Q2 2026 FTAI Aviation Ltd Earnings Call Transcript
Key Points
- Aerospace Products revenue grew 78% year-over-year, with module production up 61% to 296 units in Q2 2026.
- FTAI Aviation Ltd (FTAI) increased CFM56 module production capacity to 3,000 per year, supporting its 25% market share goal and 100 Mod-1 units annually.
- The 2025 SPV is fully invested and made its first quarterly distribution, while the 2026 SPV launched with a $6 billion target, advancing asset management toward $20 billion AUM.
- FTAI Power secured a $1.465 billion initial purchase order from a U.S. hyperscaler, with milestone-based payments derisking working capital.
- The company raised its quarterly dividend to $0.50 per share, marking the 45th dividend and 60th consecutive payout since inception.
- Aviation Leasing EBITDA guidance for 2026 was revised down to $475 million due to prioritizing third-party module sales over internal leasing.
- Aerospace Products EBITDA margins remained at 29%, pressured by a shift toward heavier, lower-margin shop visits and market share gains.
- FTAI Power's 2027 EBITDA guidance of $450 million is conservative and assumes materially fewer than 100 Mod-1 deliveries, reflecting startup risks.
- The transition to an asset-light model caused near-term leasing EBITDA to decline faster than SCI contributions could offset, creating a timing mismatch.
- The company faces supply constraints in the CFM56 market, limiting module availability for its own leasing fleet and requiring strategic allocation decisions.
Good day and thank you for standing by. Welcome to the second-quarter 2026 FTAI Aviation earnings conference call. (Operator Instructions)
Please be advised that today's conference will be recorded. I would now like to hand the conference over to your first today, Alan Andreini, Investor Relations. Please go ahead.
Thank you, Marvin. I would like to welcome you all to the FTAI Aviation second-quarter 2026 earnings call. Joining me here today are Joe Adams, our Chief Executive Officer; David Moreno, our President; Nicholas McAleese, our Chief Financial Officer; and Stacy Kuperus, our Chief Operating Officer. We have posted an investor presentation and our press release on our website, which we encourage you to download if you have not already done so. Also, please note that this call is open to the public in listen-only mode and is being webcast.
In addition, we will be discussing some non-GAAP financial measures during the call today, including EBITDA. The reconciliation of those measures
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