FTAI Aviation (FTAI +0.25%) shares rose by 12.3% in February, according to data from S&P Global Market Intelligence. The move continues the stock's superb performance over the last year (up 178%) and in 2026 (up 38%) at the time of writing. That kind of performance doesn't come without reason, or in this case, reasons. Simply put, FTAI's core aviation market is thriving, and its exciting new business, FTAI Power, is preparing for a bright future servicing AI data center needs.
FTAI prepares for a big year ahead
The company is best known for servicing narrow-body aircraft engines from Boeing and Airbus. While aircraft engine manufacturers, such as GE Aerospace and RTX's Pratt & Whitney, sell engines with lucrative long-term service agreements (LTSA) attached, these engines can last more than 40 years, and there's ample opportunity for FTAI to offer cost-effective servicing after the LTSA expires.
Image source: Getty Images.
It's been a great market to be in over the last few years, as engine manufacturers struggle to ramp up production, which means older engines (such as the CFM56 and V2500) are run more.
Indeed, FTAI CEO Joseph Adams outlined on the recent earnings call that "The long-term outlook for the aftermarket on these platforms continues to strengthen as airlines increasingly opt to extend the life of their existing fleets rather than retiring aircraft for the newest technology." Moreover, he expects total industry maintenance spending to grow to $25 billion in 2026 from $22 billion as engine retirements "remain at historically low levels" amid " heavier maintenance overhauls that signal longer economic useful life for these engine types."
That's great news for FTAI's core market. There was more good news for FTAI investors earlier in the year when it signed a multi-year agreement with CFM International (a joint venture between GE Aerospace and Safran) to provide component and service support for CFM56 engines (used on the legacy Boeing 737 and Airbus A320 family of aircraft). While it sounds counterintuitive to do a deal with a servicing rival, it benefits GE as it can ensure CFM56 engines are serviced (lengthening their life), and it supplies FTAI with parts while focusing on servicing its newer LEAP engines as part of its LTSAs.
NASDAQ: FTAI
Key Data Points
FTAI Power powers on
The market is also very excited about FTAI Power, the company's brand-new business dedicated to converting CFM56 engines into power turbines (aeroderivatives) for data centers. Management recently confirmed it was building inventory, retrofitting its factories, and building a supply chain in anticipation of delivering its first FTAI Power aeroderivative in the fourth quarter of 2026.
What it means to investors
If you bought the stock in anticipation of ongoing strength in servicing commercial aviation engines and the potential for FTAI Power with data centers, then you would probably be pleased by the company's earnings report in February and the ongoing development of the business.
FTAI's end markets are in excellent shape, and momentum is building in 2026; as long as it continues, investors will look favorably on the stock.
