FTAI Revenue Climbs as Margins Narrow
The company introduced 2027 segment adjusted EBITDA guidance of $2.3 billion.
FTAI Aviation (FTAI), the aviation engine maintenance and leasing company, reported a 41% increase in second-quarter revenue as growth in aerospace products and maintenance-repair-exchange contracts reshaped its business mix.
The expansion came with weaker consolidated earnings and narrower margins. Adjusted EBITDA fell 16% from a year earlier and 10% from the first quarter, while the adjusted EBITDA margin contracted to 30.6% from 51.4% a year earlier and 39.2% sequentially.
Revenue rose to $953.1 million from $676.2 million a year earlier and increased 15% from the first quarter. Net income attributable to shareholders fell 27% to $117.6 million and declined 12% sequentially.
Aerospace Products revenue, including MRE Contract revenue, climbed 78% to $875.0 million and rose 18% from the first quarter. The segment's adjusted EBITDA increased 51% to $249.7 million, though its margin narrowed sequentially to 28.5% from 29.9%.
The mix shifted toward standalone aerospace-products revenue, which rose 65% to $692.2 million, and MRE Contract revenue, which increased 163% to $182.8 million. Lease income fell 56%, while maintenance and asset-sales revenue each declined 65%. Cost of sales grew 72%, faster than revenue, and operating expenses nearly doubled, contributing to a 26% decline in income before taxes.
FTAI cut its 2026 Aviation Leasing adjusted EBITDA guidance by $100 million to $475 million, citing its continued move toward an asset-light model, and reaffirmed Aerospace Products guidance of $1.05 billion. For 2027, the company expects segment adjusted EBITDA of $1.4 billion from Aerospace Products, $450 million from FTAI Power and $450 million from Aviation Leasing.
FTAI Power announced a $1.465 billion customer contract that is expected to account for a substantial portion of its 2027 delivery target. FTAI also raised its quarterly ordinary-share dividend for a fourth consecutive quarter, to $0.50 a share from $0.45 in the first quarter, extending shareholder distributions as the company reduced its balance-sheet leasing assets.