FTAI · FTAI Aviation Ltd.

FTAI Aviation's Q2 2026 results showcase robust operational momentum in its Aerospace Products segment, which generated record revenue of $875.0 million (up 78% YoY) and Adjusted EBITDA of $249.7 million (up 51% YoY). This strong performance was driven by higher MRE contract revenue ($182.8M vs $69.6M) and aerospace products revenue ($692.2M vs $420.7M). However, consolidated net income attributable to shareholders fell to $117.6 million from $161.7 million in the prior year quarter, impacted by a $3.8 million loss on redemption of preferred shares, higher acquisition and transaction expenses, and increased cost of sales. Consolidated Adjusted EBITDA declined 16% to $291.4 million, partly due to lower lease income and asset sales revenue, as the company continues its transition to an asset-light model. Notably, the Aviation Leasing segment saw decreased revenue, leading management to cut its 2026 Adjusted EBITDA guidance for that segment from $575 million to $475 million. On a positive note, the Board raised the ordinary dividend for the fourth consecutive quarter to $0.50 per share, signaling confidence in cash generation. Management introduced a 2027 Adjusted EBITDA target of $2.3 billion, with Aerospace Products contributing $1.4 billion, FTAI Power $450 million, and Aviation Leasing $450 million. The announcement of a $1.465 billion customer contract for FTAI Power and strategic partnerships with GMF Indonesia and EgyptAir underscore the company's expansion in engine maintenance and geographic reach. The balance sheet remains solid with $337.2 million in cash and $3.45 billion in net long-term debt. Overall, while near-term profitability was pressured by transition costs and one-time items, the core Aerospace Products business is firing on all cylinders, and the multi-year guidance suggests a strong growth trajectory ahead.