FTAI Aviation Ltd. ((FTAI)) has held its Q3 earnings call. Read on for the main highlights of the call.
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FTAI Aviation’s recent earnings call reflected a positive sentiment, underscored by robust growth in its Aerospace Products segment and successful strategic initiatives like the SCI upsizing and ATOPS acquisition. Despite a downturn in the Leasing segment’s EBITDA, the company’s financial outlook remains optimistic, buoyed by increased dividends, free cash flow growth, and promising projections for 2026.
Successful SCI Upsizing
FTAI successfully completed the final round of equity commitments for its Strategic Capital Initiative (SCI), boosting the total equity capital to $2 billion. The company plans to deploy over $6 billion in capital through its 2025 partnership, marking a significant milestone in its strategic growth efforts.
Aerospace Products Segment Growth
The Aerospace Products segment reported a remarkable $180 million in adjusted EBITDA at a 35% margin, representing a 77% year-over-year increase. This growth is attributed to the strong demand for prebuilt engines and modules, highlighting the segment’s critical role in FTAI’s overall performance.
Free Cash Flow Increase
FTAI generated $268 million in adjusted free cash flow for the third quarter, with a year-to-date total of $638 million. This positions the company well on its path to achieving a revised goal of $750 million in free cash flow for 2025, showcasing its strong cash generation capabilities.
Dividend Increase
In a move that underscores its financial health, FTAI announced an increase in its quarterly dividend from $0.30 to $0.35 per share. This marks the 42nd dividend issued by the company since going public, reflecting its commitment to returning value to shareholders.
Positive 2026 EBITDA Outlook
FTAI has revised its 2026 EBITDA outlook upwards to $1.525 billion, from the original estimate of $1.4 billion. Significant growth is expected in the Aerospace Products segment, reinforcing the company’s positive long-term financial trajectory.
ATOPS Acquisition
The acquisition of ATOPS for approximately $15 million enhances FTAI’s presence in Miami and expands its module production capacity. This strategic acquisition is expected to bolster the company’s operational capabilities and market reach.
Leasing Segment Decline
The Leasing segment experienced a decline in EBITDA, dropping to $122 million in Q3 from $152 million in Q2 of 2025. This decrease was primarily due to the sale of the seed portfolio and a prior settlement related to Russian assets.
Forward-Looking Guidance
FTAI’s leadership provided optimistic forward-looking guidance during the earnings call. The company completed its Strategic Capital Initiative #1, increasing total equity capital to $2 billion, which supports a deployment target of over $6 billion through the 2025 partnership. The Aerospace Products segment is projected to produce 750 modules in 2025, and the company anticipates a 33% increase in adjusted free cash flow to $1 billion in 2026. Additionally, FTAI plans to maintain a quarterly dividend of $0.35 per share.
In conclusion, FTAI Aviation’s earnings call conveyed a strong and optimistic outlook for the company’s future. With strategic initiatives like the SCI upsizing and ATOPS acquisition, alongside robust growth in the Aerospace Products segment, FTAI is well-positioned for continued success. Despite challenges in the Leasing segment, the company’s financial health remains solid, supported by increased dividends and positive projections for 2026.