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

Strong Q2 momentum in Aerospace Products (growth + market-share push): - Aerospace Products delivered +78% YoY and +18% QoQ revenue growth. - Adjusted EBITDA: $250M in Q2 (up 51% YoY, up 12% QoQ) with ~29% EBITDA margin. - Market share rose from 12% to 14% in Q2, driven by production capability, parts procurement strategy, and continued MRE customer adoption. - Production ramp: refurbished 296 CFM56 modules (+61% YoY); first-half production 566 modules and ahead of the midyear target.

Supply-constrained CFM56 business: prioritizing third-party demand over leasing (negative near-term for leasing earnings): - Management emphasized the CFM56 market is “supply constrained, not demand constrained.” - They deliberately shifted module allocation away from FTAI’s own aviation leasing pool toward third-party customer-facing channels to support an asset-light balance sheet and stronger near-term economics. - Negative/upward revision risk to investors: as a result, 2026 Aviation Leasing EBITDA is now expected lower than prior guidance (see next bullet), while Aerospace remains the primary EBITDA driver.

2026 financial outlook update (free cash flow and segment EBITDA revised): - Revised 2026 adjusted free cash flow: from ~$915M to ~$878M (reflecting lower leasing contribution from the allocation shift + $30M additional R&D for FTAI Power; partially offset by aerospace scale/working-capital improvements). - 2026 segment EBITDA guidance updated: - Aerospace Products: reaffirmed ~$1.05B - Aviation Leasing: revised to ~$475M (to reflect the asset-light transition and shifted module production demand) - Power: not separately detailed in the prepared guidance section for 2026, but Power launch is targeted next bullet. - 2027 outlook (key forecast): total business segment EBITDA ~$2.3B, comprising Aerospace ~$1.4B, Aviation Leasing ~$450M, Power ~$450M.