stockrowWhat it does
FTAI Aviation is an independent aircraft-engine maintenance and leasing company headquartered in New York. Joe Adams is its chief executive. It works mainly on CFM56 and V2500 engines, which power 737NG and A320ceo aircraft. Its customers include airlines and owners of aviation assets around the world.
The company repairs and rebuilds engines at its own facilities and with joint-venture partners. Its main business is Maintenance, Repair and Exchange, or MRE: FTAI sells or leases a replacement engine or engine module while taking an engine that needs work. A module is a major section of an engine that can be repaired or replaced separately. FTAI also sells refurbished parts.
A second segment, Aviation Leasing, owns and manages aircraft and engines and leases or sells them to operators and other parties. FTAI also manages third-party capital through its Strategic Capital Initiative, which invests in leased aircraft. The company provides management services to the initiative’s partnerships and expects to make its primary future investments through them.
FTAI Power is developing another use for the company’s engine work: converting CFM56 engines into power turbines. Its Mod-1 offering is aimed at customers seeking power at their own sites. FTAI has completed critical testing of the unit on natural gas and liquid fuels.
How it makes money
Aerospace Products earns revenue by selling engines, modules and parts, as well as providing maintenance services. Its MRE model lets a customer buy a rebuilt engine, exchange it for an engine that needs work, or lease it. FTAI says leasing can serve as a financing option for the customer; it can sell leased engine assets to financial partners. An exclusive partner also handles teardown, repair, marketing and sales of parts from FTAI’s CFM56 engine pool.
Aviation Leasing earns income from leasing and selling aircraft and engines. Assets that are off lease can be undergoing maintenance, prepared for a new lease or held in short-term storage. Some lease arrangements also generate maintenance-related revenue. The segment owns and manages commercial aircraft and engines.
The Strategic Capital Initiative adds aircraft-management fees and investment returns. FTAI manages aircraft for the 2025 Partnership, makes a minority capital commitment and supplies replacement engines and modules to the partnership through an exclusive agreement for its life. In the third quarter of 2026, Strategic Capital contributed servicing fees and returns on FTAI’s co-investment in the 2025 SPV.
Customers can choose among purchase, exchange and lease arrangements. Leasing and servicing fees can recur while contracts remain in place, while engine, parts and aircraft sales depend on transactions.
Customers and how it sells
FTAI’s customers and lessees include airlines, other operators of transportation networks, industrial companies and owners of aviation assets. It maintains direct relationships with operators worldwide and discusses their leasing needs with them. Customers can obtain engines through purchases, exchanges or leases, while aircraft sale-leasebacks allow an airline to sell aircraft and continue operating them.
A substantial portion of revenue has historically come from a small number of customers and lessees. FTAI says it does not believe it is dependent on any particular one, because it believes it can re-lease or resell assets on similar terms after a customer or lessee is lost.
It was reported on 12 October 2026 that FTAI expanded its engine-exchange partnership with United Airlines to cover CFM56-7B engines. FTAI also acquired aircraft from WestJet in two transactions: aircraft went to SCI II through a sale-leaseback, and others were acquired for Aerospace Products. The latter engines are to be rebuilt and sold to customers.
The company serves customers globally, with its principal executive offices in New York. Its Mod-1 contracts include customers in the U.S. and Canada. As of December 31, 2025, aircraft and engines in its leasing portfolio remained in Russia.
Suppliers and costs
FTAI repairs and rebuilds engines through its facilities and joint ventures. Its Aerospace Products operation also develops, manufactures and refurbishes engines and aftermarket components. The company has an exclusive partner responsible for teardown, repair, marketing and sales of parts from its CFM56 engine pool, and holds an interest in the Advanced Engine Repair joint venture.
FTAI says an engine manufacturer’s parts-supply agreement helps it scale production. For Mod-1, the company says Jereh can source interchangeable balance-of-plant components from a diversified global supplier base. The company says packaging is not exclusively reliant on China.
The costs of selling engines, modules and parts rise with sales activity. In 2025, Aerospace Products cost of sales increased, primarily because of increased engine, module and parts inventory sales. Compensation and benefits, depreciation, research and development, facility spending and interest are other expenses or uses of capital. FTAI expects its 2026 growth initiatives to be predominantly for Power research and development and spending at its facilities.
- Revenue$2.5B
- Cost of revenue−$1.3B
- Selling, general and administrative−$9.5M
- Other operating costs−$654.7M
- Operating income$493.5M
Competitive position
FTAI competes with engine and aircraft parts manufacturers, aircraft and engine lessors, airline and aircraft services and repair companies, and spare-parts distributors. It also competes for aviation assets with traditional aviation companies, banks and private investors. It was reported on 29 October 2026 that FTAI’s Mod-1 power unit competes for demand with GE Vernova’s aeroderivative turbines.
The company says it has CFM56 overhaul facilities and continues to look for more. Its MRE offering combines replacement engines, repair capabilities and financing options. Its agreement with the 2025 Partnership makes FTAI the exclusive supplier of replacement engines and modules for the life of that partnership.
Our reading: The facilities, repair partnerships and engine inventory support FTAI’s competitive position because they give it several ways to provide replacement equipment and repair work. The exclusive partnership agreement provides a more specific source of continuing access to engine and module orders, although it applies to that partnership rather than the whole market. Our reading: The power business has contracts and completed testing, but its competitive position depends on delivering and operating the new product.
| Competitor | Where they compete | Threat (our reading) |
|---|---|---|
| GE Vernova | Aeroderivative turbines for power generation | Medium |
Growth opportunities
FTAI is expanding its engine-maintenance network and directing module production toward outside customers. It says it continues to look for additional CFM56 overhaul facilities. Its acquisitions of a compressor blade and vane repair specialist and an MRE business expanded its repair capabilities and its MRE business in Miami.
The Strategic Capital Initiative is another growth channel. The first partnership completed its fundraise in October 2025. SCI II began investing in September 2026. In the third quarter of 2026, FTAI reported aircraft closed or under letters of intent across SCI I and SCI II. FTAI also uses sale-leasebacks to acquire aircraft while allowing airlines to continue operating them.
FTAI Power is developing the Mod-1 turbine for customers seeking on-site power. The company says it has over 100 Mod-1 units under contract for 2027 and 2028 and has completed critical testing. FTAI expects to use its existing infrastructure, beginning in Montreal, for power remanufacturing. It has also launched a joint venture to add a mobile heat-recovery unit to the power offering.
FTAI has provided 2027 adjusted EBITDA guidance that includes a range for Power. It says the Power range reflects the production ramp and work through individual customer requirements.
- $335.6MFY2021
- $708.4MFY2022
- $1.2BFY2023
- $1.7BFY2024
- $2.5BFY2025
Structural risks
- Aviation demand and asset life: Economic conditions can reduce demand for FTAI’s assets or lead customers and lessees not to perform under contracts. Retirement or obsolescence of the aircraft and engines it owns, maintains or exchanges is also a risk.
- Customer concentration and credit: A substantial portion of revenue has historically come from a small number of customers and lessees. Contract defaults can reduce revenue and increase storage, collection and recovery expenses.
- Capital and debt: FTAI may be unable to obtain capital on favorable terms or at all. It had debt at the end of the third quarter of 2026 and plans to fund its accelerated share repurchase through a combination of its revolving credit facility and access to capital markets.
- Technology and execution: Competitors’ patents or methods could prevent FTAI from providing certain aftermarket services, and the company may need capital for equipment, training and development. Its Power plans also require a production ramp and delivery against customer requirements.
- Geopolitical and regulatory exposure: Assets and customers are exposed to sanctions, war, expropriation and other international risks. FTAI considers recovery of its remaining equipment in Russia unlikely, and the timing and amount of insurance recoveries uncertain.
Bottom line
Our reading
FTAI combines engine repair and exchange with aircraft leasing and third-party capital management, using its aviation assets across those activities (item1; call_qa). Its established engine business and partnership contracts sit alongside a newer power-turbine business that has completed testing but still needs to scale production and delivery (item1; call_prepared; call_qa). The business remains exposed to aviation demand, customer credit and the availability and cost of capital (item1; item1a).