- FTAI Aviation Ltd (FTAI) Stock Up 3.7% but GF Value Says Overvalued -- GF Score: 87/100
May 11, 2026 · gurufocus.com
On May 11, 2026, FTAI Aviation Ltd (FTAI) shares rose 3.7% to a current price of $280.36. Over the past week, the stock has performed well, increasing by 16.8%,
- Shareholders Shouldn’t Be Too Comfortable With FTAI Aviation's (NASDAQ:FTAI) Strong Earnings
May 11, 2026
FTAI Aviation Ltd. (NASDAQ:FTAI) recently released a strong earnings report, and the market responded by raising the share price. However, we think that shareholders should be aware of some other factors beyond the profit numbers.
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Zooming In On FTAI Aviation's Earnings
Many investors haven't heard of the accrual ratio from cashflow, but it is actually a useful measure of how well a company's profit is backed up by free cash flow (FCF) during a given period. In plain english, this ratio subtracts FCF from net profit, and divides that number by the company's average operating assets over that period. The ratio shows us how much a company's profit exceeds its FCF.
As a result, a negative accrual ratio is a positive for the company, and a positive accrual ratio is a negative. That is not intended to imply we should worry about a positive accrual ratio, but it's worth noting where the accrual ratio is rather high. To quote a 2014 paper by Lewellen and Resutek, "firms with higher accruals tend to be less profitable in the future".
Over the twelve months to March 2026, FTAI Aviation recorded an accrual ratio of 0.43. Statistically speaking, that's a real negative for future earnings. And indeed, during the period the company didn't produce any free cash flow whatsoever. In the last twelve months it actually had negative free cash flow, with an outflow of US$999m despite its profit of US$521.7m, mentioned above. Coming off the back of negative free cash flow last year, we imagine some shareholders might wonder if its cash burn of US$999m, this year, indicates high risk. Having said that, there is more to the story. We can see that unusual items have impacted its statutory profit, and therefore the accrual ratio.
See our latest analysis for FTAI Aviation
That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates.
The Impact Of Unusual Items On Profit
The fact that the company had unusual items boosting profit by US$82m, in the last year, probably goes some way to explain why its accrual ratio was so weak. While we like to see profit increases, we tend to be a little more cautious when unusual items have made a big contribution. We ran the numbers on most publicly listed companies worldwide, and it's very common for unusual items to be once-off in nature. And that's as you'd expect, given these boosts are described as 'unusual'. Assuming those unusual items don't show up again in the current year, we'd thus expect profit to be weaker next year (in the absence of business growth, that is).
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Our Take On FTAI Aviation's Profit Performance
FTAI Aviation had a weak accrual ratio, but its profit did receive a boost from unusual items. For the reasons mentioned above, we think that a perfunctory glance at FTAI Aviation's statutory profits might make it look better than it really is on an underlying level. If you want to do dive deeper into FTAI Aviation, you'd also look into what risks it is currently facing. For example, we've found that FTAI Aviation has 3 warning signs (2 are concerning!) that deserve your attention before going any further with your analysis.
Our examination of FTAI Aviation has focussed on certain factors that can make its earnings look better than they are. And, on that basis, we are somewhat skeptical. But there is always more to discover if you are capable of focussing your mind on minutiae. Some people consider a high return on equity to be a good sign of a quality business. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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- FTAI Aviation (FTAI) Releases Financial Results for Q1 2026
May 10, 2026
FTAI Aviation Ltd. (NASDAQ:FTAI) is one of the Unstoppable Stocks to Buy in 2026.On April 29, the company released its financial results for Q1 2026. The company posted a quarter of healthy execution throughout all the 3 of its platforms, thanks to the continued momentum in the company’s core Aerospace Products offering and increasingly diverse customer base. The end market demand remains strong. Thanks to the strengthened balance sheet and significant capital, FTAI Aviation Ltd. (NASDAQ:FTAI) remains well-placed to pursue attractive opportunities in the market for sustained growth.FTAI Aviation (FTAI) Releases Financial Results for Q1 2026
FTAI Aviation Ltd. (NASDAQ:FTAI)’s total revenues rose by $328.6 million YoY, with aerospace products revenue rising $258.2 million, mainly because of a $246.8 million rise in CFM56-5B, CFM56-7B, and V2500 engine and module sales. Furthermore, MRE Contract revenue rose $120.6 million YoY, primarily because of an increase in engine and module sales made to the 2025 Partnership.
FTAI Aviation Ltd. (NASDAQ:FTAI) reaffirmed its 2026 total business segment EBITDA outlook of $1.625 billion. This comprises $1.05 billion from aerospace products and $575 million from aviation leasing, helped by the growing demand throughout the proprietary aerospace offerings.
FTAI Aviation Ltd. (NASDAQ:FTAI) is an integrated full-service provider of aftermarket power and maintenance for the most widely used commercial jet engines.
While we acknowledge the potential of FTAI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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- A Look At FTAI Aviation (FTAI) Valuation After CFM56 Growth Plan And Stronger Earnings
May 9, 2026
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FTAI Aviation (FTAI) has attracted fresh attention after outlining a growth plan focused on the CFM56 engine, supported by higher first quarter revenue and earnings, an expanded revolving credit facility, and an increased ordinary share dividend.
See our latest analysis for FTAI Aviation.
Despite a 4.6% 1 day share price decline to $272.54, FTAI Aviation’s 29.6% year to date share price return and very large 5 year total shareholder return suggest momentum has built over a longer horizon, as recent earnings, dividend moves, and financing activity shape expectations.
If this kind of sustained interest in specialized aviation assets has your attention, it could be a good moment to look across the market and uncover 18 top founder-led companies
With the share price up 29.6% year to date and trading at a reported 23% discount to one intrinsic estimate and 26% below a published price target, you have to ask: is there still a buying opportunity here, or is the market already pricing in future growth?
Most Popular Narrative: 19.6% Undervalued
With FTAI Aviation last closing at $272.54 against a narrative fair value of $338.90, the current setup hinges on how durable its engine economics really are.
The accelerated adoption of FTAI's Maintenance, Repair and Exchange (MRE) programs by both large and small airlines, as a cost-effective and flexible alternative to traditional shop visits, positions the company to capture additional market share as operators increasingly outsource engine management. This will drive both higher utilization rates and improved net margins as volumes scale.
Read the complete narrative.
Want to see what this could mean in hard numbers? The narrative leans on fast compounding revenue, rising margins, and a future earnings base that looks very different from today. The key assumptions sit under the surface here, and they are doing most of the heavy lifting in that $338.90 figure.
Result: Fair Value of $338.90 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, this hinges on legacy engines and the asset light pivot. Weaker demand or problems scaling partnerships could quickly challenge the current growth story.
Find out about the key risks to this FTAI Aviation narrative.
Next Steps
With all this in mind, are you leaning bullish or cautious on FTAI Aviation? Consider acting while sentiment is mixed by carefully weighing its 4 key rewards and 3 important warning signs
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include FTAI.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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- Baillie Gifford's Strategic Moves: Netflix Inc. Sees a Significant Reduction
May 8, 2026
This article first appeared on GuruFocus.
Exploring Baillie Gifford (Trades, Portfolio)'s Recent 13F Filing and Investment Adjustments
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Baillie Gifford (Trades, Portfolio) recently submitted the 13F filing for the first quarter of 2026, providing insights into its investment moves during this period. Established over a century ago, Baillie Gifford (Trades, Portfolio) is a renowned investment management partnership that prioritizes existing clients' interests by closing products to new business. This ensures the integrity of strategies and quality of service. The firm manages funds for some of the world's largest professional investors, including international portfolios for US and Canadian clients, and leading pension funds in Europe. With a focus on fundamental analysis and proprietary research, Baillie Gifford (Trades, Portfolio) employs a long-term, bottom-up investment approach, seeking companies with sustainable growth potential. This philosophy has guided the firm's strategy for over 100 years.
Key Position Increases
Baillie Gifford (Trades, Portfolio) also increased stakes in a total of 63 stocks, among them:
The most notable increase was in Credicorp Ltd (NYSE:BAP), with an additional 1,296,605 shares, bringing the total to 2,729,498 shares. This adjustment represents a significant 90.49% increase in share count, a 0.45% impact on the current portfolio, with a total value of $925,791,140. The second largest increase was in EOG Resources Inc (NYSE:EOG), with an additional 2,574,501 shares, bringing the total to 2,718,534. This adjustment represents a significant 1,787.44% increase in share count, with a total value of $393,018,470.
Summary of Sold Out
Baillie Gifford (Trades, Portfolio) completely exited 11 holdings in the first quarter of 2026, as detailed below:
FTAI Aviation Ltd (NASDAQ:FTAI): Baillie Gifford (Trades, Portfolio) sold all 2,286,363 shares, resulting in a -0.37% impact on the portfolio. Salesforce Inc (NYSE:CRM): Baillie Gifford (Trades, Portfolio) liquidated all 1,062,815 shares, causing a -0.23% impact on the portfolio.
Key Position Reduces
Baillie Gifford (Trades, Portfolio) also reduced positions in 175 stocks. The most significant changes include:
Reduced Netflix Inc (NASDAQ:NFLX) by 15,134,366 shares, resulting in a -40.97% decrease in shares and a -1.18% impact on the portfolio. The stock traded at an average price of $88.11 during the quarter and has returned 6.91% over the past 3 months and -6.27% year-to-date. Reduced The Trade Desk Inc (NASDAQ:TTD) by 22,155,614 shares, resulting in a -99.33% reduction in shares and a -0.7% impact on the portfolio. The stock traded at an average price of $28.87 during the quarter and has returned -18.60% over the past 3 months and -42.02% year-to-date.
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Portfolio Overview
At the first quarter of 2026, Baillie Gifford (Trades, Portfolio)'s portfolio included 270 stocks. The top holdings included 7.26% in NVIDIA Corp (NASDAQ:NVDA), 5.98% in Amazon.com Inc (NASDAQ:AMZN), 5.71% in MercadoLibre Inc (NASDAQ:MELI), 4.07% in Spotify Technology SA (NYSE:SPOT), and 3.62% in Nu Holdings Ltd (NYSE:NU).
The holdings are mainly concentrated in 11 industries: Consumer Cyclical, Technology, Communication Services, Healthcare, Financial Services, Industrials, Consumer Defensive, Basic Materials, Energy, Real Estate, and Utilities.
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- All eyes on MARA Holdings' Q1 earnings: Experts look beyond Q4 losses
May 8, 2026
MARA Holdings (MARA) is set to report its FY26 Q1 earnings on 11 May, Monday after market close. Analysts expect EPS of -2.34 and revenue of ~184.21M. The focus will be on how the company is handling losses while shifting its business strategy.
Recently, FTAI Infrastructure [https://seekingalpha.com/news/4582827-ftai-infrastructure-to-sell-long-ridge-energy-to-mara-holdings-in-1_5b-deal] (FTAI [https://seekingalpha.com/symbol/FTAI]) agreed to sell Long Ridge Energy & Power to MARA in a ~$1.52B deal, including ~$785M debt.
The asset is expected to generate ~$144M in annualized adjusted EBITDA based on H2 2025 performance. This deal is aimed at giving MARA more stable and cash-generating operations for its long-term plans.
Earlier, the company also launched the MARA Foundation at the Bitcoin 2026 event in Las Vegas. The foundation will work on Bitcoin (BTC-USD [https://seekingalpha.com/symbol/BTC-USD]) security, quantum resistance, open-source development, self-custody tools, policy work, and education for developers and regulators.
In Q4, the company reported [https://seekingalpha.com/news/4558216-mara-holdings-gaap-eps-of-4_52-misses-by-3_35-revenue-of-202_3m-misses-by-49_04m] a heavy ~$1.7B net loss and revenue of ~$202.3M, missing estimates. At the same time, MARA is shifting toward AI and HPC through a Starwood joint venture targeting 1+ GW data center capacity.
In March 2026, it sold 15,133 BTC (~28% of holdings) for ~$1.1B and used the cash to repay ~$1B of convertible notes due in 2030–2031.
On a YTD basis, MARA stock is up ~39.20%, compared to ~7.18% for the S&P 500 (SP500 [https://seekingalpha.com/symbol/SP500]). Ratings are mixed, with Quant and Seeking Alpha at 'Hold,' while Wall Street analysts stay positive with a Buy rating at 3.76.
Investors will now watch if Q1 shows any improvement in execution and strategy shift.
MORE ON MARA HOLDINGS
* MARA Holdings, Inc. (MARA) Long Ridge Energy & Power LLC - M&A Call - Slideshow [https://seekingalpha.com/article/4897804-mara-holdings-inc-mara-long-ridge-energy-and-power-llc-m-and-a-call-slideshow]
* MARA Holdings, Inc. (MARA) M&A Call Transcript [https://seekingalpha.com/article/4897074-mara-holdings-inc-mara-m-and-a-call-transcript]
* MARA Holdings: De-Risking The Balance Sheet For The AI Boom [https://seekingalpha.com/article/4894515-mara-holdings-de-risking-the-balance-sheet-for-the-ai-boom]
* Bitcoin surge above $80K fuels rally in cryptocurrency-linked stocks [https://seekingalpha.com/news/4584498-bitcoin-tops-80000-to-hit-three-month-high-ether-advances]
* FTAI Infrastructure to sell Long Ridge Energy to MARA Holdings in $1.5B deal [https://seekingalpha.com/news/4582827-ftai-infrastructure-to-sell-long-ridge-energy-to-mara-holdings-in-1_5b-deal]
- FTAI Infrastructure’s (NASDAQ:FIP) Q1 CY2026 Sales Top Estimates
May 7, 2026
Infrastructure investment and operations firm FTAI Infrastructure (NASDAQ:FIP) reported Q1 CY2026 results exceeding the market’s revenue expectations , with sales up 95.9% year on year to $188.4 million. Its GAAP loss of $1.32 per share was significantly below analysts’ consensus estimates.
Is now the time to buy FTAI Infrastructure? Find out in our full research report.
FTAI Infrastructure (FIP) Q1 CY2026 Highlights:
Revenue: $188.4 million vs analyst estimates of $182.4 million (95.9% year-on-year growth, 3.3% beat) EPS (GAAP): -$1.32 vs analyst estimates of -$0.42 (significant miss) Adjusted EBITDA: $70.59 million vs analyst estimates of $81.18 million (37.5% margin, 13% miss) Operating Margin: 1.5%, up from -3.7% in the same quarter last year Free Cash Flow was -$115.9 million compared to -$152.7 million in the same quarter last year Market Capitalization: $654.6 million
Company Overview
Spun off from FTAI Aviation in 2021, FTAI Infrastructure (NASDAQ:FIP) invests in and operates infrastructure and related assets across the transportation and energy sectors.
Revenue Growth
A company’s long-term sales performance is one signal of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last four years, FTAI Infrastructure grew its sales at an incredible 42.1% compounded annual growth rate. Its growth beat the average industrials company and shows its offerings resonate with customers, a helpful starting point for our analysis.FTAI Infrastructure Quarterly Revenue
We at StockStory place the most emphasis on long-term growth, but within industrials, a stretched historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. FTAI Infrastructure’s annualized revenue growth of 35% over the last two years is below its four-year trend, but we still think the results suggest healthy demand.FTAI Infrastructure Year-On-Year Revenue Growth
This quarter, FTAI Infrastructure reported magnificent year-on-year revenue growth of 95.9%, and its $188.4 million of revenue beat Wall Street’s estimates by 3.3%.
Looking ahead, sell-side analysts expect revenue to grow 40.5% over the next 12 months, an improvement versus the last two years. This projection is eye-popping and indicates its newer products and services will spur better top-line performance.
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Operating Margin
Although FTAI Infrastructure was profitable this quarter from an operational perspective, it’s generally struggled over a longer time period. Its expensive cost structure has contributed to an average operating margin of negative 5.5% over the last five years. Unprofitable industrials companies require extra attention because they could get caught swimming naked when the tide goes out.
On the plus side, FTAI Infrastructure’s operating margin rose by 48.2 percentage points over the last five years, as its sales growth gave it operating leverage. Still, it will take much more for the company to show consistent profitability.FTAI Infrastructure Trailing 12-Month Operating Margin (GAAP)
This quarter, FTAI Infrastructure generated an operating margin profit margin of 1.5%, up 5.2 percentage points year on year. The increase was driven by stronger leverage on its cost of sales (not higher efficiency with its operating expenses), as indicated by its larger rise in gross margin.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
FTAI Infrastructure’s earnings losses deepened over the last three years as its EPS dropped 42.4% annually. We’ll keep a close eye on the company as diminishing earnings could imply changing secular trends and preferences.FTAI Infrastructure Trailing 12-Month EPS (GAAP)
Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.
For FTAI Infrastructure, its two-year annual EPS declines of 52.1% show it’s continued to underperform. These results were bad no matter how you slice the data, but given it was successful in other measures of financial health, we’re hopeful FTAI Infrastructure can generate earnings growth in the future.
In Q1, FTAI Infrastructure reported EPS of negative $1.32, down from $0.89 in the same quarter last year. This print missed analysts’ estimates. Over the next 12 months, Wall Street expects FTAI Infrastructure to improve its earnings losses. Analysts forecast its full-year EPS of negative $4.49 will advance to negative $1.16.
Key Takeaways from FTAI Infrastructure’s Q1 Results
We enjoyed seeing FTAI Infrastructure beat analysts’ revenue expectations this quarter. On the other hand, its adjusted operating income missed and its EBITDA fell short of Wall Street’s estimates. Overall, this quarter could have been better. The stock traded down 2.7% to $4.99 immediately following the results.
FTAI Infrastructure underperformed this quarter, but does that create an opportunity to invest right now? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it’s free.
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- FTAI Tops Buy Point As Jet Engine Specialist Finds Entry Into AI Data Centers
May 7, 2026
FTAI stock is building a consolidation base with a buy point of 323.51 after gapping up on first-quarter results.
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- FTAI Aviation Maps CFM56 Growth Plan, Targets 25% Share and Data Center Power Opportunity
May 6, 2026
FTAI Aviation logo
Key Points
FTAI’s strategy centers on the CFM56 platform across three businesses—MRE aerospace products (aiming to grow from a reported 12% to 25% market share), an asset-management model using third-party capital (first ~$6 billion pool equating to ~300 aircraft/600 engines and another ~$6 billion being raised), and a power initiative converting retired CFM56 engines into data‑center generators targeting 100 units in 2027 (25 MW each, ~2.5 GW total) via a JV structure. Management has doubled production capacity year‑over‑year with new facilities (Rome, Miami, Lisbon and potential expansion east of Rome), is guiding aerospace product margins to the low 30s (~31%), expects to enter LEAP/GTF work around 2028–29, and says the power business is de‑risked by a JV with Jarrah while offering fast field turbine swaps and attractive unit economics. Interested in FTAI Aviation Ltd.? Here are five stocks we like better.
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FTAI Aviation (NASDAQ:FTAI) outlined a three-part strategy centered on the widely used CFM56 engine platform during a presentation at Barclays’ Americas Select Conference, with CEO Joe Adams describing momentum in its aerospace products business, a rapidly scaling asset management platform, and a newer power generation initiative that repurposes CFM56 engines for data centers.
Three businesses built around the CFM56 platform
Adams said the company views itself as operating in “three different businesses,” each tied to its engineering and maintenance expertise in “advanced turbine technologies” and specifically the CFM56 engine.
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Aerospace products (MRE: maintain, repair, exchange): Adams emphasized that FTAI’s model is designed to act as an outsourced engine maintenance provider, offering airlines rebuilt engines through an exchange program that he said is “cheaper and faster” for customers. The company recently disclosed a “12% market share” of what Adams characterized as roughly a “$25 billion a year spend,” and he said FTAI’s stated goal is to reach “25% market share.”
Asset management: Over the past two years, FTAI has expanded an asset management platform that uses third-party capital to own aircraft leased to airlines. Adams said the approach makes FTAI “more asset light” while “locking in long-duration contracts” for engine exchanges performed by the public company. He said the first pool of capital is “about $6 billion” and is expected to be “fully deployed by the second quarter and this quarter,” and that FTAI is “in the market, raising another $6 billion pool of capital.” Adams described the first pool as equating to “300 aircraft and 600 engines,” with the potential to “double that in the next 12 months.”
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Power: FTAI is developing a product that converts CFM56 engines into electricity generators targeted at data center customers. Adams said the company has completed key engineering and testing work on converting the turbine and is now focused on packaging and assembly for scaled delivery. He also said the initiative extends the engine’s useful life by shifting it from aviation use to a ground-based application.
Airline demand and flight-hour volatility
Asked about recent market volatility and concerns that flight hours could fall, Adams said FTAI has not seen an impact so far. He argued that fleet decisions take time, and that airlines are slow to retire aircraft due to limited new aircraft availability and the risk of being unable to re-add capacity if demand rebounds.
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He described the Boeing 737NG and Airbus A320ceo as “a core part of the world's narrow body fleet,” adding that they are “profitable” assets. Even if airlines reduce utilization at the margin, Adams said it would not change FTAI’s growth plan because the company is focused on expanding market share from 12% to 25%.
How FTAI differentiates its MRE model from traditional MRO
Adams said investors sometimes compare FTAI to a traditional MRO provider, but he framed FTAI’s approach as structurally different. The company’s “key construct,” he said, is owning both engines and maintenance capacity, enabling it to “optimize” engine hours and cycles by recombining modules, owning parts inventory within the shop, and running the operation “like a factory.”
He said customers benefit from fixed-price engine exchanges that remove cost-overrun risk and reduce airline expenses such as sourcing spares, shipping, engineering oversight, and parts procurement—costs he estimated can range from “between a half a million dollars and a million dollars per shop visit.”
Adams also said the customer mix has shifted, with larger airlines showing more interest than they did 12 to 18 months ago. He said FTAI’s long-term goal with customers is to become a full-service solution provider, offering a range from smaller builds to “10,000 full restoration” engines.
SCI economics, capacity expansion, and OEM partnership
Discussing the company’s SCI asset management strategy, Adams said FTAI can generate better returns by supplying “bespoke custom-built” replacement engines sized to the remaining lease term. In an example of a five-year lease needing an engine replacement halfway through, he said a traditional approach might require a full 10,000-cycle restoration, leaving high residual value at lease end. FTAI, by contrast, can build a “two-and-a-half year engine,” reducing mid-lease capital and residual-value reliance. Adams said this can add “400 or 500 basis points of incremental return” while lowering risk.
He also said the company is seeing more lease extensions than originally modeled, calling extensions “additional upside” because they can continue generating rent and maintenance reserves without incremental spend.
On capacity to reach 25% market share, Adams said FTAI has doubled production capacity year-over-year and expanded its footprint, including adding a facility in Rome, acquiring additional property in Miami, and adding a facility in Lisbon. He said the company is also considering another location “east of Rome,” potentially in the Middle East or Southeast Asia, within the next 12 months. Adams described the facilities as often acquired below replacement cost, typically former airline engine shops that had been exited.
Adams also addressed an agreement with CFM, calling it significant for improving access to parts supply. He said the relationship enables more “full performance restorations” and positions FTAI to be a major provider of aftermarket CFM56 shop visits, describing the dynamic as mutually beneficial because longer engine life supports ongoing parts demand.
Margins, next-generation engines, and the power ramp
On longer-term margin expectations in aerospace products, Adams said the company is guiding to “low 30s.” He contrasted higher-margin smaller builds with lower-margin full performance restorations, and said the blended economics lead to roughly a 31% combined margin in the example he provided.
Looking ahead, Adams said FTAI expects to enter LEAP and GTF maintenance around “2028, 2029,” when more engines roll off OEM “Power by the Hour” programs and the platforms stabilize. He said the LEAP architecture is similar to the CFM56 and that FTAI already has licenses to perform repairs, with economics expected to drive timing. He added that FTAI may begin by acquiring aircraft with LEAP or GTF engines through SCI vehicles to build ownership and maintenance experience.
For the power initiative, Adams said FTAI is targeting “100 units” delivered in 2027, with each unit providing “25 MW,” or about “2.5 GW” total. He cited industry demand estimates of “60 GW, 70 GW, 80 GW” per year. He said the company began sourcing turbines for conversion in the fourth quarter and believes “there’s plenty of feedstock out there,” referencing an estimated 2% annual scrap rate across a roughly 20,000-engine installed base.
Adams said power margins were initially expected to be “as good or better” than aerospace products, and noted a market reference point of about “a million dollars per megawatt,” implying roughly “$7 million-$8 million of EBITDA per unit” at 25 MW. He explained that the economics now incorporate a joint venture structure with Jarrah Group, under which FTAI sells the turbine to the JV, the JV completes the package, and FTAI owns “between 25% and 50%” of JV profits—an arrangement he said “de-risks the process but preserves the economics.”
Adams said a key differentiator is the ability to swap turbines in the field quickly: FTAI designed the container with a side door enabling turbine removal by forklift and replacement “in two days,” avoiding long shop turnaround times.
Asked about potential limiters to the power business, Adams said the primary constraint is execution—specifically manufacturing and modifying turbines in Montreal and Jarrah’s ability to supply parts for the assembled package units. He also said the company expects to have a prototype built this year and that prospective customers have visited Montreal to see turbine testing.
About FTAI Aviation (NASDAQ:FTAI)
FTAI Aviation (NASDAQ: FTAI) is a commercial aircraft leasing company that acquires, manages and leases wide-body jet aircraft to airlines globally. The company's portfolio is focused on modern, fuel-efficient Boeing models, including the 767, 777 and 787 families, which are deployed under long-term operating leases. By concentrating on in-demand wide-body assets, FTAI Aviation seeks to deliver stable cash flows through lease rentals and maintenance reserve collections while providing airlines with flexible fleet solutions.
In addition to lease origination, FTAI Aviation offers end-to-end asset management services.
The article "FTAI Aviation Maps CFM56 Growth Plan, Targets 25% Share and Data Center Power Opportunity" was originally published by MarketBeat.
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- FTAI Aviation Ltd. (FTAI) Presents at Barclays 18th Annual Americas Select Conference Transcript
May 6, 2026 · seekingalpha.com
FTAI Aviation Ltd. (FTAI) Presents at Barclays 18th Annual Americas Select Conference Transcript
