FTAI Aviation (FTAI) Q4 2025 earnings summary

Executive summary

• 2025 marked a transformative year with record revenue of $2.51B, a strategic pivot to asset-light operations, and the launch of the Strategic Capital Initiative (SCI), raising $2B in equity commitments and deploying $6B in capital for narrow-body aircraft acquisitions.

• Adjusted EBITDA reached $1.19B, up 38% year-over-year, with net income rebounding to $477.5M from a loss in 2024 and basic EPS of $4.66.

• The company expanded its global MRE footprint, integrated new facilities, and launched FTAI Power to convert CFM56 engines for power generation.

• Fundraising for SCI II has begun, with an anchor equity commitment secured, positioning for continued asset-light growth and programmatic capital launches.

• Quarterly dividend increased to $0.40 per share, the second consecutive increase, reflecting strong free cash flow.

Financial highlights

• Q4 2025 adjusted EBITDA reached $277.2M, up 10% from Q4 2024; full-year adjusted EBITDA was $1.19B, up 38% from 2024.

• Aerospace Products revenue grew to $671.3M in FY2025, up 76% year-over-year, with Q4 margin at 35%.

• Aviation Leasing generated $113M EBITDA in Q4 and $609M for the year, including $54M from Russian insurance recoveries.

• Adjusted free cash flow for 2025 was $724M, above guidance, with total liquidity at $700M at year-end.

• Net debt/Adjusted EBITDA improved to 2.6x, within the target leverage range.

Outlook and guidance

• 2026 EBITDA guidance raised to $1.625B, with $1.05B from Aerospace Products and $575M from leasing.

• 2026 free cash flow expected at $915M after growth investments in SCI II and FTAI Power.

• Aerospace Products module production target for 2026 revised upward to 1,050, a 39% increase over 2025.

• FTAI Power expects first Mod-1 units delivered in Q4 2026 and targets 100 units in 2027.

• Targeting 25%+ market share in CFM56/V2500 aftermarket, up from 10% in 2025.