Q3 2024 FTAI Aviation Ltd Earnings Call Transcript
Key Points
- FTAI Aviation Ltd (FTAI) announced its 38th dividend as a public company, maintaining a consistent dividend payout history.
- The company reported a strong adjusted EBITDA of $232 million for Q3 2024, marking an 8% increase from Q2 2024 and a 50% increase from Q3 2023.
- FTAI's leasing segment achieved approximately $136 million in EBITDA, with asset sales contributing to a gain of $14.3 million.
- The aerospace products segment reported an impressive EBITDA of $101.8 million with a 34% margin, reflecting significant growth and increased adoption.
- FTAI is expanding its production capabilities, with plans to increase module production to 100 per quarter by 2025, enhancing its ability to meet customer demand.
- The aerospace segment's EBITDA margin decreased to 34% from 37% in the previous quarter due to low-margin legacy contracts from a recent acquisition.
- FTAI is facing challenges in meeting its PMA parts revenue target for 2024, indicating potential delays in product approvals.
- The company has increased its working capital by $120 million, partly due to inventory purchases to mitigate supply chain risks, which could impact cash flow.
- FTAI has not provided detailed guidance on the number of CFM56 models sold, citing commercial sensitivity, which may limit transparency for investors.
- The company is still in the process of settling insurance claims, with full recoveries expected to take time, potentially affecting financial results.
Good day and thank you for standing by. Welcome to the Q3 2024 FTAI Aviation earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your first speaker today. Alan Andreini, Investor Relations. Please go ahead.
Thank you, Liz. I would like to welcome you all to the FTAI Aviation third-quarter 2024 earnings call. Joining me here today are Joe Adams, our Chief Executive Officer; Angela Nam, our Chief Financial Officer; and David Moreno, our Chief Operating Officer.
We have posted an investor presentation and our press release on our website, which we encourage you to download if you have not already done so. Also, please note that this call is open to the public in listen-only mode and is being webcast. In addition, we will be discussing some non-GAAP financial measures during the call today, including EBITDA. The reconciliation of those measures to the most directly comparable GAAP
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