FTAI Aviation Ltd.FTAI
FTAI Aviation Ltd. Segments Disclosure
13. SEGMENT INFORMATION
The key factors used to identify the reportable segments are the organization and alignment of the Company’s internal operations and the nature of its products and services. The Company’s two reportable segments are (i) Aerospace Products and (ii) Aviation Leasing. The Aerospace Products segment, through the Company’s maintenance facilities and joint ventures, among other investments, develops and manufactures, repairs/refurbishes and sells aircraft engines and aftermarket components for the CFM56-7B, CFM56-5B and V2500 commercial aircraft engines. The Aviation Leasing segment owns and manages aviation assets, including aircraft and aircraft engines, which it leases and sells to lessees. During the fourth quarter of 2023, the Company changed the composition of its operating segments to include V2500 engines within the Aerospace Products segment.
Corporate and Other primarily consists of debt, unallocated corporate general and administrative expenses, internalization fee and management fees and incentive compensation pursuant to the Management Agreement prior to the Internalization effective May 28, 2024. Additionally, Corporate and Other also includes results from an offshore energy business, which consists of equipment that support offshore oil and gas activities and production. The Company previously owned two offshore vessels that were sold in the fourth quarter of 2024.
The accounting policies of the segments are the same as those described in the summary of significant accounting policies; however, financial information presented by segment includes the impact of intercompany eliminations. The Company’s Chief Executive Officer is the Chief Operating Decision Maker (“CODM”). Segment information is presented in the same manner that the CODM reviews the operating results in assessing performance and allocating resources. The CODM evaluates performance for each reportable segment based on net income (loss) attributable to shareholders and is used to monitor budget vs. actual results.
The CODM determined that segment asset information is not a key factor in measuring performance or allocating resources. Therefore, segment asset information is not included in the tables below as it is not provided to or reviewed by the CODM.
The following tables set forth certain information, which include all significant expenses reviewed by the CODM, for each reportable segment:
I. For the Year Ended December 31, 2025
| Year Ended December 31, 2025 | |||||||||||||||||||||||||||||
| Aerospace Products | Aviation Leasing | Corporate and Other | Eliminations | Total | |||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||||||
| Aerospace products revenue | $ | 1,600,456 | $ | — | $ | — | $ | — | $ | 1,600,456 | |||||||||||||||||||
MRE Contract revenue | 335,788 | — | — | — | 335,788 | ||||||||||||||||||||||||
| Lease income | — | 235,210 | — | — | 235,210 | ||||||||||||||||||||||||
| Maintenance revenue | — | 218,499 | — | — | 218,499 | ||||||||||||||||||||||||
| Asset sales revenue | — | 106,945 | — | — | 106,945 | ||||||||||||||||||||||||
Other revenue (1) | — | 10,507 | 4 | — | 10,511 | ||||||||||||||||||||||||
| Total revenues | 1,936,244 | 571,161 | 4 | — | 2,507,409 | ||||||||||||||||||||||||
| Expenses | |||||||||||||||||||||||||||||
| Cost of sales | 1,240,368 | 109,351 | — | — | 1,349,719 | ||||||||||||||||||||||||
| Operating expenses | 34,514 | 37,307 | 80,720 | — | 152,541 | ||||||||||||||||||||||||
| General and administrative | — | — | 9,478 | — | 9,478 | ||||||||||||||||||||||||
| Acquisition and transaction expenses | 3,198 | 9,182 | 16,207 | — | 28,587 | ||||||||||||||||||||||||
| Depreciation and amortization | 15,764 | 205,687 | 4,346 | — | 225,797 | ||||||||||||||||||||||||
| Total expenses | 1,293,844 | 361,527 | 110,751 | — | 1,766,122 | ||||||||||||||||||||||||
| Other income (expense) | |||||||||||||||||||||||||||||
| Interest expense | — | — | (247,751) | — | (247,751) | ||||||||||||||||||||||||
Equity in earnings (losses) of unconsolidated entities (2) | 2,896 | 13,115 | — | (22,829) | (6,818) | ||||||||||||||||||||||||
Gain on sale to the 2025 Partnership | — | 46,380 | — | — | 46,380 | ||||||||||||||||||||||||
| Other income | 5,441 | 64,455 | 3,690 | — | 73,586 | ||||||||||||||||||||||||
| Total other income (expense) | 8,337 | 123,950 | (244,061) | (22,829) | (134,603) | ||||||||||||||||||||||||
Income (loss) before income taxes | 650,737 | 333,584 | (354,808) | (22,829) | 606,684 | ||||||||||||||||||||||||
| Provision for (benefit from) income taxes | 102,391 | 62,232 | (59,003) | — | 105,620 | ||||||||||||||||||||||||
Net income (loss) | 548,346 | 271,352 | (295,805) | (22,829) | 501,064 | ||||||||||||||||||||||||
| Less: Dividends on preferred shares | — | — | 17,243 | — | 17,243 | ||||||||||||||||||||||||
| Less: Loss on redemption of preferred shares | — | — | 6,327 | — | 6,327 | ||||||||||||||||||||||||
Net income (loss) attributable to shareholders | $ | 548,346 | $ | 271,352 | $ | (319,375) | $ | (22,829) | $ | 477,494 | |||||||||||||||||||
(1) Includes servicing fees of $10,150 for the year ended December 31, 2025 from the 2025 Partnership.
(2) Includes the profit elimination of $(22,829) for the year ended December 31, 2025 for sales to the 2025 Partnership within the Aerospace Products segment.
Summary information with respect to the Company’s geographic sources of revenue, based on location of customer and lessee, is as follows:
| Year Ended December 31, 2025 | |||||||||||||||||||||||
| Aerospace Products | Aviation Leasing | Corporate and Other | Total | ||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Africa | $ | 71,452 | $ | 20,717 | $ | — | $ | 92,169 | |||||||||||||||
| Asia | 274,618 | 160,451 | 4 | 435,073 | |||||||||||||||||||
| Europe | 415,145 | 244,307 | — | 659,452 | |||||||||||||||||||
| North America | 1,132,995 | 112,162 | — | 1,245,157 | |||||||||||||||||||
| South America | 42,034 | 33,524 | — | 75,558 | |||||||||||||||||||
Total revenues (1) | $ | 1,936,244 | $ | 571,161 | $ | 4 | $ | 2,507,409 | |||||||||||||||
(1) The United States, included in North America, and Ireland, included in Europe, represent 34% and 11% of total revenues, respectively, based on the location of the Company’s customers and lessees. No other country represents more than 10% of total revenues.
Presented below are the contracted minimum future annual revenues to be received under existing operating leases as of December 31, 2025:
| December 31, 2025 | |||||
2026 | $ | 158,908 | |||
| 2027 | 129,187 | ||||
| 2028 | 108,716 | ||||
| 2029 | 77,127 | ||||
| 2030 | 58,730 | ||||
| Thereafter | 63,082 | ||||
| Total | $ | 595,750 | |||
II. For the Year Ended December 31, 2024
| Year Ended December 31, 2024 | |||||||||||||||||||||||
| Aerospace Products | Aviation Leasing | Corporate and Other | Total | ||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Aerospace products revenue | $ | 1,079,821 | $ | — | $ | — | $ | 1,079,821 | |||||||||||||||
| Lease income | — | 234,411 | 20,927 | 255,338 | |||||||||||||||||||
| Maintenance revenue | — | 200,809 | — | 200,809 | |||||||||||||||||||
| Asset sales revenue | — | 192,176 | — | 192,176 | |||||||||||||||||||
| Other revenue | — | 1,041 | 5,716 | 6,757 | |||||||||||||||||||
| Total revenues | 1,079,821 | 628,437 | 26,643 | 1,734,901 | |||||||||||||||||||
| Expenses | |||||||||||||||||||||||
| Cost of sales | 673,907 | 151,977 | — | 825,884 | |||||||||||||||||||
| Operating expenses | 23,818 | 35,495 | 56,548 | 115,861 | |||||||||||||||||||
| General and administrative | — | — | 14,263 | 14,263 | |||||||||||||||||||
| Acquisition and transaction expenses | 4,906 | 9,740 | 17,650 | 32,296 | |||||||||||||||||||
| Management fees and incentive allocation to affiliate | — | — | 8,449 | 8,449 | |||||||||||||||||||
Internalization fee to affiliate | — | — | 300,000 | 300,000 | |||||||||||||||||||
Depreciation and amortization | 6,630 | 201,497 | 9,937 | 218,064 | |||||||||||||||||||
| Asset impairment | — | 962 | — | 962 | |||||||||||||||||||
Gain on sale of assets, net | — | — | (18,705) | (18,705) | |||||||||||||||||||
| Total expenses | 709,261 | 399,671 | 388,142 | 1,497,074 | |||||||||||||||||||
| Other income (expense) | |||||||||||||||||||||||
| Equity in losses of unconsolidated entities | (1,993) | (207) | — | (2,200) | |||||||||||||||||||
| Interest expense | — | — | (221,721) | (221,721) | |||||||||||||||||||
| Loss on extinguishment of debt | — | — | (17,101) | (17,101) | |||||||||||||||||||
| Other income | — | 14,669 | 2,695 | 17,364 | |||||||||||||||||||
| Total other income (expense) | (1,993) | 14,462 | (236,127) | (223,658) | |||||||||||||||||||
| Income (loss) from continuing operations before income taxes | 368,567 | 243,228 | (597,626) | 14,169 | |||||||||||||||||||
| (Benefit from) provision for income taxes | 22,221 | 32,979 | (49,713) | 5,487 | |||||||||||||||||||
| Net income (loss) from continuing operations | 346,346 | 210,249 | (547,913) | 8,682 | |||||||||||||||||||
| Less: Dividends on preferred shares | — | — | 32,763 | 32,763 | |||||||||||||||||||
Less: Loss on redemption of preferred shares | — | — | 7,998 | 7,998 | |||||||||||||||||||
| Net income (loss) attributable to shareholders from continuing operations | $ | 346,346 | $ | 210,249 | $ | (588,674) | $ | (32,079) | |||||||||||||||
Summary information with respect to the Company’s geographic sources of revenue, based on location of customer and lessee, is as follows:
| Year Ended December 31, 2024 | |||||||||||||||||||||||
| Aerospace Products | Aviation Leasing | Corporate and Other | Total | ||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Africa | $ | 8,271 | $ | 4,643 | $ | — | $ | 12,914 | |||||||||||||||
| Asia | 178,252 | 135,579 | 26,643 | 340,474 | |||||||||||||||||||
| Europe | 364,384 | 324,327 | — | 688,711 | |||||||||||||||||||
| North America | 504,936 | 108,426 | — | 613,362 | |||||||||||||||||||
| South America | 23,978 | 55,462 | — | 79,440 | |||||||||||||||||||
Total revenues (1) | $ | 1,079,821 | $ | 628,437 | $ | 26,643 | $ | 1,734,901 | |||||||||||||||
(1) The United States, included in North America, and Ireland, included in Europe, represent 31% and 16% of total revenues, respectively, based on the location of the Company’s customers and lessees. No other country represents more than 10% of total revenues.
III. For the Year Ended December 31, 2023
| Year Ended December 31, 2023 | |||||||||||||||||||||||
| Aerospace Products | Aviation Leasing | Corporate and Other | Total | ||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Aerospace products revenue | $ | 454,970 | $ | — | $ | — | $ | 454,970 | |||||||||||||||
| Lease income | — | 179,704 | 28,232 | 207,936 | |||||||||||||||||||
| Maintenance revenue | — | 191,347 | — | 191,347 | |||||||||||||||||||
| Asset sales revenue | — | 303,141 | — | 303,141 | |||||||||||||||||||
| Other revenue | — | 7,419 | 6,083 | 13,502 | |||||||||||||||||||
| Total revenues | 454,970 | 681,611 | 34,315 | 1,170,896 | |||||||||||||||||||
| Expenses | |||||||||||||||||||||||
| Cost of sales | 280,280 | 221,852 | — | 502,132 | |||||||||||||||||||
| Operating expenses | 20,459 | 37,876 | 51,828 | 110,163 | |||||||||||||||||||
| General and administrative | — | — | 13,700 | 13,700 | |||||||||||||||||||
| Acquisition and transaction expenses | 1,722 | 7,150 | 6,322 | 15,194 | |||||||||||||||||||
| Management fees and incentive allocation to affiliate | — | — | 18,037 | 18,037 | |||||||||||||||||||
| Depreciation and amortization | 661 | 158,354 | 10,862 | 169,877 | |||||||||||||||||||
| Asset impairment | — | 2,121 | — | 2,121 | |||||||||||||||||||
| Total expenses | 303,122 | 427,353 | 100,749 | 831,224 | |||||||||||||||||||
| Other income (expense) | |||||||||||||||||||||||
| Equity in earnings (losses) of unconsolidated entities | (1,458) | (148) | — | (1,606) | |||||||||||||||||||
| Interest expense | — | — | (161,639) | (161,639) | |||||||||||||||||||
| Other income (expense) | 5,347 | 1,300 | 943 | 7,590 | |||||||||||||||||||
| Total other income (expense) | 3,889 | 1,152 | (160,696) | (155,655) | |||||||||||||||||||
| Income (loss) from continuing operations before income taxes | 155,737 | 255,410 | (227,130) | 184,017 | |||||||||||||||||||
| Provision for (benefit from) income taxes | (24,440) | (36,193) | 833 | (59,800) | |||||||||||||||||||
| Net income (loss) from continuing operations | 180,177 | 291,603 | (227,963) | 243,817 | |||||||||||||||||||
| Less: Dividends on preferred shares | — | — | 31,795 | 31,795 | |||||||||||||||||||
| Net income (loss) attributable to shareholders from continuing operations | $ | 180,177 | $ | 291,603 | $ | (259,758) | $ | 212,022 | |||||||||||||||
Summary information with respect to the Company’s geographic sources of revenue, based on location of customer and lessee, is as follows:
| Year Ended December 31, 2023 | |||||||||||||||||||||||
| Aerospace Products | Aviation Leasing | Corporate and Other | Total | ||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Africa | $ | 875 | $ | 822 | $ | — | $ | 1,697 | |||||||||||||||
| Asia | 18,364 | 101,305 | 34,315 | 153,984 | |||||||||||||||||||
| Europe | 120,439 | 244,055 | — | 364,494 | |||||||||||||||||||
| North America | 301,633 | 285,421 | — | 587,054 | |||||||||||||||||||
| South America | 13,659 | 50,008 | — | 63,667 | |||||||||||||||||||
Total revenues (1) | $ | 454,970 | $ | 681,611 | $ | 34,315 | $ | 1,170,896 | |||||||||||||||
(1) The United States, included in North America, represents 47% of total revenues based on the location of the Company’s customers and lessees. No other country represents more than 10% of total revenues.
IV. Location of long-lived assets
The following tables sets forth summarized geographic location of property, plant and equipment and leasing equipment, net:
| December 31, 2025 | December 31, 2024 | ||||||||||
| Property, plant and equipment and leasing equipment, net | |||||||||||
| Africa | $ | 17,174 | $ | 37,369 | |||||||
| Asia | 323,542 | 596,547 | |||||||||
| Europe | 587,359 | 1,038,176 | |||||||||
| North America | 480,977 | 592,675 | |||||||||
| South America | 256,820 | 216,414 | |||||||||
| Total property, plant and equipment and leasing equipment, net | $ | 1,665,872 | $ | 2,481,181 | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Mar 3, 2025 | |
| 2023 | Feb 26, 2024 | |
| 2022 | Feb 27, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 28, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Mar 1, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Mar 10, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.