3 months ago
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NEW YORK, Feb. 26, 2025 (GLOBE NEWSWIRE) -- FTAI Aviation Ltd. (NASDAQ: FTAI) (the "Company” or "FTAI”) today reported financial results for the fourth quarter and full year 2024. The Company's consolidated comparative financial statements and key performance measures are attached as an exhibit to this press release.
Financial Overview
| (in thousands, except per share data) | ||
| Selected Financial Results | Q4'24 | |
| Net Income Attributable to Shareholders | $ | 86,692 |
| Basic Earnings per Ordinary Share | $ | 0.85 |
| Diluted Earnings per Ordinary Share | $ | 0.84 |
| Adjusted EBITDA(1) | $ | 252,015 |
Fourth Quarter 2024 Dividends
On February 26, 2025, the Company's Board of Directors (the "Board”) declared a cash dividend on our ordinary shares of $0.30 per share for the quarter ended December 31, 2024, payable on March 24, 2025 to the holders of record on March 14, 2025.
Additionally, on February 26, 2025, the Board declared cash dividends on its Fixed-Rate Reset Series C Cumulative Perpetual Redeemable Preferred Shares ("Series C Preferred Shares”) and Fixed-Rate Reset Series D Cumulative Perpetual Redeemable Preferred Shares ("Series D Preferred Shares”) of $0.51563 and $0.59375 per share, respectively, for the quarter ended December 31, 2024, payable on March 17, 2025 to the holders of record on March 10, 2025.
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Business Highlights
- Continued growth in Aerospace Products, with net income attributable to shareholders of $346 million for fiscal year 2024, up 92% year over year, and Adjusted EBITDA up 138% year over year(1)
- 2025 target adjusted free cash flow(1)(2) of approximately $650 million following significant growth investment undertaken in 2024, coupled with the Strategic Capital Initiative ("SCI”) commencing operations in 2025
- Expanding Maintenance Capacity with QuickTurn Europe
A subsidiary of FTAI has entered into an agreement to acquire a 50% ownership stake in IAG Engine Center Europe S.r.l. ("IAG Engine Center”), an Italian company operating a 200,000 square-foot CFM56 engine maintenance repair and overhaul facility located at the Rome Fiumicino Airport, forming a joint venture which will be rebranded as Quick Turn Engine Center Europe S.r.l. ("QuickTurn Europe”). Completion of this transaction is expected to add a third owned and managed CFM56 engine shop to the FTAI network, complementing the Company's existing facilities in Montréal and Miami. This new joint venture is also expected to help address the strong demand from the Company's global customer base in a key geography.
In total, the joint venture operating at full capacity is expected to add capacity to maintain 450 modules (150 engines) per year, bringing FTAI's maintenance capacity to 1,800 CFM56 modules (600 engines) and over 600 engine tests annually. The facility's CFM56 engine test-cell is expected to be fully operational within 24 months and its piece-part repair capabilities are expected to be operational in the second half of 2025.
The transaction is expected to close in the first half of 2025, subject to the satisfaction of certain closing conditions.
"In the last quarter, we delivered outstanding financial performance across the board, and I am pleased to see the continued strength of our Aerospace Products and Aviation Leasing segments,” said Joe Adams, Chairman of the Board and CEO of FTAI. "We significantly expanded our Maintenance, Repair and Exchange capabilities and added financial firepower and flexibility with the successful launch of our Strategic Capital Initiative. Looking ahead to 2025, we are confident in our ability to take advantage of the tremendous market opportunity in our Aerospace Products business and deliver strong returns for our shareholders.”
Outlook
FTAI continues to expect 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.
Additionally, FTAI is increasing its 2026 Adjusted EBITDA from its reportable segments from its previously projected $1.25 billion to be approximately $1.4 billion, which reflects expected incremental upside from SCI.
| (1) | For definitions and reconciliations of non-GAAP measures, please refer to the exhibit to this press release. |
| (2) | 2025 target adjusted free cash flow is based on management's current expectations and means target 2025 Adjusted EBITDA excluding gains on sales, including SCI sale proceeds, less estimated equity in SCI and replacement capital expenditures, related interest expense, maintenance capital expenditures, corporate expenses and working capital. |
Additional Information
For additional information that management believes to be useful for investors, please refer to the presentation posted on the Investor Center section of the Company's website, https://www.ftaiaviation.com/, and the Company's Annual Report on Form 10-K, when available on the Company's website.
Conference Call
In addition, management will host a conference call on Thursday, February 27, 2025 at 8:00 A.M. Eastern Time. The conference call may be accessed by registering via the following link https://register.vevent.com/register/BId401ec69ff8f491fb21444c5bbd87f54/. Once registered, participants will receive a dial-in and unique pin to access the call.
A simultaneous webcast of the conference call will be available to the public on a listen-only basis at https://www.ftaiaviation.com/. Please allow extra time prior to the call to visit the site and download the necessary software required to listen to the internet broadcast.
A replay of the conference call will be available after 11:30 A.M. on Thursday, February 27, 2025 through 11:30 A.M. on Thursday, March 6, 2025 on https://ir.ftaiaviation.com/news-events/presentations/.
The information contained on, or accessible through, any websites included in this press release is not incorporated by reference into, and should not be considered a part of, this press release.
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
Certain statements in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, 2025 target adjusted free cash flow of approximately $650 million, the expected timing of the closing of the acquisition of a 50% stake in IAG Engine Center, FTAI's anticipated maintenance capacities, and expectations regarding when the Rome facility's CFM56 engine test-cell and piece-part repair capabilities will be operational, if at all. These statements are based on management's current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements, many of which are beyond the Company's control. The Company can give no assurance that its expectations will be attained and such differences may be material. Accordingly, you should not place undue reliance on any forward-looking statements contained in this press release. For a discussion of some of the risks and important factors that could affect such forward-looking statements, see the sections entitled "Risk Factors” and "Management's Discussion and Analysis of Financial Condition and Results of Operations” in the Company's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which are available on the Company's website (www.ftaiaviation.com). In addition, new risks and uncertainties emerge from time to time, and it is not possible for the Company to predict or assess the impact of every factor that may cause its actual results to differ from those contained in any forward-looking statements. Such forward-looking statements speak only as of the date of this press release. The Company expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with regard thereto or change in events, conditions, or circumstances on which any statement is based. This release shall not constitute an offer to sell or the solicitation of an offer to buy any securities.
For further information, please contact:
Alan Andreini
Investor Relations
FTAI Aviation Ltd.
(646) 734-9414
Media
Tim Lynch / Aaron Palash / Kelly Sullivan
Joele Frank, Wilkinson Brimmer Katcher
(212) 355-4449
Exhibit - Financial Statements
| FTAI AVIATION LTD. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Dollar amounts in thousands, except share and per share data) | |||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Total revenues | $ | 498,819 | $ | 312,737 | $ | 1,734,901 | $ | 1,170,896 | |||||||
| Expenses | |||||||||||||||
| Cost of sales | 257,727 | 135,223 | 825,884 | 502,132 | |||||||||||
| Operating expenses | 34,587 | 28,945 | 115,861 | 110,163 | |||||||||||
| General and administrative | 3,566 | 3,430 | 14,263 | 13,700 | |||||||||||
| Acquisition and transaction expenses | 8,757 | 4,999 | 32,296 | 15,194 | |||||||||||
| Management fees and incentive allocation to affiliate | - | 4,900 | 8,449 | 18,037 | |||||||||||
| Internalization fee to affiliate | - | - | 300,000 | - | |||||||||||
| Depreciation and amortization | 54,678 | 46,478 | 218,064 | 169,877 | |||||||||||
| Asset impairment | - | 901 | 962 | 2,121 | |||||||||||
| Gain on sale of assets, net | (18,705 | ) | - | (18,705 | ) | - | |||||||||
| Total expenses | 340,610 | 224,876 | 1,497,074 | 831,224 | |||||||||||
| Other income (expense) | |||||||||||||||
| Equity in (losses) income of unconsolidated entities | (401 | ) | 63 | (2,200 | ) | (1,606 | ) | ||||||||
| Interest expense | (60,881 | ) | (43,663 | ) | (221,721 | ) | (161,639 | ) | |||||||
| Loss on extinguishment of debt | (3,181 | ) | - | (17,101 | ) | - | |||||||||
| Other income | 14,319 | 6,713 | 17,364 | 7,590 | |||||||||||
| Total other expense | (50,144 | ) | (36,887 | ) | (223,658 | ) | (155,655 | ) | |||||||
| Income before income taxes | 108,065 | 50,974 | 14,169 | 184,017 | |||||||||||
| Provision for (benefit from) income taxes | 5,617 | (67,386 | ) | 5,487 | (59,800 | ) | |||||||||
| Net income | 102,448 | 118,360 | 8,682 | 243,817 | |||||||||||
| Less: Dividends on preferred shares | 7,758 | 8,335 | 32,763 | 31,795 | |||||||||||
| Less: Loss on redemption of preferred shares | 7,998 | - | 7,998 | - | |||||||||||
| Net income (loss) attributable to shareholders | $ | 86,692 | $ | 110,025 | $ | (32,079 | ) | $ | 212,022 | ||||||
| Earnings (loss) per share: | |||||||||||||||
| Basic | $ | 0.85 | $ | 1.10 | $ | (0.32 | ) | $ | 2.12 | ||||||
| Diluted | $ | 0.84 | $ |
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