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 $5.3B–$6B in capital for narrow-body aircraft acquisitions.

• Adjusted EBITDA reached $1.19B for FY2025, up 38% year-over-year, with net income rebounding to $477.5M from a loss in 2024 and basic EPS of $4.66.

• Aerospace Products achieved record growth, with adjusted EBITDA of $671.3M for the year (35% Q4 margin), up 76% year-over-year, and surpassed revised targets.

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

• Aviation leasing shifted toward a fee-driven asset management model, with recurring earnings and expanding co-investment opportunities.

Financial highlights

• Q4 2025 adjusted EBITDA reached $277.2M, up 10% from Q4 2024; full-year adjusted EBITDA was $1.19B, up $328.9M year-over-year.

• Aerospace Products revenue grew to $671.3M in FY2025, up 76% year-over-year; Aviation Leasing revenue rose to $608.9M.

• Adjusted free cash flow for 2025 was $724M, exceeding guidance, with total liquidity at $700M and cash of $300.5M at year-end.

• Net debt/Adjusted EBITDA improved to 2.6x, within the target leverage range, and two-notch credit upgrades from S&P and Fitch.

• Dividend increased to $0.40 per share per quarter, marking the 58th consecutive dividend and the second consecutive quarterly increase.

Outlook and guidance

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

• Free cash flow for 2026 expected at $915M after growth investments, with $1.2B expected before new initiatives.

• Aerospace Products module production target for 2026 increased to 1,050, a 39% rise over 2025; targeting 25%+ market share in CFM56/V2500 aftermarket.

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