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Q2 adjusted EBITDA reached $291.4 million, pushed by 78% year-over-year Aerospace Merchandise income development. FTAI raised its 2026 CFM56 module-production goal to 1,200 from 1,050 and reaffirmed $1.05 billion in 2026 Aerospace Merchandise EBITDA steering.
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FTAI is shifting aviation leasing towards an asset-light strategic-capital mannequin, decreasing its 2026 leasing EBITDA outlook to $475 million whereas increasing SPV exercise. Strategic Capital earnings is anticipated to turn out to be nearly all of aviation leasing earnings by This autumn.
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FTAI Energy secured a $1.465 billion preliminary order from a U.S. hyperscaler for 2027 Mod-1 deliveries, supporting a projected $450 million to $750 million of 2027 Energy EBITDA. The corporate additionally raised its quarterly dividend to $0.50 per share, regardless of reducing 2026 adjusted free-cash-flow steering to $878 million.
FTAI Aviation (NASDAQ:FTAI) reported second-quarter adjusted EBITDA of $291.4 million as its Aerospace Merchandise enterprise expanded manufacturing and market share, whereas the corporate continued shifting its aviation leasing operations towards a extra asset-light strategic-capital mannequin.
Chief Government Officer Joe Adams mentioned the corporate operates throughout Aerospace Merchandise, Asset Administration and Energy, every centered on its aftermarket turbine-performance capabilities. He mentioned all three companies made progress through the quarter, together with elevated module manufacturing, the launch of a brand new funding car and a serious preliminary order for its power-generation providing.
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“Our market share grew from 12%-14% this quarter,” Adams mentioned, attributing the rise to manufacturing capability, elements procurement methods and buyer adoption of its upkeep, restore and change choices.
Aerospace Merchandise Development and Capability Enlargement
President David Moreno mentioned Aerospace Merchandise income elevated 78% yr over yr and 18% sequentially. Phase adjusted EBITDA reached $249.7 million, up 51% from a yr earlier and 12% from the primary quarter, with a 29% EBITDA margin.
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FTAI refurbished 296 CFM56 modules through the quarter throughout 4 services, a 61% enhance from the second quarter of 2025. First-half manufacturing totaled 566 modules, forward of the corporate’s midyear goal. The corporate raised its 2026 module-production outlook to 1,200 modules from 1,050 beforehand.
Administration mentioned the marketplace for CFM56 engines stays supply-constrained reasonably than demand-constrained. FTAI is directing a rising share of module output to third-party clients reasonably than its personal aviation leasing fleet, a transfer meant to help buyer relationships and its asset-light balance-sheet technique.
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Moreno mentioned the shift and a larger mixture of heavy engine store visits are anticipated to have an effect on near-term margins. In response to an analyst query, Adams mentioned FTAI expects Aerospace Merchandise margins to stay round 30% over the subsequent one to 2 years as the corporate prioritizes market share and bigger buyer packages.
The corporate additionally introduced maintenance-network growth via partnerships with GMF AeroAsia in Jakarta, Indonesia, and EgyptAir in Cairo. The Jakarta facility has CFM56-5B and CFM56-7B heavy-repair capabilities, an engine check cell and greater than 200 technicians, in accordance with Moreno. The Cairo operation has a check cell and is at present centered on the CFM56-7B.
Different deliberate additions embrace a CFM56 and LEAP engine check cell at FTAI’s Rome quick-turn facility and a 113,000-square-foot Lisbon facility. FTAI goals to broaden Lisbon manufacturing capability to greater than 300 modules yearly. Administration mentioned the LEAP test-cell funding is a part of a broader plan to enter the next-generation engine upkeep market as that platform matures.
Leasing Transition and Strategic Capital
FTAI’s aviation leasing section generated $88.2 million of EBITDA within the second quarter, together with $5 million of insurance coverage recoveries, $48 million from balance-sheet leasing and beneficial properties on sale, and $35 million from 2025 special-purpose car administration charges and co-investment returns.
Administration diminished its 2026 aviation leasing EBITDA outlook to $475 million, citing the deliberate allocation of module manufacturing to third-party Aerospace Merchandise clients and diminished reinvestment within the firm’s on-balance-sheet leasing fleet. It reaffirmed Aerospace Merchandise EBITDA steering of $1.05 billion for 2026.
The 2025 SPV is absolutely dedicated, with greater than 300 plane closed or below letters of intent, Moreno mentioned. The car made its first common quarterly distribution on June 30. Its first asset-backed securities issuance, known as MRE 2026, included $612 million of bonds and supported a particular distribution to buyers in July.
FTAI additionally launched its 2026 SPV, which is actively making plane acquisition commitments. The corporate plans to keep up a 15% co-investment dedication within the car. Chief Monetary Officer Nicholas McAleese mentioned the corporate expects Strategic Capital earnings to comprise nearly all of aviation leasing earnings by the fourth quarter, and that monetary reporting might finally mirror the corporate’s three acknowledged companies: Aerospace Merchandise, Energy and Strategic Capital.
FTAI ended the quarter with leverage of two.7 occasions, inside its 2.5-times to 3-times goal vary. In the course of the quarter, it redeemed $105 million of 8.25% Sequence C most well-liked shares at par and acquired a Moody’s score improve to Ba1.
Energy Enterprise Secures Preliminary Hyperscaler Order
FTAI Energy’s three way partnership with Jereh Group, J&F Energy Methods, signed a five-year grasp provide settlement with a U.S. hyperscaler. The settlement included an preliminary buy order valued at $1.465 billion for 2027 Mod-1 deliveries.
Moreno mentioned the settlement features a important advance cost and milestone-based funds tied to manufacturing, testing and commissioning, which he mentioned reduces the working-capital funding wanted for the manufacturing ramp. The grasp settlement permits the client to subject extra orders with out renegotiating phrases.
The corporate stays on monitor for a industrial launch within the fourth quarter, although administration mentioned it’s prudent to count on Energy deliveries in 2027. The corporate is testing a Mod-1 unit in Miami after finishing most preliminary testing in Montreal, and Moreno mentioned efficiency has been “distinctive.”
FTAI expects 2027 whole business-segment EBITDA of $2.3 billion, comprising $1.4 billion from Aerospace Merchandise, $450 million from aviation leasing and $450 million from Energy. Adams mentioned the $450 million Energy outlook is a conservative start line primarily based on lower than 100 items, regardless of the corporate concentrating on greater than 100 Mod-1 items for 2027. Administration described a possible Energy EBITDA vary of $450 million to $750 million for 2027 as extra buyer contracts are pursued.
Money Stream Outlook and Dividend Enhance
FTAI generated $255 million of adjusted free money circulate within the first half, together with the ultimate $95 million capital name below its 2025 Strategic Capital fairness dedication. The corporate maintained its goal of roughly $1.2 billion of adjusted free money circulate earlier than new development initiatives for 2026.
Nonetheless, after accelerating its Mod-1 manufacturing build-out by $150 million and accounting for financing associated to the 2026 SPV, FTAI up to date whole 2026 adjusted free money circulate steering to $878 million from $915 million.
The corporate elevated its quarterly dividend to $0.50 per share from $0.45 per share. The dividend is scheduled to be paid Aug. 24 to shareholders of file as of Aug. 12. Adams mentioned the rise marked FTAI’s fourth consecutive quarterly dividend enhance and its sixtieth consecutive dividend since inception.
About FTAI Aviation (NASDAQ:FTAI)
FTAI Aviation (NASDAQ: FTAI) is a industrial plane leasing firm that acquires, manages and leases wide-body jet plane to airways globally. The corporate’s portfolio is concentrated on fashionable, fuel-efficient Boeing fashions, together with the 767, 777 and 787 households, that are deployed below long-term working leases. By concentrating on in-demand wide-body belongings, FTAI Aviation seeks to ship steady money flows via lease leases and upkeep reserve collections whereas offering airways with versatile fleet options.
Along with lease origination, FTAI Aviation affords end-to-end asset administration providers.
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