FTAI

• 2025 was a defining year with launch of strategic capital initiative (SCI), raising $2B in equity commitments for SCI I, closing 130 aircraft by Dec 31, and starting fundraising for SCI II. - Aerospace Products had strong momentum with production surpassing 2025 goal, multiyear materials agreement with CFM. - Priorities for 2026 include completing SCI I deployment, revising aerospace products production target to 1,050 modules, progress on FTAI Power including facility retrofitting, inventory build-up, and customer engagement. - Strengthening workforce with training academy, integration of facilities, and investment in component repair capacity.

• Updated 2026 total business segment guidance to $1.625B, up from $1.525B, with $1.05B from Aerospace Products and $575M from aviation leasing. - Expect 2026 free cash flow of approximately $915M, reflecting additional EBITDA, increased SCI investments, and additional Power working capital. - Increased dividend from $0.35 to $0.40 per share per quarter, paid on March 23.

Aerospace Products finished Q4 2025 with adjusted EBITDA of $195 million at a 35% margin, up ~66% YOY and 8% QOQ. Full-year 2025 Aerospace Products adjusted EBITDA was $671 million, in line with revised target of $650M - $700M. Leasing had Q4 2025 adjusted EBITDA of ~$113 million, including $20M from SCI through management fees and co-investment returns and $93M from leasing assets on balance sheet. Full-year 2025 Leasing EBITDA was $609 million. 2025 adjusted free cash flow was $724 million, adjusted for investments in strategic capital, FTAI Power, and hot section parts.

Q: On AP margins, how does access to PMA blades, CFM materials deal support margin profile?

A: Margins expected to grow from 35% to 40% via PMA HPT blade approval, additional lower-cost parts supplies from CFM deal and used service material, and continued growth in piece part repair capability.

Q: On FTAI Power, steps to achieve 100 units in 2027?

A: Leveraging existing infrastructure, feedstock of engines, and turbine and module exchange model for maintenance.

Q: On sourcing environment for SCI I, SCI II, and production?

A: Sourcing from market with high engine shop visit intensity, 2% - 3% annual retirement rate of CFM56 engines, and SCI II likely around $6B.

Q: On module production exceeding target, drivers?

A: People (training academy, in-house training), parts (investments in repair capabilities), process (optimization via Palantir, collaboration across shops).

Q: On cash flow and investments in 2026?

A: $1.2B free cash flow before growth initiatives, investments in SCI II, FTAI Power, and hot section parts.

Q: On Power initiative margins and M&A strategy?

A: Expect margins as good or better than Aerospace Products due to repurposing assets, and M&A strategy is organic with potential to explore acceleration opportunities.

Q: On partnership with CFM?

A: Multiyear deal covering parts supply, piece part repairs, component repairs and thrust, benefiting both parties.

Q: On hiring and pace in 2026?

A: Continued growth in workforce with training academy, expansion of shops, and opportunities in regions like Middle East and Southeast Asia.

Q: On demand for SCI II?

A: Positive demand for asset-based uncorrelated cash flow, in good position with fully invested SCI I and launching SCI II.

Q: On FTAI Power customer demand?

A: Active discussions with hyperscalers and data center operators, focusing on long-term durable deployment.