How Investors May Respond To FTAI Aviation (FTAI) Securing Engine Exchange Deal With Finnair

• Finnair recently announced it has signed a multi-year Perpetual Power Agreement with FTAI Aviation Ltd. for the exchange of 36 CFM56-5B engines, replacing conventional shop visits to boost operational flexibility, reliability, and cost predictability.
• This agreement leverages FTAI's in-house maintenance capabilities and provides Finnair with guaranteed engine availability, supporting both cost efficiency and improved fleet management.
• Next, we’ll examine how offering guaranteed engine exchanges through this partnership could shape FTAI Aviation’s broader investment narrative.

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FTAI Aviation Investment Narrative Recap

To be a shareholder in FTAI Aviation, you need to believe in the ongoing demand for mid-life engine maintenance and the company's ability to secure recurring revenue through innovative programs like the new Perpetual Power Agreement with Finnair. While this deal aligns with FTAI’s strategy to expand its Maintenance, Repair and Exchange (MRE) programs, its short-term impact on catalysts and risks appears incremental rather than transformative, given the continued reliance on legacy engine platforms and competitive pressures in the aerospace sector.

Among recent company events, FTAI’s strong Q2 2025 results, with revenue reaching US$676.24 million and a swing to net income, reinforce the company’s ability to scale its recurring revenue model. These financial results reflect the broader success of initiatives like the Finnair agreement, supporting confidence in the core MRE business while highlighting the continuing risk tied to market shifts away from legacy engine models.

However, despite the revenue upside, investors should consider the concentration risk around legacy engines, especially as...

Read the full narrative on FTAI Aviation (it's free!)

FTAI Aviation's outlook anticipates $3.7 billion in revenue and $1.1 billion in earnings by 2028. This reflects a 19.8% annual revenue growth rate and a $683.5 million increase in earnings from the current $416.5 million.

Uncover how FTAI Aviation's forecasts yield a $191.00 fair value, a 13% upside to its current price.

Exploring Other Perspectives

Four Simply Wall St Community members estimate FTAI’s fair value between US$16.83 and US$412.19, showing substantial opinion gaps. That range stands in the context of FTAI’s expanding Maintenance, Repair and Exchange programs, which could change long-term performance expectations, see how alternative market views shape your understanding.

Explore 4 other fair value estimates on FTAI Aviation - why the stock might be worth less than half the current price!

Build Your Own FTAI Aviation Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your FTAI Aviation research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free FTAI Aviation research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate FTAI Aviation's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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