FTA Aviation partners with OneIM for aircraft acquisitions

NEW YORK - FTAI Aviation Ltd. (NASDAQ: FTAI), an $11.8 billion market cap company specializing in commercial jet engines and aircraft leasing, announced Monday its partnership with One Investment Management (OneIM) in a strategic move to scale its acquisition of on-lease narrowbody aircraft. The company’s stock has shown strong momentum, gaining over 12% in the past week according to InvestingPro data. The initiative is expected to deploy over $4 billion into on-lease 737NG and A320ceo aircraft, leveraging a combination of equity commitments and a $2.5 billion asset-level debt financing from ATLAS SP Partners and Deutsche Bank AG, New York Branch.

The partnership aims to position FTAI in a leading role within the narrowbody aircraft market segment while maintaining an asset-light business model. The engines for these aircraft will be exclusively powered by FTAI’s Maintenance, Repair, and Exchange (MRE) business through engine and module exchanges. The company maintains strong operational efficiency with a healthy current ratio of 3.53, indicating robust liquidity to support its expansion plans.

Joseph P. Adams, CEO and Chairman of FTAI, expressed confidence in the collaboration’s potential to enhance the company’s engine maintenance solutions and create value for shareholders. Rajeev Misra, CEO and Co-Founder of OneIM, also highlighted the unique competitive advantage this partnership offers by integrating FTAI’s maintenance and aircraft acquisition capabilities.

Legal counsel for the strategic initiative includes Kirkland & Ellis LLP, McGuireWoods LLP, Gibson, Dunn & Crutcher LLP, and Lincoln International LLC, with Milbank LLP advising OneIM.

FTAI Aviation focuses on CFM56 and V2500 engines and leverages its proprietary portfolio to provide cost savings and flexibility to its customers. The company’s investments in aviation assets and aerospace products are designed to generate stable cash flows with growth and appreciation potential.

OneIM, a global alternative investment manager established in 2022, manages around $7 billion in assets from its offices in Abu Dhabi, London, Tokyo, and New York.

This announcement contains forward-looking statements regarding the scaling of FTAI’s aircraft acquisitions and the expected capital deployment. While these statements are not guarantees of future performance and are subject to risks, uncertainties, and assumptions, InvestingPro analysis indicates strong growth potential, with revenue increasing 48.17% in the last twelve months and analysts forecasting continued sales growth. For detailed insights and access to comprehensive financial analysis of FTAI and 1,400+ other US stocks, including Fair Value estimates and expert research reports, consider exploring InvestingPro’s advanced features.

This news article is based on a press release statement from FTAI Aviation Ltd.

In other recent news, FTAI Aviation reported its Q4 2024 earnings, revealing an EPS of $0.84 and revenue of $498.82 million, both of which missed analyst forecasts. Despite these misses, the company demonstrated a 55% year-over-year increase in adjusted EBITDA, reaching $252 million, indicating robust growth in its Aerospace Products segment. Additionally, FTAI Aviation has maintained its 2025 financial guidance but raised its 2026 revenue forecast from $1.2 billion to $1.4 billion due to its Strategic Capital Initiative. Stifel analysts recently downgraded FTAI Aviation’s stock rating from Buy to Hold, while raising the price target to $123, reflecting a cautious but optimistic view of the company’s potential. Concerns have been raised by Muddy Waters Research regarding potential U.S. sanctions violations, suggesting FTAI products may have been acquired by an Iranian entity. The investigation highlighted evidence suggesting FTAI’s Aerospace Products business could be implicated, raising serious compliance questions. Despite these challenges, FTAI Aviation continues to pursue strategic initiatives, including a joint venture in Rome and an acquisition of a 50% stake in IAG Engine Center Europe, aimed at enhancing its operational capacity.

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