NEW YORK - FTAI Aviation Ltd. (NASDAQ: FTAI), a commercial jet engine leasing company, announced its financial results for the second quarter of 2024, reporting a net loss attributable to shareholders of $228.2 million or $(2.26) per share. Despite the loss, the company declared dividends for its ordinary shares and various series of preferred shares.
For the quarter ended June 30, 2024, the company recorded a net loss of $(228,205) thousand, a significant shift from the net income of $46,418 thousand reported in the same period the previous year. The basic and diluted earnings per share for the quarter were both $(2.26), compared to earnings of $0.47 and $0.46, respectively, in the second quarter of 2023.
However, the company's Adjusted EBITDA, a non-GAAP financial measure, reached a new high for the Aerospace Products segment, amounting to $91.2 million for the quarter. This figure is part of the total Adjusted EBITDA of $213,904 thousand for Q2 2024, a substantial increase from $153,077 thousand in Q2 2023.
On the same day, FTAI's Board of Directors declared a cash dividend on ordinary shares of $0.30 per share for Q2 2024, payable on August 20, 2024, to shareholders of record as of August 12, 2024. Dividends were also declared for the company's various series of preferred shares, with payment scheduled for September 16, 2024, to shareholders of record on September 6, 2024.
FTA Aviation has inducted 20 V2500 engines year to date and expects to induct an additional 30 by the year's end. The company's Module Factory™ continues to expand its customer base, now serving over 50 customers globally.
Management will host a conference call on Wednesday to discuss these results further. This financial report is based on a press release statement from FTAI Aviation Ltd.
Investors may find additional information, including the company's presentation and its Quarterly Report on Form 10-Q, on the Investor Center section of FTAI's website when available. However, it's important to note that the information on the website is not incorporated by reference into this report.
FTA Aviation specializes in owning and maintaining commercial jet engines, focusing on the CFM56 and V2500 engines. The company's portfolio, including the Module Factory and a joint venture to manufacture engine PMA, aims to provide cost savings and flexibility to its customer base, which includes airlines, lessors, and maintenance, repair, and operations services.
In other recent news, Fortress Transportation (NASDAQ:FTAI) and Infrastructure Investors LLC has seen a series of significant developments. Compass Point raised the company's stock target to $118, citing a positive outlook on future earnings, particularly within the aerospace products segment.
This optimism is fueled by the company's aerospace solutions which cater to CFM26 and V2500 engines, showing considerable promise amid engine shortages. The market is advised to focus on the upcoming second-quarter 2024 earnings, particularly the aerospace products segment's performance.
On the other hand, Wolfe Research downgraded Fortress Transportation's stock from Outperform to Peer Perform, suggesting that the company's significant growth may limit further upside potential.
Meanwhile, Deutsche Bank (ETR:DBKGn) maintained a Buy rating on the company and raised the price target to $100 following the announcement of a five-year maintenance services contract with International Aero Engines for V2500 engines. RBC Capital Markets also adjusted its outlook on the company, increasing the price target to $95 while maintaining an Outperform rating.
In a bid to expand its global customer base, Fortress Transportation's subsidiary, FTAI Aviation, plans to acquire Lockheed Martin (NYSE:LMT) Commercial Engine Solutions for $170 million. This move aims to strengthen FTAI's Maintenance, Repair, and Exchange business.
Fortress Transportation also concluded its Management Agreement and Services and Profit Sharing Agreement with Fortress Investment Group LLC, transitioning to an internally managed structure. These are the recent developments that investors should be aware of.
InvestingPro Insights
As FTAI Aviation Ltd. (NASDAQ: FTAI) navigates through a challenging quarter, marked by a reported net loss, investors may seek additional perspectives to understand the company's financial health and future prospects.
According to InvestingPro data, FTAI has a market capitalization of $10.74 billion and is trading at a P/E ratio of 50.62, reflecting investor expectations for future earnings. Notably, the company has seen a robust revenue growth of 32.49% over the last twelve months as of Q1 2024, which may signal underlying business strength despite the recent loss.
InvestingPro Tips offer further insights, highlighting that FTAI boasts an impressive gross profit margin of 49.19% and is trading at a low P/E ratio relative to near-term earnings growth. This could suggest that the company is managing its costs effectively and may be positioned for improved profitability. Moreover, with analysts anticipating sales growth in the current year, there appears to be optimism about FTAI's revenue trajectory.
For investors seeking a deeper dive into FTAI's financials and future outlook, InvestingPro provides a wealth of additional tips. There are 20 more InvestingPro Tips available for FTAI, which can be accessed by visiting InvestingPro's dedicated page for FTAI. To enhance your investment research experience, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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