FTAI Aviation Ltd

FTAI Aviation Ltd. (NASDAQ: FTAI) owns and maintains commercial jet engines with a focus on CFM56 and V2500 engines. Its segments include Aviation Leasing and Aerospace Products. The Aviation Leasing segment owns and manages aviation assets, including aircraft and aircraft engines, which it leases and sells to lessees and customers.

Recent Business and Financial Updates

• Robust Financial Performance in Q2 2025: FTAI Aviation Ltd. reported strong financial results for the second quarter ended June 30, 2025, with net income attributable to shareholders reaching USD161.7 million, reflecting an 80% increase from Q1 2025, and delivering basic earnings per ordinary share of USD1.58 and diluted earnings per share of USD1.57. The company’s adjusted EBITDA totaled USD347.8 million, underscoring its operational efficiency and growth in its core Aerospace Products segment, which saw a 26% increase in adjusted EBITDA to USD164.9 million from the prior quarter. This performance was driven by a 33% ramp-up in production to 184 CFM56 modules, highlighting FTAI’s ability to capitalize on demand for aviation aftermarket services. The company’s financial position remains solid, with USD302 million in cash and a fully undrawn USD400 million corporate revolving credit facility, supporting its strategic initiatives.
• Strategic Advancements and Market Expansion: FTAI Aviation strengthened its market position through strategic initiatives, notably the acquisition of 100% equity in Pacific Aerodynamic, a specialist in CFM56 compressor blade and vane repairs, enhancing its repair capabilities within the Aerospace Products segment. This segment achieved an 81% year-over-year growth in adjusted EBITDA, increasing its market share to approximately 9% on an annualized basis, up from 5% in the prior year, with ambitions to reach a long-term target of 25%. The SCI Partnership also advanced, owning or having under letter of intent 145 aircraft, progressing toward its goal of deploying USD4 billion in capital in 2025 to reach a target of 250 aircraft. These developments reflect FTAI’s focus on expanding its footprint in the aviation aftermarket and leasing sectors.
• Dividend Declarations and Shareholder Returns: FTAI’s Board of Directors declared a quarterly cash dividend of USD0.30 per ordinary share, payable on August 19, 2025, to shareholders of record as of August 12, 2025, demonstrating its commitment to delivering consistent shareholder value. Additionally, the Board announced dividends of USD0.51563 and USD0.59375 per share for its Series C and Series D Cumulative Perpetual Redeemable Preferred Shares, respectively, payable on August 15, 2025, to holders of record on August 8, 2025. These dividend declarations, combined with the company’s generation of over USD400 million in positive adjusted free cash flow in Q2 2025, underscore FTAI’s strong liquidity and ability to support ongoing growth while rewarding investors.

Technical Observation (on the daily chart):

The Relative Strength Index (RSI) over a 14-day period stands at a value of 72.58, currently inside overbought levels, with expectations of a consolidation with an upward continuation as an important resistance of USD130-USD135 is broken on the upside. Additionally, the stock's current positioning is above both the 50-period SMA and 200-period SMA, which may serve as dynamic short to medium-term support levels.

FTAI Aviation Ltd. reported a strong Q2 2025, with net income attributable to shareholders of USD161.7 million, an 80% increase from Q1 2025, delivering basic and diluted earnings per share of USD1.58 and USD1.57, respectively, and adjusted EBITDA of USD347.8 million. The Aerospace Products segment drove performance with a 26% quarter-over-quarter increase in adjusted EBITDA to USD164.9 million, fueled by a 33% rise in CFM56 module production to 184 units and an 81% year-over-year segment growth, boosting market share to 9%. The acquisition of Pacific Aerodynamic enhanced repair capabilities, while the SCI Partnership progressed toward its USD4 billion capital deployment goal, with 145 aircraft owned or under LOI. FTAI maintained robust liquidity with USD302 million in cash and an undrawn USD400 million credit facility, declaring a USD0.30 per ordinary share dividend and preferred share dividend. However, reliance on aviation aftermarket demand and execution risks in scaling the SCI Partnership to 250 aircraft could pose challenges to sustaining growth. 

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘WATCH’ rating has been given to FTAI Aviation Ltd. (NASDAQ: FTAI) at the current market price of USD 141.40, as of July 30, 2025, at 10:10 am PDT. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is July 30, 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.