FTAI Aviation Announces Strategic Capital Initiative

By Bobby Samwell • Tuesday, December 31 10:16 • Permanent Link

FTAI Aviation Ltd. (NASDAQ: FTAI) has just announced the launch of a strategic capital initiative in collaboration with third-party institutional investors. This initiative will focus on acquiring on-lease 737NG and A320CEO aircraft, with the first partnership under the initiative set to acquire 46 on-lease narrowbody aircraft for an estimated net purchase price of $549 million.

In conjunction with this strategic initiative, FTAI has also released its initial financial guidance for fiscal year 2025. The company expects 2025 adjusted EBITDA of approximately $1.1 to $1.15 billion from its reportable segments, comprising approximately $500 million from aviation leasing and approximately $600 to $650 million from aerospace products.

This guidance is based on several assumptions, including the production of an average of 100 modules per quarter at the company’s Montreal facility in fiscal year 2025, net aerospace margins in line with or better than those for fiscal year 2024, and an expected 25 to 35 V2500 engine MRE transactions for fiscal year 2025.

FTAI Aviation Ltd. is known for owning and maintaining commercial jet engines, particularly focusing on CFM56 and V2500 engines. The company's proprietary portfolio of products, such as the module factory and a joint venture to manufacture engine PMA, enables it to provide cost savings and flexibility to its airline, lessor, and maintenance, repair, and operations customer base. FTAI also owns and leases jet aircraft, which often facilitates the acquisition of engines at attractive prices.

This announcement reflects FTAI's commitment to maintaining an asset-light business model while actively acquiring on-lease narrowbody aircraft at scale. The company is positioning itself for continued growth and operational performance in fiscal year 2025, with a clear strategy for capital deployment and revenue generation from its aviation and aerospace product segments. As a result of these announcements, the company's shares have moved 16.7% on the market, and are now trading at a price of $147.63. For the full picture, make sure to review FTAI Aviation's 8-K report.

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