FTAI Aviation Ltd. (FTAI)
NASDAQ:FTAI
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FTAI Aviation
(NASDAQ:FTAI)
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Rating:62Neutral
Price Target:
$279.00
â–²(7.67% Upside)
Action:Reiterated
Date:05/30/26
The score is held back primarily by balance-sheet leverage and weak recent cash-flow generation despite strong reported profitability. Offsetting these risks are a constructive technical setup and a notably positive earnings call with reaffirmed 2026 targets, improved liquidity/leverage, and strong aerospace segment momentum, while valuation remains stretched with a high P/E and modest yield.
Positive Factors
Top-line momentum & margins
FTAI has scaled revenue rapidly (from $336M in 2021 to $2.84B TTM) while sustaining healthy gross and EBITDA margins (~31% gross, ~39% EBITDA TTM and ~19% net). Durable aftermarket demand for CFM56 modules and recurring leasing revenues underpin sustainable cash generation potential over the medium term.
Negative Factors
Very high historical leverage
A capital structure with debt ~ $3.45B and a very small equity base leaves limited loss-absorption and increases vulnerability to asset value swings. High leverage constrains optionality, raises covenant and refinancing sensitivity, and magnifies downside risk if aviation asset values or lease cash flows deteriorate.
Read all positive and negative factors
Positive Factors
Negative Factors
Top-line momentum & margins
FTAI has scaled revenue rapidly (from $336M in 2021 to $2.84B TTM) while sustaining healthy gross and EBITDA margins (~31% gross, ~39% EBITDA TTM and ~19% net). Durable aftermarket demand for CFM56 modules and recurring leasing revenues underpin sustainable cash generation potential over the medium term.
Read all positive factors
FTAI Aviation Key Performance Indicators (KPIs)
FTAI Aviation (FTAI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$26.71B
Dividend Yield0.73%
Average Volume (3M)1.46M
Price to Earnings (P/E)49.8
Beta (1Y)1.07
Revenue Growth47.35%
EPS Growth2157.79%
CountryUS
Employees580
SectorIndustrials
Sector Strength72
IndustryRental & Leasing Services
Share Statistics
EPS (TTM)5.09
Shares Outstanding102,582,970
10 Day Avg. Volume1,123,047
30 Day Avg. Volume1,459,654
Financial Highlights & Ratios
PEG Ratio-0.03
Price to Book (P/B)60.42
Price to Sales (P/S)8.05
P/FCF Ratio-18.99
Enterprise Value/Market Cap1.11
Enterprise Value/Revenue10.49
Enterprise Value/Gross Profit33.78
Enterprise Value/Ebitda27.15
Forecast
1Y Price Target
$349.00Price Target Upside34.68% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)6.86
Revenue Forecast (FY)$3.56B
FTAI Aviation Business Overview & Revenue Model
Company Description
FTAI Aviation Ltd. owns and acquires aviation and offshore energy equipment for the transportation of goods and people worldwide. It operates through two segments, Aviation Leasing and Aerospace Products. The Aviation Leasing segment owns and mana...
How the Company Makes Money
FTAI primarily makes money through (1) leasing income and related revenues from aviation assets and (2) sales and services tied to its aerospace products business. On the leasing side, the company acquires aircraft and, increasingly, aircraft engi...
FTAI Aviation Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial momentum: accelerating aerospace revenue and EBITDA, a substantial production ramp, robust strategic capital vehicle activity, improving liquidity and leverage, and encouraging commercial progress for the Power platform (prototype milestones, JV with Jereh, and strong customer interest). Lowlights were mostly execution- and timing-related (startup costs for Power, outstanding PMA part approvals, production mix variability) and macro/geopolitical uncertainty that could cause near-term volatility. Overall, the positives — including reaffirmed 2026 guidance, dividend increase, and substantive growth indicators — significantly outweigh the contained lowlights.Positive Updates
Strong Consolidated EBITDA Growth
Adjusted EBITDA of $325.6M in Q1 2026, a 17% increase vs. $277.2M in Q4 2025. Segment contributions: Aerospace Products ~$222.6M, Aviation Leasing ~$153M, partially offset by Corporate & Other (−$50M).
Negative Updates
Geopolitical Risk and Potential Volatility
Conflict in the Middle East (beginning end of February) creates uncertainty: while direct exposure is limited (<3% of current-gen narrow-body fleet based in region), elevated fuel prices can strain airline liquidity, potentially increasing volatility in demand and creating shifting customer priorities.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Consolidated EBITDA Growth
Adjusted EBITDA of $325.6M in Q1 2026, a 17% increase vs. $277.2M in Q4 2025. Segment contributions: Aerospace Products ~$222.6M, Aviation Leasing ~$153M, partially offset by Corporate & Other (−$50M).
Read all positive updates
Company Guidance
FTAI reaffirmed 2026 guidance of $1.625 billion in total business segment EBITDA (split $1.05 billion aerospace products, $575 million aviation leasing) and about $915 million of adjusted free cash flow while targeting production of 1,050 CFM56 modules for the year. Q1 results included $325.6 million of adjusted EBITDA (Aerospace $222.6M, Aviation Leasing ~$153M, Corporate & Other -$50M), Aerospace revenue growth of +104% YoY and +32% QoQ, 270 CFM56 modules refurbished in Q1 (+96% YoY) with Aerospace Q1 EBITDA up ~70% YoY to ~$223M at a 30% margin, and Aviation Leasing EBITDA that included $45M of insurance recoveries (additional ~$5M expected in 2026), $12M gains on sale and $25M of 2025 SPV management/co-investment returns. Strategic capital milestones: the 2025 SPV has closed 165 aircraft and is expected to be fully invested by end‑Q2 and shift to harvest/distributions (warehouse facility upsized to $3.5B, +$1B across 10 lenders); the 2026 SPV targets a first close end‑Q2 with acquisitions starting in Q3 and a 12–15 month deployment. Liquidity and balance‑sheet moves include reducing leverage to ~2.3x (below the 2.5–3x target range), upsizing the public revolver from $400M to $2.025B (maturity extended to 2031, 15 lenders), Q1 adjusted free cash flow of $158M (or ~$333M excluding ~$175M of growth investments: $75M CFM56 prepayments, $81M V2500 prepayments, $19M Power inventory), $127.5M of asset sale proceeds YTD (9% gain, $12.1M), a dividend increase from $0.40 to $0.45 per share per quarter (payable May 26, record May 13), and a Power program on track for commercial launch in Q4 2026 with prototype testing ahead of schedule, final testing expected in Q3, a targeted 100‑unit 2027 run (mostly sold out) and meaningful 2028 commitments.FTAI Aviation Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
34
Negative
Cash Flow
22
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.84B | 2.51B | 1.75B | 1.19B | 722.32M | 335.58M |
| Gross Profit | 880.56M | 779.35M | 577.88M | 395.31M | 222.72M | 126.80M |
| EBITDA | 1.10B | 1.08B | 469.55M | 530.66M | 230.71M | 263.02M |
| Net Income | 536.58M | 501.06M | 8.68M | 243.82M | -193.21M | -104.23M |
Balance Sheet | ||||||
| Total Assets | 4.53B | 4.37B | 4.04B | 2.97B | 2.45B | 4.88B |
| Cash, Cash Equivalents and Short-Term Investments | 412.24M | 300.48M | 115.12M | 90.91M | 53.06M | 138.21M |
| Total Debt | 3.45B | 3.45B | 3.44B | 2.52B | 2.18B | 2.50B |
| Total Liabilities | 4.10B | 4.04B | 3.96B | 2.80B | 2.43B | 3.76B |
| Stockholders Equity | 431.68M | 334.17M | 81.37M | 175.35M | 18.88M | 1.12B |
Cash Flow | ||||||
| Free Cash Flow | -1.39B | -1.06B | -1.34B | -647.91M | -834.31M | -789.67M |
| Operating Cash Flow | -444.86M | -310.75M | -187.96M | 128.98M | -20.66M | -22.04M |
| Investing Cash Flow | 1.07B | 723.31M | -469.50M | -373.35M | -411.25M | -1.29B |
| Financing Cash Flow | -323.00M | -227.21M | 681.81M | 282.21M | 44.91M | 1.59B |
FTAI Aviation Technical Analysis
Positive
259.13
Price Trends
247.69
Positive
258.99
Positive
213.05
Positive
Market Momentum
1.43
Negative
54.20
Neutral
83.41
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FTAI, the sentiment is Positive. The current price of 259.13 is above the 20-day moving average (MA) of 253.96, above the 50-day MA of 247.69, and above the 200-day MA of 213.05, indicating a bullish trend. The MACD of 1.43 indicates Negative momentum. The RSI at 54.20 is Neutral, neither overbought nor oversold. The STOCH value of 83.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FTAI.
FTAI Aviation Risk Analysis
FTAI Aviation disclosed 50 risk factors in its most recent earnings report. FTAI Aviation 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
FTAI Aviation Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $1.25B | 9.84 | 17.33% | 0.82% | 23.13% | 12.80% | |
73 Outperform | $23.26B | 5.74 | 21.57% | 0.74% | -3.68% | 100.38% | |
71 Outperform | $9.71B | 20.11 | 16.36% | 1.75% | -0.07% | 4.18% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $26.71B | 49.77 | 181.39% | 0.73% | 47.35% | 2157.79% | |
58 Neutral | $6.00B | 17.74 | 12.46% | 1.41% | 16.92% | 18.00% |
* Industrials Sector Average
FTAI
FTAI Aviation
260.34
140.91
117.99%
AER
Aercap Holdings
139.39
24.71
21.55%
GATX
GATX
169.08
15.02
9.75%
R
Ryder System
250.85
107.29
74.74%
WLFC
Willis Lease Finance
177.01
43.63
32.71%
FTAI Aviation Corporate Events
Executive/Board ChangesShareholder Meetings
FTAI Aviation Shareholders Back Board, Pay and Auditor
Positive
May 29, 2026
At its Annual General Meeting held on May 28, 2026, FTAI Aviation shareholders elected three Class I directors – Joseph P. Adams Jr., Judith A. Hannaway and Martin Tuchman – to serve until the 2029 meeting, reinforcing continuity on th...
Business Operations and StrategyPrivate Placements and Financing
FTAI Aviation Expands and Extends Revolving Credit Facility
Positive
Apr 30, 2026
On April 24, 2026, FTAI Aviation upsized and refinanced its revolving credit facility, entering a new credit agreement that increases total commitments from $400 million to $2.025 billion and extends the maturity to April 24, 2031. The facility, l...
Business Operations and StrategyExecutive/Board Changes
FTAI Aviation Elevates Internal Leaders to Finance Roles
Positive
Mar 6, 2026
On March 5, 2026, FTAI Aviation’s board appointed longtime finance executives Nicholas McAleese as chief financial officer and Michael Hazan as chief accounting officer, effective March 6, 2026, following the resignation of CFO and CAO Eun (...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.