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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.

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1.b. Last Insights on FTAIM

Recent developments have negatively impacted FTAI Aviation Ltd.'s stock performance. The company's shares dropped 19% to $113 after a short seller's report accused FTAI of misrepresenting its business and engaging in misleading depreciation tactics. Additionally, a negative report from a short seller in January led to a significant decline in the stock price. However, FTAI's Q4 earnings and revenue exceeded estimates, with earnings and revenue surprises of 1.20% and 3.62%, respectively. This suggests that the company's underlying business performance is strong, but the negative sentiment from the short seller's report has had a lasting impact.

1.c. Company Highlights

2. FTAI Delivers Strong Q3 Performance with 28% YoY Adjusted EBITDA Growth

The company's adjusted EBITDA came in at $297.4 million, up 28% compared to $232 million in Q3 of 2024. Aerospace Products had a strong quarter with $180.4 million of EBITDA and an overall EBITDA margin of 35%, which is up 9% compared to $164.9 million in Q2 of 2025 and up 77% compared to $101.8 million in Q3 2024. The actual EPS came out at $1.13 relative to estimates at $1.21. Revenue growth is expected to continue, with analysts estimating a 23.0% growth in revenues for next year.

Publication Date: Oct -31

📋 Highlights
  • SCI Equity Upsized: SCI partnership equity increased to $2B with FTAI's 19% stake ($380M), targeting $6B capital deployment by 2025 (up from $4B previously).
  • Aerospace EBITDA Surge: Generated $180M adjusted EBITDA (35% margin) in Q3 2025, +77% YoY, with full-year guidance at $650M–$700M and 2026 target of $1B.
  • Module Production Expansion: Refurbished 207 CFM56 modules in Q3 (13% QoQ growth), on track for 750 modules in 2025 and 1,000 in 2026, with 40% margin target.
  • Free Cash Flow Momentum: Q3 free cash flow hit $268M ($88M from aircraft sales), $638M YTD, targeting $750M for 2025 and $1B in 2026.
  • Dividend Increase: Raised quarterly dividend to $0.35/share (from $0.30), marking 42nd consecutive payout and 57th since inception in 2025.

Segment Performance

Aerospace Products delivered another strong performance, generating $180 million in adjusted EBITDA at a 35% margin. The company refurbished 207 CFM56 modules this quarter, an increase of 13% versus the last quarter, and is on track to produce 750 modules in 2025. The Aviation Leasing segment also contributed to the growth, with the sale of the final 8 aircraft from the 45 aircraft seed portfolio.

SCI Upsizing and Impact

The company passed a significant milestone with the successful close on the final round of equity commitments for SCI, with the total equity capital of the 2025 partnership upsized to $2 billion. FTAI will co-invest up to approximately $380 million, including the $152 million invested year-to-date, for a 19% minority equity interest. The SCI business is expected to represent about 20% to 25% of the Aerospace Products volume.

Guidance and Outlook

The company remains confident in its full-year 2025 estimates of $1.25 billion to $1.3 billion business segment EBITDA. For 2026, Aerospace Products is expected to grow to $1 billion in EBITDA, representing significant further growth versus the $650 million to $700 million this year. The company is targeting growth in production next year to 1,000 CFM56 modules, an increase of 33% compared to this year's production.

Valuation

With a P/E Ratio of 40.6 and an EV/EBITDA of 19.82, the stock appears to be priced with high expectations for future growth. The ROE of 358.03% and ROIC of 20.84% indicate strong profitability. The Dividend Yield is 0.64%, which is relatively low. The company's ability to generate cash is reflected in its adjusted free cash flow of $268 million in Q3, positioning it on track to its revised goal of $750 million for all of 2025.

3. NewsRoom

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Is It Time to Revisit FTAI Aviation After Its New Service Market Expansion?

Dec -01

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Jim Cramer on FTAI: “Hold on to It”

Nov -29

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Insider Alert: Palantir Director Dumps $57 Million in Stock

Nov -25

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FTAI Aviation (FTAI): Evaluating Valuation Following Strategic AI Partnership with Palantir Technologies

Nov -21

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AAON, FTAI Aviation, Hubbell, MYR Group, and Allient Shares Plummet, What You Need To Know

Nov -20

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Do You Believe in the Growth Potential of FTAI Aviation (FTAI)?

Nov -20

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Why FTAI Aviation (FTAI) Stock Is Trading Up Today

Nov -19

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This ‘Strong Buy’ Jet Engine Stock Is Partnering Up with Palantir. Should You Buy Shares Here?

Nov -19

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.26%)

6. Segments

Aviation Leasing

Expected Growth: 7.3%

Growing demand for air travel, increasing need for airlines to modernize fleets, and FTAI Aviation Ltd.'s expertise in aircraft financing solutions drive growth in the aviation leasing market.

Aerospace Products

Expected Growth: 7.4%

Growing demand for aircraft parts and MRO services driven by increasing air travel, fleet expansion, and military modernization. Rising focus on safety, efficiency, and sustainability also fuels growth.

Corporate and Other

Expected Growth: 4.5%

FTAi Aviation's Corporate and Other segment is expected to grow driven by increasing demand for management services and miscellaneous income streams, leveraging the company's expertise in aviation and strong industry connections.

7. Detailed Products

Aircraft Leasing

FTA Aviation Ltd. offers a range of aircraft leasing options for airlines, providing flexible and cost-effective solutions for fleet management.

Aircraft Trading

FTA Aviation Ltd. facilitates the buying and selling of aircraft, providing market expertise and negotiation services.

Aircraft Management

FTA Aviation Ltd. provides comprehensive management services for aircraft owners, including maintenance, insurance, and operational support.

Aircraft Maintenance

FTA Aviation Ltd. offers a range of maintenance services, including routine checks, repairs, and modifications.

Aviation Consulting

FTA Aviation Ltd. provides expert consulting services for airlines, airports, and aviation authorities, covering strategy, operations, and regulatory compliance.

Flight Training

FTA Aviation Ltd. offers customized flight training programs for pilots, including type ratings and recurrent training.

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 availability of multiple airlines and travel options, giving customers the power to negotiate prices and services.

Bargaining Power Of Suppliers

The bargaining power of suppliers for FTAI Aviation Ltd. is low due to the company's large scale of operations and its ability to negotiate better prices with suppliers.

Threat Of New Entrants

The threat of new entrants for FTAI Aviation Ltd. is low due to the high barriers to entry in the aviation industry, including high capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry for FTAI Aviation Ltd. is high due to the competitive nature of the aviation industry, with multiple airlines competing for market share and customers.

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 4.85%
Equity Weight 6.51%
Equity Cost 13.63%
WACC 5.42%
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 ->

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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 ->

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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 ->

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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 ->

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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 ->

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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

26.74$

Current Price

26.75$

Potential

-0.00%

Expected Cash-Flows