Q1 2024 Earnings Summary
Reported on Feb 18, 2025 (After Market Close)
Pre-Earnings Price$70.75Last close (Apr 26, 2024)
Post-Earnings Price$70.75Last close (Apr 26, 2024)
Price Change
$0.00(0.00%)
- FTAI Aviation's Aerospace Products segment is performing strongly, with $70.3 million of EBITDA at an overall EBITDA margin of 37% in Q1 2024. This performance suggests potential to exceed the company's guidance of $250 million of EBITDA in 2024.
- The successful execution of a perpetual power agreement with LATAM Airlines, covering over 60 V2500 and CFM56 engines, is expected to "ramp up such that we have—it will be a needle mover in years 2, 3, 4, 5 for our Aerospace Products business". This deal will contribute significantly to future EBITDA growth.
- FTAI Aviation expects improved cash flow operations for the rest of the year, with Leasing EBITDA anticipated to increase in Q2 and Q3 as four previously off-lease airplanes go back on lease, adding about $5 million to EBITDA. The company is reaffirming its guidance of $425 million of Leasing EBITDA for the year without gains on asset sales.
- The ramp-up of significant contracts, such as the LATAM Airlines perpetual power agreement, will take 2 to 3 years, delaying meaningful EBITDA contributions and potentially impacting near-term financial performance.
- Management is not increasing guidance despite a strong first-quarter performance, indicating potential uncertainty about future quarters or challenges that may hinder expected growth.
- Operating cash flows were about neutral in the first quarter of 2024, and the potential need for capital expenditures to expand capacity, especially in regions like Southeast Asia, could strain financial resources and impact cash flow.