FTAI Aviation (FTAI) Q2 2024 earnings summary

Executive summary

• Declared a $0.30 per share dividend for Q2 2024, marking the 37th as a public company and 52nd consecutive overall.

• Completed internalization of management in Q2 2024, incurring a $300 million restructuring charge and ending external management fees.

• Reported a net loss attributable to shareholders of $228.2 million for Q2 2024, primarily due to the $300 million internalization fee.

• Adjusted EBITDA reached $213.9 million in Q2 2024, up 40% year-over-year, driven by strong Aerospace Products growth.

• LMCES acquisition for $170 million enhances vertical integration and maintenance capacity, expected to drive cost savings and operational efficiencies.

Financial highlights

• Q2 2024 total revenues were $443.6 million, up from $274.3 million in Q2 2023, mainly due to Aerospace Products growth.

• Adjusted EBITDA for Q2 2024 was $213.9 million (Leasing: $125M, Aerospace Products: $91.2M, Corporate/Other: -$2.3M).

• Net loss attributable to shareholders was $(228.2) million for Q2 2024, compared to net income of $46.4 million in Q2 2023.

• Basic and diluted loss per share for Q2 2024 was $(2.26), compared to $0.47 and $0.46 in Q2 2023.

• Total assets at $3.4 billion and total debt at $3.1 billion as of June 30, 2024.

Outlook and guidance

• Raised full-year 2024 EBITDA guidance to $825–$850 million, up from $675–$725 million.

• Updated 2026 EBITDA target to $1.25 billion, with $550 million from leasing and $700 million from aerospace products.

• Management expects cost savings from internalization and is evaluating further acquisitions and financings in aviation.

• Targeting Q4 2024 Net Debt/Run-Rate Adjusted EBITDA within 3.0x–3.5x range.

• Expects to induct an additional 30 V2500 engines by year end, reflecting continued investment in engine assets.