FTAI Aviation Ltd. (FTAI) · Oct 29, 2026 · Earnings
Miss — Diluted EPS $1.43 vs ~$1.54 consensus; revenue $977.7M vs ~$1.01B consensus
FTAI earnings showed explosive aerospace growth and a larger buyback, but revenue and diluted EPS came in below published Q3 expectations.
FTAI is shifting from an aircraft-leasing model toward higher-growth aerospace products and a new FTAI Power business aimed at data-center power demand; the aerospace expansion and Mod-1 opportunity were already established before this report.
The quarter missed the published earnings bar despite strong reported growth. Revenue of $977.7 million increased 46.6% year over year, but was below published Q3 expectations of roughly $1.01 billion; diluted EPS of $1.43 also trailed the roughly $1.54 consensus cited before the release.
| Q3 2026 | Q3 2025 | Consensus | |
|---|---|---|---|
| Total revenue (Income Statement) | $977.7M (+46.6%) | $667.1M | ~$1.01B |
| Diluted EPS (Income Statement) | $1.43 (+30.0%) | $1.10 | ~$1.54 |
| Consolidated Adjusted EBITDA (Adjusted EBITDA reconciliation) | $348.3M (+17.1%) | $297.4M | |
| Aerospace Products Adjusted EBITDA (Segment reconciliation) | $282.4M (+56.5%) | $180.4M | |
| Aviation Leasing Adjusted EBITDA (Segment reconciliation) | $104.0M (-22.6%) | $134.4M |
Aerospace Products is now carrying the business. Aerospace Products revenue rose to $780.6 million from $459.2 million, while segment Adjusted EBITDA climbed to $282.4 million from $180.4 million. That validates the growth engine FTAI is building, but the release does not establish that the ramp is translating into results above the near-term earnings hurdle.
The leasing transition is the offsetting drag. Aviation Leasing Adjusted EBITDA fell to $104.0 million from $134.4 million, and lease income, maintenance revenue, and asset-sale revenue all declined year over year. That is consistent with an asset-light transition, but it leaves more of the consolidated result dependent on aerospace execution and future Power commercialization.
FTAI Power remains strategically important but financially pre-revenue. The company spent $22.0 million on pre-commercial research and development in the quarter, and the filing says the Mod-1 has cleared critical testing milestones ahead of first deliveries next year. The new combined-cycle joint venture could raise output by 9MW and efficiency above 50%, but first test units are not expected until the second half of 2027.
The enlarged buyback is a meaningful capital-allocation signal, not a quarterly earnings fix. The board doubled authorization to $1.0 billion, with about $80.0 million already repurchased and a planned $500.0 million accelerated share repurchase expected to complete in Q4 2026. That supports per-share economics, but it also raises the importance of converting the aerospace and Power pipeline into durable operating earnings.
Bottom line: The business mix is improving faster than the headline earnings result, with Aerospace Products clearly outperforming while leasing contracts. But against the published Q3 bar, this was still a miss; the next proof point is whether aerospace growth and the Mod-1 rollout can close that gap.
Accelerated share repurchase expected to complete in Q4 2026
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