FTAI Stock Forecast & Price Target

FTAI Aviation Ltd is poised for continued growth due to its capacity expansion in repair capabilities, which is expected to enhance margins significantly by 2026. The company's robust financial performance in the second quarter of 2025, highlighted by a 52% revenue increase to $676 million and a 37% year-over-year rise in adjusted EBITDA to approximately $293 million, supports its favorable outlook. Furthermore, strategic initiatives such as securing a large US airline client and enhancing market share within the legacy narrowbody market are expected to drive substantial top-line growth and profitability in the Aerospace Products segment.

FTAI Aviation Ltd is facing a negative outlook primarily due to weaker-than-expected Aerospace Products margins, which stood at approximately 33.6%, reflecting challenges associated with a deal involving a significant US operator. Additionally, the stability of monthly lease payments from lessees is jeopardized by the historically volatile nature of the airline industry's earnings, raising concerns about potential cash flow disruptions. Furthermore, the company's heavy reliance on the CFM56 engine poses a substantial risk, particularly with the potential for accelerated retirements of 737NG and A320ceo aircraft, which could adversely impact both leasing operations and aftermarket support.