FTAI Aviation Ltd - FXDFR PRF PERPETUAL USD 25 - Ser A

Strong Q1 2026 performance + reaffirmed full-year outlook (and higher dividend): - Adjusted EBITDA: $325.6M in Q1 2026 (+17% vs Q4 2025 $277.2M; +70% YoY in Aerospace Products). - Segment EBITDA (Q1): Aerospace Products $222.6M (≈30% margin), Aviation Leasing $153M (mix included insurance recoveries, sale gains, SPV fees). - Adjusted FCF: $158M reported in Q1 (includes front-loaded growth investments); ~$333M excluding major early growth prepayments/inventory build. - FY 2026 guidance reiterated: Total business segment EBITDA $1.625B ($1.05B Aerospace Products; $575M Aviation Leasing). - FY 2026 adjusted FCF target: ~$915M. - Dividend increased: from $0.40 → $0.45/share quarterly, payable May 26 (record May 13), 3rd straight quarter of dividend increases.

Aerospace Products: market share focus + production ramp; major operational accelerant - Aerospace revenue growth: +104% YoY and +32% QoQ. - Margin note (good but slightly “step back” concern raised by analyst): Aerospace margins were strong at ~30%, and management emphasized the EBITDA ramp is driven by mix (larger airline deals; more full performance restoration visits) while prioritizing bigger market share capture over purely margin per deal. - Production achieved 270 CFM56 modules in Q1 ( +96% YoY), reflecting scaling across facilities; Rome and Lisbon still ramping. - 2026 production goal: 1,050 CFM56 modules (management expects execution to continue; also stated they target capacity expansion ahead of demand).

Aerospace Products expansion plan: stronger “stickiness” and geographic footprint gap closing - Management highlighted that competitive moat expands as customers adopt integrated solutions (engine/module exchanges, engine leasing, and aircraft leasing), creating operational integration for airlines. - Leased engine demand increasing even among airlines with in-house MRO—management wants to win more of that in 2026. - Facility footprint constraint (surprising / key watch item): “no major maintenance facilities east of Rome, Italy” today; management expects this to look different by next year’s Q1 call, implying continued investment/expansion where demand is growing.