FTAI Aviation: Scaling FTAI Power to Unlock $1 Billion EBITDA from CFM56 Conversions Amid AI-Driven Power Demand

Analyst Andre Madrid from BTIG reiterated a Buy rating on FTAI Aviation and keeping the price target at $230.00.

Andre Madrid has given his Buy rating due to a combination of factors tied to FTAI Aviation’s new FTAI Power initiative and its underlying economics. He views the conversion of non-airworthy CFM56 engines into aeroderivative gas turbines as a compelling way to unlock additional value from FTAI’s existing engine portfolio, particularly as data centers seek more reliable and flexible power sources amid growing AI-related demand. The company’s indication that each power turbine could sell for around $25 million, in a market already facing tight supply and extended lead times for small industrial gas turbines, supports a favorable pricing environment and reinforces the potential for sustained demand.
Madrid also highlights that the anticipated profit margins on these turbines should at least match, if not exceed, the roughly 35% EBITDA margin expected in FTAI’s Aerospace Products segment in 2025, which underscores the accretive nature of the initiative. With access to more than 1,000 CFM56 engines and a global installed base exceeding 22,000 engines, he believes FTAI Power could eventually scale into roughly $1 billion in annual EBITDA, with additional upside from ongoing service and support opportunities. Although he is waiting for more detailed disclosures before adjusting formal estimates, the projected ramp beginning in 2026 and meaningful earnings contribution from 2027 onward give him confidence that the risk-reward profile remains attractive, supporting his reiterated Buy rating and $230 price target.

In another report released on December 29, Jefferies also maintained a Buy rating on the stock with a $215.00 price target.

FTAI’s price has also changed dramatically for the past six months – from $115.040 to $197.680, which is a 71.84% increase.