FTAI Aviation (FTAI) Q2 2026 earnings summary

Executive summary

• Achieved strong Q2 2026 results with net income of $118M, Adjusted EBITDA of $291.4M, and robust growth in Aerospace Products, Asset Management, and Power, supported by significant production increases and new capacity additions.

• Completed investment of the 2025 SPV, made regular and special distributions, and launched the 2026 SPV targeting $6B, advancing toward a $20B AUM goal.

• Signed a major $1.465B anchor customer contract for Power's Mod-1 turbines, supporting commercial launch and 2027 delivery targets.

• Declared a cash dividend of $0.50 per share, marking the fourth consecutive increase and the 45th dividend as a public company.

• Expanded global maintenance footprint and production capacity through strategic partnerships in Indonesia, Egypt, Montreal, and Rome.

Financial highlights

• Q2 2026 revenue was $1.21B, up from $685.1M in Q2 2025, with Aerospace Products revenue growing 78% year-over-year to $875M.

• Adjusted EBITDA for Q2 2026 was $291.4M, up 51% year-over-year, with $249.7M from Aerospace Products and $88.2M from aviation leasing.

• Adjusted free cash flow for the first half was $255M; full-year target remains $1.2B before new growth initiatives.

• Gross margin for Q2 2026 was $481.7M, up from $315.4M in Q2 2025.

• Cash balance at quarter-end was $337M, with total assets of $4.49B and total liquidity of $2.36B.

Outlook and guidance

• 2026 guidance: reaffirmed $1.05B EBITDA for Aerospace Products, revised aviation leasing EBITDA to $475M, and updated total adjusted free cash flow to $878M.

• 2027 guidance: total business segment EBITDA expected at $2.3B (Aerospace Products $1.4B, Aviation Leasing $450M, Power $450M).

• Power segment expects to deliver 100 Mod-1 units in 2027, with EBITDA guidance set at $450M, potentially rising as more contracts are signed.

• 2027E production outlook for Aerospace Products is 1,700 modules, with total capacity targeted at 3,000 modules annually.

• Guidance adjustments include a $100M reallocation to MRE network and increased R&D spend for Power.