FTAI Aviation Ltd. Q4 FY2024 earnings call

• Joe Adams announced the 39th dividend as a public company and 54th consecutive dividend. He discussed the market opportunity for Aerospace Products, focusing on small and medium-sized airlines with narrow-body fleets. Highlighted green time optimization, unique maintenance capabilities, and the new facility in Rome. - Angela Nam detailed adjusted EBITDA figures, with Leasing delivering strong results and Aerospace Products showing excellent growth. - Joe Adams mentioned the SCI initiative, which received $2.5 billion in asset-level debt financing and is in the late stages of equity financing, with an expected $4 billion+ market opportunity.

In Q4 2024, adjusted EBITDA was $252 million, with $133.9 million from Leasing segment, $117.3 million from Aerospace Products segment, and $0.8 million from Corporate and Other. For 2024, total adjusted EBITDA was $862.1 million, up 44% from 2023's $597.3 million. Aviation Leasing had adjusted EBITDA of $500 million in 2024 and is expected to remain at $500 million in 2025. Aerospace Products had Q4 2024 adjusted EBITDA of $117.3 million and is expected to generate $600 million to $650 million of EBITDA in 2025, up from $381 million in 2024 and $160 million in 2023.

• For 2025, annual business segment EBITDA is expected to be between $1.1 billion and $1.15 billion, excluding corporate and other. Adjusted free cash flow is projected at approximately $650 million. - 2026 aviation EBITDA is now expected to rise from the previously projected $1.25 billion to approximately $1.4 billion.

• Forward-looking statements are uncertain and may differ materially from actual results. - Risk factors in the quarterly report filed with the SEC need to be reviewed. - Potential impacts from market changes, such as tariffs, on new deliveries and industry dynamics.

Q: Brandon Oglenski asked about customer base and contracts.

A: David Moreno talked about spot transactions and contracted programs.

Q: Ken Herbert asked about Montreal facility margins and new customers.

A: Joe Adams discussed legacy contracts impact and focus on market penetration.

Q: Myles Walton asked about SCI equity and cash flow.

A: Joe Adams discussed equity closing and cash flow replacement.

Q: Stephen Trent asked about Russian insurance claims and tariffs.

A: Joe Adams discussed insurance claims recovery and tariff impacts.

Q: Andre Madrid asked about accounting pivot and EBITDA cadence.

A: Angela Nam talked about accounting pivot and Joe Adams and David Moreno discussed EBITDA cadence and production focus.