FTAI Aviation Shares Jump After Strong Q3 Earnings

FTAI Aviation shares rose 14.5% on October 29 following the release of third-quarter earnings that exceeded investor expectations. The aircraft and engine leasing company reported Q3 revenue of $977.7 million, a 46.6% increase from the previous year, and a profit of $150.6 million, up 28%. Earnings per share rose 30% year-over-year to $1.43, and the company exceeded EBITDA estimates.

To address recent stock price weakness, the company doubled its share repurchase authorization to $1 billion, adding an additional $500 million to the program. CEO Joe Adams stated he has clear visibility into 2027 to support these buybacks, despite the company holding less than $386 million on its balance sheet against more than $3.45 billion in long-term debt.

Looking forward, the company's Aerospace segment reported 31% EBITDA margins and set a target of 1,700 modules for 2025, which is expected to drive revenue growth of over 40%. The power business targets 100 deliveries in 2025, while management maintained an EBITDA projection of $450 million to $750 million for 2027.