Card
Fortress Transportation

A-Score: 5.1/10

Value: 3.0

Growth: 4.7

Quality: 8.5

Yield: 6.0

Momentum: 5.0

Volatility: 3.3

1-Year Total Return ->

View Full Report
Stock-Card
FTAI Aviation

A-Score: 4.9/10

Value: 3.0

Growth: 4.7

Quality: 8.5

Yield: 5.0

Momentum: 6.5

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

177.02$

Current Price

177.02$

Potential

-0.00%

Expected Cash-Flows