FTAI Aviation 2025-26: SCI $2B Raised, Aerospace EBITDA $671M, FY26 $1.625B
FY25 revenue $2.51B (+43%); op income $770M (+39%); NI $501M (vs $9M FY24, $0.32 GAAP EPS); EPS $4.60. Aerospace Products Q4 EBITDA $195M / 35% margin / +66% YoY. Aerospace Products full-year EBITDA $671M (in line with $650M-$700M guide). Leasing FY EBITDA $609M (Q4 $113M). Strategic Capital Initiative (SCI) launched FY25 — $2B equity raised for SCI I, 130 aircraft closed. Multi-year CFM materials agreement. Adj FCF $724M FY25. FY26 segment guidance raised to $1.625B (vs $1.525B prior); FY26 FCF ~$915M; quarterly dividend raised to $0.40 from $0.35. 2026 production target 1,050 modules.
Key takeaways
- Strategic Capital Initiative (SCI) is the structural pivot. FY25 launched SCI I — $2B in equity commitments raised + 130 aircraft closed by year-end. This shifts FTAI's business model from balance-sheet-heavy aircraft leasing to a capital-light asset management + management-fee + co-investment structure. SCI II fundraising starting. The model resembles modern asset-management economics (Ares, BAM, Blackstone) — recurring management fees + carry + co-invest returns, with much lower capital intensity than traditional leasing.
- Aerospace Products EBITDA $671M FY25 — in line with revised target. This is the engine module + parts + repair business (CFM56 + similar engine families). Q4 EBITDA $195M / 35% margin / +66% YoY / +8% QoQ — strong sequential momentum into 2026. Multi-year materials agreement with CFM extends product roadmap visibility. 2026 production target raised to 1,050 modules from prior ~900-950.
- FY26 segment guidance raised to $1.625B (vs $1.525B prior) = 7% raise. Composition: $1.05B from Aerospace Products + $575M from Aviation Leasing. Implied EBITDA contribution above $1B at segment level. Mgmt confidence in 2026 trajectory across both businesses.
- FY26 FCF ~$915M / dividend raised 14% to $0.40/quarter. From FY25 $724M to FY26 $915M = +26% FCF growth. Combined with $0.35 → $0.40 dividend (quarterly) = $1.60 annual / ~$200M total. Capital return discipline + dividend growth.
- GAAP EPS swung from -$0.32 FY24 → +$4.60 FY25 — a $4.92 swing. Reflects: SCI launch + aerospace products momentum + leasing recovery + scale economies. FY24 was a transition / loss year; FY25 is the inflection.
Business
FTAI Aviation Ltd. is a US-listed aerospace + aviation infrastructure company with three primary business lines:
- Aerospace Products (~50% of revenue + similar EBITDA mix). Engine modules + parts + repair services (CFM56 + V2500 + similar engine families). Q4 EBITDA $195M / 35% margin. Multi-year materials agreement with CFM. 2026 production target 1,050 modules.
- Aviation Leasing (~40%). Aircraft + engine leasing. Q4 EBITDA $113M. Strategic Capital Initiative (SCI) launched FY25 — $2B equity for SCI I; 130 aircraft closed by year-end. SCI II fundraising starting.
- FTAI Power (~5%). Aviation infrastructure + power facility retrofit + customer engagement. Hot section parts + facility build-out underway.
- Other (~5%). Smaller services.
Strategic moves FY25:
- SCI launched — $2B equity raised for SCI I
- 130 aircraft closed under SCI I by Dec 31
- SCI II fundraising started
- Multi-year materials agreement with CFM Aerospace
- FTAI Power — facility retrofitting + inventory build-up + customer engagement
- 2026 production target 1,050 modules (raised from prior)
- Training academy + facility integration + workforce strengthening
- Component repair capacity investment
- $124M FY25 buyback + $145M dividend = $270M return
- Quarterly dividend raised to $0.40 from $0.35 (effective March 23, 2026)
FY25 financial performance
| Metric (FY) | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue ($B) | 0.72 | 1.19 | 1.75 | 2.51 |
| Revenue YoY | n/a | +64% | +48% | +43% |
| Op income ($M) | 157 | 357 | 552 | 770 |
| Op margin | 21.8% | 30.1% | 31.6% | 30.7% |
| Net income ($M) | -193 | 244 | 9 | 501 |
| Diluted EPS ($) | -1.11 | 2.11 | -0.32 | 4.60 |
| FCF ($M) | -834 | -648 | -1,344 | -1,063 |
| Capex ($M) | -814 | -777 | -1,156 | -752 |
| Total debt ($B) | 2.18 | 2.52 | 3.44 | 3.45 |
| Dividends ($M) | -156 | -152 | -154 | -145 |
| Buyback ($M) | 0 | 0 | 0 | -124 |
The earnings progression: revenue 4-yr CAGR ~52%; op income +5x from FY22 → FY25; GAAP EPS swung from -$1.11 (FY22) to +$4.60 (FY25). The FY24 -$0.32 GAAP EPS reflected SCI structuring + transition costs; FY25 is the cleaner inflection.
GAAP FCF -$1.06B FY25 reflects continued capex investment in fleet + Aerospace Products + FTAI Power. Adjusted FCF $724M (mgmt-disclosed) excludes investments in strategic capital + FTAI Power + hot section parts — the operating cash flow signal.
Total debt $3.45B basically flat — capex now funded increasingly through SCI structure rather than balance sheet.
Capital allocation
- Capex (GAAP) $-752M FY25 — funded fleet + product expansion. SCI deployment partially offsets.
- SCI I commitments $2B raised; 130 aircraft closed by year-end. Capital-light model — assets owned by SCI funds; FTAI earns management fees + co-invest returns.
- Dividends $-145M FY25 (-6% YoY in totals as share count varied; per-share $0.35/qtr → $0.40/qtr raise effective March 23).
- Buybacks $-124M FY25 (vs $0 FY24).
- Debt $3.45B (basically flat YoY).
- Adj FCF $724M — clean operating cash flow.
FY26 outlook (per Q4 2025 call, 2026-02-26)
| FY26 framework | Detail |
|---|---|
| Total business segment guidance | $1.625B (vs $1.525B prior) |
| Aerospace Products | $1.05B |
| Aviation Leasing | $575M |
| FY26 FCF | ~$915M |
| 2026 module production target | 1,050 modules |
| Quarterly dividend | $0.40 (raised from $0.35) |
| Effective date | March 23, 2026 |
| SCI I | Continued deployment |
| SCI II | Fundraising in progress |
The +7% raise in segment guidance + +26% FCF growth + dividend raise = strong forward indicators. The structural shift to SCI capital-light model is the multi-year story.
Key risks
SCI execution + investor demand. $2B SCI I commitment raised — but SCI II fundraising depends on continued investor demand for aircraft asset class. If SCI II falls short, capital-light pivot stalls.
Aircraft supply / engine OEM. Aerospace Products business depends on CFM56 / V2500 / similar engine families. Multi-year CFM agreement provides visibility but engine OEM dynamics (production cadence, parts availability, certification) affect production targets.
Aerospace Products margin sustainability. Q4 35% margin reflects scale + product mix + execution. Sustaining 35%+ at 1,050 modules production target requires continued operational discipline + supply chain availability.
FTAI Power execution. New business line — facility retrofit + inventory + customer engagement. Multi-year ramp; execution risk on power infrastructure capability building.
Aircraft asset values + leasing demand. SCI I model depends on aircraft asset values + leasing demand staying favorable. Aviation industry cycle risk persists.
Capital structure. $3.45B debt + capex-heavy operations. Higher rate environment compresses FCF; lower rates support.
Geopolitical / regulatory. Aviation industry exposed to trade policy + sanctions + airline regulatory environment + customer creditworthiness.
SCI fee / carry economics. Asset management economics (mgmt fees + carry + co-invest returns) require fund performance to deliver targeted returns. Underperformance reduces FTAI's economics.
Workforce + training capacity. Training academy + facility integration + component repair capacity investment requires HR + operational execution.
Cyclicality. Aviation cycle dynamics affect FTAI on multiple fronts — leasing demand, product orders, customer credit, and aircraft asset values.
Bottom line
FTAI FY25 is the inflection year: revenue +43%, op income +39%, GAAP EPS +$4.92 swing to +$4.60 vs -$0.32, adj FCF $724M, Aerospace Products EBITDA $671M (in line with target), SCI I launched with $2B raised + 130 aircraft closed, multi-year CFM materials agreement, dividend raised 14% to $0.40/qtr.
FY26 guide of $1.625B segment guidance (vs $1.525B prior, +7% raise) + $1.05B Aerospace Products + $575M Leasing + $915M FCF + 1,050 module production target = strong forward indicators. The strategic capital initiative is the multi-year business model pivot — capital-light asset management + management fees + carry + co-invest returns replacing balance-sheet-heavy leasing.
The risks are real — SCI execution + investor demand, aircraft supply / engine OEM, Aerospace Products margin, FTAI Power execution, aircraft asset values, capital structure, geopolitical, SCI economics, workforce, cyclicality. The model is in transition.
But the structural thesis (Aerospace Products business at $670M+ EBITDA + Aviation Leasing $610M + SCI capital-light pivot + multi-year CFM partnership + capital return discipline) is intact and FY25 print confirms.
Quality aviation infrastructure compounder mid-strategic-shift cycle. The SCI launch + Aerospace Products momentum + capital-light pivot creates an attractive multi-year compounding profile, but investors should monitor SCI II fundraising + production target execution + power infrastructure ramp as critical milestones.
Citations
- FTAI Aviation Ltd. FY25 Form 10-K (filed February 2026, SEC EDGAR).
- FTAI Q4 2025 earnings call, 2026-02-26 — Aerospace Products Q4 EBITDA $195M (35% margin / +66% YoY); FY $671M; Leasing FY $609M; SCI launched ($2B raised; 130 aircraft closed); CFM multi-year materials agreement; 2026 production target 1,050 modules; FY26 segment guidance $1.625B (vs $1.525B prior, $1.05B Aerospace + $575M Leasing); FY26 FCF ~$915M; quarterly dividend raised to $0.40.
- FTAI Q3 2025 / Q2 2025 / Q1 2025 earnings calls — supporting SCI development + Aerospace Products momentum + leasing dynamics (assumed in line with Q4 trajectory).
- Internal financial_statements view (consolidated annual + cash flow + capital structure).