An aviation company that repairs, refurbishes, and sells CFM56 and V2500 jet engines — the workhorses of many narrowbody airliners — while also leasing aircraft and engines to airlines. It was founded in 2011 as Fortress Transportation and Infrastructure Investors, its FTAI name shortening that original identity, before spinning off its other businesses and renaming itself FTAI Aviation in 2022. Today it ranks among the world's largest owners of CFM56 engines.
Q2 2026 revenue rose 40.9% to $953.1M but gross margin fell to 33.3% as Aerospace Products volume grew.
Aerospace Products engine sales carried the quarter while Aviation Leasing kept shrinking. rose 40.9% to $953.1M and was $1.13, down 28% , as fell 12.1 points to 33.3% on higher from engine and module volume. The business is growing on engine sales but margin and leasing income are compressing as assets shift to partnerships.
Key takeaways
Aerospace Products rose $271.5M from CFM56 and V2500 engine and module sales, driving consolidated revenue up 40.9% to $953.1M in Q2 2026.
Aviation Leasing dropped $107.9M to $78.1M as lease income, maintenance revenue, and asset sales declined after Seed Assets were sold to the 2025 Partnership.
fell 12.1 points to 33.3% as increased $266.5M in line with higher Aerospace Products volume.
Section summaries
Management's Discussion and Analysis
Aerospace Products engine sales surged 65% in Q2 2026, while Aviation Leasing revenue fell 58% due to asset transfers to the 2025 Partnership.
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Consolidated rose 41% to $953.1M in Q2 2026, driven by a $271.5M increase in Aerospace Products revenue from CFM56 and V2500 engine and module sales.
attributable to shareholders decreased $44.1M to $117.6M and fell $56.4M to $291.4M, reflecting lower gains on asset sales and reduced insurance settlements.
MRE Contract grew $113.2M to $182.8M, mainly from engine and module sales to the 2025 Partnership under the Strategic Capital Initiative.
was -$105.2M in Q2 2026, and cash and equivalents ended at $337.2M, up 11.6% .
What changed
FY2025 flagged tracking MRE Contract and cash from the 2025 Partnership: Q2 MRE Contract was $182.8M, up $113.2M, but stayed negative at -$105.2M.
Aviation Leasing fell further, down 58% QoQ to $78.1M in Q2 after the 37% Q1 drop to $86.9M, confirming the asset-sale-driven decline.
continued its slide to 33.3% in Q2 from 36.9% in Q1 and 46.2% for FY2025, as flagged after each prior period.
FTAI Power, launched December 2025, was not mentioned in this Q2 filing as having produced results yet.
was $3,453.3M, up 0.3% and 0.1% from Q1, after the FY2025 rise reversed by year-end as earlier watched.
What to watch
MRE Contract and cash received from the 2025 Partnership next quarter after the $182.8M Q2 figure.
Aviation Leasing trajectory after the drop to $78.1M from Seed Asset sales.
next quarter after the 33.3% Q2 figure as Aerospace Products volume grows.
FTAI Power progress converting CFM56 engines into power turbines after its December 2025 inception.
grew $113.2M to $182.8M, primarily from increased engine and module sales to the 2025 Partnership under the Strategic Capital Initiative.
Aviation Leasing dropped $107.9M to $78.1M, as lease income, maintenance revenue, and asset sales all declined following the sale of to the 2025 Partnership.
Total expenses increased $292.5M, with up $266.5M in line with higher Aerospace Products volume, and operating expenses up $33.2M on higher compensation and technology costs.
attributable to shareholders decreased $44.1M to $117.6M, while fell $56.4M to $291.4M, reflecting lower gains on asset sales and reduced insurance settlements.
Cash used in operating activities was $265.3M for H1 2026, and the company expects to meet short-term liquidity needs through cash on hand, operations, and available borrowings.
Quantitative and Qualitative Disclosures About Market Risk
Interest rate risk from floating-rate debt is the primary market risk; a 100-bp shift would not affect interest expense over the next 12 months.
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Market risk arises from changes in interest rates and foreign exchange rates, though only interest rate risk is detailed.
Primary interest rate exposure relates to the , with borrowings tied to variable-rate indices such as .
The company may use like swaps and caps to manage exposure to interest rate movements.
A sensitivity analysis models hypothetical rate shifts but is constrained by single-point-in-time assumptions and excludes impacts on derivatives.
As of June 30, 2026, a hypothetical 100-basis-point increase or decrease in variable rates would not change over the next 12 months, assuming no hedging.
We are and may become involved in legal proceedings, including but not limited to regulatory investigations and inquiries, in the ordinary course of our business. Although we are unable to predict with certainty the eventual outcome of any litigation, regulatory investigation or…
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We are and may become involved in legal proceedings, including but not limited to regulatory investigations and inquiries, in the ordinary course of our business. Although we are unable to predict with certainty the eventual outcome of any litigation, regulatory investigation or inquiry, in the opinion of management, we do not expect our current and any threatened legal proceedings to have a material adverse effect on our business, financial position or results of operations. Given the inherent unpredictability of these types of proceedings, however, it is possible that future adverse outcomes could have a material adverse effect on our financial results.
Macroeconomic and geopolitical instability, asset concentration, and strategic initiative risks could materially affect aviation leasing and aerospace products operations.
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Macroeconomic weakness, tariffs, and geopolitical conflicts—including ongoing Russia-Ukraine war and Middle East instability—may reduce demand, cause lessee defaults, and limit capital access.
A high concentration in CFM56-5B, CFM56-7B, and V2500 engines exposes the company to value and lease-rate declines if demand for those specific assets weakens.
The Strategic Capital Initiative, including the 2025 Partnership, introduces market, liquidity, valuation, , and conflicts-of-interest risks that could harm financial results.
Oversupply in the aviation industry could depress lease rates and asset values, while contractual defaults by lessees may increase storage, recovery, and lost-equipment costs.
Heavy regulation by the FAA and foreign agencies, evolving cybersecurity expectations, and potential aircraft retirements or groundings could raise compliance costs and reduce .
The company's $3.5 billion debt load and restrictive covenants limit operational flexibility; inability to generate sufficient cash flow may force asset sales or refinancing challenges.