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FTAI Aviation Ltd. (FTAI)
NASDAQ:FTAI
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Fortress Transportation
(NASDAQ:FTAI)54Neutral
Positive Factors
Financial Performance
FTAI Aviation reported strong adjusted EBITDA well ahead of investor expectations.
Strategic Expansion
The oversubscribed strategic capital initiative should help transition FTAI into a more asset-light business and accelerate free cash flow expansion.
Negative Factors
Valuation Concerns
The stock has been downgraded to Hold as the valuation, despite moving higher, isn't enough to justify a Buy rating.
Fortress Transportation (FTAI) vs. S&P 500 (SPY)
Market Cap
$10.02B
Dividend Yield1.15%
Average Volume (3M)2.61M
Price to Earnings (P/E)―
Beta (1Y)0.93
Revenue Growth47.25%
EPS Growth-116.02%
CountryUS
Employees170
SectorIndustrials
Sector Strength66
IndustryCorporate Services
Share Statistics
EPS (TTM)-0.36
Shares Outstanding102,550,970
10 Day Avg. Volume2,458,791
30 Day Avg. Volume2,612,710
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)6.90
Price to Cash Flow (P/CF)64.40
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$188.36Price Target Upside92.81% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
Fortress Transportation Business Overview & Revenue Model
Company DescriptionFTAI Aviation (FTAI) is a leading company in the aviation sector, focusing on the acquisition, leasing, and management of aviation-related assets. The company primarily operates in the areas of aircraft leasing, engine leasing, and component sales, serving a diverse range of clients in the aviation industry. FTAI Aviation leverages its expertise and extensive portfolio to provide comprehensive solutions that cater to the needs of airlines, maintenance providers, and other aviation-related entities.
How the Company Makes MoneyFTAI Aviation generates revenue through several key streams. The primary source of income is from leasing aircraft and engines to airlines and other operators, which provides a steady stream of rental income. Additionally, the company engages in the sale of aviation components and parts, further diversifying its revenue base. FTAI also benefits from the strategic acquisition and sale of aircraft and engines, capitalizing on market opportunities to maximize returns. Partnerships with airlines and maintenance organizations enhance its service offerings and contribute to its earnings by facilitating long-term leasing agreements and collaborative ventures.
Fortress Transportation Financial Statement Overview
Summary
FTAI Aviation shows strong revenue growth but faces challenges with profitability and financial stability. The negative net margin and the loss of equity in 2024 suggest potential risks in sustaining operations. Cash flow improvements are a positive sign, yet the persistent negative free cash flow highlights the necessity for continued focus on cash management and financial restructuring.Income Statement
FTAI Aviation has demonstrated solid revenue growth, with a 48.2% increase from 2023 to 2024. However, the net profit margin has turned negative in 2024 at -1.9%, compared to a positive margin of 20.8% in 2023, largely due to a negative net income in 2024. Despite this, the gross profit margin improved to 52.4% in 2024, indicating effective cost management.70
Positive
Balance Sheet
The balance sheet exhibits significant challenges, with a complete erosion of stockholders' equity in 2024. This results in an undefined debt-to-equity ratio and equity ratio, highlighting potential financial instability. The absence of total liabilities and stockholders' equity data for 2024 raises concerns about the company's financial health.45
Neutral
Cash Flow
FTAI Aviation's cash flow statement reflects a troubling trend, with a negative operating cash flow of -$187.96 million in 2024. The free cash flow remains negative, though there is a substantial improvement in free cash flow from -$647.91 million in 2023 to -$187.96 million in 2024, indicating some progress in cash management.55
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.73B | 1.17B | 708.41M | 455.80M | 366.50M | Gross Profit |
| 909.02M | 498.89M | 307.11M | 254.05M | 194.10M | EBIT |
| 0.00 | 356.99M | 156.96M | 25.90M | 43.10M | EBITDA |
| 497.92M | 530.66M | 230.71M | 263.02M | 245.84M | Net Income Common Stockholders |
| 8.68M | 243.82M | -110.61M | -130.71M | -105.02M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 115.12M | 90.76M | 33.56M | 188.08M | 121.70M | Total Assets |
| 4.04B | 2.96B | 2.43B | 4.86B | 3.39B | Total Debt |
| 3.44B | 2.52B | 2.18B | 3.29B | 1.97B | Net Debt |
| 3.33B | 2.43B | 2.14B | 3.11B | 1.85B | Total Liabilities |
| 3.96B | 2.79B | 2.41B | 3.74B | 2.29B | Stockholders Equity |
| 81.37M | 175.35M | 18.88M | 1.12B | 1.08B |
| Cash Flow | Free Cash Flow | |||
| -187.96M | -647.91M | -834.31M | -789.67M | -531.67M | Operating Cash Flow |
| -187.96M | 128.98M | -20.66M | -22.04M | 63.11M | Investing Cash Flow |
| -469.50M | -373.35M | -411.25M | -1.29B | -509.12M | Financing Cash Flow |
| 681.81M | 282.21M | 44.91M | 1.59B | 364.92M |
Fortress Transportation Technical Analysis
Negative
97.69
Price Trends
122.32
Negative
136.27
Negative
122.32
Negative
Market Momentum
-3.49
Positive
36.85
Neutral
6.27
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FTAI, the sentiment is Negative. The current price of 97.69 is below the 20-day moving average (MA) of 120.46, below the 50-day MA of 122.32, and below the 200-day MA of 122.32, indicating a bearish trend. The MACD of -3.49 indicates Positive momentum. The RSI at 36.85 is Neutral, neither overbought nor oversold. The STOCH value of 6.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FTAI.
Fortress Transportation Risk Analysis
Fortress Transportation disclosed 52 risk factors in its most recent earnings report. Fortress Transportation reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Fortress Transportation Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $18.65B | 9.03 | 12.43% | 0.75% | 5.53% | -22.48% | |
74 Outperform | $4.83B | 13.80 | 5.82% | 1.85% | 2.65% | -35.24% | |
62 Neutral | $8.11B | 13.34 | 1.17% | 3.02% | 4.16% | -15.14% | |
55 Neutral | $131.27M | ― | -2.67% | ― | 36.68% | -199.04% | |
54 Neutral | $10.02B | ― | 6.76% | 1.15% | 47.25% | -116.02% |
* Industrials Sector Average
Performance Comparison
FTAI
Fortress Transportation
97.69
40.70
71.42%
AER
Aercap Holdings
95.26
13.08
15.92%
AL
Air Lease
43.38
-1.37
-3.06%
TOUR
Tuniu
1.06
0.35
49.30%
Fortress Transportation Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -30.38% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong financial performance with significant growth in adjusted EBITDA and strategic initiatives like the SCI and expansion of facilities. However, high capital expenditures and some margin impacts due to legacy contracts were noted as challenges.Highlights
Strong Financial Performance
Adjusted EBITDA of $252 million in Q4 2024, a 9% increase from Q3 2024 and a 55% increase compared to Q4 2023. Full-year 2024 adjusted EBITDA was $862.1 million, up 44% from 2023.
Dividend Announcement
FTAI Aviation announced its 39th dividend as a public company and 54th consecutive dividend since inception, with a dividend of $0.30 per share.
Strategic Capital Initiative
SCI received a $2.5 billion commitment for asset-level debt financing from ATLAS, a majority-owned subsidiary of Apollo, and Deutsche Bank. The SCI team is in late stages of closing a second round of equity financing, targeting a market opportunity of more than $4 billion annually.
Aerospace Products Segment Growth
Aerospace Products segment achieved $117.3 million of adjusted EBITDA with a 34% margin in Q4 2024, up 15% from Q3 2024 and 115% from Q4 2023. Expected growth to $600 million to $650 million of EBITDA in 2025.
Expansion of Facilities
New joint venture agreement with IAG Engine Center Europe, rebranded as QuickTurn Europe, adding new maintenance facilities in Rome to complement existing ones in Montreal and Miami.
Lowlights
High Capital Expenditures
In 2024, FTAI invested approximately $1.3 billion in major growth initiatives, which included the purchase of a Montreal maintenance facility, termination of a management agreement with Fortress, and investments in aviation assets.
Legacy Contract Margin Impact
The Montreal facility had a one to two percentage point impact on Q4 margins due to legacy third-party contracts.
Company Guidance
During the FTAI Aviation fourth-quarter 2024 earnings call, the company provided guidance for 2025, projecting an annual business segment EBITDA of $1.1 billion to $1.15 billion, excluding corporate and other expenses. They also anticipate adjusted free cash flow of approximately $650 million for the year. FTAI highlighted their strategic capital initiatives (SCI), which include a $2.5 billion commitment for asset-level debt financing from ATLAS, a subsidiary of Apollo and Deutsche Bank. This initiative aims to improve market share and sustainably support airlines' long-term maintenance needs. Additionally, FTAI expects their annual aviation EBITDA to increase from $1.25 billion to approximately $1.4 billion in 2026, driven by growth in their Aerospace Products segment and ongoing strategic reinvestments.Fortress Transportation Corporate Events
Business Operations and StrategyFinancial Disclosures
FTAI Aviation Outlines Growth Strategy Amid Challenges
Positive
Jan 21, 2025
FTAI Aviation Ltd. has announced its strategic initiatives and financial outlook, revealing an expected Adjusted EBITDA of $1.1 to $1.15 billion for 2025. The company is addressing recent short-seller allegations and has commenced a review in response. Despite these challenges, FTAI is optimistic about growth, particularly through its Strategic Capital initiative and PMA approvals, which are expected to enhance operational efficiency and profitability.
Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
FTAI Aviation’s Strategic Partnership and Financial Outlook
Positive
Dec 30, 2024
FTAI Aviation Ltd. has announced a strategic capital initiative, partnering with third-party investors to acquire 737NG and A320ceo aircraft. As part of this initiative, FTAI will sell 46 on-lease narrowbody aircraft for $549 million and provide management services to the partnership. This move supports FTAI’s asset-light business model while ensuring exclusive use of its Maintenance, Repair and Exchange services for engines. Additionally, FTAI has released its 2025 financial guidance, projecting an adjusted EBITDA of $1.1 to $1.15 billion, highlighting expected growth in its Aviation Leasing and Aerospace Products segments.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.