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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's Strong 2025 Performance and Promising 2026 Outlook

FTAI reported a robust financial performance in 2025, with adjusted EBITDA reaching $1.2 billion, up 38% from $862 million in 2024. The Aerospace Products segment was a key driver, generating $671 million of adjusted EBITDA, in line with the revised target of $650 million to $700 million. The company's EPS came in at $1.08, slightly below estimates of $1.24. The adjusted EBITDA margin for the Aerospace Products segment was 35% in Q4, indicating a significant increase in profitability. With a P/E Ratio of 63.94 and an EV/EBITDA of 32.82, the market is pricing in high growth expectations.

Publication Date: Feb -27

📋 Highlights
  • SCI I Deployment Success: $2 billion equity commitments secured for SCI I, with 276 aircraft closed under LOI ($5.3B of $6B target deployed by Q4 2025).
  • Aerospace Products Growth: Delivered $671 million adjusted EBITDA in 2025 (38% YoY growth), with Q4 EBITDA of $195 million (35% margin, +66% YoY).
  • 2026 EBITDA Guidance Raised: Total segment guidance increased to $1.625 billion ($1.05B Aerospace, $575M Leasing), driven by insurance settlements and operational scale.
  • FTAI Power Expansion: 100 Mod-1 units targeted for 2027, leveraging CFM56 engines with 25MW output, supported by $100 million 2026 investment.

Business Segment Performance

The Aviation Leasing business continued to deliver strong results, posting approximately $113 million of adjusted EBITDA in Q4. The company's strategic capital initiative (SCI) is progressing well, with 276 aircraft closed under LOI, representing $5.3 billion of the $6 billion target. The fundraising process for SCI II has started, and the company expects to begin investing by June 30. As Joseph Adams mentioned, "the Aviation Leasing business is evolving into a high-quality fee-driven asset management platform with recurring earnings and expanding co-investment opportunities."

Growth Prospects and Guidance

FTAI is confident in achieving its guidance outlined last October, with an updated outlook that increases total EBITDA by $100 million. The company expects total business segment guidance of $1.625 billion, up from $1.525 billion, including $1.05 billion from Aerospace Products and $575 million from Aviation Leasing. The company is also expecting 39% growth in module production in 2026, driven by disciplined execution and strategic agreements with OEMs.

Power Business Initiative

The company's new Power business initiative is expected to drive revenue growth, with a target of $2-3 billion in revenue. The margins in the Power business are expected to be as good or better than those in Aerospace Products, due to the company's cost advantages and supply chain capabilities. The production pipeline for 2027 is 100 units, which will leverage the same infrastructure and feedstock as the Aerospace business.

Valuation and Dividend Yield

With a ROE of 255.08% and an ROIC of 20.89%, FTAI is demonstrating strong profitability. The company's dividend yield is 0.4%, and it has increased its dividend from $0.35 to $0.40 per share per quarter for the second consecutive quarter. The P/B Ratio of 95.17 indicates that the market is pricing in high expectations for the company's growth prospects.

3. NewsRoom

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Is It Too Late To Consider FTAI Aviation (FTAI) After A 10x Three Year Rally?

Jan -11

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Baird downgrades GEV on competition and power overcapacity fears

Jan -09

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1 Unpopular Stock That Deserves a Second Chance and 2 We Brush Off

Jan -09

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Here's Why FTAI Aviation Stock Surged in December (And Why it Could Be Good News for GE Aerospace and GE Vernova)

Jan -08

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This Stock Is Flying on a Bet Jet Engines Will Power AI Data Centers

Jan -07

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Four Tree Island Advisory Issues Open Letter to Willis Lease Finance Board

Jan -06

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Why FTAI Aviation (FTAI) Is Up 14.3% After Launching Its New FTAI Power Platform

Jan -06

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A Look At FTAI Aviation (FTAI) Valuation After Strong Multi‑Period Share Price Gains

Jan -06

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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

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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 ->

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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 ->

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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

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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

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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 ->

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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 ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

27.12$

Current Price

27.12$

Potential

-0.00%

Expected Cash-Flows