FTAI Q3 2026 Revenue Rises 47% on Aerospace Growth

FTAI Aviation Ltd. (NASDAQ: FTAI) reported higher third-quarter 2026 revenue, net income and adjusted EBITDA as rapid growth in Aerospace Products outweighed lower year-over-year earnings from Aviation Leasing. The company reaffirmed its 2026 and 2027 guidance while expanding its share-repurchase authorization to $1 billion.

Revenue for the quarter ended September 30 rose 47% year over year to $977.7 million. Net income attributable to shareholders increased to $149.1 million from $114.0 million, while adjusted EBITDA, a non-GAAP measure, grew 17% to $348.3 million from $297.4 million.

FTAI reported $2.4 billion of liquidity at quarter-end, including an undrawn $2.025 billion revolving credit facility. Net debt was $3.07 billion, equivalent to 2.2 times annualized third-quarter adjusted EBITDA, below management’s target leverage range of 2.5 to 3.0 times.

Aerospace Products drives growth

Aerospace Products remained the main earnings contributor. Segment revenue climbed 76% to $910.0 million from $517.9 million a year earlier, while adjusted EBITDA rose 57% to $282.4 million. The segment’s adjusted EBITDA margin was 31%, broadly consistent with management’s approximately 30% guidance.

Global production reached 311 CFM56 engine modules during the quarter, up 50% from 207 a year earlier. FTAI produced 877 modules in the first nine months of 2026 toward its full-year outlook of 1,200. Management’s production outlook calls for 1,700 modules in 2027, including FTAI’s share of output from partnerships with GMF AeroAsia and EgyptAir. The company estimates that its global network could support annual capacity of 3,000 modules at full utilization.

FTAI said market conditions for mid-life aircraft and engines remain tight, with airlines seeking lease extensions, additional aircraft and financing solutions. The company has begun offering engine financing structures with institutional investors, including finance leases, operating leases and customized arrangements.

Leasing earnings shift toward Strategic Capital

Aviation Leasing adjusted EBITDA was $104.0 million, down from $134.4 million a year earlier but up 18% from $88.2 million in the second quarter. Segment revenue fell to $67.7 million from $149.2 million a year earlier as FTAI continued shifting aircraft investment from its balance sheet to Strategic Capital vehicles.

Strategic Capital contributed $54 million of adjusted EBITDA in the quarter, more than half of the segment total. Balance-sheet leasing contributed $50 million, at the top of management’s targeted quarterly range of $30 million to $50 million. At September 30, FTAI held approximately $1.0 billion of balance-sheet leasing assets, including 145 engines and 21 aircraft.

The 2025 Strategic Capital vehicle, SCI I, had closed acquisitions of 212 aircraft and invested about $3.9 billion by quarter-end. Including aircraft subject to letters of intent, the vehicle had 301 aircraft committed. FTAI expects SCI I to close substantially all of those transactions by December 31, although the company cautioned that assets covered by letters of intent may not ultimately be acquired. SCI I distributed 5% of commitments in the third quarter, bringing 2026 distributions through September to 17.5%, with another 5% planned for December 31.

SCI II, the 2026 vehicle, began deploying capital in September. It had closed 10 aircraft acquisitions and invested $271 million by quarter-end, with 109 aircraft closed or under letters of intent. The vehicle has a $2.0 billion committed warehouse facility and a $1.0 billion accordion option, while fundraising remains in progress.

FTAI Power prepares for 2027 production

FTAI Power completed critical testing of its Mod-1 mobile turbine, achieving 25 megawatts of peak output and 23 megawatts of continuous baseload output on both natural gas and liquid fuel. The business has more than 100 units under contract, representing over 2.5 gigawatts of capacity, for delivery to data-center developments in the United States and Canada during 2027 and 2028.

The company reiterated adjusted EBITDA guidance of $450 million to $750 million for FTAI Power in 2027. Its planned production ramp progresses from an initial rate of as many as five units per month to a year-end run rate of 10 to 15 units per month. Actual production levels and timing remain subject to execution and other uncertainties.

FTAI expects its 2026 net investment in the power business to total $386 million. That figure includes $484 million of production inventory, $50 million of equipment and tooling, and $86 million of start-up expenses, partially offset by $234 million of customer deposits. Third-quarter spending included $22 million of non-recurring research and development costs and $5 million of operating expenses.

FTAI Power also formed a joint venture with Industrom to develop a mobile combined-cycle system. The optional add-on is designed to contribute another 9 megawatts without additional fuel, emissions or water, bringing projected combined output to 32 to 34 megawatts and thermal efficiency above 50%. The first test units are expected in the second half of 2027.

Cash flow and capital returns

FTAI maintained its target of approximately $1.4 billion in 2026 consolidated adjusted EBITDA excluding Power and projected adjusted free cash flow of $644 million after new growth investments. The company revised its 2026 adjusted free cash flow target before new growth initiatives to $1.107 billion, down $61 million, primarily because of additional engine feedstock purchases. Planned new-growth investment totals $463 million, including spending on SCI II, Power inventory, facilities, and Power research and start-up costs.

The company announced an initial $500 million share-buyback program in September and had repurchased $80 million of shares by the date of the presentation. It subsequently increased the total authorization to $1 billion. FTAI also declared a quarterly dividend of $0.50 per share.

Management’s outlook depends on several execution factors, including completing aircraft transactions, raising and deploying Strategic Capital funding, expanding module capacity, scaling Mod-1 production and converting test results into commercial performance. FTAI also noted uncertainties related to acquisition integration, financing, leverage capacity, permits, supply availability and the timing of planned partnerships and production initiatives.