FTAI Aviation Ltd.
For the period ended Sep 30, 2026. Filed Nov 2, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 2, 2026
FTAI$180.27+11.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-07-31.
0001628280-26-051412
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-02.
0001628280-26-068648
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 173 previous paragraphs and 199 current paragraphs.
43 unchanged; 66 reworded; 88 added; 61 removed; 3 previous and 2 current paragraphs rearranged.
Tables are not compared: 10 previous and 10 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (88)
Current report
On December 30, 2024, we announced the launch of our Strategic Capital Initiative (the “SCI”) in collaboration with third-party institutional investors. The SCI and its related partnerships, as discussed further below, allow the Company to generate income while maintaining an asset-light business model.
Current report
The SCI Partnerships
Current report
We formed the 2025 Partnership and 2026 Partnership (collectively, the “SCI Partnerships”), the first and second partnership under the SCI, to provide institutional investors with the opportunity to invest in on-lease 737NG and A320ceo aircraft with the objective of generating returns for the SCI Partnership’s partners through leasing cash flows and eventual asset sales. The 2025 Partnership completed its fundraise in October 2025 with $2.0 billion of equity commitments, which are supplemented by asset-level debt financing. We made a minority capital commitment to the SCI Partnerships, and our capital contributions are called in the same proportion as those of third-party institutional investors. As of September 30, 2026, we held an approximately 19% and 21% capital interest in the 2025 Partnership and 2026 Partnership, respectively, with a carrying value of $341.2 million and $12.9 million, respectively.
Current report
The SCI Partnerships use their equity capital and asset-level debt to acquire on-lease aircraft at scale from airlines, lessors and other third parties and, with requisite investor consent, from the Company. As of September 30, 2026, the 2025 Partnership owned 205 on-lease aircraft, 60 of which were acquired from the Company and 145 from third parties. As of September 30, 2026, the 2026 partnership owned 10 on-lease aircraft, all of which were acquired from third parties. The SCI Partnerships, and follow-on partnerships, are or will be the primary buyers of all future on-lease 737NG and A320ceo aircraft that meet the partnership’s investment criteria.
Current report
Through our wholly owned consolidated subsidiaries, we are both the general partner of the SCI Partnerships and the servicers of their aircraft and engine portfolio. As servicers, our subsidiaries provide services to the SCI Partnerships related to acquiring, leasing, remarketing and selling aircraft, administering leases and collections, overseeing lessee maintenance and insurance, and obtaining valuations. We receive customary, market-based servicing fees in exchange for the services rendered. As the general partner, we are entitled to profit participation distributions after the limited partners have received distributions equal to their contributed capital plus a preferred return.
Current report
When an aircraft owned by the SCI Partnerships requires a serviceable engine or module to fulfill its obligations under an aircraft lease, the SCI Partnerships purchase a serviceable engine or module from the Company and sell the unserviceable engine or module to the Company, for a contractual net purchase price. These exchanges take place under a Maintenance, Repair and Exchange (“MRE”) agreement that is in place for the life of the partnerships.
Current report
We have three contractual relationships with the SCI Partnerships that give rise to revenue for the Company, directly or indirectly through our wholly owned consolidated subsidiaries:
Current report
•MRE agreement. “MRE Contract revenue – affiliate” is recognized at the point in time when control of each serviceable engine or module transfers to the SCI Partnerships and is reported in our Aerospace Products segment. MRE Contract revenue – affiliate totaled $129.4 million and $533.4 million for the three and nine months ended September 30, 2026, respectively.
Current report
•Servicing agreements. Servicing fees are recognized over time as the services are performed and are included in other revenue in our Aviation Leasing segment. Servicing fees totaled $4.7 million and $17.6 million for the three and nine months ended September 30, 2026, respectively.
Current report
•Profit participation. Profit participation is variable consideration and is recognized only when it is probable that a significant reversal of cumulative revenue will not occur. We expect this to be when the underlying aircraft investments are realized and the distributions are no longer subject to reversal. No profit participation has been recognized to date.
Current report
We account for our capital interest in the SCI Partnerships under the equity method. Because we hold a 19% and 21% interest in the 2025 Partnership and 2026 Partnership, respectively, we eliminate our proportionate share of the profit on MRE sales to the SCI Partnerships until realized by the SCI Partnerships. The amount of profit eliminated totaled $5.1 million and $21.7 million for the three and nine months ended September 30, 2026, respectively.
Current report
The gain on sale of the 0 and 15 on-lease aircraft sold to the 2025 Partnership during the three and nine months ended September 30, 2026, respectively, totaled $0.0 million and $17.6 million, respectively, and was recognized as a “Gain on sale to the 2025 Partnership - affiliate” within Other income (expense) component of the Consolidated Statements of Operations for the nine months ended September 30, 2026.
Current report
J&F Power Systems LLC
Current report
During 2026, we invested in J&F Power Systems LLC (“J&F”), the Company’s joint venture with Jereh Group. J&F was established to package, test and distribute modular power generation solutions. The Company exercises significant influence, but not control, over the operating and financial policies of J&F and accounts for it as an equity method investment. During the three months ended September 30, 2026, the Company received an advanced disbursement of $234.0 million from J&F, which is accounted for as a contract liability on the Company’s Consolidated Balance Sheets. As of September 30, 2026, we held an approximate 49% capital interest in J&F, with a carrying value of $2.5 million.
Current report
(1)Includes the following items for the three months ended September 30, 2026: (i) depreciation and amortization expense of $43,295 (2025 - $55,278), (ii) lease intangible amortization of $(242) (2025 - $534) and (iii) amortization for lease incentives of $6,130 (2025 - $12,043).
Current report
Includes the following items for the nine months ended September 30, 2026: (i) depreciation and amortization expense of $142,570 (2025 - $170,076), (ii) lease intangible amortization of $6 (2025 - $5,893) and (iii) amortization for lease incentives of $18,238 (2025 - $25,950).
Current report
(2)Represents non-recurring research and development costs incurred for the design and testing related to the development of FTAI Power’s aeroderivative turbine that has not yet been commercially launched and has not generated revenue.
Current report
(3)Includes the following items for the three months ended September 30, 2026: (i) net income of $21,988 (2025 - net loss of $316), (ii) interest expense of $7,359 (2025 - $2,629), (iii) depreciation and amortization expense of $18,969 (2025 - $9,449), and (iv) tax expense of $7 (2025 -benefit of $105).
Current report
Total revenues increased by $310.6 million, driven by the following:
Current report
•Aerospace products revenue increased by $321.4 million, primarily due to a $313.8 million increase in CFM56-5B, CFM56-7B and V2500 engine and module sales.
Current report
•MRE Contract revenue - affiliate increased by $70.7 million, primarily due to an increase in engine and module sales made to the SCI Partnerships.
Current report
•Asset sales revenue decreased by $32.6 million, primarily due to an overall decrease in the number of sales transactions of commercial aircraft and engines in the current period as compared to the prior period.
Current report
Total revenues increased by $916.1 million, driven by the following:
Current report
•Aerospace Products revenue increased by $851.1 million, primarily due to a $823.3 million increase in CFM56-5B, CFM56-7B and V2500 engine and module sales.
Current report
•MRE Contract revenue - affiliate increased by $304.6 million, primarily due to an increase in engine and module sales made to the SCI Partnerships.
Current report
•Lease income decreased by $93.0 million, primarily due to a decrease in aircraft lease revenue of $56.5 million, and a decrease in engine lease revenue of $36.5 million, both driven by a decrease in revenue generating assets on lease.
Current report
•Maintenance revenue decreased by $91.4 million, primarily due to a decrease in aircraft maintenance revenue of $47.0 million and a decrease in engine maintenance revenue of $44.4 million, both driven by a decrease in revenue generating assets on lease.
Current report
•Asset sales revenue decreased by $72.3 million, primarily due to an overall decrease in the number of sales transactions of commercial aircraft and engines in the current period as compared to the prior period.
Current report
Total expenses increased by $292.6 million, driven by the following:
Current report
•Cost of sales increased by $260.9 million, primarily due to increases in CFM56-5B, CFM56-7B and V2500 engine and module sales, and parts inventory sales, which directly corresponds to components of increases in Aerospace products revenue over the same period.
Current report
•Research and development expenses increased $22.0 million, resulting from costs incurred during the current period for design and testing related to the development of aeroderivative turbines for FTAI Power.
Current report
•Depreciation and amortization expense decreased by $12.0 million, primarily driven by the sale of Seed Assets to the 2025 Partnership.
Current report
Total expenses increased by $894.3 million, driven by the following:
Current report
•Cost of sales increased by $803.0 million, primarily due to increases in CFM56-5B, CFM56-7B and V2500 engine and module sales, and parts inventory sales, which directly corresponds to components of increases in Aerospace products revenue over the same period.
Current report
•Operating expenses increased by $69.6 million, primarily due to an increase in compensation and benefits expense due to an increase in employee headcount and increased overall compensation, as well as increased general corporate expenses.
Current report
•Research and development expenses increased $41.5 million, resulting from costs incurred during the current year for design and testing related to the development of aeroderivative turbines for FTAI Power.
Current report
•Depreciation and amortization expense decreased by $27.5 million, primarily driven by the sale of Seed Assets to the 2025 Partnership.
Current report
Total other expense decreased by $10.8 million driven by the following:
Current report
•Gain on sale to the 2025 Partnership - affiliate decreased by $4.6 million, driven by the lower number of Seed Assets sold to the 2025 Partnership in the current period as compared to the prior period.
Current report
•Interest expense increased $4.3 million, driven by the amended and restated Revolving Credit Facility which was executed on April 24, 2026.
Showing the first 40 of 88 passages. Open the source sections for the rest.
Removed paragraphs (61)
Previous report
The 2025 Partnership, and follow-on partnerships, is the primary buyer of on-lease 737NG and A320ceo aircraft. The Company, as the Servicer, provides aircraft management services to the 2025 Partnership, and the Company receives customary, market-based compensation for providing such services. The Company made minority capital commitments to the 2025 Partnership in the same proportion relative to additional third-party institutional investors.
Previous report
(1)Includes servicing fees of $6,988 and $12,849 for the three and six months ended June 30, 2026, respectively (2025 - $2,052 and $2,600, respectively), from the 2025 Partnership.
Previous report
(1)Includes the following items for the three months ended June 30, 2026: (i) depreciation and amortization expense of $46,986 (2025 - $55,236), (ii) lease intangible amortization of $(89) (2025 - $2,153) and (iii) amortization for lease incentives of $5,221 (2025 - $8,288).
Previous report
Includes the following items for the six months ended June 30, 2026: (i) depreciation and amortization expense of $99,275 (2025 - $114,798), (ii) lease intangible amortization of $248 (2025 - $5,359) and (iii) amortization for lease incentives of $12,108 (2025 - $13,907).
Previous report
(2)Includes the following items for the three months ended June 30, 2026: (i) net income of $16,567 (2025 - net loss of $68), (ii) interest expense of $5,771 (2025 - $1,490), (iii) depreciation and amortization expense of $5,680 (2025 - $3,470), (iv) acquisition and transaction expenses of $0 (2025 - $(77)), and (v) tax expense of $28 (2025 - $0).
Previous report
Total revenues increased by $276.8 million, driven by the following:
Previous report
•Aerospace products revenue increased by $271.5 million, primarily due to a $262.6 million increase in CFM56-5B, CFM56-7B and V2500 engine and module sales.
Previous report
•MRE Contract revenue increased by $113.2 million, primarily due to an increase in engine and module sales made to the 2025 Partnership.
Previous report
Total revenues increased by $605.5 million, driven by the following:
Previous report
•Aerospace Products revenue increased by $529.7 million, primarily due to a $509.4 million increase in CFM56-5B, CFM56-7B and V2500 engine and module sales.
Previous report
•MRE Contract revenue increased by $233.8 million, primarily due to an increase in engine and module sales made to the 2025 Partnership.
Previous report
•Maintenance revenue decreased by $66.3 million, primarily due to a decrease in aircraft maintenance revenue of $39.1 million and a decrease in engine maintenance revenue of $27.2 million, both driven by a decrease in revenue generating assets on lease.
Previous report
•Lease income decreased by $63.2 million, primarily due to a decrease in aircraft lease revenue of $44.2 million, and a decrease in engine lease revenue of $19.0 million, both driven by a decrease in revenue generating assets on lease.
Previous report
•Asset sales revenue decreased by $39.7 million, primarily due to an overall decrease in the number of sales transactions of commercial aircraft and engines in the current period as compared to the prior period.
Previous report
Total expenses increased by $292.5 million, driven by the following:
Previous report
•Cost of sales increased by $266.5 million, primarily due to increases in CFM56-5B, CFM56-7B and V2500 engine and module sales, and parts inventory sales, which directly corresponds to components of increases in Aerospace products revenue over the same period.
Previous report
Total expenses increased by $601.7 million, driven by the following:
Previous report
•Cost of sales increased by $542.1 million, primarily due to increases in CFM56-5B, CFM56-7B and V2500 engine and module sales, and parts inventory sales, which directly corresponds to components of increases in Aerospace products revenue over the same period.
Previous report
•Operating expenses increased by $65.8 million, primarily due to an increase in compensation and benefits expense due to an increase in employee headcount and increased overall compensation, technology development costs and general corporate expenses.
Previous report
Total other expense increased by $36.9 million driven by the following:
Previous report
•Gain on sale to the 2025 Partnership decreased by $32.1 million, driven by the lower number of Seed Assets sold to the 2025 Partnership in the current period as compared to the prior period.
Previous report
•Other income decreased $19.6 million, driven by a decrease in insurance settlements in the current period as compared to the prior period.
Previous report
Total other expense increased by $12.2 million driven by the following:
Previous report
•Gain on sale to the 2025 Partnership decreased by $27.8 million, driven by the lower number of Seed Assets sold to the 2025 Partnership in the current period as compared to the prior period.
Previous report
•Other income decreased by $5.1 million, primarily due a decrease in insurance settlements in the current period as compared to the prior period.
Previous report
Net income decreased by $40.3 million and $4.8 million for the three and six months ended June 30, 2026, as compared to the prior period, primarily due to the changes noted above.
Previous report
Adjusted EBITDA decreased by $56.4 million and increased by $0.7 million for the three and six months ended June 30, 2026, as compared to the prior period, primarily due to the changes noted above.
Previous report
Total revenues increased by $384.8 million, due to the following:
Previous report
•Aerospace products revenue increased by $271.5 million, primarily due to a $262.6 million increase in CFM56-5B, CFM56-7B and V2500 engine and module sales.
Previous report
•MRE Contract revenue increased by $113.2 million, primarily due to an increase in engine and module sales made to the 2025 Partnership.
Previous report
Total revenues increased by $763.5 million, due to the following:
Previous report
•Aerospace products revenue increased by $529.7 million, primarily due to a $509.4 million increase in CFM56-5B, CFM56-7B and V2500 engine and module sales.
Previous report
•MRE Contract revenue increased by $233.8 million, primarily due to an increase in engine and module sales made to the 2025 Partnership.
Previous report
Total expenses increased by $299.0 million, due to the following:
Previous report
•Cost of sales increased by $297.1 million, primarily due to increases in CFM56-5B, CFM56-7B and V2500 engine and module sales and parts inventory sales, which directly corresponds to components of increases in Aerospace products revenue over the same period.
Previous report
Total expenses increased by $586.4 million, due to the following:
Previous report
•Cost of sales increased by $579.3 million, primarily due to increases in CFM56-5B, CFM56-7B and V2500 engine and module sales and parts inventory sales, which directly corresponds to components of increases in Aerospace products revenue over the same period.
Previous report
Net income increased $60.7 million and $137.8 million for the three and six months ended June 30, 2026, respectively, as compared to the prior period, primarily due to the changes noted above.
Previous report
Adjusted EBITDA increased $84.9 million and $176.5 million for the three and six months ended June 30, 2026, respectively, as compared to the prior period, primarily due to the changes noted above.
Previous report
(1)Includes servicing fees of $6,988 and $12,849 for the three and six months ended June 30, 2026, respectively (2025 - $2,052 and $2,600, respectively), from the 2025 Partnership.
Showing the first 40 of 61 passages. Open the source sections for the rest.
Reworded paragraphs (66)
Previous wording
We also own and manage a portfolio of on- and off-lease aircraft and engines through our Aviation Leasing segment. While historically these investment activities have been primarily held on balance sheet, at the end of 2024, we launched our Strategic Capital Initiative, which consists of an asset management business that manages third-party capital to invest in on-lease aircraft. We expect our primary investment activities to be through our Strategic Capital Initiative going forward.
Current wording
We also own and manage a portfolio of on- and off-lease aircraft and engines through our Aviation Leasing segment. While historically these investment activities have been primarily held on balance sheet, at the end of 2024, we launched our Strategic Capital Initiative, through which the Company manages third-party capital to invest in on-lease aircraft. We expect our primary investment activities to be through our Strategic Capital Initiative going forward.
Previous wording
As of June 30, 2026, we had total consolidated assets of $4.5 billion and total equity of $404.0 million.
Current wording
As of September 30, 2026, we had total consolidated assets of $4.8 billion and total equity of $433.4 million.
Previous wording
The key factors used to identify the reportable segments are the organization and alignment of our internal operations and the nature of our products and services. Our two reportable segments are (i) Aerospace Products and (ii) Aviation Leasing. The Aerospace Products segment, through our maintenance facilities and joint ventures, among other investments, develops and manufactures, repairs/refurbishes and sells aircraft engines and aftermarket components primarily for the CFM56-7B, CFM56-5B and V2500 commercial aircraft engines. The Aviation Leasing segment owns and manages aviation assets, including aircraft and aircraft engines, which it leases and sells to lessees, directly and also through its equity method investment.
Current wording
The key factors used to identify the reportable segments are the organization and alignment of our internal operations and the nature of our products and services. Our two reportable segments are (i) Aerospace Products and (ii) Aviation Leasing. The Aerospace Products segment, through our maintenance facilities and joint ventures, among other investments, develops and manufactures, repairs/refurbishes and sells aircraft engines and aftermarket components primarily for the CFM56-5B, CFM56-7B and V2500 commercial aircraft engines. The Aviation Leasing segment owns and manages aviation assets, including aircraft and aircraft engines, which it leases and sells to lessees, directly and also through its equity method investment.
Previous wording
Adjusted EBITDA is defined as net income (loss) attributable to shareholders from continuing operations, adjusted (a) to exclude the impact of provision for (benefit from) income taxes, equity-based compensation expense, acquisition and transaction expenses, losses on the modification or extinguishment of debt and preferred shares and capital lease obligations, asset impairment charges, incentive allocations, depreciation and amortization expense, interest expense and dividends on preferred shares, internalization fee to affiliate, (b) to include the impact of our pro-rata share of Adjusted EBITDA from unconsolidated entities and (c) to exclude the impact of equity in earnings (losses) of unconsolidated entities, if any.
Current wording
Adjusted EBITDA is defined as net income (loss) attributable to shareholders, adjusted (a) to exclude the impact of provision for (benefit from) income taxes, equity-based compensation expense, acquisition and transaction expenses, losses on the modification or extinguishment of debt and preferred shares and capital lease obligations, asset impairment charges, incentive allocations, depreciation and amortization expense, interest expense and dividends on preferred shares, internalization fee to affiliate, FTAI Power pre-commercial research and development, (b) to include the impact of our pro-rata share of Adjusted EBITDA from unconsolidated entities and (c) to exclude the impact of equity in earnings (losses) of unconsolidated entities, if any.
Previous wording
Comparison of the three and six months ended June 30, 2026 and 2025
Current wording
Comparison of the three and nine months ended September 30, 2026 and 2025
Previous wording
(2)Includes the profit elimination of $(6,597) and $(16,597) for the three and six months ended June 30, 2026, respectively (2025 - $(4,935) and $(11,885), respectively), for sales to the 2025 Partnership.
Current wording
(2)Includes the profit elimination of $(5,055) and $(21,652) for the three and nine months ended September 30, 2026, respectively (2025 - $(3,908) and $(15,793), respectively), for sales to the SCI Partnerships.
Previous wording
Includes the following items for the six months ended June 30, 2026: (i) net income of $24,204 (2025 - net loss of $732), (ii) interest expense of $9,267 (2025 - $1,490), (iii) depreciation and amortization expense of $14,747 (2025 - $3,628), (iv) acquisition and transaction expenses of $0 (2025 - $470), and (v) tax expense of $55 (2025 - $0).
Current wording
Includes the following items for the nine months ended September 30, 2026: (i) net income of $46,192 (2025 - net loss of $1,048), (ii) interest expense of $16,626 (2025 - $4,119), (iii) depreciation and amortization expense of $33,716 (2025 - $13,077), (iv) acquisition and transaction expenses of $0 (2025 - $470), and (v) tax expense of $62 (2025 - benefit of $105).
Previous wording
(3)Excludes the profit elimination of $6,597 and $16,597 for the three and six months ended June 30, 2026, respectively (2025 - $4,935 and $11,885, respectively), for sales to the 2025 Partnership.
Current wording
(4)Excludes the profit elimination of $5,055 and $21,652 for the three and nine months ended September 30, 2026, respectively (2025 - $3,908 and $15,793, respectively), for sales to the SCI Partnerships.
Previous wording
•Lease income decreased by $34.7 million, due to decreases in aircraft lease revenue of $19.5 million, driven by the sale of Seed Assets to the 2025 Partnership, and decreases in engine lease revenue of $15.2 million, driven by a decrease in revenue generating assets on lease.
Current wording
•Lease income decreased by $29.8 million, due to decreases in aircraft lease revenue of $12.3 million, driven by the sale of Seed Assets to the 2025 Partnership, and decreases in engine lease revenue of $17.5 million, driven by a decrease in revenue generating assets on lease.
Previous wording
•Maintenance revenue decreased by $47.3 million, due to decreases in aircraft maintenance revenue of $31.0 million and engine maintenance revenue of $16.3 million, both driven by a decrease in revenue generating assets on lease.
Current wording
•Maintenance revenue decreased by $25.1 million, due to decreases in aircraft maintenance revenue of $7.9 million and engine maintenance revenue of $17.2 million, both driven by a decrease in revenue generating assets on lease.
Previous wording
•Operating expenses increased by $33.2 million, primarily due to increases in compensation and benefits expense and shipping and logistics expense across our operating segments, as well as increased technology development costs and general corporate expenses.
Current wording
•Operating expenses increased by $23.2 million, primarily due to increases in compensation and benefits expense and shipping and logistics expense across our operating segments, as well as increased general corporate expenses.
Previous wording
•Equity in earnings of unconsolidated entities increased by $15.0 million, driven by net income earned by the 2025 Partnership in the current period, compared to losses in the prior period.
Current wording
•Equity in earnings of unconsolidated entities increased by $21.2 million, driven by net income earned by the 2025 Partnership in the current period, compared to losses in the prior period.
Previous wording
•Equity in earnings of unconsolidated entities increased by $20.2 million, driven by net income earned by the 2025 Partnership in the current period, compared to losses in the prior period.
Current wording
•Equity in earnings of unconsolidated entities increased by $41.4 million, driven by net income earned by the 2025 Partnership in the current period, compared to losses in the prior period.
Previous wording
The provision for income taxes decreased $12.3 million and $3.7 million for the three and six months ended June 30, 2026, as compared to the prior period, primarily driven by lower income generated in the Aviation Leasing segment within taxable jurisdictions.
Current wording
The provision for income taxes decreased $4.1 million and $7.7 million for the three and nine months ended September 30, 2026, as compared to the prior period, primarily driven by higher corporate overhead expenses deductible for tax purposes and lower income generated in the Aviation Leasing segment within taxable jurisdictions, offset by higher income generated in the Aerospace Products segment.
Previous wording
The Aerospace Products segment, through our maintenance facilities and joint ventures, among other investments, develops and manufactures, repairs/refurbishes, and sells aircraft engines and aftermarket components primarily for the CFM56-7B, CFM56-5B, and V2500 commercial aircraft engines. Our engine, module, and parts sales are facilitated through a dedicated commercial maintenance program designed to focus on modular and parts repair and refurbishment of CFM56-7B and CFM56-5B engines. In addition, other serviceable used modules and parts are sold through our exclusive partnership, which is responsible for the teardown, repair, marketing, and sales of parts from our CFM56 engine pool.
Current wording
The Aerospace Products segment, through our maintenance facilities and joint ventures, among other investments, develops and manufactures, repairs/refurbishes, and sells aircraft engines and aftermarket components primarily for the CFM56-5B, CFM56-7B, and V2500 commercial aircraft engines. Our engine, module, and parts sales are facilitated through a dedicated commercial maintenance program designed to focus on modular and parts repair and refurbishment of CFM56-5B and CFM56-7B engines. In addition, other serviceable used modules and parts are sold through our exclusive partnership, which is responsible for the teardown, repair, marketing, and sales of parts from our CFM56 engine pool.
Previous wording
In 2023, we acquired the remaining interest in Quick Turn Engine Center LLC (“QuickTurn”), a dedicated hospital maintenance and testing facility specializing in the CFM56-7B and CFM56-5B engines.
Current wording
In 2023, we acquired the remaining interest in Quick Turn Engine Center LLC (“QuickTurn”), a dedicated hospital maintenance and testing facility specializing in the CFM56-5B and CFM56-7B engines.
Previous wording
(1)Includes the following items for the three months ended June 30, 2026: (i) net loss of $182 (2025 - net income of $714), (ii) depreciation and amortization expense of $204 (2025 - $169), and (iii) tax expense of $28 (2025 - $0).
Current wording
(1)Includes the following items for the three months ended September 30, 2026: (i) net income of $1,431 (2025 - $767), (ii) depreciation and amortization expense of $671 (2025 - $420), and (iii) tax expense of $7 (2025 - tax benefit of $105).
Previous wording
Includes the following items for the six months ended June 30, 2026: (i) net loss of $222 (2025 - net income of $827), (ii) depreciation and amortization expense of $631 (2025 - $225), and (iii) tax expense of $55 (2025 - $0).
Current wording
Includes the following items for the nine months ended September 30, 2026: (i) net income of $1,209 (2025 - $1,594), (ii) depreciation and amortization expense of $1,302 (2025 - $645), and (iii) tax expense of $62 (2025 - tax benefit of $105).
Previous wording
The provision for income taxes increased by $24.1 million and $38.5 million for the three and six months ended June 30, 2026, as compared to the prior period, primarily due to the increase in income discussed above from Aerospace Products activities in jurisdictions subject to taxes.
Current wording
The provision for income taxes increased by $24.1 million and $62.5 million for the three and nine months ended September 30, 2026, as compared to the prior period, primarily due to the increase in income discussed above from Aerospace Products activities in jurisdictions subject to taxes.
Previous wording
As of June 30, 2026, in our Aviation Leasing segment, we own and manage 198 aviation assets, consisting of 22 commercial aircraft and 176 engines.
Current wording
As of September 30, 2026, in our Aviation Leasing segment, we own and manage 166 aviation assets, consisting of 21 commercial aircraft and 145 engines.
Previous wording
As of June 30, 2026, 19 of our commercial aircraft and 93 of our engines were leased to operators or other third parties. Aviation assets currently off lease are either undergoing repair and/or maintenance, being prepared to go on lease or held in short term storage awaiting a future lease. Our aviation equipment was approximately 68% utilized during the three months ended June 30, 2026, based on the percent of days on-lease in the quarter weighted by the monthly average equity value of our aviation leasing equipment, excluding airframes. Our aircraft currently have a weighted average remaining lease term of 37 months, and our engines currently on-lease have an average remaining lease term of 29 months. The table below provides additional information on the assets in our Aviation Leasing segment, including transfers which involve aircraft breakdowns, engine transfers from leasing equipment to inventory for manufacturing and sales, and engine transfers from inventory to leasing equipment for rebuilding and sales:
Current wording
As of September 30, 2026, 19 of our commercial aircraft and 76 of our engines were leased to operators or other third parties. Aviation assets currently off lease are either undergoing repair and/or maintenance, being prepared to go on lease or held in short term storage awaiting a future lease. Our aviation equipment was approximately 69% utilized during the three months ended September 30, 2026, based on the percent of days on-lease in the quarter weighted by the monthly average equity value of our aviation leasing equipment, excluding airframes. Our aircraft currently have a weighted average remaining lease term of 38 months, and our engines currently on-lease have an average remaining lease term of 10 months. The table below provides additional information on the assets in our Aviation Leasing segment, including transfers which involve aircraft breakdowns, engine transfers from leasing equipment to inventory for manufacturing and sales, and engine transfers from inventory to leasing equipment for rebuilding and sales:
Previous wording
Includes the following items for the six months ended June 30, 2026: (i) net income of $24,426 (2025 - net loss of $1,559), (ii) interest expense of $9,267 (2025 - $1,490), (iii) depreciation and amortization of $14,116 (2025 - $3,403) and (iv) acquisition and transactions expenses of $0 (2025 - $470).
Current wording
Includes the following items for the nine months ended September 30, 2026: (i) net income of $44,983 (2025 - net loss of $2,642), (ii) interest expense of $16,626 (2025 - $4,119), (iii) depreciation and amortization of $32,414 (2025 - $12,432) and (iv) acquisition and transactions expenses of $0 (2025 - $470).
Previous wording
•Lease income decreased by $34.7 million, due to decreases in aircraft lease revenue of $19.5 million, driven by the sale of Seed Assets to the 2025 Partnership, and decreases in engine lease revenue of $15.2 million, driven by a decrease in revenue generating assets on lease.
Current wording
•Lease income decreased by $29.8 million, due to decreases in aircraft lease revenue of $12.3 million, driven by the sale of Seed Assets to the 2025 Partnership, and decreases in engine lease revenue of $17.5 million, driven by a decrease in revenue generating assets on lease.
Previous wording
•Maintenance revenue decreased by $47.3 million, due to decreases in aircraft maintenance revenue of $31.0 million and engine maintenance revenue of $16.3 million, both driven by a decrease in revenue generating assets on lease.
Current wording
•Maintenance revenue decreased by $25.1 million, due to decreases in aircraft maintenance revenue of $7.9 million and engine maintenance revenue of $17.2 million, both driven by a decrease in revenue generating assets on lease.
Previous wording
•Other revenue increased by $5.1 million, primarily as a result of servicing fees earned in our capacity as the Servicer to the 2025 Partnership.
Current wording
•Other revenue increased by $5.9 million, primarily as a result of servicing fees earned in our capacity as the Servicer to the SCI Partnerships.
Previous wording
•Other revenue increased by $11.2 million as a result of servicing fees earned in our capacity as the Servicer to the 2025 Partnership.
Current wording
•Other revenue increased by $17.1 million, primarily as a result of servicing fees earned in our capacity as the Servicer to the SCI Partnerships.
Previous wording
Total expenses decreased by $38.0 million, driven by the following:
Current wording
Total expenses decreased by $41.8 million, driven by the following:
Previous wording
•Cost of sales decreased by $30.5 million, primarily due to an overall decrease in the number of sales transactions of commercial aircraft and engines, which is in line with an overall decrease in the corresponding asset sales revenue.
Current wording
•Cost of sales decreased by $29.0 million, primarily due to an overall decrease in the number of sales transactions of commercial aircraft and engines, which is in line with an overall decrease in the corresponding asset sales revenue.
Previous wording
Total expenses decreased by $49.2 million, driven by the following:
Current wording
Total expenses decreased by $91.0 million, driven by the following:
Previous wording
•Cost of sales decreased by $37.2 million, primarily due to an overall decrease in the number of sales transactions of commercial aircraft and engines, which is in line with an overall decrease in the corresponding asset sales revenue.
Current wording
•Cost of sales decreased by $66.2 million, primarily due to an overall decrease in the number of sales transactions of commercial aircraft and engines, which is in line with an overall decrease in the corresponding asset sales revenue.
Previous wording
•Asset sales revenue decreased by $31.0 million, primarily due to an overall decrease in the number of sales transactions of commercial aircraft and engines in the current period as compared to the prior period.
Current wording
•Depreciation and amortization expense decreased by $31.0 million, primarily driven by the sale of Seed Assets to the 2025 Partnership.
Previous wording
•Operating expense increased by $3.5 million, primarily driven by an increase in equipment lease expense in the current period.
Current wording
•Operating expense increased by $5.9 million, primarily driven by an increase in equipment lease expense in the current period.
Previous wording
Total other income decreased by $7.0 million, primarily due (i) a $27.8 million decrease in gain on sale to the 2025 Partnership, driven by the lower number of Seed Assets sold to the 2025 Partnership as compared to the prior period; partially offset by (ii) a $26.0 million increase in equity in earnings of unconsolidated entities as a result of net income earned by the 2025 Partnership.
Current wording
Total other income increased by $17.2 million, primarily due to (i) a $21.6 million increase in equity in earnings of unconsolidated entities as a result of net income earned by the 2025 Partnership; partially offset by (ii) a $4.6 million decrease in Gain on sale to the 2025 Partnership - affiliate, driven by the lower number of Seed Assets sold to the 2025 Partnership as compared to the prior period.
Previous wording
Total other income decreased by $34.3 million, primarily due (i) a $32.1 million decrease in gain on sale to the 2025 Partnership, driven by the lower number of Seed Assets sold to the 2025 Partnership as compared to the prior period, and (ii) a $19.7 million decrease in other income driven by a decrease in insurance settlements in the current period; partially offset by (iii) a $17.5 million increase in equity in earnings of unconsolidated entities as a result of net income earned by the 2025 Partnership.
Current wording
Total other income increased by $10.2 million, primarily due to (i) a $47.6 million increase in equity in earnings of unconsolidated entities as a result of net income earned by the 2025 Partnership; partially offset by (ii) a $32.5 million decrease in Gain on sale to the 2025 Partnership - affiliate, driven by the lower number of Seed Assets sold to the 2025 Partnership as compared to the prior period, and (iii) a $5.0 million decrease in other income, driven by lower insurance proceeds as compared to the prior period.
Previous wording
The provision for income taxes decreased by $18.7 million and $17.7 million for the three and six months ended June 30, 2026, respectively, as compared to the prior period, primarily due to the respective changes in income discussed above from leasing activities in jurisdictions subject to taxes.
Current wording
The provision for income taxes decreased by $6.1 million and $23.8 million for the three and nine months ended September 30, 2026, respectively, as compared to the prior period, primarily due to the respective changes in income discussed above from leasing activities in jurisdictions subject to taxes.
Previous wording
•Acquisition and transaction expense increased $10.1 million, primarily due to higher professional fees associated with acquisitions and transactions in the current period.
Current wording
•Acquisition and transaction expense increased $10.8 million, primarily due to higher professional fees associated with acquisitions and transactions in the current period.
Previous wording
The benefit from income taxes increased by $17.7 million and $24.4 million for the three and six months ended June 30, 2026, respectively, as compared to the prior period. The increase was mainly driven by higher corporate overhead expenses deductible for 2026 tax purposes.
Current wording
The benefit from income taxes increased by $22.0 million and $46.5 million for the three and nine months ended September 30, 2026, respectively, as compared to the prior period. The increase was mainly driven by higher corporate overhead expenses deductible for 2026 tax purposes.
Previous wording
Net loss increased by $13.7 million and $39.7 million during the three and six months ended June 30, 2026, respectively, as compared to the prior period, primarily due to the changes noted above.
Current wording
Net loss increased by $26.4 million and $66.1 million during the three and nine months ended September 30, 2026, respectively, as compared to the prior period, primarily due to the changes noted above.
Previous wording
We believe we have sufficient liquidity to satisfy our cash needs, however, we continue to evaluate and take action, as necessary, to preserve adequate liquidity and ensure that our business can continue to operate during various environments. This includes limiting discretionary spending across the organization and re-prioritizing our investments as necessary.
Current wording
We believe we have sufficient liquidity to satisfy our cash needs, however, we continue to evaluate and take action, as necessary, to preserve adequate liquidity and ensure that our business can continue to operate during various environments. As of September 30, 2026, we had $385.6 million of cash and cash equivalents and $2.025 billion of undrawn availability under our Revolving Credit Facility, for total liquidity of approximately $2.4 billion.
Previous wording
On December 30, 2024, the Company announced the launch of a Strategic Capital Initiative in collaboration with third-party institutional investors. The Strategic Capital Initiative, and its related partnerships, allows the Company to maintain an asset-light business model while the partnerships actively acquire on-lease narrowbody aircraft at scale. The first partnership under the initiative, the 2025 Partnership, focuses on acquiring 737NG and A320ceo aircraft. The 2025 Partnership completed its fundraise in October 2025 with $2.0 billion of equity commitments.
Current wording
On December 30, 2024, we announced the launch of the SCI in collaboration with third-party institutional investors. The SCI and its related partnerships allow the Company to generate income while maintaining an asset-light business model. The SCI Partnerships under the initiative focus on acquiring 737NG and A320ceo aircraft. The 2025 Partnership completed its fundraise in October 2025 with $2.0 billion of equity commitments. During 2026, we launched the 2026 Partnership, which began acquiring aircraft in the third quarter.
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Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
In 2026, we entered into an agreement within our MRE business to supply replacement aircraft engines and modules for the life of the 2026 Partnership.
Current report — wording carried from elsewhere
•Operating expenses increased $2.3 million, primarily driven by an increase in equipment lease expense in the current period, as well as an increase in compensation and insurance expense.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
On December 30, 2024, we announced the launch of a Strategic Capital Initiative in collaboration with third-party institutional investors. The Strategic Capital Initiative, and its related partnerships, allows us to maintain an asset-light business model while the partnerships actively acquire on-lease narrowbody aircraft at scale. The first partnership under the initiative (the “2025 Partnership”) focuses on acquiring 737NG and A320ceo aircraft. The 2025 Partnership completed its fundraise in October 2025 with $2.0 billion of equity commitments.
Previous report — wording carried elsewhere
•Asset sales revenue decreased by $31.0 million, primarily due to an overall decrease in the number of sales transactions of commercial aircraft and engines in the current period as compared to the prior period.
Previous report — wording carried elsewhere
•Acquisition and transaction expense increased by $2.6 million, primarily driven by higher professional fees associated with the 2025 Partnership in the current period.