Key Highlights

  • FTAI shares rose about 9% pre-market to $182.43, from $167.14 prior close.
  • A $500 million accelerated share repurchase will complete by year-end.
  • The buyback authorisation was raised to $1 billion.
  • Q3 EPS of $1.43 beat the $1.31 estimate, though revenue of $977.7 million slightly missed.
  • Aerospace Products revenue rose 76% to $910 million.

Buyback and Earnings Beat

FTAI Aviation Ltd. (NASDAQ:FTAI) shares rose in pre-market trading after the company launched a $500 million accelerated share repurchase and raised its buyback authorisation to $1 billion, with $420 million remaining after the accelerated programme. The repurchase is being carried out with a Canadian bank and is due to complete by year-end.

Third-quarter diluted earnings per share were $1.43 against $1.31 expected, while revenue of $977.7 million rose 46.6% but was about 2.5% below the roughly $1.0 billion estimate. Net income was $149.1 million, or $1.45 per share. Adjusted EBITDA of $348.3 million rose 14.8% from the prior quarter and 17% year on year.

FTAI is a New York-based, Cayman Islands-incorporated engine maintenance and aviation asset platform founded in 2011 and led by Chairman and CEO Joseph Adams Jr. It focuses on CFM56 and V2500 engines, which power Boeing 737NG and Airbus A320ceo aircraft, and has about 985 employees.

Segment Detail

Aerospace Products had a record quarter, with revenue of $910 million, up 76%, and adjusted EBITDA of $282.4 million, up 57%, at a 31% margin. The company produced a record 311 CFM56 modules, about 15% of the market, and remains on track for 1,200 modules in 2026 and 1,700 in 2027.

Aviation Leasing adjusted EBITDA was $104 million, including $54 million from strategic capital, which now makes up more than half of leasing EBITDA. Its first strategic capital vehicle is fully committed at 301 aircraft, with substantially all expected to close by December 31 for about $6 billion of capital deployed. A second vehicle began investing in September with 109 aircraft.

In power, testing of the first module is complete, reaching 25 MW peak and 23.1 MW continuous output. More than 100 units are under contract for 2027 and 2028, with $234 million of customer deposits received, and production is expected to ramp to 10 to 15 units a month by the end of 2027.

Guidance, Leverage and Valuation

Net debt to run-rate EBITDA was 2.2 times, and the company expects to stay below 3.0 times. Full-year 2026 free cash flow before growth initiatives is expected at $1.1 billion, with growth initiatives of $463 million. 2027 adjusted EBITDA guidance of $2.3 billion was reaffirmed, split into $1.4 billion for aerospace products, $450 million to $750 million for power and $450 million for aviation leasing. 2026 guidance is $1.05 billion for aerospace products and $475 million for aviation leasing.

Before the move, FTAI had a market capitalisation of about $17.2 billion, a trailing price-to-earnings ratio of 33.9 and a dividend yield of about 1%. The 52-week range is $146.48 to $323.51, so the shares were near the low end of that range, and the mean analyst target is near $340. A research firm recently trimmed its target to $250 while keeping a positive rating.

What Investors Will Weigh Next

The buyback signals management's view of the share price, while the revenue shortfall is a reminder that quarterly timing can vary. Module production, the closing of the first strategic capital vehicle and the power ramp are the next markers.