NEW YORK, February 25, 2026 (GLOBE NEWSWIRE) – FTAI Aviation Ltd. (NASDAQ: FTAI) (the "Company" or "FTAI") today reported financial results for the fourth quarter and full year 2025. The Company's consolidated comparative financial statements and key performance measures are attached as an exhibit to this press release. Financial Overview FTAI Aviation Ltd. Reports Fourth Quarter and Full Year 2025 Results, Increases Dividend to $0.40 per Ordinary Share For definitions and reconciliations of non-GAAP measur ...

Financial Performance - For the three months ended September 30, 2025, total revenues increased by 43.2% to $667.1 million compared to $465.8 million in the same period of 2024[159]. - Net income attributable to shareholders for the nine months ended September 30, 2025, was $365.6 million, compared to a loss of $118.8 million in the same period of 2024[159]. - Total revenues increased by $201.3 million for the three months ended September 30, 2025, and by $609.3 million for the nine months ended September 30, 2025, primarily driven by a $406.6 million increase in Aerospace products revenue[161]. - Net income attributable to shareholders increased by $31.2 million for the three months ended September 30, 2025, and by $479.3 million for the nine months ended September 30, 2025[167]. - Adjusted EBITDA increased by $65.4 million for the three months ended September 30, 2025, and by $303.7 million for the nine months ended September 30, 2025[168]. - Net income attributable to shareholders decreased by $18.0 million for the three months ended September 30, 2025, but increased by $70.1 million for the nine months[177]. - Adjusted EBITDA decreased by $2.0 million for the three months ended September 30, 2025, but increased by $129.5 million for the nine months[178]. - Total revenues for the three months ended September 30, 2025, increased by $214.4 million, reaching $517.9 million compared to $303.5 million in 2024[185]. - Net income attributable to shareholders increased by $54.8 million for the three months ended September 30, 2025, totaling $148.6 million compared to $93.8 million in 2024[187]. - Adjusted EBITDA increased by $78.6 million for the three months ended September 30, 2025, amounting to $180.4 million compared to $101.8 million in 2024[188]. Revenue Breakdown - Aerospace products revenue for the nine months ended September 30, 2025, was $1.1 billion, up 55.8% from $737.7 million in 2024[159]. - Aerospace products revenue for the three months ended September 30, 2025, increased by $155.7 million, mainly due to a $145.7 million increase in CFM56-5B, CFM56-7B, and V2500 engine and module sales[162]. - MRE Contract revenue increased by $58.7 million for the three months ended September 30, 2025, attributed to higher engine and module sales[185]. Expenses and Costs - The company incurred total expenses of $1.3 billion for the nine months ended September 30, 2025, an increase of 11% from $1.2 billion in 2024[159]. - Total expenses increased by $149.7 million for the three months ended September 30, 2025, primarily due to a $143.4 million increase in cost of sales[163]. - Total expenses for the three months ended September 30, 2025, increased by $138.4 million, totaling $343.2 million compared to $204.8 million in 2024[185]. - Cost of sales increased by $412.7 million, primarily due to increases in CFM56-5B, CFM56-7B, and V2500 engine and module sales[166]. - Operating expenses increased by $7.9 million, mainly due to higher compensation and benefits expenses related to the acquisition of LMCES[185]. Impairments and Charges - The company recognized an impairment charge of $120.0 million for leasing equipment assets due to the impact of sanctions related to Russia's invasion of Ukraine[150]. Assets and Liabilities - As of September 30, 2025, total consolidated assets were $4.2 billion and total equity was $252.5 million[147]. - As of September 30, 2025, the Aviation Leasing segment owned and managed 323 aviation assets, including 48 commercial aircraft and 275 engines[170]. - The company has eight aircraft and seventeen engines still located in Russia, with an insured value of $210.7 million[151]. - As of September 30, 2025, the company had outstanding principal and interest payment obligations of $3.5 billion and $1.2 billion, respectively[206]. Tax Provisions - The provision for income taxes increased by $19.0 million for the three months ended September 30, 2025, and by $87.2 million for the nine months ended September 30, 2025, primarily due to higher income generated in the Aerospace Products segment[164]. - The provision for income taxes increased by $5.6 million for the three months ended September 30, 2025, primarily due to changes in income from leasing activities[176]. - The provision for income taxes increased by $22.4 million for the three months ended September 30, 2025, primarily due to increased income from Aerospace Products activities[186]. Strategic Initiatives - The Strategic Capital Initiative launched on December 30, 2024, aims to acquire 737NG and A320ceo aircraft, allowing the company to maintain an asset-light business model[153]. - The company expects to manage aircraft for and make minority investments in future partnerships under the Strategic Capital Initiative[199]. - The company acquired Lockheed Martin Commercial Engine Solutions to establish permanent engine and module manufacturing capabilities[181]. - The company acquired a 50% equity interest in QuickTurn Europe, enhancing its engine services capabilities[183]. Cash Flow and Investments - Cash used for investments was $757.4 million during the nine months ended September 30, 2025, compared to $1.0 billion in the same period of 2024[203]. - Proceeds from the sale of assets were $1,375.5 million during the nine months ended September 30, 2025, compared to $542.9 million in 2024[203]. - Cash flows used in operating activities were $(131,666) thousand for the nine months ended September 30, 2025, compared to $(146,153) thousand in 2024[205]. Interest and Debt - Interest expense increased by $25.9 million, reflecting increases in interest expense on various senior notes, partially offset by decreases in other notes[202]. - The company’s borrowing agreements are based on a variable interest rate index, such as SOFR, which may increase debt costs without a corresponding increase in rents or cash flow from leases[216]. - A sensitivity analysis indicates that changes in interest rates could impact the company's financial condition, but results should not be viewed as forecasts due to market complexities[217]. - As of September 30, 2025, a hypothetical 100-basis point increase or decrease in variable interest rates on borrowings would not affect interest expense over the next 12 months[218].

Financial Performance - For the three months ended June 30, 2025, total revenues increased by 52.5% to $676.2 million compared to $443.6 million for the same period in 2024[160]. - Net income attributable to shareholders for the six months ended June 30, 2025, was $251.6 million, compared to a loss of $196.9 million in the same period of 2024[160]. - Total revenues increased by $232.6 million for the three months ended June 30, 2025, driven by a $175.5 million increase in aerospace products revenue and a $69.6 million increase in MRE contract revenue[164]. - Net income increased by $385.3 million and $448.0 million for the three and six months ended June 30, 2025, primarily due to higher revenues[168]. - Net income attributable to shareholders increased by $48.7 million for the three months ended June 30, 2025, totaling $133.6 million compared to $84.9 million in 2024[187]. Revenue Breakdown - Aerospace products revenue for the three months ended June 30, 2025, was $420.7 million, up 71.6% from $245.2 million in the prior year[160]. - Aerospace products revenue increased by $250.9 million for the six months ended June 30, 2025, mainly due to a $237.0 million increase in engine and module sales[166]. - Maintenance revenue increased by $21.9 million for the three months ended June 30, 2025, driven by higher aircraft maintenance revenue[164]. - Other revenue increased by $2.4 million due to servicing fees earned as the Servicer to the 2025 Partnership[179]. - Aerospace products revenue rose by $175.5 million, primarily driven by a $172.1 million increase in CFM56-5B, CFM56-7B, and V2500 engine and module sales[185]. Expenses and Costs - Total expenses for the three months ended June 30, 2025, decreased by 23.1% to $465.8 million from $606.2 million in the same period of 2024[160]. - Total expenses decreased by $140.4 million for the three months ended June 30, 2025, and by $23.1 million for the six months ended June 30, 2025[166]. - Total expenses for the three months ended June 30, 2025, increased by $176.8 million, totaling $331.6 million compared to $154.8 million in 2024[185]. - Cost of sales increased by $170.6 million, correlating with the rise in Aerospace products revenue[185]. - The provision for income taxes increased by $20.9 million during the three months ended June 30, 2025, primarily due to increased income from Aerospace Products activities[186]. Strategic Initiatives - The company launched a Strategic Capital Initiative on December 30, 2024, focusing on acquiring 737NG and A320ceo aircraft[153]. - The company expects to manage aircraft for and make minority investments in future partnerships under the Strategic Capital Initiative[154]. - The company acquired Lockheed Martin Commercial Engine Solutions to enhance its engine and module manufacturing capabilities[181]. - The company also acquired the remaining interest in Quick Turn Engine Center LLC, specializing in maintenance and testing for specific engine models[182]. - The company acquired a 50% equity interest in QuickTurn Europe, enhancing its engine services capabilities[183]. Asset Management - As of June 30, 2025, the company reported total consolidated assets of $4.1 billion and total equity of $164.9 million[147]. - As of June 30, 2025, the Aviation Leasing segment owns and manages 375 aviation assets, including 63 commercial aircraft and 312 engines[171]. - As of June 30, 2025, the aviation equipment was approximately 70% utilized, with a weighted average remaining lease term of 46 months for aircraft and 30 months for engines[172]. - Asset sales revenue decreased by $24.5 million for the three months ended June 30, 2025, due to a decrease in the number of sales transactions of commercial aircraft and engines[164]. - Proceeds from the sale of assets increased significantly to $986.5 million in the first half of 2025, up from $333.7 million in 2024[208]. Debt and Liquidity - As of June 30, 2025, the company had outstanding principal and interest payment obligations of $3.5 billion and $1.3 billion, respectively[206]. - Interest expense increased by $8.8 million for the three months ended June 30, 2025, reflecting an increase in average debt outstanding of approximately $657.4 million[170]. - The company expects to meet future short-term liquidity requirements through cash on hand, unused borrowing capacity, and net cash from current operations[210]. - The company is exposed to interest rate risk, particularly related to its Revolving Credit Facility, which is based on a variable interest rate index[214]. - Management believes adequate capital and borrowings are available to fund the company's commitments as required[210]. Shareholder Distributions - Distributions to shareholders, including cash dividends, were $71.4 million during the six months ended June 30, 2025, compared to $76.8 million in 2024[200]. - The company declared cash dividends totaling $123.0 million on ordinary shares and $25.9 million on preferred shares over the last twelve months[209]. - The company redeemed all outstanding Series B preferred shares at a price of $25.00 per share, plus $2.4 million in accumulated distributions[208]. Other Financial Metrics - Adjusted EBITDA increased by $133.9 million and $238.4 million for the three and six months ended June 30, 2025, compared to the prior year[169]. - Adjusted EBITDA for the three months ended June 30, 2025, increased by $74.3 million to $199.303 million[178]. - Adjusted EBITDA decreased by $9.1 million and $15.6 million during the three and six months ended June 30, 2025, respectively[196]. - Cash flows used in operating activities were $107.2 million for the six months ended June 30, 2025, compared to $165.3 million for the same period in 2024[208]. - Cash used for investments was $594.9 million during the six months ended June 30, 2025, compared to $563.1 million in the same period of 2024[200].

Financial Performance - Net income attributable to shareholders for Q2 2025 was $161.7 million, representing an 80% increase compared to Q1 2025[5] - Basic earnings per ordinary share for Q2 2025 was $1.58, while diluted earnings per share was $1.57[2] - Total revenues for Q2 2025 were $676.2 million, up from $443.6 million in Q2 2024, marking a year-over-year increase of 52.5%[15] - Net income attributable to shareholders for Q2 2025 was $161,689, a significant improvement of $389,894 compared to a net loss of $228,205 in Q2 2024[22] - Net income attributable to shareholders for Q2 2025 was $133.6 million, an increase of 57.3% from $84.9 million in Q2 2024[26] - For the first half of 2025, net income attributable to shareholders was $240.2 million, a 58.7% increase compared to $151.3 million in the same period of 2024[26] Adjusted EBITDA - Adjusted EBITDA for Q2 2025 reached $347.8 million, with Aerospace Products segment Adjusted EBITDA increasing 26% from Q1 to $164.9 million[2][5] - Adjusted EBITDA for Q2 2025 reached $347,805, reflecting an increase of 62.6% from $213,904 in Q2 2024[22] - Adjusted EBITDA for Q2 2025 reached $164.9 million, up 80.7% from $91.2 million in Q2 2024[26] - Adjusted EBITDA for the first half of 2025 was $295.8 million, representing an 83.2% increase from $161.5 million in the first half of 2024[26] Cash Flow and Investments - The company generated over $400 million in positive Adjusted Free Cash Flow during the quarter[5] - The company reported net cash used in operating activities of $(110.3) million for Q2 2025[27] - Net cash provided by investing activities for Q2 2025 was $523.8 million[27] Assets and Liabilities - Total current assets increased to $1,759,385, up from $1,226,018, representing a growth of 43.5%[18] - Total assets as of June 30, 2025, were $4,101,075, a slight increase from $4,037,952 at the end of 2024[18] - Long-term debt remained stable at $3,444,612, compared to $3,440,478 at the end of 2024[18] - Total liabilities decreased slightly to $3,936,131 from $3,956,584, showing a reduction of 0.5%[18] - The company’s equity increased to $164,944, up from $81,368, marking a growth of 102.5%[18] Operational Highlights - FTAI's production ramped up to 184 CFM56 Modules in Q2 2025, a 33% increase from the previous quarter[5] - The Aerospace Products segment achieved 81% year-over-year growth in Adjusted EBITDA, increasing market share to approximately 9% from 5% last year[6] - FTAI acquired 100% equity of Pacific Aerodynamic, enhancing its repair capabilities for CFM56 compressor blades and vanes[5] - The SCI Partnership is on track to deploy $4 billion of capital in 2025, with 145 aircraft now owned or under letter of intent compared to a target of 250[6] Expenses - The company incurred acquisition and transaction expenses of $4,489 in Q2 2025, down from $8,019 in Q2 2024, a decrease of 44.5%[22] - Acquisition and transaction expenses for Q2 2025 were $1.4 million, compared to $0.5 million in Q2 2024, indicating a 168.6% increase[26] - Provision for income taxes in Q2 2025 was $25.8 million, compared to $4.9 million in Q2 2024, reflecting a significant increase of 426.5%[26] - Depreciation and amortization expense for Q2 2025 was $3.7 million, up from $0.9 million in Q2 2024, marking a 295.5% increase[26]

Financial Performance - For the three months ended March 31, 2025, total revenues increased to $502.1 million, up 53.7% from $326.7 million in the same period of 2024 [150]. - Aerospace products revenue for the same period was $365.1 million, a significant increase of 93.1% compared to $189.1 million in 2024 [150]. - Adjusted EBITDA for the three months ended March 31, 2025, was $268.6 million, representing a 63.7% increase from $164.1 million in 2024 [152]. - Net income attributable to shareholders for the three months ended March 31, 2025, was $89.9 million, up 187.0% from $31.3 million in 2024 [150]. - Total revenues increased by $175.4 million, primarily driven by a $176.0 million increase in Aerospace products revenue [153]. - Net income increased by $62.8 million, reflecting the overall positive changes in revenue and expenses [155]. - Adjusted EBITDA increased by $104.5 million, indicating strong operational performance [156]. - Net income attributable to shareholders increased by $40.2 million, reaching $106.6 million for the three months ended March 31, 2025, compared to $66.4 million in 2024 [170]. - Adjusted EBITDA (non-GAAP) increased by $60.7 million to $130.9 million for the three months ended March 31, 2025, compared to $70.3 million in 2024 [174]. Asset Management - As of March 31, 2025, the company had total consolidated assets of $4.3 billion and total equity of $28.3 million [137]. - As of March 31, 2025, the Aviation Leasing segment owned and managed 425 aviation assets, including 107 commercial aircraft and 318 engines [159]. - The average remaining lease term for aircraft is 44 months, while engines currently on lease have an average remaining lease term of 24 months [160]. - The company launched a Strategic Capital Initiative on December 30, 2024, focusing on acquiring 737NG and A320ceo aircraft [144]. - The company launched a Strategic Capital Initiative to acquire 737NG and A320ceo aircraft, allowing for an asset-light business model [182]. Expenses and Income Tax - Total expenses increased by $117.4 million, with cost of sales rising by $105.9 million due to higher engine and module sales [153]. - Total expenses rose by $119.6 million, with cost of sales increasing by $117.8 million, primarily due to higher sales of CFM56-5B, CFM56-7B, and V2500 engines [175]. - The provision for income taxes increased by $17.3 million, driven by higher income generated in the Aircraft Leasing and Aerospace Products segments [154]. - The provision for income taxes increased by $16.8 million, primarily due to higher income from Aerospace Products activities [172]. Cash Flow and Investments - Cash used for investments was $339.4 million for the three months ended March 31, 2025, compared to $303.0 million in 2024 [185]. - Net cash used in operating activities increased by $25.6 million, totaling $(25,966) thousand in Q1 2025 compared to $(345) thousand in Q1 2024 [188]. - Net cash used in investing activities decreased by $141.6 million, totaling $(27,627) thousand in Q1 2025 compared to $(169,213) thousand in Q1 2024 [189]. - Net cash provided by financing activities decreased by $93.4 million, totaling $50,610 thousand in Q1 2025 compared to $144,026 thousand in Q1 2024 [190]. Impairment and Losses - The company recognized an impairment charge of $120.0 million for leasing equipment assets related to the impact of Russia's invasion of Ukraine [140]. - The insured value of aircraft and engines remaining in Russia is $210.7 million, with uncertain recovery timing [141]. - Net loss attributable to shareholders in the Corporate and Other segment was $86.8 million for the three months ended March 31, 2025, compared to $77.7 million in 2024 [176]. Interest and Debt - Interest expense increased by $14.3 million, reflecting an increase in average debt outstanding of approximately $955.7 million [178]. - As of March 31, 2025, the company had outstanding principal and interest payment obligations of $3.7 billion and $1.4 billion, respectively [191]. - A hypothetical 100-basis point increase in variable interest rates would result in an increase of approximately $2.0 million in interest expense over the next 12 months [202]. Lease Income - Lease income for the three months ended March 31, 2025, was $68.5 million, an increase of 28.6% from $53.2 million in 2024 [150]. - Lease income rose by $15.2 million, attributed to an increase in aircraft lease revenue of $11.6 million and engine lease revenue of $6.0 million [153].

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]