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FTAI Aviation Ltd. (FTAI)
NASDAQ:FTAI
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Fortress Transportation
(NASDAQ:FTAI)
57Neutral
Positive Factors
Financial Performance
FTAI Aviation reported strong adjusted EBITDA well ahead of investor expectations.
Insider Confidence
Insider purchases typically reflect conviction in the company’s strategic direction and long-term value creation.
Market Share Expansion
Management aims to increase its market share of engine restorations from 5% to 25% by expanding production of refurbished modules and engines.
Negative Factors
Market Valuation
The recent multiple compression is seen as overdone, given the strong growth trajectory ahead for the business.
Regulatory Compliance
FTAI denies claims of selling to Sorena Turbine, asserting compliance with all applicable laws and sanctions.
Fortress Transportation (FTAI) vs. S&P 500 (SPY)
Market Cap
$12.10B
Dividend Yield1.02%
Average Volume (3M)1.91M
Price to Earnings (P/E)578.0
Beta (1Y)1.12
Revenue Growth57.80%
EPS Growth-89.78%
CountryUS
Employees580
SectorIndustrials
Sector Strength91
IndustryRental & Leasing Services
Share Statistics
EPS (TTM)0.87
Shares Outstanding102,555,980
10 Day Avg. Volume1,870,166
30 Day Avg. Volume1,905,583
Financial Highlights & Ratios
PEG Ratio0.87
Price to Book (P/B)398.19
Price to Sales (P/S)0.00
P/FCF Ratio-24.18
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$177.89Price Target Upside50.78% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
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 has shown strong revenue growth, yet struggles with profitability and financial stability. The negative net margin and erosion of equity in 2024 pose risks. However, cash flow improvements reflect progress in financial management.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 | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.91B | 1.73B | 1.17B | 708.41M | 455.80M | 366.50M | Gross Profit |
| 781.35M | 690.95M | 498.89M | 307.11M | 254.05M | 194.10M | EBIT |
| 731.48M | 252.38M | 356.99M | 156.96M | 25.90M | 43.10M | EBITDA |
| 442.04M | 469.55M | 530.66M | 230.71M | 263.02M | 245.84M | Net Income Common Stockholders |
| 59.00M | 8.68M | 243.82M | -110.61M | -130.71M | -105.02M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 65.37M | 115.12M | 90.76M | 33.56M | 188.08M | 121.70M | Total Assets |
| 3.18B | 4.04B | 2.96B | 2.43B | 4.86B | 3.39B | Total Debt |
| 2.69B | 3.44B | 2.52B | 2.18B | 3.29B | 1.97B | Net Debt |
| 2.63B | 3.33B | 2.43B | 2.14B | 3.11B | 1.85B | Total Liabilities |
| 3.00B | 3.96B | 2.79B | 2.41B | 3.74B | 2.29B | Stockholders Equity |
| 177.07M | 81.37M | 175.35M | 18.88M | 1.12B | 1.08B |
| Cash Flow | Free Cash Flow | ||||
| -466.50M | -1.34B | -647.91M | -834.31M | -789.67M | -531.67M | Operating Cash Flow |
| -213.58M | -187.96M | 128.98M | -20.66M | -22.04M | 63.11M | Investing Cash Flow |
| -327.91M | -469.50M | -373.35M | -411.25M | -1.29B | -509.12M | Financing Cash Flow |
| 538.32M | 681.81M | 282.21M | 44.91M | 1.59B | 364.92M |
Fortress Transportation Technical Analysis
Positive
117.98
Price Trends
104.20
Positive
113.52
Positive
124.11
Negative
Market Momentum
3.94
Negative
60.36
Neutral
93.23
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 117.98 is above the 20-day moving average (MA) of 104.92, above the 50-day MA of 104.20, and below the 200-day MA of 124.11, indicating a neutral trend. The MACD of 3.94 indicates Negative momentum. The RSI at 60.36 is Neutral, neither overbought nor oversold. The STOCH value of 93.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $10.82B | 9.98 | 138.69% | 1.79% | 6.41% | 49.58% | |
70 Outperform | $11.35B | 24.12 | 36.66% | 3.19% | -2.56% | -14.94% | |
68 Neutral | $14.69B | 26.88 | 13.97% | 1.17% | -3.82% | -12.80% | |
68 Neutral | $10.02B | 142.15 | ― | 16.92% | ― | ||
67 Neutral | $5.31B | 324.04 | ― | ― | ― | ||
64 Neutral | $4.43B | 12.01 | 5.16% | 249.23% | 4.03% | -11.73% | |
57 Neutral | $12.10B | 578.05 | 69.57% | 1.02% | 57.80% | -89.78% |
* Industrials Sector Average
Performance Comparison
FTAI
Fortress Transportation
117.98
38.74
48.89%
PAC
Grupo Aeroportuario del Pacifico
222.47
34.07
18.08%
JBHT
JB Hunt
148.05
-14.31
-8.81%
LTM
LATAM Airlines Group SA Sponsored ADR
35.52
10.80
43.69%
AMTM
Amentum Holdings, Inc.
21.84
-6.16
-22.00%
SARO
StandardAero, Inc.
29.95
-3.02
-9.16%
Fortress Transportation Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: 10.43%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment with strong performance in EBITDA growth, successful asset sales, and strategic initiatives progressing well. Despite some operational challenges and potential tariff concerns, the company's outlook remains robust.Q1-2025 Updates
Positive Updates
Strong Adjusted EBITDA Growth
Adjusted EBITDA for Q1 2025 was $268.6 million, up 7% from Q4 2024 and 64% from Q1 2024, indicating strong business performance.
Successful Asset Sales
Sold four aircraft for $59 million, with plans to sell remaining assets by end of Q2, generating significant inflow of approximately $440 million.
Aerospace Products Segment Performance
Aerospace Products segment delivered $130.9 million in EBITDA at a 36% margin, up 12% from the previous quarter and 86% from Q1 2024.
Strategic Capital Initiative Progress
Secured additional equity partner and expect further closings in Q3; on track to deploy over $4 billion in capital by year-end.
Debt Reduction and Financial Health
Targeting a debt-to-total EBITDA ratio of three by year-end, supported by asset sales and cash flow generation.
Negative Updates
Operational Challenges in Montreal
Production in Montreal initially constrained, though expected to ramp up in Q2 with a target of 90-100 modules.
Tariff Concerns
Potential impact of tariffs on business operations, although currently not material, remains a concern.
Corporate and Other Segment Loss
Reported a negative $17.4 million from corporate and other segments, impacting overall profitability.
Company Guidance
During FTAI Aviation's First Quarter 2025 earnings call, several key financial metrics and strategic initiatives were highlighted. The company announced a 40th dividend of $0.30 per share, reflecting its robust financial health. FTAI Aviation reported $268.6 million in adjusted EBITDA, marking a 7% increase from Q4 2024 and a significant 64% rise from Q1 2024. The Leasing segment contributed $162 million to the EBITDA, while the Aerospace Product segment added $130.9 million. The company anticipates generating $300 million to $350 million in adjusted free cash flow in the first half of 2025 and aims for $650 million for the full year. FTAI Aviation is also focusing on expanding its market share in engine restorations from 5% to 25% by ramping up production capabilities in Montreal and Miami. The Strategic Capital Initiative (SCI) is set to play a vital role, with plans to deploy over $4 billion in capital by year-end through various commitments and financing facilities. The company reiterated its confidence in achieving its business segment EBITDA goals for 2025 and 2026, with targets set at $1.1 billion to $1.15 billion for 2025 and approximately $1.4 billion for 2026.Fortress Transportation Corporate Events
Executive/Board Changes
FTAI Aviation Expands Board with New Appointment
Neutral
May 2, 2025
On April 30, 2025, FTAI Aviation Ltd. announced the expansion of its Board of Directors to seven members and the appointment of Shyam Gidumal as an independent director, effective May 7, 2025. Mr. Gidumal will also join the Audit Committee and will serve as a Class II director until the 2027 annual general meeting. This strategic appointment is part of FTAI Aviation’s efforts to strengthen its governance structure. The company has ensured transparency by disclosing Mr. Gidumal’s compensation details and confirming no conflicts of interest, which may reassure stakeholders of the integrity and independence of the board’s decision-making process.
Spark’s Take on FTAI Stock
According to Spark, TipRanks’ AI Analyst, FTAI is a Neutral.
FTAI Aviation’s overall stock score is moderate at 58, driven by strong revenue growth and strategic initiatives, offset by profitability challenges and financial instability. Technical indicators are mixed, and valuation concerns persist due to a negative P/E ratio. The positive outlook from earnings guidance provides some support, albeit with noted risks.
To see Spark’s full report on FTAI stock, click here.
Executive/Board Changes
FTAI Aviation Appoints New Principal Operating Officer
Neutral
Apr 16, 2025
On April 15, 2025, FTAI Aviation Ltd. appointed David Moreno as the principal operating officer and elected him as an officer under the Securities Exchange Act. Moreno, who has been the Chief Operating Officer since January 2021, has a background in aviation investments from his time at Fortress Investment Group. Additionally, the Board elected Stacy Kuperus and BoHee Yoon as officers. Kuperus, the Chief Portfolio Officer since March 2021, has been pivotal in executing business operations across the company’s assets. Yoon, the General Counsel since February 2025, has a rich legal background, including roles at Fortress Investment Group and other notable companies.
Spark’s Take on FTAI Stock
According to Spark, TipRanks’ AI Analyst, FTAI is a Neutral.
FTAI Aviation’s overall score reflects strong revenue growth and strategic initiatives, but profitability and financial stability challenges weigh heavily. Technical analysis indicates a weak stock momentum, and valuation metrics are concerning. The earnings call highlights growth potential but also points to high capital expenditures as a risk.
To see Spark’s full report on FTAI stock, click here.
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.