FTAI Aviation Ltd. Q4 2025 Earnings Call Summary

Achieved 76% year-over-year growth in Aerospace Products EBITDA, driven by the increasing market adoption of fixed-price engine exchanges as a cost-efficient alternative to traditional shop visits.
Successfully committed $5.3 billion of the $6 billion target for SCI I through 276 aircraft under LOI, leveraging an asset-light model to secure a captive maintenance pipeline of approximately 700 engines.
Capitalized on historically low aircraft retirement rates and a shift toward heavier maintenance overhauls, which signals a longer economic useful life for CFM56 and V2500 platforms.
Strengthened the competitive moat through a multiyear materials agreement with CFM, ensuring OEM part supply resilience and supporting the scaling of the module remanufacturing platform.
Expanded global MRO footprint by doubling the workforce in Rome and integrating the ATOPS acquisition to create a major logistics and production hub in Miami and Portugal.
Launched FTAI Power to repurpose retired CFM56 engines into 25-megawatt turbines, targeting the unprecedented electricity demand from AI data centers and hyperscalers.

Increased 2026 total EBITDA guidance to $1.625 billion, reflecting higher Aerospace production targets and anticipated insurance settlements from Russian asset recoveries.
Revised 2026 module production target upward to 1,050 units, a 39% increase over 2025, supported by the Montreal Training Academy and AI-driven workflow optimizations via Palantir.
Expects to begin investing out of SCI II by June 30, 2026, with an anchor equity commitment already in place to maintain momentum as SCI I reaches full deployment.
Targets delivery of the first Mod-1 Power units in Q4 2026, with a production goal of 100 units in 2027 to address the ‘bring your own power’ trend in the data center market.
Projected 2026 free cash flow of $915 million accounts for $185 million in incremental growth investments across SCI II and Power working capital to maximize speed to market.

Invested $150 million in additional turbine inventory during Q4 2025 to secure feedstock and ensure execution certainty for the 2026 Power production ramp.
Allocated $50 million for hot section parts in Q4 to mitigate risks associated with extremely tight global supply chains for critical engine maintenance inputs.
Achieved BB credit ratings across all three major agencies, reflecting improved balance sheet durability and a leverage ratio at the low end of the 2.5x to 3.0x target range.
Increased the quarterly dividend for the second consecutive time to $0.40 per share, supported by the transition toward a high-quality, fee-driven asset management model.