FTAI Aviation Ltd. (NASDAQ: FTAI) shares were surging 17.06% as of the last check today to $148.09 following the company’s unveiling of a Strategic Capital initiative and a comprehensive business update. This move underscores its commitment to maintaining growth while capitalizing on emerging market opportunities.
Strategic Capital Initiative Targets Aircraft Acquisitions
FTAI Aviation has launched a Strategic Capital initiative in collaboration with institutional investors to enhance its asset portfolio. The inaugural partnership under this program will concentrate on acquiring Boeing 737NG and Airbus A320ceo aircraft, aiming to deploy over $3 billion in annual capital. The initiative aligns with FTAI’s asset-light strategy, enabling third-party partnerships to scale acquisitions of on-lease narrowbody aircraft while the company focuses on its core competencies.
Engine Focus and Proprietary Solutions Drive Value
FTAI specializes in owning and maintaining commercial jet engines, with a focus on the widely-used CFM56 and V2500 models. The company’s proprietary offerings, including its Module Factory and a joint venture for producing engine PMAs (Parts Manufacturer Approval), deliver cost efficiency and operational flexibility for airlines, lessors, and maintenance providers. By combining aircraft leasing with engine acquisitions, the company secures engines at competitive prices, further strengthening its value proposition.
Key Transactions and Fiscal Guidance for 2025
As part of the initiative, FTAI has agreed to sell 46 on-lease narrowbody aircraft to the first partnership for a net purchase price of $549 million. Engines from this partnership will be exclusively powered through its Maintenance, Repair, and Exchange (MRE) services. Looking ahead, the company has provided financial guidance for fiscal year 2025, projecting Adjusted EBITDA between $1.1 billion and $1.15 billion.
This forecast includes approximately $500 million from Aviation Leasing and $600–$650 million from Aerospace Products. The company anticipates producing 100 engine modules per quarter at its Montreal facility, alongside 25 to 35 V2500 engine MRE transactions, reflecting continued operational strength.
