FTAI Aviation Stock (FTAI) Great Growth and Good Value in Q3 2025

In a market where aviation-aftermarket and leasing firms are under pressure from macro-headwinds, FTAI Aviation (NASDAQ: FTAI) continues to stand out as a high-growth, high-margin specialist that is gaining traction. Its third quarter 2025 results delivered strong top-line growth, improving margins, and moved several investor metrics in the right direction. For investors looking for exposure to the engine maintenance/repair/leasing niche, FTAI offers a compelling mix of growth and value.  In this article we will dive into FTAI recent earnings, stock performance & valuation, growth potential, and the risks investor should consider.

About FTAI Aviation

FTAI Aviation founded in 2011 and headquartered in New York, operates in the aerospace aftermarket through two key segments: Aviation Leasing, which manages and sells aircraft and engines, and Aerospace Products, focusing on maintenance, repair, and refurbishment of CFM56 and V2500 engines. The company also runs a Strategic Capital Initiative (SCI) with institutional partners, enabling a hybrid, asset-light model that combines leasing and engine services, driving scalable growth amid rising global demand for refurbished engines and maintenance solutions.

FTAI Aviation Financial Performance

In the third quarter of 2025, FTAI Aviation reported outstanding financial results, highlighting strong growth across key metrics. The company posted revenue of $667.06 million, up from $465.79 million in Q3 2024, representing a 43.2% year-over-year increase. Earnings per share (EPS) rose from $0.76 to $1.10, marking a 44.74% increase. On a trailing twelve-month (TTM) basis, revenue climbed 51.35% to $2.34 billion from $1.55 billion, while EPS surged to $4.39, a significant turnaround from -$0.09 in the prior year. The company maintained healthy profitability with a gross profit margin of 41.17% and net profit margin of 20.82%. Efficiency ratios also impressed, with a return on assets (ROA) of 11.43% and an exceptionally high return on equity (ROE) of 263.05%, supported by a debt-to-equity ratio of 13.81.

Over the past five years, FTAI has grown its revenue at a 54.4% CAGR, and its net income has turned positive with a strong net profit margin. This shows that FTAI has been a fast growing company in recent years.

FTAI Aviation Fiscal 2025 Financial Forecast

Looking ahead, analysts forecast 2025 revenue of $2.54 billion, a 46.62% increase from 2024’s $1.73 billion, and expect EPS to reach $4.81, up sharply from -$0.32 in 2024. Reflecting strong confidence in the company’s performance, wallstreet analysts have issued a “Strong Buy” rating, with a price target of $222.60 implying 28.89% upside potential and the highest price target of $306, suggesting 77.25% potential upside from current levels.

FTAI Stock Price Performance and Valuation

At the time this article was written the stock was trading at $172.71 per share, marking a 25.5% increase over the past year, outperforming the S&P 500’s 19.9% gain in the same period. Over the past five years, FTAI’s performance has been extraordinary, with the stock surging 1,124.3%, far exceeding the S&P 500’s 95.1% rise. 

The company also offers a modest dividend yield of 0.81%, providing some income for shareholders alongside capital appreciation. From a valuation perspective, FTAI trades at a price-to-sales (P/S) ratio of 8.84 and a forward P/S of 8.14, while its price-to-earnings (P/E) ratio stands at 39.65 with a forward P/E of 35.45. Although these multiples suggest a premium valuation, they are justified by the company’s strong earnings momentum, robust revenue growth, and expanding margins.

FTAI Aviation Growth Potential

FTAI growth prospect remains strong driven by several factors.

• Aerospace Products Segment Dominance and Market Share Expansion
  FTAI Aviation's Aerospace Products segment demonstrated exceptional growth in Q3 2025, with adjusted EBITDA surging 77% year-over-year to $180.4 million while maintaining a 35% margin. This segment specializes in maintenance, repair, and exchange (MRE) services for CFM56 and V2500 engines, which power 60% of the world's narrowbody aircraft. The company has aggressively captured market share, growing from virtually 0% four years ago to approximately 9% currently, with an ambitious target of reaching 25% of the $22 billion aftermarket engine maintenance market.
  This expansion is driven by strong long-term airline partnerships, such as the Finnair perpetual power program, and accelerated adoption of FTAI's proprietary aerospace products. With CFM56 engines expected to remain dominant platforms for another 25 years and over 21,000 engines still in operation, FTAI has established a substantial runway for sustained growth in this lucrative aftermarket space.
• Strategic Capital Initiative (SCI) and Asset-Light Business Model Transformation
  FTAI Aviation successfully completed fundraising for its first Strategic Capital Initiative (SCI) vehicle, surpassing its initial $1.5 billion equity target by raising $2 billion. Including debt financing, this vehicle has over $6 billion in deployment capacity to acquire about 375 mid-life, current-generation aircraft, primarily Boeing 737NG and Airbus A320ceo models. To date, FTAI SCI I has invested $1.4 billion in acquiring 101 aircraft and has another $2.1 billion in aircraft under contract, totaling 190 units.
  Full deployment is expected by mid-2026. This strategic shift to an asset-light model reduces dependence on capital-intensive owned aircraft and generates management and advisory fees, enhancing capital efficiency and scalability. Management is considering a second SCI vehicle for 2026, potentially managing $20 billion in assets. The initiative attracts diverse global institutional investors, including asset managers, insurers, pension funds, and family offices, ensuring sustainable capital for future growth.
• Module Production Capacity Expansion and Operational Scaling
  FTAI Aviation is significantly increasing its module production capacity across its maintenance facilities in Montreal, Miami, and Rome. The company targets producing 750 CFM56 engine modules in 2025, aiming to expand to 1,000 modules in 2026, reflecting 33% year-over-year growth. The Rome facility is expected to double annual production capacity from 100 to 200 modules by 2026. This growth is bolstered by strategic acquisitions, including ATOPS, which adds 150 modules of annual capacity through its Florida and Portugal facilities.
  Additionally, FTAI formed a 50/50 joint venture with Bauer for in-house accessory maintenance, projected to save approximately $75,000 per shop visit across 350 visits annually. These investments enhance vertical integration, drive cost efficiencies, and improve production throughput. Such scaling efforts position FTAI to meet rising engine maintenance demand while boosting margins through operational leverage and facility automation improvements.

Risks to Consider

While FTAI have strong growth prospect we should be mindful of potential risks.

• Industry Cyclicality and Oversupply
  The cyclical nature of the aviation market means that periods of high aircraft supply can exceed demand, causing lease rates and asset values to decline. This oversupply pressures revenues as aircraft become less utilized and lease terms grow less favorable, reflecting the inherent volatility in airline demand and fleet management. These fluctuations result from factors like economic cycles, manufacturing delays, and shifting airline capacity needs, affecting the profitability of aviation leasing companies.
• Capital Structure and Debt Risks
  FTAI Aviation's debt-to-equity ratio is extremely high at 13.81, far exceeding industry norms that typically range between 1.0 and 2.55. This elevated leverage creates significant liquidity concerns and exposes the company to risk from interest rate fluctuations. Additionally, its interest coverage ratio hovers near critical levels, meaning that servicing debt could become difficult if profit margins tighten, amplifying financial vulnerability.
• Regulatory and Strategic Risks
  FTAI faces significant costs to comply with constantly evolving cybersecurity and environmental regulations, which are becoming stricter globally. Additionally, its Strategic Capital Initiative, involving third-party partnerships, may encounter risks such as market volatility, liquidity constraints, and potential conflicts of interest. These factors create financial and operational challenges that require careful management to safeguard the company’s stability and growth prospects.

Read More: MercadoLibre Stock (MELI) Strong Growth and Good Value in Q3 2025

Conclusion

FTAI Aviation has demonstrated exceptional financial and operational performance, supported by strong revenue and earnings growth, expanding margins, and consistent shareholder returns. Its strategic hybrid business model, combining engine services and aviation leasing, positions the company for continued expansion amid rising global aviation demand. Despite its premium valuation, FTAI’s solid fundamentals, high profitability, and optimistic analyst forecasts make it a compelling long-term investment opportunity for growth-focused investors seeking exposure to the resilient aviation aftermarket sector.