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FTAI AVIATION(FTAIM) - 2024 Q4 - Annual Report
FTAIMFTAI AVIATION(FTAIM)2025-03-03 22:06

Financial Performance - Total revenues increased by 564.0million,reaching564.0 million, reaching 1,734.9 million in 2024, driven primarily by a 624.9millionincreaseinaerospaceproductsrevenue[195].−Netincomefromcontinuingoperationsdecreasedby624.9 million increase in aerospace products revenue[195]. - Net income from continuing operations decreased by 235.1 million, resulting in a net income of 8.7millionin2024[198].−AdjustedEBITDAincreasedby8.7 million in 2024[198]. - Adjusted EBITDA increased by 264.8 million, reaching 862.1millionin2024,reflectingimprovedoperationalperformance[199].−Totalexpensesincreasedby862.1 million in 2024, reflecting improved operational performance[199]. - Total expenses increased by 665.9 million, totaling 1,497.1millionin2024,primarilyduetohighercostsassociatedwithsalesandoperations[197].−Netincomeattributabletoshareholdersdecreasedby1,497.1 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 210.2millionin2024,comparedto210.2 million in 2024, compared to 291.6 million in 2023[215]. - Net income from continuing operations increased by 354.4million,reflectingimprovedoperationalperformance[204].−AdjustedEBITDAincreasedby354.4 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 53.2million,primarilyduetoa53.2 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 588.7millionin2024,comparedtoalossof588.7 million in 2024, compared to a loss of 259.8 million in 2023[237]. - Adjusted EBITDA for the corporate segment was (18.6)millionin2024,animprovementfrom(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 546.0millionincreaseinsalesofCFM56−7B,CFM56−5B,andV2500enginesandmodules[195].−Aerospaceproductsrevenuesurgedto546.0 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 455.0millionin2023[222].−TotalAerospaceproductsrevenueincreasedby455.0 million in 2023[222]. - Total Aerospace products revenue increased by 624.9 million in 2024, driven by a 546.0millionincreaseinengineandmodulesales[225].−Leaseincomeroseby546.0 million increase in engine and module sales[225]. - Lease income rose by 47.4 million, attributed to a 37.3millionincreaseinengineleaserevenueanda37.3 million increase in engine lease revenue and a 17.5 million increase in aircraft lease revenue[195]. - Maintenance revenue increased by 9.5million,drivenbya9.5 million, driven by a 43.2 million rise in engine maintenance revenue[195]. - Lease income in the Aviation Leasing segment rose to 234.4million,upfrom234.4 million, up from 179.7 million in 2023[210]. - Other revenue decreased by 6.7million,primarilyduetoareductioninend−of−leaseredeliverycompensation[196].ExpensesandCosts−Totalexpensesincreasedby6.7 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 253.7million,primarilyintheAerospaceProductssegment[201].−TotalexpensesintheAerospaceProductssegmentroseto253.7 million, primarily in the Aerospace Products segment[201]. - Total expenses in the Aerospace Products segment rose to 709.3 million in 2024, up from 303.1millionin2023[222].−Acquisitionandtransactionexpensesincreasedby303.1 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 406.1millionin2024,withasignificantriseincostofsalesby406.1 million in 2024, with a significant rise in cost of sales by 393.6 million[226]. - Cost of sales for Aerospace products increased by 393.6million,correlatingwiththerevenuegrowthinthesamesegment[229].−Acquisitionandtransactionexpensesroseby393.6 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 4.0billionandtotalequityof4.0 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 210.7million,withuncertaintimingandamountofrecoveriesunderinsurancepolicies[179].−Assetsalesrevenuedecreasedby210.7 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 119.6million,with13aircraftand41enginessoldin2023comparedtoeightaircraftand71enginessoldin2022[202].TaxandInterest−Theprovisionforincometaxesincreasedby119.6 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 69.2million,reflectinghighertaxobligationsduetoincreasedincomefromleasingactivities[214].−Thecompanyestablishedadeferredtaxassetof69.2 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 65.1millionincreaseinthebenefitfromincometaxes[203].−Interestexpenseincreasedby65.1 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 779.3million[200].−Interestrateriskispresentduetovariableinterestrateagreements,withpotentialincreasesininterestratesimpactingnetincomewithoutcorrespondingincreasesincashflow[281].−Ahypothetical100−basispointincreaseordecreaseinvariableinterestrateswouldnothaveaffectedinterestexpenseoverthenext12months[284].CashFlowandFinancing−Cashusedforinvestmentswas779.3 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 861.5millionin2023[252].−Proceedsfromthesaleofassetswere861.5 million in 2023[252]. - Proceeds from the sale of assets were 969.3 million in 2024, up from 477.9millionin2023[260].−Cashflowfromoperatingactivitiesdecreasedby477.9 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 399.6million,primarilyduetoproceedsfromdebtof399.6 million, primarily due to proceeds from debt of 1,630.2 million and maintenance deposits of 19.0million[261].−OutstandingprincipalandinterestpaymentobligationsasofDecember31,2024,total19.0 million[261]. - Outstanding principal and interest payment obligations as of December 31, 2024, total 3.5 billion and 1.4billion,respectively,with1.4 billion, respectively, with 229.8 million due in the next twelve months[264]. - Cash dividends declared during 2024 amounted to 121.6milliononordinarysharesand121.6 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 500.0millioninseniorunsecurednotesdue2033,usingproceedstoredeem500.0 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].