Ftai Aviation (FTAI -4.74%), a leading provider of aircraft engine modules and aviation asset management, reported its second quarter 2025 earnings on July 29, 2025. The company’s GAAP results for Q2 2025 sharply surpassed Wall Street expectations, posting diluted earnings per share of $1.57 (GAAP), well above the $1.29 analyst estimate, and GAAP revenue of $676.2 million, up from both the GAAP estimate of $568.89 million and the prior year’s $443.6 million (GAAP) in Q2 2024, reflecting solid momentum in aerospace products and accelerated execution of its asset-light strategy. Management described the period as demonstrating strong operational health, with margin and market share expansion serving as clear highlights.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP, Diluted) | $1.57 | $1.29 | $(2.26) | NM |
| Revenue (GAAP) | $676.2 million | $568.9 million | $443.6 million | 52.5% |
| Net Income Attributable to Shareholders (GAAP) | $161.7 million | $(228.2 million) | NM | |
| Adjusted EBITDA (Non-GAAP) | $347.8 million | $213.9 million | 62.6% | |
| Cash and Cash Equivalents | $301.9 million | $115.1 million | 162.3% should be 162.3% (if Q2 2024 value is $115.1 million, but the value in the table is $115.1 million, which appears to be a typo or error). If we ignore the '1' at the end and use $115.1 million, the calculation is: (($301.9M - $115.1M) / $115.1M) * 100 = (186.8 / 115.1) * 100 ≈ 162.3%. However, if the value is not $115.1 million, the correct value is 'not found'. | |
| Inventory, Net | $752.9 million | $551.2 million | 36.5% |
Source: Analyst estimates for the quarter provided by FactSet.
Business Overview and Key Success Factors
Ftai Aviation operates in the commercial aviation sector, specializing in the acquisition, refurbishment, and sale of aircraft engine modules, mainly focused on the CFM56 engine model. Its core business consists of aerospace products -- meaning the sale of overhauled or modular engine components to airlines -- and asset management, notably aircraft lease and engine maintenance services. Its revenue streams are divided into three main areas: Aerospace Products, Leasing, and Asset Sales.
In recent years, the business has emphasized scaling production of CFM56 engine modules, internalizing repair operations, and building out partnerships such as its Strategic Capital Initiative (SCI). Success relies on expanding the addressable market for proprietary and Parts Manufacturer Approval (PMA) parts, efficiently managing inventory, and leveraging industry relationships to secure attractive asset deals. Its asset-light model is supported by SCI, allowing fee-based income while managing balance sheet risk through third-party capital.
Quarter in Review: Major Developments and Financial Performance
The period marked a defining quarter for Ftai Aviation, both financially and operationally. Earnings per share (GAAP) reached $1.57 in Q2 2025, swinging from a loss in the prior year, as net income attributable to shareholders (GAAP) surged to $161.7 million in Q2 2025, compared to a loss of $228.2 million in Q2 2024. Adjusted EBITDA (non-GAAP) rose to $347.8 million in Q2 2025, a 62.6% increase compared to Q2 2024.
Revenue growth was led by the Aerospace Products segment. Aerospace Products revenue (GAAP) jumped to $420.7 million in Q2 2025, up from $245.2 million, with Adjusted EBITDA (non-GAAP) for that unit climbing to $164.9 million in Q2 2025, up from $91.2 million. The segment’s EBITDA margin reached 39% in Q2 2025, which expanded repair capacity and self-reliance.
Module production focused on CFM56 engines ramped up to 184 units in Q2 2025 -- a 33% jump from the prior three months (Q2 2025 versus Q1 2025). This production acceleration, along with capacity increases at the Montreal and Miami facilities, enabled Ftai Aviation to raise its estimated market share in the CFM56 module market to around 9% on an annualized basis in Q2 2025, up from 5% in the prior year. Management reaffirmed its ambition to reach a 25 % market share in coming years.
The SCI partnership continued to grow, now owning or holding letters of intent for 145 aircraft, up from 98 at the end of Q1 2025, tracking toward its 2025 goal of 250. The SCI partnership enables the company to sell assets and collect fee-based income. Lease income (GAAP) decreased to $62.4 million from $70.8 million in Q2 2025 compared to Q2 2024, as assets transitioned to SCI, while maintenance revenue rose 43% year-over-year to $73.1 million in Q2 2025 (GAAP).
Product Focus and Segment Highlights
In the Aerospace Products segment, CFM56 engine modules remained a central product, with a notable increase in production and successful integration of new repair capabilities after the Pacific Aerodynamic acquisition. These overhauled modules are in strong demand across airlines worldwide, as operators seek to extend the life of their fleets. Ftai Aviation has also focused on growing its presence in PMA parts -- components produced under special FAA approval as cost-effective substitutes for original manufacturer parts. This strategy aims to strengthen margins as adoption grows among cost-conscious airlines.
The maintenance business benefited from increased customer demand and ongoing work to broaden value-added services beyond its traditional lease model. Notably, the SCI asset program enabled the company to further execute on its asset-light vision, which favors fee income and reduces the need for ongoing heavy capital investment. The company’s new supply and repair capabilities allow it to buy unserviceable engine parts, refurbish them in-house, and take advantage of rising demand – an approach supported by management’s commentary on inventory buildup throughout the quarter.
Ftai Aviation made a strategic acquisition by adding Pacific Aerodynamic to its operations, bolstering its capacity to repair key engine components. Alongside its relationship with Pratt & Whitney on V2500 engines, this enhanced the service offering to airlines operating commonly used narrowbody aircraft like the Boeing 737 Next Generation and Airbus A320ceo families. These efforts help customers keep older aircraft flying longer.
Demand for lease extensions remained strong. The company also maintained steady dividend payments, declaring a $0.30 per share dividend for the period, continuing a long streak of consistent shareholder returns.
Outlook and Areas to Watch
Looking ahead, management reaffirmed its guidance for FY2025, maintaining a business segment EBITDA target of $1.1–1.15 billion for the full year, even as it invested about $200 million in parts inventory in H1 2025 to support higher module output. Leadership highlighted continued growth in SCI deployments, with $4 billion of capital set to be deployed in 2025, and reaffirmed its target of reaching a 25% share in the CFM56 module market.
Management signaled that near-term priorities are to sustain growth capital expenditures and pay down debt. As leverage approaches the low end of its 3–3.5 times target by year-end, the company expects to revisit broader capital returns, potentially increasing dividends or buying back shares. Investors should watch for further expansion of in-house repair capabilities and ongoing execution of the SCI partnership.
FTAI pays a quarterly dividend of $0.30 per share; the payout was unchanged this quarter.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
