What changed in this filing

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Item 1. Financial Statements

2026-05-01 compared with 2025-10-29 · 246 added, 450 removed, 553 unchanged (56% of the section changed)

3 unchanged sentences

(Dollars in thousands, except share and per share data)

Notes September 30, 2025 December 31, 2024

Notes March 31, 2026 December 31, 2025

Current Assets

3 unchanged sentences

Inventory, net 2 1,364,256 1,193,773

Assets held for sale 2 75,703 —

Other current assets (2)

13 unchanged sentences

Current security deposits 12,354 14,001

Liabilities held for sale 2 23,420 —

Other current liabilities 2 96,774 62,202

8 unchanged sentences

2,000,000,000 shares authorized;

102,572,000 and 102,550,975 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively)

102,580,660 and 102,573,283 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively)

$ 1,026 $ 1,026

1 unchanged sentence

200,000,000 shares authorized;

6,800,000 and 11,740,000 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively)

6,800,000 and 6,800,000 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively)

Additional paid in capital 54,911 50,567

Retained earnings (accumulated deficit) 277,919 ( 73,103 )

Retained earnings 375,671 282,513

Shareholders' equity 431,676 334,174

Total liabilities and equity $ 4,528,911 $ 4,373,758

______________________________________________________

(1) Includes accounts receivable from the 2025 Partnership of $ 50,856 and $ 0 as of September 30, 2025 and December 31, 2024, respectively.

(2) Includes receivables from the 2025 Partnership of $ 17,585 and $ 0 as of September 30, 2025 and December 31, 2024, respectively.

(1) Includes accounts receivable from the 2025 Partnership of $ 35,422 and $ 47,294 as of March 31, 2026 and December 31, 2025, respectively.

(2) Includes receivables from the 2025 Partnership of $ 18,908 and $ 20,681 as of March 31, 2026 and December 31, 2025, respectively.

See accompanying notes to consolidated financial statements.

2 unchanged sentences

(Dollars in thousands, except share and per share data)

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

Notes 2026 2025

5 unchanged sentences

Other revenue (1)

3,292 2,005 5,831 6,104

Total revenues 11 830,697 502,080

3 unchanged sentences

Acquisition and transaction expenses 16,361 7,292

Management fees and incentive allocation to affiliate 11 — — — 8,449

Internalization fee to affiliate 15 — — — 300,000

Depreciation and amortization 3, 5 52,289 59,562

Asset impairment — — — 962

Total expenses 660,318 351,122

1 unchanged sentence

Interest expense ( 61,407 ) ( 62,040 )

Loss on extinguishment of debt — — — ( 13,920 )

Equity in losses of unconsolidated entities (2)

3 unchanged sentences

Total other expense ( 1,020 ) ( 25,713 )

Income (loss) before income taxes 144,048 93,813 472,569 ( 93,896 )

Provision for (benefit from) income taxes 10 26,330 7,331 87,067 ( 130 )

Net income (loss) 117,718 86,482 385,502 ( 93,766 )

Income before income taxes

169,359 125,245

Provision for income taxes

9 31,460 22,859

137,899 102,386

Dividends on preferred shares 3,709 6,115

Loss on redemption of preferred shares — 6,327

Net income (loss) attributable to shareholders $ 114,009 $ 78,147 $ 365,642 $ ( 118,771 )

Earnings (loss) per share:

Net income attributable to shareholders

$ 134,190 $ 89,944

Earnings per share:

Basic $ 1.31 $ 0.88

3 unchanged sentences

Diluted 104,255,902 103,159,051

______________________________________________________

(1) Includes servicing fees of $ 3,035 and $ 5,635 for the three and nine months ended September 30, 2025, respectively, from the 2025 Partnership.

(2) Includes the profit elimination of $( 3,908 ) and $( 15,793 ) for the three and nine months ended September 30, 2025, respectively, for sales to the 2025 Partnership.

(1) Includes servicing fees of $ 5,861 and $ 0 for the three months ended March 31, 2026 and 2025, respectively, from the 2025 Partnership.

(2) Includes the profit elimination of $( 10,000 ) and $( 6,950 ) for the three months ended March 31, 2026 and 2025, respectively, for sales to the 2025 Partnership.

See accompanying notes to consolidated financial statements.

2 unchanged sentences

(Dollars in thousands)

Three and Nine Months Ended September 30, 2025

Ordinary Shares Preferred Shares Additional Paid In Capital (Accumulated Deficit) Retained Earnings Total Equity

Three Months Ended March 31, 2026

Ordinary Shares Preferred Shares Additional Paid In Capital Retained Earnings

Equity - December 31, 2025 $ 1,026 $ 68 $ 50,567 $ 282,513 $ 334,174

1 unchanged sentence

Total comprehensive income 137,899 137,899

Redemption of preferred shares ( 49 ) ( 117,791 ) ( 117,840 )

Loss on redemption of preferred shares ( 6,327 ) ( 6,327 )

Issuance of ordinary shares 140 140

2 unchanged sentences

Equity-based compensation 6,347 6,347

Equity - June 30, 2025 $ 1,026 $ 68 $ ( 30,831 ) $ 194,681 $ 164,944

Net income 117,718 117,718

Total comprehensive income 117,718 117,718

Issuance of ordinary shares 124 124

Dividends declared - ordinary shares ( 30,771 ) ( 30,771 )

Dividends declared - preferred shares ( 3,709 ) ( 3,709 )

Equity-based compensation 5,655 5,655

Net settlement on vesting of equity awards ( 2,143 ) ( 2,143 )

( 1,497 ) ( 1,497 )

Equity - September 30, 2025 $ 1,026 $ 68 $ ( 26,549 ) $ 277,919 $ 252,464

See accompanying notes to consolidated financial statements.

FTAI AVIATION LTD.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (unaudited)

(Dollars in thousands)

Three and Nine Months Ended September 30, 2024

Ordinary Shares Preferred Shares Additional Paid In Capital Accumulated Deficit Non-Controlling Interest in Equity of Consolidated Subsidiaries Total Equity

Equity - March 31, 2026 $ 1,026 $ 68 $ 54,911 $ 375,671 $ 431,676

Three Months Ended March 31, 2025

Ordinary Shares Preferred Shares Additional Paid In Capital (Accumulated Deficit) Retained Earnings

Equity - December 31, 2024 $ 1,026 $ 117 $ 153,328 $ ( 73,103 ) $ 81,368

Net loss ( 180,248 ) ( 180,248 )

102,386 102,386

Total comprehensive income 102,386 102,386

Purchase of non-controlling interest $ ( 534 ) ( 534 )

Dividends declared - ordinary shares ( 60,148 ) ( 60,148 )

Dividends declared - preferred shares ( 16,670 ) ( 16,670 )

Redemption of preferred shares ( 49 ) ( 117,791 ) ( 117,840 )

Loss on redemption of preferred shares

( 6,327 ) ( 6,327 )

Issuance of ordinary shares 739 739

Equity-based compensation 1,148 1,148

Equity - June 30, 2024 $ 1,022 $ 159 $ 330,419 $ ( 262,033 ) $ — $ 69,567

Net income 86,482 86,482

Total comprehensive income 86,482 86,482

Dividends declared - ordinary shares ( 30,767 ) ( 30,767 )

Dividends declared - preferred shares ( 6,115 ) ( 6,115 )

Issuance of ordinary shares 3 46 49

Equity-based compensation 4,889 4,889

Equity - September 30, 2024 $ 1,025 $ 159 $ 292,899 $ ( 175,551 ) $ — $ 118,532

Equity - March 31, 2025 $ 1,026 $ 68 $ ( 2,044 ) $ 29,283 $ 28,333

See accompanying notes to consolidated financial statements.

2 unchanged sentences

(Dollars in thousands)

Nine Months Ended September 30,

Three Months Ended March 31,

Cash flows from operating activities:

Net income (loss) $ 385,502 $ ( 93,766 )

Adjustments to reconcile net income (loss) to net cash used in operating activities:

Net income $ 137,899 $ 102,386

Adjustments to reconcile net income to net cash used in operating activities:

Equity in losses of unconsolidated entities (1)

3 unchanged sentences

Security deposits and maintenance claims included in earnings ( 1,783 ) ( 3,559 )

Loss on extinguishment of debt — 13,920

Equity-based compensation 6,347 4,889

Non-cash termination fee to affiliate — 150,000

Depreciation and amortization 52,289 59,562

Asset impairment — 962

Deferred income taxes 12,208 20,683

2 unchanged sentences

Amortization of deferred financing costs 3,054 2,830

Provision for credit losses 276 2,784

Other 1,649 210

8 unchanged sentences

Investment in unconsolidated entities ( 1,246 ) ( 19,967 )

Return of capital from unconsolidated entities 27,113 —

Principal collections on finance leases 1,580 1,872

Principal collections on notes receivable 1,565 989

Acquisition of business, net of cash acquired ( 37,133 ) ( 143,634 )

Acquisition of leasing equipment ( 87,793 ) ( 267,417 )

Investments in financing receivables — ( 2,764 )

Investment in promissory notes

Acquisition of property, plant and equipment ( 6,641 ) ( 4,156 )

12 unchanged sentences

(Dollars in thousands)

Nine Months Ended September 30,

Three Months Ended March 31,

Cash flows from financing activities:

6 unchanged sentences

Release of maintenance deposits under operating lease agreements ( 5,323 ) ( 4,246 )

Capital contributions from non-controlling interests — ( 534 )

Settlement of equity-based compensation ( 2,143 ) —

10 unchanged sentences

Acquisition of leasing equipment in accrued liabilities ( 15,895 ) ( 8,341 )

Receipt of leasing equipment in settlement of accounts receivable ( 5,118 ) —

Purchase deposits reclassified to leasing equipment from other assets upon acquisition — ( 17,027 )

Decrease in leasing equipment for engines provided to aircraft lessees in lieu of cash reimbursements of maintenance deposits 2,199 —

Accounts receivable settled with security deposits ( 2,110 ) ( 4,365 )

Accounts receivable settled with maintenance deposits ( 1,484 ) ( 5,787 )

______________________________________________________

(1) Includes the profit elimination of $( 15,793 ) for the nine months ended September 30, 2025, for sales to the 2025 Partnership within the Aerospace Products segment.

(2) Includes deposits for acquisition of leasing equipment paid on behalf of the 2025 Partnership of $ 23,473 for the nine months ended September 30, 2025, and return of deposits for the acquisition of leasing equipment reimbursed from the 2025 Partnership of $ 42,813 for the nine months ended September 30, 2025.

(1) Includes the profit elimination of $( 10,000 ) and $( 6,950 ) for the three months ended March 31, 2026 and 2025, respectively, for sales to the 2025 Partnership within the Aerospace Products segment.

(2) Includes deposits for acquisition of leasing equipment paid on behalf of the 2025 Partnership of $ 0 and $ 25,400 for the three months ended March 31, 2026 and 2025, respectively, and return of deposits for the acquisition of leasing equipment reimbursed from the 2025 Partnership of $ 0 and $ 42,813 for the three months ended March 31, 2026 and 2025, respectively.

See accompanying notes to consolidated financial statements.

2 unchanged sentences

(Dollars in tables in thousands, unless otherwise noted)

This report on Form 10-Q should be read in conjunction with the FTAI Aviation Ltd.(“FTAI”, “FTAI Aviation” or “the Company”) Annual Report on Form 10-K for the fiscal year ended December 31, 2024 (“Form 10-K”).

FTAI Aviation is a Cayman Islands exempted company, which through its subsidiaries, is a leading full-service provider for CFM56-5B, CFM56-7B and V2500 aircraft engines, which power the majority of the world’s fleet of narrowbody aircraft.

The Company owns and leases aircraft and engines to airlines and asset owners globally.

Additionally, the Company repairs and sells refurbished engines and aftermarket components of engines as well as develops and manufactures Parts Manufacturer Approval (“PMA”) parts through a joint venture.

The Company has two reportable segments, (i) Aviation Leasing and (ii) Aerospace Products (see Note 12).

The Company conducts engine maintenance at its 100% owned facilities in Montréal, Miami, and Orange, as well as through its 50 % equity ownership in QuickTurn Europe, located in Rome.

Collectively, these facilities span over 950,000 square feet and are equipped with advanced tooling, engine test cells, and engineering capabilities to support a wide range of component repairs and service requirements.

This report on Form 10-Q should be read in conjunction with the FTAI Aviation Ltd.

(“FTAI”, “FTAI Aviation” or “the Company”) Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (“Form 10-K”).

FTAI Aviation is a Cayman Islands exempted company, which through its subsidiaries, is a leading independent engine maintenance platform focused on the CFM56-5B, CFM56-7B and V2500 aircraft engines which power the 737NG and A320ceo aircraft.

The Company repairs and rebuilds engines and aftermarket components of engines as well as develops and manufactures Parts Manufacturer Approval (“PMA”) parts through a joint venture.

Additionally, the Company owns and manages leased aircraft and engines to airlines and asset owners globally.

On December 30, 2025, the Company announced the launch of FTAI Power, a platform focused on converting CFM56 aircraft engines to aeroderivative power turbines.

The Company has two reportable segments, (i) Aerospace Products and (ii) Aviation Leasing (see Note 11).

The Company conducts engine maintenance at its 100% owned facilities in Montréal, Miami, Lisbon, and Orange, as well as through its 50 % equity ownership in QuickTurn Europe, located in Rome, and 50 % equity ownership in Prime Engine Accessories, located in Bristol.

Collectively, these facilities span over one million square feet and are equipped with advanced tooling, engine test cells, and engineering capabilities to support a wide range of component repairs and service requirements.

In addition, the Company also supports global operations through exclusive arrangements and strategic partnerships at key locations worldwide.

The Company’s principal corporate location is in New York City, and has a global presence through offices in Cardiff, Dubai, Dublin and Singapore, in addition to Montréal, Miami, Orange and Rome.

The Company’s principal corporate location is in New York City, and has a global presence through offices in Cardiff, Dubai, Dublin and Singapore, in addition to Montréal, Miami, Orange, Lisbon, Rome and Bristol.

The majority of FTAI’s target customers are small and medium sized airlines which have narrowbody fleets powered by CFM56-5B, CFM56-7B and V2500 engines.

6 unchanged sentences

All adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.

The ownership interest of other investors in the Company’s consolidated subsidiaries is recorded as non-controlling interest.

The Company uses the equity method of accounting for investments in entities in which it exercises significant influence but does not meet the requirements for consolidation.

The Company uses the equity method of accounting for investments in entities in which it exercises significant influence, but which does not meet the requirements for consolidation.

Under the equity method, the Company records its proportionate share of the underlying net income (loss) of these entities.

7 unchanged sentences

Capital market risk is the risk that the Company is unable to obtain capital at reasonable rates to fund the growth of its business or to refinance existing debt facilities.

The Company, through our subsidiaries, also conducts operations outside of the United States;

The Company, through its subsidiaries, also conducts operations outside of the United States;

such international operations are subject to the same risks as those associated with the Company’s United States operations as well as additional risks, including unexpected changes in regulatory requirements, heightened risk of political and economic instability, potentially adverse tax consequences and the burden of complying with foreign laws.

7 unchanged sentences

(Dollars in tables in thousands, unless otherwise noted)

Revenues — Revenues are within the scope of ASC 842, Leases, and ASC 606, Revenue from contracts with customers .

Revenues — Revenues are within the scope of ASC 606, Revenue from contracts with customers and ASC 842, Leases, unless otherwise noted .

The Company has elected to exclude sales tax and other similar taxes from revenues.

Aerospace Products Revenue — Aerospace products revenue primarily consists of the transaction price related to the sale of CFM56-7B, CFM56-5B and V2500 engines, engine modules, spare parts and used material inventory, and are accounted for within the scope of ASC 606.

Revenue is recognized at the point in time when a performance obligation is satisfied by transferring control over the related asset to a customer along with corresponding costs of sales.

Aerospace products revenue also consists of engine management service contracts, where the Company has a stand-ready obligation to provide replacement CFM56-7B and CFM56-5B engines to customers as they become unserviceable during the contract term.

The Company recognizes revenue related to these engine management service contracts over time using a straight-line attribution method and the costs related to fulfilling the performance obligation are expensed as incurred.

Maintenance, Repair and Exchange (“MRE”) Contract revenue — MRE Contract revenue consists of the transaction price related to the sale of CFM56-5B, CFM56-7B and V2500 commercial aircraft engines and related modules to, and subsequent exchange of unserviceable engines and modules from, the special purpose entities (the “SPVs”) of the first partnership of the Strategic Capital Initiative (the “2025 Partnership”).

The net cash purchase price received by the Company is contractual and customary market-based compensation for fulfilling such performance obligations.

MRE Contract revenue is recognized under ASC 606 at the point in time when a performance obligation is satisfied by transferring control of the serviceable engine or module to the 2025 Partnership, along with corresponding costs of sales.

Refer to Note 10 “Affiliate Transactions and Former Management Agreement” for additional information on the 2025 Partnership and the Strategic Capital Initiative.

Operating Leases — The Company leases equipment pursuant to operating leases.

7 unchanged sentences

Maintenance payments received for which the Company expects to repay to the lessee are presented as current and non-current Maintenance deposits in its Consolidated Balance Sheets.

All excess maintenance payments received that the Company does not expect to repay to the lessee are recorded as Maintenance revenue on its Consolidated Statements of Operations.

Estimates in recognizing revenue include mean time between removal, projected costs for engine maintenance and forecasted utilization of aircraft which are affected by historical usage patterns and overall industry, market and economic conditions.

Excess maintenance payments received that the Company does not expect to repay to the lessee are recorded as Maintenance revenue on its Consolidated Statements of Operations.

Estimates in recognizing revenue include mean time between removal for engines on leased aircraft, projected costs for engine maintenance, and forecasted utilization, which are affected by historical usage patterns and overall industry, market and economic conditions.

Significant changes to these estimates could have a material effect on the amount of revenue recognized in the period.

For purchase and lease back transactions, we account for the transaction as a single arrangement.

We allocate the consideration paid based on the relative fair value of the aircraft and lease.

The fair value of the lease may include a lease premium or discount, which is recorded as a favorable or unfavorable lease intangible.

Finance Leases — From time to time the Company enters into finance lease arrangements that include a lessee obligation to purchase the leased equipment at the end of the lease term, a bargain purchase option, or provides for minimum lease payments with a present value that equals or exceeds substantially all of the fair value of the leased equipment at the date of lease inception.

10 unchanged sentences

Revenue is recognized when a performance obligation is satisfied by transferring control of an asset to the customer along with corresponding costs of sales.

Aerospace products revenue — Aerospace products revenue primarily consists of the transaction price related to the sale of CFM56-5B, CFM56-7B and V2500 engines, engine modules, spare parts and used material inventory, and are accounted for within the scope of ASC 606.

Revenue is recognized gross when a performance obligation is satisfied by transferring control over the related asset to a customer along with corresponding costs of sales.

Aerospace products revenue also consists of engine management service contracts, where the Company has a stand-ready obligation to provide replacement CFM56-5B and CFM56-7B engines to customers as they become unserviceable during the contract term.

The Company recognizes revenue over time using a straight-line attribution method and the costs related to fulfilling the performance obligation are expensed as incurred.

Maintenance, Repair and Exchange (“MRE”) Contract revenue — MRE Contract revenue consists of the transaction price related to the sale of CFM56-5B, CFM56-7B and V2500 commercial aircraft engines and related modules to, and subsequent exchange of unserviceable engines and modules from, the special purpose entities (the “SPVs”) of the first partnership of the strategic capital initiative (the “2025 Partnership”).

MRE Contract revenue is recognized under ASC 606 when a performance obligation is satisfied by transferring control of the serviceable engine or module to the 2025 Partnership, along with corresponding costs of sales.

Refer to Note 11 “Affiliate Transactions and Former Management Agreement” for additional information on the 2025 Partnership and the strategic capital initiative.

Other Income — The 2025 Partnership committed to acquire 45 on-lease narrowbody aircraft from the Company (the “Seed Assets”) and has signed an agreement through which the Company’s MRE business will provide replacement aircraft engines and modules for the life of the 2025 Partnership.

During the three and nine months ended September 30, 2025, 8 and 45 of the aircraft were sold for a gain of $ 4.6 million and $ 50.1 million, respectively, which was recognized within gain on sale to the 2025 Partnership.

The aircraft sales are accounted for under ASC 610-20, Other Income — Gains and Losses from the Derecognition of Nonfinancial Assets , as they are non-recurring in nature and not considered part of the Company’s ordinary activities.

FTAI AVIATION LTD.

1 unchanged sentence

(Dollars in tables in thousands, unless otherwise noted)

During the three and nine months ended September 30, 2025, the Company received $ 0.0 million and $ 54.3 million, respectively, in insurance recoveries in connection with the settlement of claims related to the aircraft and engines located in Russia and recorded the gain within other income.

Other (Expense) Income

Gain on Sale to the 2025 Partnership — The 2025 Partnership acquires on-lease narrowbody aircraft from the Company (the “Seed Assets”) and receives replacement aircraft engines and modules through the Company’s MRE business.

During the three months ended March 31, 2026 and 2025, 9 and 4 aircraft were sold to the 2025 Partnership for a gain of $ 15.2 million and $ 10.9 million, respectively.

The aircraft sales were accounted for under ASC 610-20, Other Income — Gains and Losses from the Derecognition of Nonfinancial Assets , as they were non-recurring in nature and not considered part of the Company’s ordinary activities.

Refer to Note 10 “Affiliate Transactions and Former Management Agreement” for additional information on the 2025 Partnership and the Strategic Capital Initiative.

Other Income — During the three months ended March 31, 2026 and 2025, the Company recognized $ 44.6 million and $ 30.1 million, respectively, in insurance recoveries in connection with the settlement of claims related to the aircraft and engines located in Russia and recorded the gain within other income.

Concentration of Credit Risk — The Company is subject to concentrations of credit risk with respect to amounts due from customers and lessees.

The Company attempts to limit its credit risk by performing ongoing credit evaluations.

The Company earned 16 % and 11 % of its revenue from two customers in the Aerospace Products segment during the three months ended September 30, 2025.

The Company earned 12 % of its revenue from one customer in the Aerospace Products segment during the nine months ended September 30, 2025.

No single customer accounted for greater than 10% of total revenue during the three and nine months ended September 30, 2024.

As of September 30, 2025, there were two customers in the Aerospace Products segment that represented 25 % and 11 % of total accounts receivable, net.

As of December 31, 2024, no single customer accounted for greater than 10% of total accounts receivable, net.

The Company earned 28 %, 17 %, and 10 % of its revenue from three customers in the Aerospace Products segment during the three months ended March 31, 2026.

The Company earned 19 % of its revenue from one customer in the Aerospace products segment during the three months ended March 31, 2025.

As of March 31, 2026, there was one customer in the Aerospace Products segment that represented 21 % of total accounts receivable, net.

As of December 31, 2025, there was one customer in the Aerospace Products segment that represented 23 % of total accounts receivable, net.

The Company maintains cash and restricted cash balances, which generally exceed federally insured limits, and subject the Company to credit risk, in high credit quality financial institutions.

2 unchanged sentences

In assessing the allowance, the Company considers past collection history and specific risks identified among uncollected accounts.

The assessment of collectability of its leasing receivables, notes receivables and inventory sales is done on a customer-by-customer basis.

The allowance for doubtful accounts was $ 28.4 million and $ 74.9 million as of September 30, 2025 and December 31, 2024, respectively .

There was a provision for credit losses of $ 0.1 million and $ 0.3 million for the three and nine months ended September 30, 2025, respectively, and $ 2.7 million and $ 2.8 million for the three and nine months ended September 30, 2024, respectively.

The assessment of collectability of its leasing receivables, notes receivables and inventory sales is done quarterly, on a customer-by-customer basis.

The allowance for doubtful accounts was $ 28.4 million and $ 28.4 million as of March 31, 2026 and December 31, 2025, respectively .

There was a provision for credit losses of $ 0.0 million and $ 0.2 million for the three months ended March 31, 2026 and 2025, respectively.

The provision for credit losses is included in the Company's operating expenses.

Receivables are written off after all reasonable means to collect the full amount have been exhausted.

For the three and nine months ended September 30, 2025, the Company recorded write-offs and recoveries, net, of its allowance for doubtful accounts of $ 0.1 million and $ 46.8 million, respectively.

Other Current Assets — Other current assets are summarized as follows:

September 30, 2025 (unaudited) December 31, 2024

March 31, 2026 (unaudited) December 31, 2025

Notes receivable $ 259,652 $ 216,298

Financing receivable resulting from failed sale-leaseback transactions 36,008 32,486

Prepaid expenses including prepayments for maintenance that has not yet been incurred 187,240 79,806

Purchase deposits 13,471 83,229

Maintenance right assets 18,716 —

Tax assets 7,506 31,622

Contract asset from the 2025 Partnership 17,585 —

Financing receivable resulting from failed sale-leaseback transactions 32,815 37,740

Other 81,495 74,520

Other current assets $ 561,202 $ 408,364

Other Non-Current Assets — Other non-current assets are summarized as follows:

September 30, 2025 (unaudited) December 31, 2024

Lease incentives $ 47,320 $ 56,812

Deferred tax assets 27,225 42,893

Operating lease assets 30,906 28,729

Financing receivable resulting from failed sale-leaseback transactions 22,728 28,412

Maintenance right assets 4,624 25,907

Engine management contract assets 10,292 7,162

Other Current Liabilities — Other current liabilities are summarized as follows:

March 31, 2026 (unaudited) December 31, 2025

Customer deposits and advanced payments

47,871 $ 33,755

Tax liabilities

34,224 15,264

Other 14,679 13,183

Other non-current assets $ 155,746 $ 208,430

Other current liabilities $ 96,774 $ 62,202

Assets Held for Sale — The Company classifies assets as held for sale when the Company commits to a plan to sell and it is probable that the sale will be completed within one year.

These assets are recorded at the lower of their carrying value or fair market value, less costs to sell, starting from the period in which they meet the criteria for this classification.

The Company expects to sell the remaining five Seed Assets to the 2025 Partnership and has classified them as held for sale.

Upon reclassification, depreciation of the long-lived assets within the disposal group ceased, and the related assets and liabilities were transferred to assets held for sale and liabilities held for sale, respectively.

The sales are expected to be completed in the

FTAI AVIATION LTD.

1 unchanged sentence

(Dollars in tables in thousands, unless otherwise noted)

Other Current Liabilities — Other current liabilities are summarized as follows:

September 30, 2025 (unaudited) December 31, 2024

Deposits on sales of leasing equipment 37,551 $ 87,296

Other 3,734 13,269

Other current liabilities $ 41,285 $ 100,565

second quarter of 2026.

Refer to Note 10 “Affiliate Transactions and Former Management Agreement” for additional information on the 2025 Partnership.

The assets and liabilities include the aircraft previously classified as leasing equipment, as well as related intangible assets and liabilities, and maintenance and security deposit liabilities.

The sale of the Seed Assets is treated as a single transaction and one disposal group under ASC 360, Property, plant and equipment , with the aggregate purchase price for Seed Assets, less costs to sell, exceeding the disposal group’s net book value.

Assets and liabilities held for sale are summarized as follows:

March 31, 2026 (unaudited)

Leasing equipment, net $ 75,683

Other non-current assets 20

Assets held for sale $ 75,703

Current maintenance deposits $ 5,349

Non-current maintenance deposits 10,479

Non-current security deposits 1,364

Other non-current liabilities 6,228

Liabilities held for sale $ 23,420

Dividends — Dividends are recorded if and when declared by the Board of Directors.

For the three and nine months ended September 30, 2025, the Board of Directors declared cash dividends of $ 0.35 and $ 0.95 per ordinary share, respectively.

For the three and nine months ended September 30, 2024, the Board of Directors declared cash dividends of $ 0.30 and $ 0.90 per ordinary share, respectively.

Additionally, in the three months ended September 30, 2025, the Board of Directors declared cash dividends on the Series C Preferred Shares and Series D Preferred Shares of $ 0.52 and $ 0.59 per share, respectively.

For the three months ended March 31, 2026, the Board of Directors declared cash dividends of $ 0.45 per ordinary share.

For the three months ended March 31, 2025, the Board of Directors declared cash dividends of $ 0.30 per ordinary share.

Additionally, in the three months ended March 31, 2026, the Board of Directors declared cash dividends on the Series C Preferred Shares and Series D Preferred Shares of $ 0.52 and $ 0.59 per share, respectively.

Cash Flow Presentation — Included in net cash (used in) provided by operating activities are inflows from the sale of engine modules and parts that were on engines originally purchased and reported as leasing equipment, net.

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When the expected predominant source of cash inflows is from sales transactions, the related cash outflow is reported as an outflow in net cash (used in) provided by operating activities.

The cash and noncash related activities described above during the nine months ended September 30, 2025 and 2024 are detailed below (unaudited):

Nine Months Ended September 30,

FTAI AVIATION LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in tables in thousands, unless otherwise noted)

The cash and noncash related activities described above during the three months ended March 31, 2026 and 2025 are detailed below (unaudited):

Three Months Ended March 31,

(in thousands) 2026 2025

7 unchanged sentences

Cash paid for engine and aircraft inventory - outflow included in net cash used in operating activities ( 156,339 ) ( 15,835 )

Recent Accounting Pronouncements — In August 2023, the FASB issued ASU 2023‑05, Business Combinations – Joint Venture Formations , which requires that joint ventures, upon formation, apply a new basis of accounting by initially measuring assets and liabilities at fair value.

The amendments in ASU 2023‑05 are effective for joint ventures that are formed on or after January 1, 2025.

The adoption of ASU 2023-05 did not have a material impact on the Company’s consolidated financial statements.

FTAI AVIATION LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in tables in thousands, unless otherwise noted)

In July 2025, the FASB issued ASU 2025-05, Financial Instruments - Credit Losses (Topic 326):

Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements — In July 2025, the FASB issued ASU 2025-05, Financial Instruments - Credit Losses (Topic 326):

Measurement of Credit Losses for Accounts Receivable and Contract Assets, which provides a practical expedient in developing reasonable and supportable forecasts as apart of estimating expected credit losses, allowing entities to assume that current conditions as of the balance sheet date do not change for the remaining life of the asset.

The amendments in ASU 2025-05 are effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods.

The Company is currently evaluating the impact of this update on its consolidated financial statements and related disclosures.

There have been no other changes to the discussion of recently issued accounting standards included in our Annual Report on Form 10‑K for the year ended December 31, 2024.

Specifically, the Company continues to monitor the future adoption of ASU 2023‑09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures , and ASU 2024‑03, Income Statement—Reporting Comprehensive Income (Topic 220):

Improvements to Reportable Segment Expense Disclosures , both of which have future effective dates.

The Company is currently evaluating the impact these standards may have on its consolidated financial statements and related disclosures.

ACQUISITION OF LOCKHEED MARTIN COMMERCIAL ENGINE SOLUTIONS

On September 9, 2024, the Company, through its subsidiary FTAIC Aviation Inc.

(“FTAIC”) created on April 25, 2024, acquired certain assets and assumed certain liabilities of Lockheed Martin Commercial Engine Solutions (“LMCES”) from Lockheed Martin Canada for total consideration of $ 170.0 million.

LMCES is a 526,000-square-foot aircraft engine maintenance repair facility located in Montréal, Quebec.

The Company acquired LMCES to further enhance its MRE business and establish permanent engine and module manufacturing capabilities in Canada.

The facility operates within its Aerospace Products segment, providing extensive engine and piece-part repair capabilities for the CFM56-5B and CFM56-7B engines.

The results of operations of LMCES have been included in the Company’s results since the effective date of the acquisition.

The acquisition of LMCES was accounted for as a business combination and, as such, the following fair values were assigned to assets acquired and liabilities assumed based on the Company’s estimates and assumptions.

The significant assumptions used to estimate the fair values of the property, plant, and equipment and inventory included replacement cost estimates and market data for similar assets where available.

Subsequent to the acquisition, in the nine months ended September 30, 2025, measurement period adjustments as of the acquisition date were made as a result of the finalization of the net working capital adjustments which increased total consideration by $ 14.1 million.

This adjustment resulted in an increase in goodwill of $ 14.1 million.

The following table summarizes the allocation of the net assets acquired:

September 9, 2024

Fair value of assets acquired:

Current Assets

Accounts receivable $ 10,758

Inventory 25,498

Other current assets 6,795

Total current assets 43,051

Property, plant, and equipment 72,151

Leasing equipment 5,675

Other non-current assets 10,633

Total assets 131,510

Fair value of liabilities assumed:

Current Liabilities

Accounts payable 7,669

Accrued liabilities 1,692

Other current liabilities 5,130

Total current liabilities 14,491

Other non-current liabilities 14,347

Total liabilities 28,838

Net assets acquired (2)

________________________________________________________

(1) Goodwill is primarily attributable to the assembled workforce of FTAIC and the synergies expected to be achieved.

This goodwill is assigned to the Aerospace Products segment and is deductible for income tax purposes.

(2) Total consideration is calculated as cash paid, adjusted for the settlement of pre-existing relationships.

FTAI AVIATION LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in tables in thousands, unless otherwise noted)

The following table presents fair values of the components of property, plant and equipment acquired and their estimated useful lives:

Estimated useful life in years Estimated Fair value

Buildings and improvements 25 $ 40,953

Machinery and equipment 2 - 21

Other N/A 801

Total $ 72,151

The unaudited financial information in the table below summarizes the combined results of operations of FTAI and LMCES on a pro forma basis.

These pro forma results were based on estimates and assumptions which the Company believes are reasonable.

The pro forma adjustments are primarily comprised of the following:

• The allocation of the purchase price and related adjustments, including adjustments to depreciation and amortization expense related to the fair value of property, plant and equipment;

• Associated tax-related impacts of adjustments.

The following unaudited pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place as of January 1, 2024.

Three Months Ended Nine Months Ended

September 30, 2024 September 30, 2024

Total revenue $ 479,277 $ 1,283,520

Net income attributable to shareholders $ 83,727 $ ( 122,542 )

The Company adopted this guidance in the first quarter of 2026.

However, the Company does not expect to elect the practical expedient or make the accounting policy election provided by the ASU and, accordingly, does not expect the amendments to have an impact on its consolidated financial statements.

Accounting Pronouncements Not Yet Adopted — There have been no other changes to the discussion of recently issued accounting standards included in our Annual Report on Form 10‑K for the year ended December 31, 2025.

Specifically, the Company continues to monitor the future adoption of ASU 2024‑03, Income Statement—Reporting Comprehensive Income (Topic 220):

Improvements to Reportable Segment Expense Disclosures , which has a future effective date.

The Company is currently evaluating the impact this standard may have on its consolidated financial statements and related disclosures.

LEASING EQUIPMENT, NET

Leasing equipment, net is summarized as follows:

September 30, 2025 (unaudited) December 31, 2024

March 31, 2026 (unaudited) December 31, 2025

Leasing equipment $ 1,638,528 $ 2,057,624

2 unchanged sentences

The Company identified certain assets in its leasing equipment portfolio with indicators of impairment.

During the three and nine months ended September 30, 2025, the Company did not record any transactional impairment charges.

In comparison, for the three and nine months ended September 30, 2024, the Company recognized transactional impairment charges of $ 0.0 million and $ 1.0 million, respectively, net of redelivery compensation.

During the three months ended March 31, 2026 and 2025, the Company did not record any transactional impairment charges.

Depreciation expense for leasing equipment is summarized as follows (unaudited):

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

Three Months Ended March 31,

Depreciation expense for leasing equipment $ 47,310 $ 55,886

4 unchanged sentences

Carrying Value

Investment Ownership Percentage September 30, 2025 (unaudited) December 31, 2024

Investment Ownership Percentage March 31, 2026 (unaudited) December 31, 2025

Advanced Engine Repair JV Equity method 25 % $ 22,368 $ 22,429

1 unchanged sentence

QuickTurn Europe Equity method 50 % 10,008 9,987

Various 1,246 —

$ 313,039 $ 314,156

The Company did not recognize any other-than-temporary impairments for the three and nine months ended September 30, 2025 and 2024.

The Company did not recognize any other-than-temporary impairments for the three months ended March 31, 2026 and 2025.

The following table presents the Company’s proportionate share of equity in (losses) earnings (unaudited):

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

Three Months Ended March 31,

Advanced Engine Repair JV $ ( 61 ) $ 113

1 unchanged sentence

( 2,323 ) ( 7,727 )

Falcon MSN 177 LLC (2)

— — — ( 207 )

QuickTurn Europe 21 —

Total $ ( 2,363 ) $ ( 7,614 )

______________________________________________________

(1) Includes the profit elimination of $( 3,908 ) and $( 15,793 ) for the three and nine months ended September 30, 2025, respectively, for sales to the 2025 Partnership.

(2) On May 3, 2024, the Company purchased the remaining interest of Falcon MSN 177 LLC (“Falcon”).

As a result, Falcon became a consolidated subsidiary, and is no longer accounted for as an equity method investment.

(1) Includes the profit elimination of $( 10,000 ) and $( 6,950 ) for the three months ended March 31, 2026 and 2025, respectively, for sales to the 2025 Partnership.

Equity Method Investments

4 unchanged sentences

The Company exercises significant influence over this investment and accounts for this investment as an equity method investment.

Falcon MSN 177 LLC

Since November 2021, the Company owned a 50 % interest in Falcon MSN 177 LLC (“Falcon”), an entity that consists of one Dassault Falcon 2000 aircraft.

Falcon leases the aircraft to charter operators on aircraft, crew maintenance, and insurance contracts.

The Company accounted for its investment in Falcon as an equity method investment as it had significant influence through its interest.

On May 3, 2024, the Company purchased the remaining interest from S7 Aerospace for total cash consideration of $ 0.8 million and it is now a consolidated subsidiary.

2025 Partnership

In the nine months ended September 30, 2025, the Company invested $ 151.6 million in the 2025 Partnership, an investment focused on acquiring 737NG and A320ceo on-lease narrowbody aircraft, for which the Company is the Servicer and holds a 20 % limited partner ownership.

As of December 31, 2025, the Company invested $ 291.5 million in the 2025 Partnership.

During the three months ended March 31, 2026, the Company made no investments in the 2025 Partnership.

The 2025 Partnership is an investment focused on acquiring 737NG and A320ceo on-lease narrowbody aircraft, for which the Company is the Servicer and holds a 19 % limited partner ownership.

The Company exercises significant influence over this investment and accounts for it using the equity method.

As the Servicer, the Company is responsible for lessee invoicing and collections, airline relationship management, contracts management including lease extension and aircraft deliveries and redeliveries.

The Company's proportionate share of equity in earnings related to this investment is based on the contractual profit-sharing arrangement, the elimination of profit on sales of engine and modules to the 2025 Partnership under ASC 606, and the servicing fees charged by us in our capacity as the Servicer to the 2025 Partnership.

The Company's proportionate share of equity in earnings related to this investment is based on the contractual profit-sharing arrangement and the elimination of profit on sales of engine and modules to the 2025 Partnership under ASC 606.

The profit from the MRE Contract revenue is eliminated through equity method earnings and will be recognized over time as the 2025 Partnership generates income from leasing and sales activities.

FTAI AVIATION LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in tables in thousands, unless otherwise noted)

QuickTurn Europe

3 unchanged sentences

The Company accounts for its investment in QuickTurn Europe as an equity method investment as it has significant influence through its interest.

FTAI AVIATION LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in tables in thousands, unless otherwise noted)

INTANGIBLE ASSETS AND LIABILITIES, NET

Intangible assets and liabilities, net are summarized as follows:

September 30, 2025 (unaudited) December 31, 2024

March 31, 2026 (unaudited) December 31, 2025

Intangible assets

10 unchanged sentences

Acquired unfavorable lease intangibles, net $ 3,864 $ 5,556

The weighted average amortization period of intangible assets acquired during the nine months ended September 30, 2025 is as follows:

The weighted average amortization period of intangible assets acquired during the three months ended March 31, 2026 is as follows:

Weighted Average Amortization Period

4 unchanged sentences

Amortization of intangible assets and liabilities is recorded as follows (unaudited):

Classification in Consolidated Statements of Operations Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

Classification in Consolidated Statements of Operations Three Months Ended March 31,

Lease intangibles Lease income $ 337 $ 3,206

1 unchanged sentence

Total $ 715 3,301

FTAI AVIATION LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in tables in thousands, unless otherwise noted)

As of September 30, 2025, estimated net annual amortization of intangibles is as follows (unaudited):

As of March 31, 2026, estimated net annual amortization of intangibles is as follows (unaudited):

Remainder of 2026

1 unchanged sentence

Total $ 9,008

FTAI AVIATION LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in tables in thousands, unless otherwise noted)

The Company’s debt, net is summarized as follows:

September 30, 2025 (unaudited) December 31, 2024

March 31, 2026 (unaudited) December 31, 2025

Outstanding Borrowings Stated Interest Rate Maturity Date Outstanding Borrowings

18 unchanged sentences

Total debt due within one year $ — $ —

________________________________________________________

(1) Requires a quarterly commitment fee at a rate of 0.50 % on the average daily unused portion, as well as customary letter of credit fees and agency fees.

(2) Includes an unamortized premium of $ 1,094 and $ 1,382 at September 30, 2025 and December 31, 2024, respectively.

(3) Includes an unamortized discount of $ 2,633 and $ 2,929 at September 30, 2025 and December 31, 2024, respectively.

(4) Includes an unamortized discount of $ 2,276 and $ 2,449 at September 30, 2025 and December 31, 2024, respectively.

We were in compliance with all debt covenants as of September 30, 2025.

(2) Includes an unamortized premium of $ 895 and $ 995 at March 31, 2026 and December 31, 2025, respectively.

(3) Includes an unamortized discount of $ 2,425 and $ 2,530 at March 31, 2026 and December 31, 2025, respectively.

(4) Includes an unamortized discount of $ 2,156 and $ 2,216 at March 31, 2026 and December 31, 2025, respectively.

We were in compliance with all debt covenants as of March 31, 2026.

FAIR VALUE MEASUREMENTS

4 unchanged sentences

Unobservable inputs for which there is little or no market data and which require the Company to develop its own assumptions about how market participants price the asset or liability.

FTAI AVIATION LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in tables in thousands, unless otherwise noted)

The valuation techniques that may be used to measure fair value are as follows:

4 unchanged sentences

These instruments are valued using inputs observable in active markets for identical instruments and are therefore classified as Level 1 within the fair value hierarchy.

FTAI AVIATION LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in tables in thousands, unless otherwise noted)

Except as discussed below, the Company’s financial instruments other than cash and cash equivalents and restricted cash consist principally of accounts receivable, notes receivable, accounts payable and accrued liabilities, security deposits, maintenance deposits and management fees payable, whose fair values approximate their carrying values based on an evaluation of pricing data, vendor quotes, and historical trading activity or due to their short maturity profiles.

The fair values of the Company’s bonds payable are presented in the table below and classified as Level 2 within the fair value hierarchy:

September 30, 2025 (unaudited) December 31, 2024

March 31, 2026 (unaudited) December 31, 2025

Senior Notes due 2028 $ 1,000,520 $ 1,001,880

4 unchanged sentences

The Company has contingent obligations under ASC 460, Guarantees , in connection with certain sales of aircraft on lease, which are measured at fair value.

The guarantees are valued at $ 11.4 million and $ 8.9 million as of September 30, 2025 and December 31, 2024, respectively, and are reflected as a component of other non-current liabilities.

The guarantees are valued at $ 12.4 million and $ 12.0 million as of March 31, 2026 and December 31, 2025, respectively, and are reflected as a component of other non-current liabilities.

The fair values of the guarantees are determined based on the estim ated condition of the engines at the end of each lease term and the estimated cost of replacement and applicable discount rates and are classified as Level 3.

During the three and nine months ended September 30, 2025, the Company recorded increases related to the change in fair value of $ 0.4 million and $ 2.5 million, respectively, which are recorded in Asset sales revenue.

During the three and nine months ended September 30, 2024, the Company recorded increases related to the change in fair value of $ 0.3 million and $ 1.3 million, respectively, which are recorded in Asset sales revenue.

Given variability in the condition of the engines at the end of the lease terms, which range from 3 to 7 years, the maximum potential amount of undiscounted future payments that could be required under the guarantees at September 30, 2025 was $ 43.0 million, which is not reasonably expected.

During the three months ended March 31, 2026 and 2025, the Company recorded a $ 0.4 million and $ 0.3 million increase, respectively, related to the change in fair value, which is recorded in Asset sales revenue.

During the three months ended March 31, 2026 and 2025, there were no significant transfers into or out of Level 3.

Given variability in the condition of the engines at the end of the lease terms, which range from 2 to 7 years, the maximum potential amount of undiscounted future payments that could be required under the guarantees at March 31, 2026 was $ 43.0 million, which is not reasonably expected.

The Company measures the fair value of certain assets on a non-recurring basis when U.S.

2 unchanged sentences

The Company records such assets at fair value when it is determined the carrying value may not be recoverable.

Fair value measurements for assets subject to impairment tests are based on an income approach which uses Level 3 inputs, which include the Company’s assumptions as to future cash flows from operation of the l easing and sale of assets.

EQUITY-BASED COMPENSATION

1 unchanged sentence

2025 Omnibus Incentive Plan (the “Incentive Plan”) which provides for the ability to award equity compensation awards in the form of stock options to eligible employees, consultants, directors, and other individuals who provide services to the Company, each as determined by the Compensation Committee of the Board of Directors.

As of September 30, 2025, the Incentive Plan provides for the issuance of up to 5.7 million shares.

As of March 31, 2026, the Incentive Plan provides for the issuance of up to 5.7 million shares.

Equity-based compensation expense is reported within cost of sales and operating expenses.

1 unchanged sentence

The Company’s accounting policy is to record the impact of forfeitures when they occur.

FTAI AVIATION LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in tables in thousands, unless otherwise noted)

Equity-based compensation for each type of award was as follows (unaudited):

Three Months Ended September 30, Nine Months Ended September 30, Remaining Expense To Be Recognized, If All Vesting Conditions Are Met Weighted Average Remaining Contractual Term

2025 2024 2025 2024

Three Months Ended March 31, Remaining Expense To Be Recognized, If All Vesting Conditions Are Met Weighted Average Remaining Contractual Term

Stock Options $ 127 $ 127 $ 1,143 7.4 years

2 unchanged sentences

Total $ 6,347 $ 4,889 $ 69,853

In 2025, the Company did not issue any options to employees.

During the nine months ended September 30, 2024, the Former Manager transferred 37,343 of its options to certain of the Former Manager’s employees.

Additionally, the Company granted options to select employees related to 60,000 ordinary shares at an exercise price of $ 79.13 , which had a grant date fair value of $ 2.1 million.

The assumptions used in valuing the options were:

a 4.52 % risk-free rate, a 1.50 % dividend yield, a 43.00 % volatility and a 6.8 year term.

During the three months ended March 31, 2026 and 2025, the Company did not issue any options to employees.

FTAI AVIATION LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in tables in thousands, unless otherwise noted)

Performance Shares

During the nine months ended September 30, 2025, the Company issued performance shares to select officers and employees of the Company with a grant date fair value of $ 4.4 million, vesting over a 3 year performance period based on the achievement of relative total shareholder return ( 50 %) and cumulative diluted EPS ( 50 %).

During the three months ended March 31, 2026, the Company issued performance shares to select officers and employees of the Company with a grant date fair value of $ 11.0 million, vesting over a 3 year performance period based on the achievement of relative total shareholder return ( 50 %) and cumulative diluted EPS ( 50 %).

During the three months ended March 31, 2025, the Company issued performance shares to select officers and employees of the Company with a grant date fair value of $ 4.4 million, vesting over a 3 year performance period based on the achievement of relative total shareholder return ( 50 %) and cumulative diluted EPS ( 50 %).

Restricted Shares

During the nine months ended September 30, 2025, the Company issued restricted shares to select officers and employees of the Company with a grant date fair value of $ 5.5 million, vesting over 3 years.

Additionally, the Company issued restricted shares to the directors of the Company with a grant date fair value of $ 0.8 million.

These awards vest on the earlier of (i) the one-year anniversary of the grant date (May 29, 2026) or (ii) the date of the Company’s next annual general meeting of shareholders occurring after the grant date.

During the nine months ended September 30, 2024, the Company issued the following restricted shares of the Company to select employees and officers of the Company:

In May 2024, the Company issued restricted shares to (i) select officers with a grant date fair value of $ 5.5 million, vesting over 3.0 years and (ii) select employees with a grant date fair value of $ 5.7 million, vesting over 4.0 years.

In September 2024, the Company issued restricted shares to select employees and officers with a grant date fair value of $ 0.8 million, vesting over 3.0 years.

During the three months ended March 31, 2026, the Company issued restricted shares to select officers and employees of the Company with a grant date fair value of $ 13.2 million, vesting over 3 years.

During the three months ended March 31, 2025, the Company issued restricted shares to select officers and employees of the Company with a grant date fair value of $ 5.5 million, vesting over 3 years.

All awards are subject to continued employment, with compensation expense recognized ratably over the vesting periods.

The fair values of the cumulative diluted EPS performance shares and restricted shares were based on the closing price of the Company’s ordinary shares on the respective grant dates, and the fair value of the total shareholder return performance shares was determined using the Monte Carlo simulation.

FTAI AVIATION LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in tables in thousands, unless otherwise noted)

The current and deferred components of the provision for income taxes are as follows (unaudited):

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

$ 16,791 $ 1,489

4 unchanged sentences

State and local 714 390

Other Non-U.S.

including Pillar Two top-up tax 2,911 446 6,445 1,235

Total current provision (benefit)

( 3,430 ) 78 9,508 2,340

Other Non-Ireland including Pillar Two top-up tax

Total current provision

Cayman Islands — —

3 unchanged sentences

State and local 238 378

Other Non-U.S.

Other Non-Ireland

( 3,412 ) 938

Total deferred provision (benefit) 29,760 7,253 77,559 ( 2,470 )

Total provision for (benefit from) income taxes $ 26,330 $ 7,331 $ 87,067 $ ( 130 )

The Company is an exempted entity domiciled in the Cayman Islands where income taxes are not imposed.

The Company has previously been classified as a “passive foreign investment company” for U.S.

income tax purposes, resulting in income tax obligations for certain of its shareholders.

Taxable income or loss generated by the Company’s corporate subsidiaries is subject to U.S.

Total deferred provision

12,208 20,683

Total provision for income taxes

$ 31,460 $ 22,859

The Company is incorporated in the Cayman Islands where income taxes are not imposed.

Taxable income or loss generated by the Company’s corporate subsidiaries is subject to Irish, U.S.

federal, state and foreign corporate income tax in locations where they conduct business.

The Company’s effective tax rate differs from the Cayman Islands statutory rate of 0% primarily due to a significant portion of the Company’s income being subject to tax in jurisdictions where it operates.

As of and for the nine months ended September 30, 2025, the Company had not established a liability for uncertain tax positions as no such positions existed.

The Company’s effective tax rate differs from the Irish statutory rate of 12.5 % primarily due to the impact of Pillar II and the portion of its income that is subject to taxation in jurisdictions other than Ireland.

As of and for the three months ended March 31, 2026, the Company had not established a liability for uncertain tax positions as no such positions existed.

In general, the Company’s tax returns and the tax returns of its corporate subsidiaries are subject to U.S.

2 unchanged sentences

The Company does not believe that it is reasonably possible that the total amount of unrecognized tax benefits will significantly change within 12 months of the reporting date.

AFFILIATE TRANSACTIONS AND FORMER MANAGEMENT AGREEMENT

Strategic Capital Initiative – 2025 Partnership

On December 30, 2024, the Company announced the launch of its Strategic Capital Initiative in collaboration with third-party institutional investors.

As part of the first partnership under the initiative, certain subsidiaries of the Company entered into an Aircraft Sale and Purchase Agreement, dated December 30, 2024, and a Beneficial Interest Sale and Purchase Agreement, dated December 30, 2024 (together, and as each may be amended from time to time, the “Aircraft Sale and Purchase Agreements”), pursuant to which the SPVs of the 2025 Partnership would acquire 45 on-lease 737NG and A320ceo aircraft for an aggregate net purchase price of approximately $ 500.0 million, subject to certain customary closing conditions.

The SPVs have entered into agreements with third-party institutional investors for capital commitments to the SPVs.

The Company also made a minority capital commitment and will make additional commitments to the 2025 Partnership in the same proportion relative to additional third-party institutional investors.

During 2024 and the nine months ended September 30, 2025, on behalf of the 2025 Partnership, the Company paid refundable deposits of $ 19.3 million and $ 23.5 million to unrelated, third-parties on future purchases of aircraft, respectively.

As of September 30, 2025, the 2025 Partnership fully reimbursed the Company $ 42.8 million in refundable deposits.

The Company, along with certain subsidiaries of the SPVs, has entered into a MRE agreement that requires the Company to sell serviceable engines and modules and purchase unserviceable engines and modules from the SPVs when aircraft controlled by the SPVs need such serviceable engines and modules to fulfill their obligations under an aircraft lease.

Under this agreement, the Company will sell CFM56-5B, CFM56-7B and V2500 commercial aircraft engines and related modules to the SPVs and purchase unserviceable engines and modules for a net cash purchase price.

The net cash purchase price received by the

FTAI AVIATION LTD.

1 unchanged sentence

(Dollars in tables in thousands, unless otherwise noted)

Company is contractual and customary market-based compensation for fulfilling such performance obligations.

During the three and nine months ended September 30, 2025, the Company recorded $ 58.7 million and $ 228.9 million of MRE Contract revenue, respectively, for the sale and purchase of such engines to and from the 2025 Partnership.

AFFILIATE TRANSACTIONS AND FORMER MANAGEMENT AGREEMENT

Strategic Capital Initiative – 2025 Partnership

On February 10, 2026, the Company amended and restated the Aircraft Sale and Purchase agreement, originally entered into as of December 30, 2024, pursuant to which the SPVs of the 2025 Partnership will acquire 14 on-lease 737NG and A320ceo aircraft in addition to the originally committed 45 on-lease 737NG and A320ceo aircraft.

In aggregate, the net purchase price for the 60 on-lease 737NG and A320ceo aircraft is approximately $ 700.0 million, subject to certain customary closing conditions.

The purchase price of the seed assets are contractual and the Company receives customary, market-based compensation for the sale of the seed assets to the 2025 Partnership.

As of March 31, 2026, the Company sold 55 of the 60 committed aircraft to the 2025 Partnership.

During the three months ended March 31, 2026 and 2025, on behalf of the 2025 Partnership, the Company paid refundable deposits of $ 0.0 million and $ 25.4 million to unrelated, third-parties on future purchases of aircraft, respectively.

During the three months ended March 31, 2026 and 2025, the 2025 Partnership reimbursed the Company $ 0.0 million and $ 42.8 million, in refundable deposits, respectively.

During the three months ended March 31, 2026 and 2025, the Company recorded $ 221.2 million and $ 100.6 million of MRE Contract revenue, respectively, for the sale and purchase of such engines to and from the 2025 Partnership.

Refer to Note 2 “Summary of Significant Accounting Policies” for additional information on MRE Contract revenue.

The Company provides aircraft management services to the 2025 Partnership, and receives customary, market-based compensation for providing such services, which is included in Other revenue on the Company’s Consolidated Statement of Operations.

Former Management Agreement

On May 28, 2024, the Company entered into definitive agreements with the Former Manager and Master GP to internalize the Company’s management function.

On May 28, 2024, the Company entered into definitive agreements with FIG LLC (the “Former manager”) and Master GP to internalize the Company’s management function (the “Internalization”).

As part of the termination of the Management Agreement, the Company (i) paid the Former Manager (for itself and on behalf of the Master GP, as applicable) the Cash Consideration, the compensation accrued and payable, but not yet paid, under the Management Agreement and the expenses that were reimbursable, but not yet reimbursed, under the Management Agreement;

18 unchanged sentences

Pre-incentive allocation net income did not include any Income Incentive Allocation or Capital Gains Incentive Allocation (described below) paid to Master GP during the relevant quarter.

FTAI AVIATION LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in tables in thousands, unless otherwise noted)

Prior to the Internalization, one of our subsidiaries allocated and distributed to Master GP an Income Incentive Allocation with respect to its pre-incentive allocation net income in each calendar quarter as follows:

4 unchanged sentences

Prior to the Internalization, Capital Gains Incentive Allocation was calculated and distributable in arrears as of the end of each calendar year and was equal to 10 % of the Company’s pro rata share of cumulative realized gains from the date of the IPO through the end of the applicable calendar year, net of the Company’s pro rata share of cumulative realized or unrealized losses, the cumulative non-cash portion of equity-based compensation expenses and all realized gains upon which prior performance-based Capital Gains Incentive Allocation payments were made to Master GP.

FTAI AVIATION LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in tables in thousands, unless otherwise noted)

The following table summarizes the management fees and income incentive allocation prior to the Internalization (unaudited):

Three Months Ended September 30, 2024 Nine Months Ended September 30, 2024

Management fees $ — $ 993

Income incentive allocation — 7,456

Total $ — $ 8,449

The Company paid all of its operating expenses, except those specifically required to be borne by the Former Manager under the Management Agreement.

4 unchanged sentences

The following table summarizes the Company’s reimbursements to the Former Manager (unaudited):

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

Three Months Ended March 31,

Classification in the Consolidated Statements of Operations:

2 unchanged sentences

Total $ — $ 300

Upon the successful completion of an offering of the Company’s ordinary shares or other equity securities (including securities issued as consideration in an acquisition), the Company granted the Former Manager options to purchase ordinary shares in an amount equal to 10 % of the number of ordinary shares being sold in the offering (or if the issuance relates to equity securities other than the Company’s ordinary shares, options to purchase a number of ordinary shares equal to 10 % of the gross capital raised in the equity issuance divided by the fair market value of a ordinary share as of the date of issuance), with an exercise price equal to the offering price per share paid by the public or other ultimate purchaser or attributed to such securities in connection with an acquisition (or the fair market value of a ordinary share as of the date of the equity issuance if it relates to equity securities other than the Company’s ordinary shares).

Any ultimate purchaser of ordinary shares for which such options are granted may have been an affiliate of the Former Manager.

FTAI AVIATION LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in tables in thousands, unless otherwise noted)

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) Aviation Leasing and (ii) Aerospace Products.

The Aviation Leasing segment owns and manages aviation assets, including aircraft and aircraft engines, which it leases and sells to lessees, directly and also through its equity method investment.

The Aerospace Products segment, through the Company’s maintenance facilities, equity method investment and exclusivity arrangements, develops and manufactures, repairs/refurbishes and sells aircraft engines and aftermarket components for the CFM56-5B, CFM56-7B and V2500 commercial aircraft engines.

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 to lessees directly and through the Company’s equity method investment formed as part of the Company’s Strategic Capital Initiative.

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.

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, and expenses relating to FTAI Power.

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

FTAI AVIATION LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in tables in thousands, unless otherwise noted)

Executive Officer is its Chief Operating Decision Maker (“CODM”).

The Company’s Chief Executive Officer is its 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.

4 unchanged sentences

The following tables set forth certain information, which include all significant expenses reviewed by the CODM, for each reportable segment (unaudited):

For the Three Months Ended September 30, 2025

Three Months Ended September 30, 2025

Aviation Leasing Aerospace Products Corporate and Other Eliminations Total

Aerospace products revenue $ — $ 459,206 $ — $ — $ 459,206

MRE Contract revenue — 58,663 — — 58,663

Lease income 55,072 — — — 55,072

Maintenance revenue 52,370 — — — 52,370

Asset sales revenue 38,461 — — — 38,461

Other revenue (1)

3,292 — — — 3,292

Total revenues 149,195 517,869 — — 667,064

Cost of sales 34,769 328,153 — — 362,922

Operating expenses 10,146 10,545 18,401 — 39,092

General and administrative — — 1,829 — 1,829

Acquisition and transaction expenses 3,571 599 2,896 — 7,066

Depreciation and amortization 50,226 3,930 1,122 — 55,278

Total expenses 98,712 343,227 24,248 — 466,187

Other income (expense)

Interest expense — — ( 60,784 ) — ( 60,784 )

Equity in (losses) earnings of unconsolidated entities (2)

( 1,083 ) 767 — ( 3,908 ) ( 4,224 )

Gain on sale to the 2025 Partnership 4,609 — — — 4,609

Other income 2,103 — 1,467 — 3,570

Total other income (expense) 5,629 767 ( 59,317 ) ( 3,908 ) ( 56,829 )

Income (loss) before income taxes 56,112 175,409 ( 83,565 ) ( 3,908 ) 144,048

Provision for (benefit from) income taxes 14,500 26,815 ( 14,985 ) — 26,330

Net income (loss) 41,612 148,594 ( 68,580 ) ( 3,908 ) 117,718

Dividends on preferred shares — — 3,709 — 3,709

Net income (loss) attributable to shareholders $ 41,612 $ 148,594 $ ( 72,289 ) $ ( 3,908 ) $ 114,009

______________________________________________________

(1) Includes servicing fees of $ 3,035 for the three months ended September 30, 2025 from the 2025 Partnership.

(2) Includes the profit elimination of $( 3,908 ) for the three months ended September 30, 2025 for sales to the 2025 Partnership within the Aerospace Products segment.

FTAI AVIATION LTD.

1 unchanged sentence

(Dollars in tables in thousands, unless otherwise noted)

Summary information with respect to the Company’s geographic sources of revenue, based on location of customer and lessee, is as follows:

Three Months Ended September 30, 2025

Aviation Leasing Aerospace Products Corporate and Other Total

Africa $ 7,919 $ 25,720 $ — $ 33,639

Asia 43,658 98,644 — 142,302

Europe 48,295 97,302 — 145,597

North America 41,803 286,006 — 327,809

South America 7,520 10,197 — 17,717

Total revenues (1)

$ 149,195 $ 517,869 $ — $ 667,064

______________________________________________________

(1) The United States, included in North America, and Ireland, included in Europe, represent 38 % and 14 % 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.

FTAI AVIATION LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in tables in thousands, unless otherwise noted)

For the Nine Months Ended September 30, 2025

Nine Months Ended September 30, 2025

Aviation Leasing Aerospace Products Corporate and Other Eliminations Total

For the Three Months Ended March 31, 2026

Three Months Ended March 31, 2026

Aerospace Products Aviation Leasing Corporate and Other Eliminations Total

Aerospace products revenue $ 522,585 $ — $ — $ — $ 522,585

23 unchanged sentences

Dividends on preferred shares — — 3,709 — 3,709

Loss on redemption of preferred shares — — 6,327 — 6,327

Net income (loss) attributable to shareholders $ 183,735 $ 64,438 $ ( 103,983 ) $ ( 10,000 ) $ 134,190

______________________________________________________

(1) Includes servicing fees of $ 5,635 for the nine months ended September 30, 2025 from the 2025 Partnership.

(2) Includes the profit elimination of $( 15,793 ) for the nine months ended September 30, 2025 for sales to the 2025 Partnership within the Aerospace Products segment.

(1) Includes servicing fees of $ 5,861 for the three months ended March 31, 2026 from the 2025 Partnership.

(2) Includes the profit elimination of $( 10,000 ) for the three months ended March 31, 2026 for sales to the 2025 Partnership within the Aerospace Products segment.

FTAI AVIATION LTD.

2 unchanged sentences

Summary information with respect to the Company’s geographic sources of revenue, based on location of customer and lessee, is as follows:

Nine Months Ended September 30, 2025

Aviation Leasing Aerospace Products Corporate and Other Total

Three Months Ended March 31, 2026

Aerospace Products Aviation Leasing Corporate and Other Total

Africa $ — $ 2,542 $ — $ 2,542

5 unchanged sentences

$ 743,815 $ 86,882 $ — $ 830,697

______________________________________________________

(1) The United States, included in North America, and Ireland, included in Europe, represent 33 % and 16 % of total revenues, respectively, based on the location of our customers and lessees.

(1) The United States, included in North America, Bermuda, included in North America, and Ireland, included in Europe, represent 31 %, 24 % , and 21 % 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 September 30, 2025:

Operating Leases

Presented below are the contracted minimum future annual revenues to be received under existing operating leases as of March 31, 2026:

March 31, 2026

Remainder of 2026

4 unchanged sentences

(Dollars in tables in thousands, unless otherwise noted)

For the Three Months Ended September 30, 2024

Three Months Ended September 30, 2024

Aviation Leasing Aerospace Products Corporate and Other Total

For the Three Months Ended March 31, 2025

Three Months Ended March 31, 2025

Aerospace Products Aviation Leasing Corporate and Other Eliminations

Aerospace products revenue $ 264,425 $ — $ — $ — $ 264,425

MRE contract revenue

100,638 — — — 100,638

Lease income — 68,440 — — 68,440

11 unchanged sentences

Interest expense — — ( 62,040 ) — ( 62,040 )

Equity in losses of unconsolidated entities — ( 438 ) — ( 438 )

Equity in earnings (losses) of unconsolidated entities (1)

113 ( 777 ) — ( 6,950 ) ( 7,614 )

Gain on sale to the 2025 Partnership

— 10,870 — — 10,870

Other income — 32,619 452 — 33,071

4 unchanged sentences

Dividends on preferred shares — — 6,115 — 6,115

Net income (loss) attributable to shareholders $ 59,596 $ 93,788 $ ( 75,237 ) $ 78,147

Summary information with respect to the Company’s geographic sources of revenue, based on location of customer and lessee, is as follows:

Three Months Ended September 30, 2024

Aviation Leasing Aerospace Products Corporate and Other Total

Africa $ 1,266 $ — $ — $ 1,266

Asia 46,459 65,714 10,059 122,232

Europe 56,750 84,136 — 140,886

North America 34,700 149,530 — 184,230

South America 13,091 4,089 — 17,180

Total revenues (1)

$ 152,266 $ 303,469 $ 10,059 $ 465,794

Loss on redemption of preferred shares

— — 6,327 — 6,327

(1) The United States, included in North America, and Ireland, included in Europe, represent 35 % and 15 % 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.

Net income (loss) attributable to shareholders $ 106,643 $ 77,026 $ ( 86,775 ) $ ( 6,950 ) $ 89,944

(1) Includes the profit elimination of $( 6,950 ) for the three months ended March 31, 2025 for sales to the 2025 Partnership within the Aerospace Products segment.

FTAI AVIATION LTD.

1 unchanged sentence

(Dollars in tables in thousands, unless otherwise noted)

For the Nine Months Ended September 30, 2024

Nine Months Ended September 30, 2024

Aviation Leasing Aerospace Products Corporate and Other Total

Aerospace products revenue $ — $ 737,726 $ — $ 737,726

Lease income 168,927 — 20,438 189,365

Maintenance revenue 156,894 — — 156,894

Asset sales revenue 145,993 — — 145,993

Other revenue 199 — 5,905 6,104

Total revenues 472,013 737,726 26,343 1,236,082

Cost of sales 111,542 456,615 — 568,157

Operating expenses 26,984 16,510 37,780 81,274

General and administrative — — 10,697 10,697

Acquisition and transaction expenses 7,350 2,871 13,318 23,539

Management fees and incentive allocation to affiliate — — 8,449 8,449

Internalization fee to affiliate — — 300,000 300,000

Depreciation and amortization 151,211 3,177 8,998 163,386

Asset impairment 962 — — 962

Total expenses 298,049 479,173 379,242 1,156,464

Other expense

Interest expense — — ( 160,840 ) ( 160,840 )

Loss on extinguishment of debt — — ( 13,920 ) ( 13,920 )

Equity in losses of unconsolidated entities ( 207 ) ( 1,592 ) — ( 1,799 )

Other income 1,440 — 1,605 3,045

Total other expense 1,233 ( 1,592 ) ( 173,155 ) ( 173,514 )

Income (loss) before income taxes 175,197 256,961 ( 526,054 ) ( 93,896 )

Provision for (benefit from) income taxes 20,224 11,865 ( 32,219 ) ( 130 )

Net income (loss) 154,973 245,096 ( 493,835 ) ( 93,766 )

Dividends on preferred shares — — 25,005 25,005

Net income (loss) attributable to shareholders $ 154,973 $ 245,096 $ ( 518,840 ) $ ( 118,771 )

Summary information with respect to the Company’s geographic sources of revenue, based on location of customer and lessee, is as follows:

Nine Months Ended September 30, 2024

Aviation Leasing Aerospace Products Corporate and Other Total

Three Months Ended March 31, 2025

Aerospace Products Aviation Leasing Corporate and Other Total

Africa $ 9,482 $ 2,199 $ — $ 11,681

5 unchanged sentences

$ 365,063 $ 137,013 $ 4 $ 502,080

______________________________________________________

(1) The United States, included in North America, and Ireland, included in Europe, represent 32 % and 18 % of total revenues, respectively, based on the location of the Company’s customers and lessees.

(1) The United States, included in North America, and Ireland, included in Europe, and Bermuda, included in North America, represent 26 %, 19 % 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.

FTAI AVIATION LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in tables in thousands, unless otherwise noted)

Location of Long-Lived Assets

The following tables sets forth the geographic location of property, plant and equipment and leasing equipment, net:

September 30, 2025 (unaudited) December 31, 2024

March 31, 2026 (unaudited) December 31, 2025

Property, plant and equipment and leasing equipment, net

6 unchanged sentences

$ 1,370,929 $ 1,665,872

________________________________________________________

(1) The United States, included in North America, represents 24 % of property, plant and equipment and leasing equipment, net as of September 30, 2025.

The United States, included in North America, and Italy, included in Europe, represent 17 % and 12 % of property, plant and equipment and leasing equipment, net as of December 31, 2024, respectively.

(1) The United States, included in North America, and Chile, included in South America, represents 23 % and 12 % of property, plant and equipment and leasing equipment, net, respectively, as of March 31, 2026.

The United States, included in North America, represented 22 % of property, plant and equipment and leasing equipment, net as of December 31, 2025, respectively.

No other country represents more than 10% of property, plant and equipment and leasing equipment, net.

FTAI AVIATION LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in tables in thousands, unless otherwise noted)

EARNINGS PER SHARE AND EQUITY

3 unchanged sentences

The calculation of basic and diluted EPS is presented below (unaudited):

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

(in thousands, except share and per share data) 2026 2025

Net income (loss) $ 117,718 $ 86,482 $ 385,502 $ ( 93,766 )

$ 137,899 $ 102,386

Dividends on preferred shares 3,709 6,115

Loss on redemption of preferred shares — 6,327

Net income (loss) attributable to shareholders $ 114,009 $ 78,147 $ 365,642 $ ( 118,771 )

Net income attributable to shareholders

$ 134,190 $ 89,944

Weighted Average Ordinary Shares Outstanding - Basic 102,575,500 102,552,436

Weighted Average Ordinary Shares Outstanding - Diluted 104,255,902 103,159,051

Earnings (loss) per share:

Earnings per share:

Basic $ 1.31 $ 0.88

Diluted $ 1.29 $ 0.87

For the three months ended September 30, 2025 and 2024, no shares were excluded from the calculation of Diluted EPS.

For the nine months ended September 30, 2025 and 2024, 0 and 859,940 shares, respectively, were excluded from the calculation of Diluted EPS due to their anti-dilutive impact.

For the three months ended September 30, 2025 and 2024, the Company issued 835 and 482 ordinary shares, respectively, and for the nine months ended September 30, 2025 and 2024, issued 1,511 and 4,852 ordinary shares, respectively, to certain directors as compensation.

For the three months ended March 31, 2026, 52,791 shares were excluded from the calculation of Diluted EPS.

For the three months ended 2025, no shares were excluded from the calculation of Diluted EPS.

During the three months ended March 31, 2026, the Company issued 586 ordinary shares to certain directors as compensation.

Preferred Shares

In February 2025, the Company redeemed in full the outstanding 4,940,000 8.00 % Fixed-to-Floating Rate Series B Cumulative Perpetual Redeemable Preferred Shares at a redemption price equal to $ 25.00 per share in cash, plus $ 2.4 million of accumulated and unpaid distributions thereon to, but not including, the redemption date of February 16, 2025.

COMMITMENTS AND CONTINGENCIES

2 unchanged sentences

The Company believes the risk of loss in connection with such arrangements is remote.

FTAI AVIATION LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in tables in thousands, unless otherwise noted)

RESTRUCTURING CHARGES

On May 28, 2024, in connection with the Internalization and termination of the Management Agreement, the Company agreed to pay a total of $ 300.0 million to its Former Manager (for itself and on behalf of the Master GP, as applicable).

At closing, the Company issued 1,866,949 ordinary shares valued at $ 150.0 million.

The remaining balance was paid in cash on June 17, 2024.

The restructuring charge paid in connection with the Internalization and termination of the Management Agreement is reflected in Internalization Fee to Affiliate expense in the Consolidated Statements of Operations for the three and nine months ended September 30, 2024.

There were no restructuring charges recorded for the three and nine months ended September 30, 2025.

SUBSEQUENT EVENTS

On October 27, 2025, the Company’s Board of Directors declared a cash dividend on its ordinary shares and eligible participating securities of $ 0.35 per share for the three months ended September 30, 2025, payable on November 19, 2025 to the holders of record on November 10, 2025.

Additionally, on October 27, 2025, the Company’s Board of Directors also declared cash dividends on the Series C Preferred Shares and Series D Preferred Shares of $ 0.52 and $ 0.59 per share, respectively, payable on December 15, 2025 to the holders of record on December 1, 2025 .

On April 28, 2026, the Company’s Board of Directors declared a cash dividend on its ordinary shares and eligible participating securities of 0.45 per share for the three months ended March 31, 2026, payable on May 26, 2026 to the holders of record on May 13, 2026.

Additionally, on April 28, 2026, the Company’s Board of Directors also declared cash dividends on the Series C Preferred Shares and Series D Preferred Shares of $ 0.52 and $ 0.59 per share, respectively, payable on June 15, 2026 to the holders of record on June 1, 2026.

On April 24, 2026, the Company amended and restated its Revolving Credit Facility by executing a Fourth Amended and Restated Credit Agreement (the “Revolver Amendment”).

The Revolver Amendment provides for revolving loans to be made available to the Company in an aggregate principal amount of up to $ 2.025 billion, of which up to $ 50.0 million may be utilized for the issuance of letters of credit.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements