FTAI Aviation pairs a fast-growing, lower-cost CFM56/V2500 aftermarket business with a $1.465 billion AI-power order, while execution, leverage, and legacy-engine exposure temper its compelling five-year upside.
Overview
FTAI Aviation is a vertically integrated aerospace company with three businesses: Aerospace Products sells and exchanges engine modules, USM, and PMA parts; Aviation Leasing earns lease and servicing income; and FTAI Power converts retired CFM56 cores into 25MW turbines for data centers and industrial users. Its focus on CFM56 and V2500 engines supports a faster, lower-cost alternative to conventional OEM overhauls, with two-day module exchanges versus 90–120-day shop visits. Q2 2026 revenue grew 40.9% to $953.08 million, led by Aerospace Products revenue of $875.0 million, up 78%; adjusted EPS of $1.13 nevertheless missed consensus of $1.68–$1.69 by 32.7%. Management reaffirmed $1.05 billion of 2026 Aerospace Products EBITDA, raised module production guidance to 1,200, but cut Leasing EBITDA to $475 million and free cash flow guidance to $878 million. **The $1.465 billion hyperscaler order and SCI asset-light transition are major growth and capital-efficiency catalysts.** At about $160, shares trade at 12.4x–12.6x FY2027E earnings after a sharp de-rating. **The report’s probability-weighted FY2031 value is $340.09**, contingent on execution and sustained demand.