FTAI Aviation Ltd. Q1 FY2024 earnings call

• Announced 36th dividend as public company, $0.30 per share paid May 21. - Adjusted EBITDA up 1% QoQ and 29% YoY. - Leasing expects meaningful growth in Q2, confident in $425 million EBITDA for year excluding gains on asset sales. - Aerospace Products had excellent quarter, expects ~$250 million EBITDA in 2024. - Executed perpetual power agreement with LATAM for V2500 maintenance, repair and exchange. - Making progress on PMA parts approval, seeing positive feedback on V2500 model. - Building capacity at maintenance facilities for module swaps.

Adjusted EBITDA for Q1 2024 was $164.1 million. The Leasing segment contributed $104.8 million (63.9% of total adjusted EBITDA), the Aerospace Products segment contributed $70.3 million (42.8% of total adjusted EBITDA), and Corporate & Other was negative 11%. Leasing had ~$105 million EBITDA, with pure leasing component at $98 million in Q1. Aerospace Products had $70.3 million EBITDA with 37% margin, sold 72 CFM56 modules and 6 V2500 engines in Q1.

• Expect Leasing EBITDA of $425 million for 2024 excluding gains on asset sales. - Aerospace Products expected to generate approximately $250 million of EBITDA in 2024, high end of previous range. - Annual aviation EBITDA for 2024 expected to be approximately $725 million, not including Corporate & Other.

• Certain statements are forward-looking and may differ materially from actual results. - Uncertainties in industry-specific factors like capacity constraints and market dynamics for V2500 engines.

Q: Opportunities for capacity expansion?

A: Joseph Adams said there's capacity out there, though not as much as during COVID, still opportunities with smaller and medium-sized players in the global industry