FTAI Aviation Ltd. (FTAI) is a Technology stock trading at $200.61 (as of 2026-08-25), with a market capitalization of $20.60B and a trailing P/E of 39.7. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.
FTAI Aviation Ltd. operates through Aviation Leasing and Aerospace Products. It owns and manages aviation assets, leasing and selling aircraft and aircraft engines, and it develops, manufactures, repairs, and sells aircraft engines and aftermarket components for aircraft engines to customers worldwide.
Understand FTAI Aviation Ltd.: how it makes money
FTAI Aviation leases commercial aircraft and engines to carriers, and processes industrial metals under long-term contracts, earning lease income and processing fees. The mix is shifting fast: Aerospace Products (metals recycling, aftermarket parts) now supplies over half of revenue, while the fleet is being drawn down to feed parts production.
Profit is migrating from lease income on depreciating aircraft to processing fees and aftermarket parts revenue under multi-year MRE contracts, swapping capital-heavy asset risk for contracted volume with advance-payment funding.
Revenue by segment (latest quarter)
Aerospace Products
$0.5B
Aviation Leasing
$0.5B
Business quality (Exceptional): ROE of 128% flatters a small equity base, not operating excellence. The 16% operating margin and 33% gross margin are modest for a business carrying an 'Exceptional' quality grade, and the transition from leasing to products introduces execution complexity that the current margins do not yet reward.
Valuation: Trades at 39× trailing earnings · $20.4B market cap.
Bull case
CFM56 share target is funded: Management says production capacity now supports a 25% CFM56 aftermarket market-share objective, up from the 12% share it holds in CFM56 and V2500 aftermarket today. Hitting that target on a LEAP maintenance market that could be two to three times the CFM56 market gives the products business a large, growing addressable base.
Five-year contract de-risks the ramp: The Power agreement runs five years and provides a framework for additional orders without renegotiating terms, while advance payments materially cut working-capital funding needs during the production ramp. This means revenue visibility and lower balance-sheet stress as unit throughput scales.
Segment EBITDA compounding rapidly: Aerospace Products adjusted EBITDA reached $220M, up 69.9% year over year, nearly double the 43.1% revenue growth rate for the same segment. The EBITDA leverage signals that fixed-cost absorption is improving as volume scales through the facility.
Bear case
Leasing earnings are shrinking on purpose: Aviation Leasing EBITDA guidance was cut to $475M as production shifts assets away from the leasing fleet. Investors overweighting the legacy lease-income franchise will see that line contract for several quarters even as products revenue grows, creating a transition dip in total reported earnings.
Margin ceiling is low for now: Aerospace Products margins are expected to sit near 30% for one to two years during the ramp, well below the 69.9% EBITDA growth rate the segment is posting. That gap implies the current EBITDA trajectory is volume-driven, not margin-driven, and will flatten once capacity is fully ramped.
EBITDA outlook rests on thin volume: Power's $450M 2027 EBITDA outlook assumes materially fewer than 100 units produced, and management flagged that ramp-up costs and delivery timing could create execution variability. A slippage in unit deliveries directly compresses that target, and the 39.3x P/E leaves little buffer for a miss.