FTAI Aviation Q3 core profit beats on Aerospace Products unit strength
Overview
US aviation lessor's Q3 net income attributable to shareholders rose 26.8% from prior quarter
Q3 adjusted EBITDA beat analyst expectations
Company announced $500 mln accelerated share repurchase, doubling buyback authorization to $1.0 bln
Outlook
Company reaffirms 2026 and 2027 Adjusted EBITDA guidance across all business lines
Company maintains 2026 outlook of 1,200 CFM56 modules produced
Company has over 100 power units under contract for delivery in 2027 and 2028
Result Drivers
AEROSPACE PRODUCTS GROWTH - Co said Q3 results were driven by strong growth in Aerospace Products, with margins matching guidance, per CEO Joe Adams
MODULE PRODUCTION INCREASE - Co said global MRE network produced 311 CFM56 modules in Q3, up 50% from prior year
SCI II INVESTMENT - SCI II began investing in Q3, ending quarter with 109 aircraft committed
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 EPS | $1.43 | ||
Q3 Net Income Attributable | $149.1 mln | ||
Q3 Adjusted EBITDA | Beat | $348.3 mln | $319.74 mln (7 Analysts) |
Q3 Operating Expenses | $62.33 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the aerospace & defense peer group is "buy"
Wall Street's median 12-month price target for FTAI Aviation Ltd. is $317.50, about 90% above its October 28 closing price of $167.14
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 29 three months ago
Reuters Recommended Reads
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Oct 28 - Honeywell Aerospace lifts second-half cash flow view, tops quarterly estimates
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)