Financial Performance - Net income attributable to shareholders for Q1 2025 was $89.9 million, compared to $31.3 million in Q1 2024, representing a significant increase of 187%[6] - Basic earnings per ordinary share for Q1 2025 was $0.88, up from $0.31 in Q1 2024, reflecting a growth of 184%[14] - Total revenues for Q1 2025 reached $502.1 million, a 54% increase from $326.7 million in Q1 2024[15] - Adjusted EBITDA for Q1 2025 was $268.6 million, with a margin of 36% for Aerospace Products, which generated $131 million[6] - Adjusted EBITDA for Q1 2025 reached $268,558,000, representing a 63.7% increase compared to $164,101,000 in Q1 2024[23] - In the Aerospace Products segment, net income attributable to shareholders for Q1 2025 was $106,643,000, up 60.5% from $66,433,000 in Q1 2024[26] - Adjusted EBITDA for Aerospace Products in Q1 2025 was $130,945,000, a 86.3% increase from $70,277,000 in Q1 2024[26] Assets and Liabilities - Total current assets increased to $1.87 billion as of March 31, 2025, compared to $1.23 billion at the end of 2024[18] - Long-term debt increased to $3.64 billion as of March 31, 2025, up from $3.44 billion at the end of 2024[18] - The company reported a total of $4.27 billion in assets as of March 31, 2025, compared to $4.04 billion at the end of 2024[18] Expenses - Provision for income taxes in Q1 2025 was $22,859,000, compared to $5,572,000 in Q1 2024, reflecting a change of $17,287,000[23] - Depreciation and amortization expense increased to $68,387,000 in Q1 2025 from $59,122,000 in Q1 2024, a rise of $9,265,000[23] - Equity-based compensation expense rose to $4,889,000 in Q1 2025, compared to $510,000 in Q1 2024, indicating an increase of $4,379,000[23] - Interest expense and dividends on preferred shares increased to $68,155,000 in Q1 2025 from $56,042,000 in Q1 2024, an increase of $12,113,000[23] - Acquisition and transaction expenses for Q1 2025 were $7,292,000, up from $6,179,000 in Q1 2024, reflecting a change of $1,113,000[23] Market Demand and Operations - FTAI's Module Factory has over 100 customers worldwide, indicating strong market demand[6] - As of March 31, 2025, FTAI owned or had letters of intent for 98 aircraft under its Strategic Capital Initiative 2025 partnership[6] Dividends - The company declared a cash dividend of $0.30 per ordinary share for the quarter ended March 31, 2025[3] Other Financial Metrics - The pro-rata share of Adjusted EBITDA from unconsolidated entities improved to $41,000 in Q1 2025 from a loss of $548,000 in Q1 2024, a change of $589,000[23]

Financial Performance - Total revenues increased by $564.0 million, reaching $1,734.9 million in 2024, driven primarily by a $624.9 million increase in aerospace products revenue[195]. - Net income from continuing operations decreased by $235.1 million, resulting in a net income of $8.7 million in 2024[198]. - Adjusted EBITDA increased by $264.8 million, reaching $862.1 million in 2024, reflecting improved operational performance[199]. - Total expenses increased by $665.9 million, totaling $1,497.1 million in 2024, primarily due to higher costs associated with sales and operations[197]. - Net income attributable to shareholders decreased by $81.4 million to $210.2 million in 2024, compared to $291.6 million in 2023[215]. - Net income from continuing operations increased by $354.4 million, reflecting improved operational performance[204]. - Adjusted EBITDA increased by $169.2 million, indicating stronger earnings before interest, taxes, depreciation, and amortization[206]. - Total revenues decreased by $53.2 million, primarily due to a $111.0 million decrease in asset sales revenue, with three aircraft and 14 engines sold in 2024 compared to 13 aircraft and 41 engines in 2023[212]. - Net loss attributable to shareholders from continuing operations was $588.7 million in 2024, compared to a loss of $259.8 million in 2023[237]. - Adjusted EBITDA for the corporate segment was $(18.6) million in 2024, an improvement from $(30.1) million in 2023[237]. Revenue Breakdown - Aerospace products revenue growth was mainly due to a $546.0 million increase in sales of CFM56-7B, CFM56-5B, and V2500 engines and modules[195]. - Aerospace products revenue surged to $1.08 billion in 2024, a significant increase from $455.0 million in 2023[222]. - Total Aerospace products revenue increased by $624.9 million in 2024, driven by a $546.0 million increase in engine and module sales[225]. - Lease income rose by $47.4 million, attributed to a $37.3 million increase in engine lease revenue and a $17.5 million increase in aircraft lease revenue[195]. - Maintenance revenue increased by $9.5 million, driven by a $43.2 million rise in engine maintenance revenue[195]. - Lease income in the Aviation Leasing segment rose to $234.4 million, up from $179.7 million in 2023[210]. - Other revenue decreased by $6.7 million, primarily due to a reduction in end-of-lease redelivery compensation[196]. Expenses and Costs - Total expenses increased by $206.7 million, with cost of sales rising by $253.7 million, primarily in the Aerospace Products segment[201]. - Total expenses in the Aerospace Products segment rose to $709.3 million in 2024, up from $303.1 million in 2023[222]. - Acquisition and transaction expenses increased by $5.2 million, driven by higher costs associated with the acquisition of aviation leasing equipment[223]. - Total expenses increased by $406.1 million in 2024, with a significant rise in cost of sales by $393.6 million[226]. - Cost of sales for Aerospace products increased by $393.6 million, correlating with the revenue growth in the same segment[229]. - Acquisition and transaction expenses rose by $3.2 million in 2024, mainly due to higher professional fees for strategic transactions[229]. Asset Management - As of December 31, 2024, the company had total consolidated assets of $4.0 billion and total equity of $81.4 million[175]. - The Aviation Leasing segment owns and manages aviation assets, while the Aerospace Products segment develops and manufactures aircraft engines and components[186]. - As of December 31, 2024, the Aviation Leasing segment owned and managed 421 aviation assets, including 109 commercial aircraft and 312 engines[207]. - The company launched a Strategic Capital Initiative on December 30, 2024, focusing on acquiring 737NG and A320ceo aircraft, maintaining an asset-light business model[185]. - The company expects to provide aircraft management services and make minority investments in future partnerships under the Strategic Capital Initiative[185]. - The insured value of aircraft and engines remaining in Russia is $210.7 million, with uncertain timing and amount of recoveries under insurance policies[179]. - Asset sales revenue decreased by $111.0 million, with three aircraft and 14 engines sold in 2024 compared to 13 aircraft and 41 engines in 2023[195]. - Asset sales revenue increased by $119.6 million, with 13 aircraft and 41 engines sold in 2023 compared to eight aircraft and 71 engines sold in 2022[202]. Tax and Interest - The provision for income taxes increased by $65.3 million, reflecting higher tax obligations due to increased income from leasing and aerospace activities[197]. - The provision for income taxes increased by $69.2 million, reflecting higher tax obligations due to increased income from leasing activities[214]. - The company established a deferred tax asset of $72.2 million due to a tax law change in Bermuda, contributing to a $65.1 million increase in the benefit from income taxes[203]. - Interest expense increased by $60.1 million, reflecting an increase in average debt outstanding of approximately $779.3 million[200]. - Interest rate risk is present due to variable interest rate agreements, with potential increases in interest rates impacting net income without corresponding increases in cash flow[281]. - A hypothetical 100-basis point increase or decrease in variable interest rates would not have affected interest expense over the next 12 months[284]. Cash Flow and Financing - Cash used for investments was $1,526.2 million in 2024, compared to $861.5 million in 2023[252]. - Proceeds from the sale of assets were $969.3 million in 2024, up from $477.9 million in 2023[260]. - Cash flow from operating activities decreased by $316.9 million, reflecting a decrease in net income and changes in working capital[259]. - Net cash provided by financing activities increased by $399.6 million, primarily due to proceeds from debt of $1,630.2 million and maintenance deposits of $19.0 million[261]. - Outstanding principal and interest payment obligations as of December 31, 2024, total $3.5 billion and $1.4 billion, respectively, with $229.8 million due in the next twelve months[264]. - Cash dividends declared during 2024 amounted to $121.6 million on ordinary shares and $32.8 million on preferred shares[266]. - The company expects to meet future short-term liquidity requirements through cash on hand, unused borrowing capacity, and net cash from current operations[267]. - On October 9, 2024, the company issued $500.0 million in senior unsecured notes due 2033, using proceeds to redeem $130.5 million of Senior Notes due 2027[250]. Management and Internalization - The company internalized its management function on May 28, 2024, eliminating management fees to the Former Manager[176]. - The company entered into a Transition Services Agreement with the Former Manager, requiring services until October 31, 2024, with a fee structure based on costs plus a 10% markup[177]. - The company internalized its management functions on May 28, 2024, resulting in a one-time payment of $150.0 million to the former manager[247].

Financial Performance - FTAI reported a net income attributable to shareholders of $86.692 million for Q4 2024, a decrease from $110.025 million in Q4 2023, representing a decline of 21.2% year-over-year[22]. - The company achieved total revenues of $498.819 million in Q4 2024, up 59.5% from $312.737 million in Q4 2023[22]. - Adjusted EBITDA for Q4 2024 was $252.015 million, reflecting strong operational performance[2]. - FTAI's Aerospace Products segment saw a net income of $346 million for fiscal year 2024, up 92% year-over-year, with Adjusted EBITDA increasing by 138%[7]. - Adjusted EBITDA for the year ended December 31, 2024, was $862,050, representing a 44% increase from $597,282 in 2023[27]. - Adjusted EBITDA for Aerospace Products was $380,636 for the year ended December 31, 2024, compared to $160,009 in 2023, marking a 138% increase[31]. Dividends and Shareholder Returns - The company declared a cash dividend of $0.30 per ordinary share for Q4 2024, payable on March 24, 2025[3]. Future Guidance - FTAI expects 2025 Adjusted EBITDA to be approximately $1.1 to $1.15 billion, with $500 million from Aviation Leasing and $600 to $650 million from Aerospace Products[11]. - FTAI is increasing its 2026 Adjusted EBITDA guidance from $1.25 billion to approximately $1.4 billion, reflecting expected growth from the Strategic Capital Initiative[12]. Operational Costs and Expenses - The company reported total expenses of $340.610 million for Q4 2024, compared to $224.876 million in Q4 2023, indicating a significant increase in operational costs[22]. Balance Sheet and Assets - Total assets increased to $4,037,952, up 36% from $2,964,685 in 2023[24]. - Total current assets rose to $1,226,018, a 83% increase from $671,434 in 2023[24]. - Cash and cash equivalents increased to $115,116, up 27% from $90,756 in 2023[24]. - Inventory increased significantly to $551,156, a 74% rise from $316,637 in 2023[24]. Liabilities and Equity - Long-term debt increased to $3,440,478, up 37% from $2,517,343 in 2023[24]. - Total liabilities rose to $3,956,584, an increase of 42% from $2,788,802 in 2023[24]. - Shareholders' equity decreased to $81,368, down 54% from $175,349 in 2023[24]. Share Information - FTAI's weighted average shares outstanding for Q4 2024 were 102,549,890 for basic shares and 103,603,350 for diluted shares[22]. Joint Ventures and Capacity Expansion - The joint venture with IAG Engine Center is expected to add maintenance capacity for 450 modules (150 engines) per year, increasing FTAI's total maintenance capacity to 1,800 modules (600 engines)[8].

Financial Performance - Lease income for the three months ended September 30, 2024, was $65.45 million, an increase of 43.5% from $45.62 million in the same period of 2023[158]. - Aerospace products revenue surged to $303.47 million for the three months ended September 30, 2024, compared to $118.68 million in 2023, reflecting a growth of 155.6%[158]. - Total revenues for the nine months ended September 30, 2024, reached $1.236 billion, up 44% from $858.16 million in 2023[158]. - Net income attributable to shareholders for the three months ended September 30, 2024, was $78.15 million, a significant increase from $32.97 million in 2023[158]. - Net income attributable to shareholders increased by $45.2 million for the three months ended September 30, 2024, and decreased by $219.2 million for the nine months ended September 30, 2024 compared to the prior year[164]. - Total revenues increased by $174.7 million for the three months ended September 30, 2024, driven by a $184.8 million increase in aerospace products revenue[160]. - Adjusted EBITDA increased by $77.8 million for the three months ended September 30, 2024, and by $175.1 million for the nine months ended September 30, 2024[165]. - Aerospace products revenue increased by $441.2 million for the nine months ended September 30, 2024, primarily due to a $387.2 million increase in engine and module sales[161]. - Net income attributable to shareholders increased by $52.5 million (approximately 127.0%) for the three months ended September 30, 2024, compared to the same period in 2023[183]. - Adjusted EBITDA increased by $58.5 million (approximately 135.2%) for the three months ended September 30, 2024, compared to the prior year[184]. Expenses and Costs - Total expenses for the three months ended September 30, 2024, were $316.52 million, an increase of 53.4% from $206.41 million in 2023[158]. - Total expenses increased by $110.1 million for the three months ended September 30, 2024, with a significant increase in costs associated with aerospace products[161]. - Total expenses increased by $128.5 million (approximately 168.3%) for the three months ended September 30, 2024, largely due to a $128.6 million rise in cost of sales[181]. - Depreciation and amortization expense increased by $11.3 million in Q3 2024, driven by a higher number of assets owned and on lease[171]. - Acquisition and transaction expenses increased by $13.3 million, primarily due to higher professional fees related to strategic transactions[166]. - Acquisition and transaction expenses rose by $2.4 million, primarily due to increased legal fees related to strategic transactions[171]. - Interest expense increased by $17.8 million, reflecting an increase in average debt outstanding of approximately $913.0 million[166]. - The provision for income taxes increased by $3.6 million during the three months ended September 30, 2024, primarily due to increased income from leasing and aerospace activities[162]. - The provision for income taxes rose by $3.3 million (approximately 291.2%) for the three months ended September 30, 2024, due to increased income from aerospace activities[182]. Asset Management - Total consolidated assets as of September 30, 2024, were $3.7 billion, with total equity of $118.5 million[148]. - The company owns and manages 393 aviation assets, including 96 commercial aircraft and 297 engines, as of September 30, 2024[167]. - As of September 30, 2024, the company had 86 commercial aircraft and 184 engines leased, with an aviation equipment utilization rate of approximately 79%[168]. - The insured value of aircraft and engines remaining in Russia is approximately $210.7 million, with uncertain recovery timing[152]. - The company acquired LMCES in September 2024 and QuickTurn in December 2023 to enhance its aerospace products segment and establish permanent manufacturing capabilities[176]. - The company holds a 25% interest in the Advanced Engine Repair JV, focusing on developing cost-saving programs for engine repairs[176]. Cash Flow and Liquidity - Cash used for investments was $1.0 billion in the nine months ended September 30, 2024, compared to $562.8 million in the same period of 2023[1]. - Net cash used in operating activities increased by $262.9 million, reflecting a net loss of $219.2 million and adjustments including a gain on sale of assets of $133.8 million[1]. - Net cash used in investing activities rose by $251.6 million, primarily due to business acquisitions totaling $143.6 million and deposits for aircraft acquisitions of $152.2 million[2]. - Net cash provided by financing activities increased by $535.9 million, driven by $1.6 billion in proceeds from debt[3]. - The company has sufficient liquidity to meet cash needs and is taking actions to preserve adequate liquidity[195]. - Principal sources of liquidity include revenues from aviation assets, proceeds from borrowings, and asset sales[197]. - The company expects to meet future short-term liquidity requirements through cash on hand and unused borrowing capacity[4]. - A hypothetical 100-basis point increase in variable interest rates would result in an increase of approximately $1.5 million in interest expense over the next 12 months[4]. - Distributions to shareholders, including cash dividends, increased to $115.8 million in 2024 from $113.2 million in 2023[1]. Impairments and Charges - The company recognized an impairment charge of $120 million due to the impact of sanctions related to Russia's invasion of Ukraine[151]. - Net loss increased by $11.4 million in Q3 2024 and $333.8 million for the nine months, primarily due to the changes noted above[193]. - The Internalization fee to affiliate increased by $300.0 million, which is expected to lead to savings in operational costs[190].

Financial Performance - FTAI Aviation Ltd. reported a net income attributable to shareholders of $78,147,000 for Q3 2024, compared to $32,973,000 in Q3 2023, representing a 137% increase year-over-year[2] - Total revenues for Q3 2024 were $465,794,000, a 60% increase from $291,096,000 in Q3 2023[14] - Aerospace products revenue surged to $303,469,000 in Q3 2024, compared to $118,675,000 in Q3 2023, reflecting a 156% increase[14] - Net income attributable to shareholders for Q3 2024 was $78,147, compared to $32,973 in Q3 2023, representing a change of $45,174[19] - For the nine months ended September 30, 2024, net income was $(118,771), a decrease of $220,768 compared to $101,997 in the same period of 2023[19] Adjusted EBITDA - The company achieved an Adjusted EBITDA of $232,030,000 in Q3 2024, with over $100 million generated from Aerospace Products[6][2] - Adjusted EBITDA for Q3 2024 was $232,030, an increase of $77,812 from $154,218 in Q3 2023[19] - Nine-month Adjusted EBITDA rose to $610,035, up $175,084 from $434,951 in the prior year[19] Asset and Liability Management - FTAI's total assets increased to $3,738,910,000 as of September 30, 2024, up from $2,964,685,000 at the end of 2023[16] - The company's total liabilities rose to $3,620,378,000 as of September 30, 2024, compared to $2,788,802,000 at the end of 2023[16] - Cash and cash equivalents increased to $111,888,000 as of September 30, 2024, from $90,756,000 at the end of 2023[16] - FTAI's accumulated deficit grew to $(175,551,000) as of September 30, 2024, compared to $(81,785,000) at the end of 2023[16] Income and Expense Analysis - Lease income increased to $65,450,000 in Q3 2024, up from $45,622,000 in Q3 2023, marking a 43% growth[14] - Depreciation and amortization expense for Q3 2024 was $69,453, an increase of $10,073 from $59,380 in Q3 2023[19] - Interest expense and dividends on preferred shares for Q3 2024 totaled $66,272, up $17,753 from $48,519 in Q3 2023[19] - Acquisition and transaction expenses for Q3 2024 were $9,341, an increase of $5,080 from $4,261 in Q3 2023[19] - Equity-based compensation expense for Q3 2024 was $1,430, compared to $510 in Q3 2023, reflecting an increase of $920[19] - Asset impairment charges for Q3 2024 were $962, down $258 from $1,220 in Q3 2023[19] Dividends - The company declared a cash dividend of $0.30 per ordinary share for the quarter ended September 30, 2024[3]

Financial Performance - For the three months ended June 30, 2024, total revenues increased by $169.2 million, reaching $443.6 million, compared to $274.3 million in the same period of 2023, representing a 61.6% increase [147]. - Net loss attributable to shareholders for the three months ended June 30, 2024, was $228.2 million, compared to a profit of $46.4 million in the same period of 2023 [147]. - Total revenues increased by $169.2 million for the three months ended June 30, 2024, primarily due to a $152.5 million increase in Aerospace products revenue [150]. - Net income attributable to shareholders decreased by $19.8 million to $52.8 million for the three months ended June 30, 2024 [183]. - The company reported a net loss attributable to shareholders of $365.9 million for the six months ended June 30, 2024, compared to a loss of $119.7 million in the same period of 2023 [198]. - Net loss attributable to shareholders increased by $306.4 million to $(365.9) million for the three months ended June 30, 2024, compared to $(59.4) million in 2023 [207]. Revenue Breakdown - Aerospace products revenue surged by 164.5% to $245.2 million, compared to $92.7 million in the prior year [147]. - Lease income for the same period rose to $70.8 million, an increase of 18.8% from $59.5 million in 2023 [147]. - Lease income rose by $11.2 million due to an increase in the number of engines placed on lease, while Maintenance revenue increased by $9.1 million [151]. - Aerospace products revenue increased by $256.4 million for the six months ended June 30, 2024, driven by sales of CFM56-7B, CFM56-5B, and V2500 engines [154]. - Total revenues for the three months ended June 30, 2024, increased by $17.1 million to $184.4 million, driven by increases in Lease income and Maintenance revenue [176]. - Total revenues for the six months ended June 30, 2024, decreased by $46.7 million to $319.7 million, primarily due to a decline in Asset sales revenue [177]. Expenses and Losses - Total expenses increased by $443.6 million for the three months ended June 30, 2024, mainly driven by a $300 million increase in the internalization fee to affiliate [157]. - Total expenses for the three months ended June 30, 2024, increased by $28.3 million to $122.4 million, mainly due to higher Depreciation and amortization, Cost of sales, and Operating expenses [179]. - Total expenses increased by $319.1 million for the three months ended June 30, 2024, primarily due to higher internalization fees, interest expenses, and acquisition expenses [201]. - Total other expense increased by $15.1 million during the three months ended June 30, 2024, primarily due to a $13.9 million increase in the loss on extinguishment of debt [168]. - Total expenses rose by $96.2 million (approximately 164.2%) and $157.9 million (approximately 135.7%) for the three and six months ended June 30, 2024, primarily due to increased costs of sales and operating expenses [190][191]. Adjusted EBITDA - Adjusted EBITDA is utilized as a key performance measure, providing insights into operational performance [145]. - Adjusted EBITDA increased by $60.8 million for the three months ended June 30, 2024, reaching $213.9 million [171]. - Adjusted EBITDA for the three months ended June 30, 2024, increased by $3.8 million to $125.0 million [184]. - Adjusted EBITDA decreased by $3.2 million to $(13.3) million for the six months ended June 30, 2024, compared to $(10.1) million in 2023 [208]. - Adjusted EBITDA increased by $56.5 million (approximately 162.5%) and $99.4 million (approximately 159.9%) for the three and six months ended June 30, 2024, respectively [195]. Asset Management - Total consolidated assets as of June 30, 2024, were $3.4 billion, with total equity of $69.6 million [137]. - As of June 30, 2024, the Aviation Leasing segment owned and managed 391 aviation assets, including 99 commercial aircraft and 292 engines [172]. - The utilization rate of aviation equipment was approximately 81% during the six months ended June 30, 2024 [173]. - The internalization of management function resulted in a one-time fee of $300 million [138]. Impairments and Charges - The company recognized an impairment charge of $120 million due to the inability to recover aircraft and engines from Russia and Ukraine [140]. - Transition Services Agreement costs incurred during the three and six months ended June 30, 2024, amounted to $3.4 million, reported under Acquisition and transaction expenses [139]. Financing and Cash Flow - Cash used in operating activities increased by $254.9 million to $(187.6) million for the six months ended June 30, 2024, primarily due to an increase in net loss and adjustments [216]. - Net cash provided by financing activities increased by $483.1 million, primarily due to proceeds from debt of $1.5 billion [218]. - As of June 30, 2024, the company had outstanding principal and interest payment obligations of $3.1 billion and $1.3 billion, respectively [219]. Interest Rate Risk - The company is exposed to interest rate risk, which may affect net income due to increased borrowing costs without corresponding increases in rents or cash flow from leases [226]. - The company amended its revolving credit facility to incorporate SOFR as the successor rate to LIBOR in anticipation of LIBOR's phase-out [227]. - The company may manage its exposure to interest rate movements through the use of interest rate derivatives such as swaps and caps [228]. - The sensitivity analysis indicates that changes in interest rates could have limited use as a benchmark for forecasting financial impacts [229].

Financial Performance - Total revenues for the three months ended March 31, 2024, increased by $34.0 million to $326.7 million compared to $292.7 million in the same period of 2023 [129]. - Net income attributable to shareholders for the three months ended March 31, 2024, was $31.3 million, an increase of $8.7 million from $22.6 million in 2023 [127]. - Adjusted EBITDA for the same period increased by $36.4 million to $164.1 million compared to $127.7 million in 2023 [140]. - Total revenues for the Aviation Leasing segment decreased by $63.7 million to $135.3 million, primarily due to a $70.1 million decrease in asset sales revenue [143][146]. - Net income attributable to shareholders for the Aviation Leasing segment decreased by $15.2 million to $42.6 million [149]. - Adjusted EBITDA for the Aviation Leasing segment decreased by $2.7 million to $104.8 million [152]. - Aerospace Products segment revenue increased by $103.9 million to $189.1 million, primarily due to increased sales of CFM56-7B, CFM56-5B, and V2500 engines [154][156]. - Net income attributable to shareholders for the Aerospace Products segment increased by $41.4 million to $66.4 million [159]. - Adjusted EBITDA for the Aerospace Products segment increased by $42.9 million to $70.3 million [160]. - Total revenues decreased by $6.2 million to $2.3 million in Q1 2024, primarily due to a decrease in the Offshore Energy business [164]. - Net loss attributable to shareholders increased by $17.5 million to $77.7 million in Q1 2024 [167]. - Adjusted EBITDA decreased by $3.7 million to $(10.98) million, reflecting the changes in revenues and expenses [168]. Asset Management - Total consolidated assets as of March 31, 2024, were $3.2 billion, with total equity of $177.6 million [118]. - As of March 31, 2024, the Aviation Leasing segment managed 380 aviation assets, including 103 commercial aircraft and 277 engines [141]. - The aviation equipment utilization rate was approximately 78% as of March 31, 2024 [142]. - An impairment charge of $120.0 million was recognized due to the inability to recover aircraft and engines from Russia [119]. Expenses and Liabilities - Total expenses for the Aerospace Products segment increased by $61.6 million, mainly due to higher costs of sales and operating expenses [157]. - Total expenses increased by $10.1 million to $72.0 million, driven by higher interest expense, acquisition and transaction expenses, and management fees [165]. - Interest expense increased by $8.4 million, reflecting an increase in average debt outstanding of approximately $417.1 million [134]. - The company had outstanding principal and interest payment obligations of $2.7 billion and $0.7 billion, respectively, as of March 31, 2024 [178]. Cash Flow and Liquidity - Cash used in investing activities increased by $156.9 million to $169.2 million, primarily due to higher acquisitions of leasing equipment [176]. - Cash flows from operating activities decreased by $39.0 million to $(0.3) million, impacted by changes in net working capital and other adjustments [175]. - The company expects to meet future short-term liquidity requirements through cash on hand, unused borrowing capacity, or future financings [181]. - A hypothetical 100-basis point increase in variable interest rates would result in an increase of approximately $1.8 million in interest expense over the next 12 months [189]. Taxation - The provision for income taxes increased by $2.0 million due to a reduction in a deferred tax asset related to a tax law change in Bermuda [151].

Financial Performance - For the year ended December 31, 2023, total revenues increased to $1,170.9 million, a 65.2% increase from $708.4 million in 2022[202]. - Net income attributable to shareholders for 2023 was $212.0 million, compared to a net loss of $220.4 million in 2022[202]. - Net income attributable to shareholders from continuing operations for 2023 was $212,022,000, a significant increase of $349,797,000 compared to a loss of $137,775,000 in 2022[203]. - The aviation leasing segment reported a net income attributable to shareholders of $291.6 million for 2023, a significant increase from $56.9 million in 2022[237]. - Net income attributable to shareholders surged to $180.18 million in 2023, up from $70.66 million in 2022, marking an increase of $109.52 million[254]. Revenue Breakdown - Lease income for 2023 was $207.9 million, up 15.9% from $179.3 million in 2022[202]. - Maintenance revenue rose to $191.3 million, a 28.5% increase compared to $148.8 million in 2022[202]. - Aerospace products revenue surged to $455.0 million, reflecting a 255.5% increase from $178.5 million in 2022[202]. - Total revenues for the Aviation Leasing segment increased by $178.7 million to $681.6 million in 2023, driven by increases in asset sales revenue, maintenance revenue, and lease income[239]. - Asset sales revenue rose by $119.6 million primarily due to increased sales of commercial aircraft and engines[241]. Expenses and Costs - Total expenses rose by $122 million, mainly due to higher cost of sales, management fees, and depreciation and amortization[210]. - Cost of sales increased by $253.7 million, attributed to higher asset sales and Aerospace Product sales[210][225]. - Total expenses decreased by $76.2 million to $427.4 million, mainly due to reductions in asset impairment and operating expenses[240]. - Total expenses rose by $181.2 million, totaling $303.12 million in 2023, primarily due to increased costs of sales and operating expenses[256]. - Operating expenses rose by $48.5 million, largely due to increased provisions for credit losses and other operational costs[253]. Adjusted EBITDA - The company reported Adjusted EBITDA as a key performance measure, which is not in accordance with U.S. GAAP but is used for assessing operational performance[200]. - Adjusted EBITDA for 2023 reached $597,282,000, reflecting an increase of $169,185,000 from $428,097,000 in 2022[203][217]. - Adjusted EBITDA increased by $87.2 million to $467.4 million, reflecting improved operational performance[244]. - Adjusted EBITDA increased by $85.7 million, reaching $160.01 million in 2023 compared to $74.35 million in 2022[259]. Impairments and Charges - The company recognized an impairment charge of $120.0 million for leasing equipment assets related to the impact of Russia's invasion of Ukraine[189]. - Other income decreased by $51.2 million, primarily due to a reduction in gain on sale of assets in the Aviation Leasing and Aerospace Products segments[213]. Tax and Deferred Assets - The benefit from income taxes increased by $65.1 million, largely due to the establishment of a deferred tax asset of $72.2 million in Bermuda[214]. - The company established a deferred tax asset of $46.6 million in Bermuda, contributing to a $38.7 million increase in the benefit from income taxes[243]. - The benefit from income taxes increased by $27.4 million, primarily due to a deferred tax asset of $25.6 million established in Bermuda[258]. Cash Flow and Financing - Net cash used in operating activities decreased by $149.6 million, primarily due to a reduction in net loss and changes in working capital[290]. - Net cash provided by financing activities increased by $237.3 million, driven by a decrease in debt repayment and an increase in proceeds from debt and preferred shares[292]. - Cash flows from operating activities, including principal collections on finance leases, totaled $163.0 million in 2023, up from $29.4 million in 2022[293]. - The company issued $500 million in Senior Notes due 2030, using part of the proceeds to repay $250 million of outstanding borrowings[280]. - Cash used for investments was $861.5 million in 2023, compared to $831.5 million in 2022[284]. Dividends and Liquidity - The company declared cash dividends of $119.8 million on ordinary shares and $31.8 million on preferred shares during 2023[299]. - The company expects to meet future short-term liquidity requirements through cash on hand, unused borrowing capacity, and net cash provided by current operations[300]. Interest Rate Risk - Interest rate risk is a significant concern, with potential increases in interest rates possibly reducing net income by increasing the cost of debt without a corresponding increase in cash flow from leases[317]. - A hypothetical 100-basis point increase or decrease in the variable interest rate on borrowings would not have affected interest expense over the next 12 months as of December 31, 2023[319]. Asset Management - As of December 31, 2023, the Aviation Leasing segment owned and managed 363 aviation assets, including 96 commercial aircraft and 267 engines[234]. - As of December 31, 2023, the aviation equipment utilization rate was approximately 77%, with a weighted average remaining lease term of 47 months for aircraft and 16 months for engines[235]. - The company acquired the remaining interest in Quick Turn Engine Center LLC in December 2023, enhancing its maintenance and testing capabilities for CFM56 engines[251].

Financial Performance - Lease income for Q3 2023 was $45.6 million, down 10.2% from $50.2 million in Q3 2022; however, lease income for the nine months ended September 30, 2023, increased by 24.8% to $161.1 million from $129.2 million in the same period of 2022[143] - Maintenance revenue surged by 80.0% in Q3 2023 to $63.9 million compared to $35.5 million in Q3 2022, and for the nine months, it rose to $141.1 million from $112.2 million, a 25.8% increase[143] - Aerospace products revenue increased by 100.6% in Q3 2023 to $107.1 million from $53.4 million in Q3 2022, and for the nine months, it rose to $260.3 million from $94.2 million, a 176.5% increase[143] - Total revenues for Q3 2023 were $291.1 million, a 26.4% increase from $230.4 million in Q3 2022; for the nine months, total revenues reached $858.2 million, up 97.8% from $434.1 million in the same period of 2022[143] - Net income for Q3 2023 was $41.3 million, compared to a net loss of $18.9 million in Q3 2022, representing a turnaround of $60.2 million; for the nine months, net income was $125.5 million, compared to a net loss of $238.8 million in the same period of 2022[143] Expenses and Costs - Total expenses for Q3 2023 were $246.6 million, an increase of 17.9% from $209.1 million in Q3 2022; for the nine months, total expenses rose to $724.3 million from $624.3 million, a 16.0% increase[143] - Total expenses increased by $37.5 million for the three months ended September 30, 2023, primarily due to higher Cost of sales, Operating expenses, and Depreciation and amortization[152] - Cost of sales increased by $246.8 million for the nine months ended September 30, 2023, primarily due to an increase in asset sales and Aerospace Products sales[155] - Total expenses rose by $32.8 million (94.5%) and $100.4 million (157.7%) for the three and nine months ended September 30, 2023, primarily due to increased cost of sales and operating expenses[180] - Operating expenses increased by $2.5 million (71.3%) and $4.7 million (58.0%) for the three and nine months ended September 30, 2023, mainly due to higher commission expenses[183] Asset Management - Total consolidated assets as of September 30, 2023, were $2.6 billion, with total equity of $95.1 million[129] - As of September 30, 2023, the Aviation Leasing segment owned and managed 351 aviation assets, including 92 commercial aircraft and 259 engines[162] - The aviation equipment was approximately 77% utilized during the three months ended September 30, 2023[163] Cash Flow and Liquidity - Cash flows provided by operating activities increased by $138.1 million for the nine months ended September 30, 2023, reflecting an increase in net income of $364.3 million[197] - Cash used for investments was $562.8 million during the nine months ended September 30, 2023, compared to $545.7 million in the same period of 2022[196] - Total principal repayments in connection with the Revolving Credit Facility were $330.0 million during the nine months ended September 30, 2023[196] - The company had outstanding principal and interest payment obligations of $2.3 billion and $0.5 billion, respectively, as of September 30, 2023[201] - The company expects to meet future short-term liquidity requirements through cash on hand and unused borrowing capacity[204] Impairments and Charges - The company recognized an impairment charge of $120.0 million related to leasing equipment assets due to the impact of sanctions on Russian airlines[130] Mergers and Spin-offs - The spin-off of FTAI Infrastructure resulted in a dividend of $730.3 million, which was used to repay outstanding borrowings, including $200.0 million of senior unsecured notes[134] - The merger with FTAI LLC on November 10, 2022, resulted in FTAI Aviation Ltd. becoming a Cayman Islands exempted company, enhancing its operational structure[136] Interest Rate Sensitivity - As of September 30, 2023, a hypothetical 100-basis point increase/decrease in the variable interest rate on borrowings would result in an increase or decrease of approximately $2.5 million in interest expense over the next 12 months[212] - The sensitivity analysis regarding interest rate changes is based on a single point in time and does not account for complex market reactions[211] - The analysis does not include the impact of interest rate derivatives or other potential factors affecting the business due to interest rate changes[211] - The Series A and Series B preferred shares will accrue interest at a floating rate starting from September 15, 2024[211]

Financial Performance - For the three months ended June 30, 2023, total revenues increased by 145% to $274.3 million compared to $112.1 million in the same period of 2022[145]. - Net income attributable to shareholders from continuing operations for the three months ended June 30, 2023, was $46.4 million, compared to $11.4 million in the same period of 2022, reflecting a significant increase of 307%[145]. - Total revenues increased by $162.3 million for the three months ended June 30, 2023, primarily due to an increase in asset sales revenue, aerospace products revenue, and lease income[148]. - Net income from continuing operations increased by $9.1 million for the three months ended June 30, 2023, and by $217.4 million for the six months ended June 30, 2023[163]. - Adjusted EBITDA increased by $2.3 million and $85.0 million for the three and six months ended June 30, 2023, respectively[165]. - Net income attributable to shareholders from continuing operations was $28.6 million for the three months ended June 30, 2023, compared to $15.1 million for the same period in 2022, reflecting a $13.5 million increase[182]. Revenue Breakdown - Lease income for the three months ended June 30, 2023, was $59.5 million, up from $39.6 million in the same period of 2022, representing a 50% increase[145]. - Aerospace products revenue surged by 157% to $68.1 million for the three months ended June 30, 2023, compared to $26.5 million in the same period of 2022[145]. - Asset sales revenue increased by $101.5 million, driven by higher sales of commercial aircraft and engines in the Aviation Leasing segment[148]. - Aerospace products revenue rose by $41.6 million, mainly from increased sales of CFM56-7B and CFM56-5B engines and related components[149]. - Lease income increased by $19.9 million, attributed to a higher number of aircraft placed on lease and increased activity in the Offshore Energy business[149]. Expenses and Costs - Total expenses increased by $88.4 million, primarily due to higher cost of sales, operating expenses, and management fees[154]. - Cost of sales rose by $89.4 million, reflecting increased asset sales and aerospace products sales[154]. - Total expenses for the three months ended June 30, 2023, increased by $68.6 million to $114.0 million compared to $45.4 million in the same period of 2022[173]. - Operating expenses decreased by $46.9 million primarily due to reductions in provision for credit losses and other expenses related to sanctions on Russian airlines[179]. - Total expenses rose by $20.4 million (approximately 112.3%) for the three months ended June 30, 2023, primarily due to a $19.8 million increase in cost of sales[184]. Asset and Equity Information - Total consolidated assets as of June 30, 2023, were $2.5 billion, with total equity of $91.3 million[131]. - As of June 30, 2023, the Aviation Leasing segment owned and managed 344 aviation assets, including 97 commercial aircraft and 247 engines[166]. - As of June 30, 2023, the insured value of aircraft and engines remaining in Ukraine and Russia is approximately $243.0 million[133]. Cash Flow and Liquidity - Cash flows provided by operating activities increased by $115.8 million, primarily due to a net income increase of $304.0 million and changes in working capital of $50.9 million[202]. - Cash used for investments was $380.8 million during the six months ended June 30, 2023, compared to $457.9 million in the same period of 2022[201]. - The company expects to meet future short-term liquidity requirements through cash on hand, unused borrowing capacity, or future financings[209]. Interest and Debt Management - As of June 30, 2023, the company had outstanding principal and interest payment obligations of $2.2 billion and $0.6 billion, respectively[206]. - Interest expense decreased by $9.4 million, attributed to a reduction in average outstanding debt of approximately $581.0 million[194]. - A hypothetical 100-basis point increase/decrease in the variable interest rate on borrowings would result in an increase or decrease of approximately $1.5 million in interest expense over the next 12 months[217]. Corporate Actions - The company completed a spin-off of FTAI Infrastructure on August 1, 2022, which resulted in a dividend of $730.3 million used to repay outstanding borrowings[136]. - The merger with FTAI LLC on November 10, 2022, resulted in FTAI Aviation Ltd. becoming a Cayman Islands exempted company[138].