FTAI Aviation Q2 revenue rises on Aerospace Products segment growth

Overview

• US aircraft engine lessor's Q2 adjusted EBITDA missed analyst expectations

• Aerospace Products revenue rose 78% yr/yr, adjusted EBITDA up 51%

• Company raised quarterly dividend to $0.50 per share

Outlook

• FTAI Aviation reaffirms 2026 Aerospace Products Adjusted EBITDA guidance of $1.05 bln

• Company lowers 2026 Aviation Leasing Adjusted EBITDA guidance to $475 mln from $575 mln

• FTAI Aviation introduces 2027 Adjusted EBITDA guidance of $2.3 bln across segments

Result Drivers

• AEROSPACE PRODUCTS GROWTH - Aerospace Products revenue rose 78% and adjusted EBITDA increased 51% yr/yr, driven by higher module deliveries and expanded customer reach

• NEW CONTRACTS - FTAI Power signed a $1.465 bln customer contract expected to contribute significantly to 2027 deliveries

• STRATEGIC PARTNERSHIPS - Co entered partnerships with GMF Indonesia and EgyptAir to expand engine maintenance capacity and geographic coverage

Company press release: ID:nGNX82MtJM

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the aerospace defense peer group is "buy"

• Wall Street's median 12-month price target for FTAI Aviation Ltd is $350.00, about 64.7% above its July 28 closing price of $212.47

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 28 three months ago

Reuters Recommended Reads

• July 29 - Ireland's AerCap Q2 adjusted EPS beats on asset sales

• July 28 - Jet engine maker Safran raises targets after record first-half margin

• July 28 - JetBlue recaptures nearly half of fuel cost surge, beats Street estimates

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)