FTAI Aviation Launches Strategic Capital Initiative and Announces 2025 Financial Guidance
December 30 2024 - 4:15PM
FTAI Aviation Ltd. (Nasdaq: FTAI) (the “Company”) announces the
launch of a Strategic Capital initiative in collaboration with
third-party institutional investors. The first partnership under
the initiative will focus on acquiring 737NG and A320ceo aircraft
and believes this market opportunity will allow for the deployment
of $3.0+ billion of capital annually. The Strategic Capital
initiative, and its related partnerships, will allow FTAI to
maintain an asset-light business model while the partnerships
actively acquire on-lease narrowbody aircraft at scale.
In conjunction with the launch, FTAI has agreed
to sell 46 on-lease narrowbody aircraft to the first partnership of
the Strategic Capital initiative for an estimated net purchase
price of $549 million.
All engines owned by the partnership will be
powered exclusively via engine and module exchanges through FTAI’s
Maintenance, Repair and Exchange (“MRE”) business.
FTAI also announces its initial financial
guidance for fiscal year 2025, reflecting management’s expectations
for the Company’s continued growth and operational performance.
FTAI expects 2025 Adjusted EBITDA of approximately $1.1 to $1.15
billion from its reportable segments, comprised of approximately
$500 million from Aviation Leasing and approximately $600 to $650
million from Aerospace Products. 2025 Adjusted EBITDA guidance
reflects the following assumptions: (i) an average of 100 modules
per quarter produced at the Company’s Montreal facility in fiscal
year 2025, (ii) net Aerospace margins in line with or better than
those for fiscal year 2024, and (iii) 25 to 35 V2500 engine MRE
transactions for fiscal year 2025.
About FTAI Aviation
Ltd.
FTAI owns and maintains commercial jet engines
with a focus on CFM56 and V2500 engines. FTAI’s propriety portfolio
of products, including the Module Factory and a joint
venture to manufacture engine PMA, enables it to provide cost
savings and flexibility to our airline, lessor, and maintenance,
repair, and operations customer base. Additionally, FTAI owns and
leases jet aircraft which often facilitates the acquisition of
engines at attractive prices. FTAI invests in aviation assets and
aerospace products that generate strong and stable cash flows with
the potential for earnings growth and asset appreciation.
Cautionary Note Regarding
Forward-Looking Statements
This communication contains “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995, including, but not limited to, whether $3.0+
billion of capital will be deployed annually, that all engines
owned by the partnership will be powered exclusively via engine and
module exchanges through FTAI’s MRE business, and statements and
assumptions regarding FTAI’s fiscal year 2025 financial guidance.
You can identify these forward-looking statements by the use of
forward-looking words such as “outlook,” “believes,” “expects,”
“potential,” “continues,” “may,” “will,” “should,” “could,”
“seeks,” “approximately,” “predicts,” “intends,” “plans,”
“estimates,” “anticipates,” “target,” “projects,” “contemplates” or
the negative version of those words or other comparable words. Any
forward-looking statements contained in this communication are
based upon our historical performance and on our current plans,
estimates and expectations in light of information currently
available to us. The inclusion of this forward-looking information
should not be regarded as a representation by us that the future
plans, estimates or expectations contemplated by us will be
achieved. Such forward-looking statements are subject to various
risks and uncertainties and assumptions relating to our operations,
financial results, financial condition, business, prospects, growth
strategy and liquidity. Accordingly, there are or will be important
factors that could cause our actual results to differ materially
from those indicated in these statements, including, but not
limited to, the risk factors set forth in Item 1A. “Risk Factors”
of FTAI’s Annual Report on Form 10-K for the fiscal year
ended December 31, 2023 and FTAI’s Quarterly Reports on
Form 10-Q, as updated by annual, quarterly and other reports FTAI
files with the SEC.
For further information, please contact:
Alan AndreiniInvestor RelationsFTAI Aviation Ltd.(646)
734-9414aandreini@fortress.comIR@ftaiaviation.com
Source: FTAI Aviation Ltd.
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