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Item 2. Management’s Discussion and Analysis

2026-05-01 compared with 2025-10-29 · 186 added, 268 removed, 210 unchanged (68% of the section changed)

3 unchanged sentences

Our MD&A should be read in conjunction with our unaudited consolidated financial statements and the accompanying notes, and with Part II, Item 1A, “Risk Factors” included elsewhere in this Quarterly Report on Form 10-Q.

We specialize in the acquisition, lease, repair and sale of aviation equipment, primarily CFM56-5B, CFM56-7B and V2500 aircraft engines.

We repair and sell or lease, through our maintenance facilities, commercial expertise and exclusivity arrangements, refurbished aircraft engines and aftermarket components of aircraft engines, including PMA parts developed and manufactured through a joint venture.

We target assets which require maintenance repairs that can be performed through our proprietary Module Factory process of engineering.

Refurbishing our own engines, modules and parts at significant scale incentivizes us to conduct repairs as efficiently as possible, which we believe creates a large opportunity to provide a low-cost, flexible, customer-driven alternative to engine maintenance for airlines and lessors worldwide.

As of September 30, 2025, we had total consolidated assets of $4.2 billion and total equity of $252.5 million.

We are a leading independent engine maintenance platform focused on the CFM56-5B, CFM56-7B and V2500 aircraft engines which power the 737NG and A320ceo aircraft.

We repair and rebuild engines in our maintenance facilities and with our joint venture partners, and sell or lease the engines to airlines and asset owners around the world.

Our primary business model is to sell engines via exchange through our proprietary Maintenance, Repair and Exchange (“MRE”) model which is reported under our Aerospace Products segment.

We also own and manage a portfolio of on- and off-lease aircraft and engines through our Aviation Leasing segment.

While historically these investment activities have been primarily held on balance sheet, at the end of 2024, we launched our Strategic Capital Initiative, which consists of an asset management business that manages third-party capital to invest in on-lease aircraft.

We expect our primary investment activities to be through our Strategic Capital Initiative going forward.

As of March 31, 2026, we had total consolidated assets of $4.5 billion and total equity of $431.7 million.

Internalization of Management

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The Services were provided to the Company for a fee equal to the Former Manager’s cost of providing the Services, including the allocated cost of, among other things, overhead, employee wages and compensation, rent and related real estate expenses and actually incurred out-of-pocket expenses, plus a mark-up of ten percent (10%).

Impact of Russia’s Invasion of Ukraine

Economic sanctions and export controls against Russia and Russia’s aviation industry were imposed due to its invasion of Ukraine during the three months ended March 31, 2022.

As a result of the sanctions imposed on Russian airlines, we terminated all lease agreements with Russian airlines.

We determined that it is unlikely that we will regain possession of the aircraft and engines that had not yet been recovered from U kraine and Russia.

As a result, we recognized an impairment charge totaling $120.0 million, net of maintenance deposits for the year ended December 31, 2022, to write-off the entire carrying value of leasing equipment assets that we did not expect to recover from Ukraine and Russia.

As of September 30, 2025, eight aircraft and seventeen engines were still located in Russia.

Our lessees are required to provide insurance coverage with respect to leased aircraft and engines, and we are named as insureds under those policies in the event of a total loss of an aircraft or engine.

We also purchase insurance which provides us with coverage when our aircraft or engines are not subject to a lease or where a lessee’s policy fails to indemnify us.

The insured value of the aircraft and engines that remain in Russia is $210.7 million.

We intend to pursue all of our claims under these policies.

However, the timing and amount of any recoveries under these policies are uncertain.

The extent of the impact of Russia’s invasion of Ukraine and the related sanctions on our results, including the ability for us to recover our leasing equipment in the region, will depend on future developments, including the duration of the conflict, sanctions and restrictions imposed by Russian and international governments, all of which remain uncertain.

Strategic Capital Initiative

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

The first partnership under the initiative, the 2025 Partnership, will focus on acquiring 737NG and A320ceo aircraft.

The Strategic Capital Initiative, and its related partnerships, will allow the Company to maintain an asset-light business model while the partnerships actively acquire on-lease narrowbody aircraft at scale.

The 2025 Partnership, and follow-on partnerships, will be the primary buyer of on-lease 737NG and A320ceo aircraft.

The Company, as the Servicer, will manage the aircraft in the 2025 Partnership, and the Company will receive customary, market-based compensation.

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

The Strategic Capital Initiative, and its related partnerships, allows us to maintain an asset-light business model while the partnerships actively acquire on-lease narrowbody aircraft at scale.

The first partnership under the initiative (the “2025 Partnership”) focuses on acquiring 737NG and A320ceo aircraft.

The 2025 Partnership completed its fundraise in October 2025 with $2.0 billion of equity commitments.

The 2025 Partnership, and follow-on partnerships, is the primary buyer of all future on-lease 737NG and A320ceo aircraft.

The Company, as the Servicer, provides aircraft management services to the 2025 Partnership, and the Company receives customary, market-based compensation for providing such services.

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.

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The key factors used to identify the reportable segments are the organization and alignment of our internal operations and the nature of our products and services.

Our two reportable segments are (i) Aviation Leasing and (ii) Aerospace Products.

Our two reportable segments are (i) Aerospace Products and (ii) Aviation Leasing.

The Aerospace Products segment, through our maintenance facilities and joint ventures, among other investments, develops and manufactures, repairs/refurbishes and sells aircraft engines and aftermarket components primarily for the CFM56-7B, CFM56-5B and V2500 commercial aircraft engines .

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

The Aerospace Products segment, through our 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.

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 offshore energy related assets, which consist of equipment that support offshore oil and gas activities and production.

Additionally, Corporate and Other also includes offshore energy related assets, which consist of equipment that support offshore oil and gas activities and production, and expenses relating to FTAI Power.

Adjusted EBITDA (Non-GAAP)

Besides net income (loss), the chief operating decision maker (“CODM”) utilizes Adjusted EBITDA as a key performance measure.

Besides net income (loss), the chief operating decision maker (“CODM”), who is the Company’s Chief Executive Officer, utilizes Adjusted EBITDA as a key performance measure.

Adjusted EBITDA is not a financial measure in accordance with U.S.

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We believe Adjusted EBITDA is a useful metric for investors and analysts for similar purposes of assessing our operational performance.

Adjusted EBITDA is defined as net income (loss) attributable to shareholders from continuing operations, adjusted (a) to exclude the impact of provision for (benefit from) income taxes, equity-based compensation expense, acquisition and transaction expenses, losses on the modification or extinguishment of debt and preferred shares and capital lease obligations, changes in fair value of non-hedge derivative instruments, asset impairment charges, incentive allocations, depreciation and amortization expense, dividends on preferred shares and interest expense, internalization fee to affiliate, (b) to include the impact of our pro-rata share of Adjusted EBITDA from unconsolidated entities and (c) to exclude the impact of equity in earnings (losses) of unconsolidated entities and the non-controlling share of Adjusted EBITDA, if any.

Adjusted EBITDA is defined as net income (loss) attributable to shareholders from continuing operations, adjusted (a) to exclude the impact of provision for (benefit from) income taxes, equity-based compensation expense, acquisition and transaction expenses, losses on the modification or extinguishment of debt and preferred shares and capital lease obligations, asset impairment charges, incentive allocations, depreciation and amortization expense, interest expense and dividends on preferred shares, internalization fee to affiliate, (b) to include the impact of our pro-rata share of Adjusted EBITDA from unconsolidated entities and (c) to exclude the impact of equity in earnings (losses) of unconsolidated entities, if any.

Results of Operations

Comparison of the three and nine months ended September 30, 2025 and 2024

Comparison of the three months ended months ended March 31, 2026 and 2025

The following table presents our consolidated results of operations:

Three Months Ended September 30, Change Nine Months Ended

September 30, Change

Three Months Ended March 31, Change

(in thousands) 2026 2025

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Acquisition and transaction expenses 16,361 7,292 9,069

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

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

Depreciation and amortization 52,289 59,562 (7,273)

Asset impairment — — — — 962 (962)

Total expenses 660,318 351,122 309,196

3 unchanged sentences

(2,363) (7,614) 5,251

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

Gain on sale to the 2025 Partnership 15,168 10,870 4,298

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Total other expense (1,020) (25,713) 24,693

Income (loss) from before income taxes 144,048 93,813 50,235 472,569 (93,896) 566,465

Provision for (benefit from) income taxes 26,330 7,331 18,999 87,067 (130) 87,197

Net income (loss) 117,718 86,482 31,236 385,502 (93,766) 479,268

Income before income taxes

169,359 125,245 44,114

Provision for income taxes

31,460 22,859 8,601

137,899 102,386 35,513

Dividends on preferred shares 3,709 6,115 (2,406)

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

Net income (loss) attributable to shareholders $ 114,009 $ 78,147 $ 35,862 $ 365,642 $ (118,771) $ 484,413

Net income attributable to shareholders

$ 134,190 $ 89,944 $ 44,246

(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.

The following table sets forth a reconciliation of net income (loss) attributable to shareholders to Adjusted EBITDA:

Three Months Ended September 30, Change Nine Months Ended

September 30, Change

Three Months Ended March 31, Change

(in thousands) 2026 2025

Net income (loss) attributable to shareholders $ 114,009 $ 78,147 $ 35,862 $ 365,642 $ (118,771) $ 484,413

Provision for (benefit from) income taxes 26,330 7,331 18,999 87,067 (130) 87,197

Net income attributable to shareholders

$ 134,190 $ 89,944 $ 44,246

Provision for income taxes

31,460 22,859 8,601

Equity-based compensation expense 6,347 4,889 1,458

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Losses on the modification or extinguishment of debt and preferred shares and capital lease obligations — 6,327 (6,327)

Changes in fair value of non-hedge derivative instruments — — — — — —

Asset impairment charges — — —

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20,227 41 20,186

Equity in losses (earnings) of unconsolidated entities (3)

Equity in (earnings) losses of unconsolidated entities (3)

(7,637) 664 (8,301)

Non-controlling share of Adjusted EBITDA — — — — — —

Adjusted EBITDA (non-GAAP) $ 325,577 $ 268,558 $ 57,019

________________________________________________________

(1) Includes the following items for the three months ended September 30, 2025 and 2024:

(i) depreciation and amortization expense of $55,278 and $56,775, (ii) lease intangible amortization of $534 and $3,720 and (iii) amortization for lease incentives of $12,043 and $8,958, respectively.

Includes the following items for the nine months ended September 30, 2025 and 2024:

(1) Includes the following items for the three months ended March 31, 2026 and 2025:

(i) depreciation and amortization expense of $52,289 and $59,562, (ii) lease intangible amortization of $337 and $3,206 and (iii) amortization for lease incentives of $6,887 and $5,619, respectively.

(2) Includes the following items for the three months ended September 30, 2025 and 2024:

(i) net loss of $316 and $438, (ii) interest expense of $2,629 and $0, (iii) depreciation and amortization expense of $9,449 and $56, and (iv) tax benefit of $105 and $0, respectively.

Includes the following items for the nine months ended September 30, 2025 and 2024:

(i) net loss of $1,048 and $1,799, (ii) interest expense of $4,119 and $0, (iii) depreciation and amortization expense of $13,077 and $252, (iv) acquisition and transaction expenses of $470 and $0, and (v) tax benefit of $105 and $0 respectively.

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

Comparison of the three months ended September 30, 2025 and 2024

Total revenues increased by $201.3 million, driven by the following:

• Aerospace products revenue increased by $155.7 million, primarily due to a $145.7 million increase in CFM56-5B, CFM56-7B and V2500 engine and module sales, as well as a $7.4 million increase in other maintenance service revenues.

• MRE Contract revenue increased by $58.7 million, primarily due to an increase in engine and module sales made to the 2025 Partnership.

• Lease income decreased by $10.4 million, primarily due to a decrease of $8.1 million in the Offshore Energy business driven by the sale of the two vessels during Q4 2024 and a decrease in aircraft lease revenue of $9.0 million driven by the sale of Seed Assets to the 2025 Partnership.

This was partially offset by an increase in engine lease revenue of $6.6 million.

Comparison of the nine months ended September 30, 2025 and 2024

(2) Includes the following items for the three months ended March 31, 2026 and 2025:

(i) net income of $7,637 and net loss of $664, (ii) interest expense of $3,496 and $0, (iii) depreciation and amortization expense of $9,067 and $158, (iv) acquisition and transaction expenses of $0 and $547, and (v) tax expense of $27 and $0, respectively.

(3) Excludes 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.

Comparison of the three months ended March 31, 2026 and 2025

Total revenues increased by $328.6 million, driven by the following:

• Aerospace products revenue increased $406.6 million, primarily due to a $382.7 million increase in CFM56-5B, CFM56-7B and V2500 engine and module sales, as well as a $19.3 million increase in other maintenance service revenues.

• Aerospace products revenue increased by $258.2 million, primarily due to a $246.8 million increase in CFM56-5B, CFM56-7B and V2500 engine and module sales.

• MRE Contract revenue increased by $120.6 million, primarily due to an increase in engine and module sales made to the 2025 Partnership.

• Maintenance reve nue increased by $18.2 million, primarily due to an increase in aircraft maintenance revenue of $17.7 million driven by higher end-of-lease return compensation and an increase in the recognition of maintenance deposits due to aircraft redelivery, partially offset by a decrease in utilization and number of aircraft on lease.

• Asset sales revenue decreased by $40.7 million, primarily due to change in product mix of assets sold in the current period as compared to the prior period.

Specifically, while the number of total assets sold in the current period was higher than prior period, the number of engines sold in the prior period was higher than the current period.

Comparison of the three months ended September 30, 2025 and 2024

Total expenses increased by $149.7 million, driven by the following:

• Cost of sales increased by $143.4 million, primarily due to increases in CFM56-5B, CFM56-7B and V2500 engine and module sales, and parts inventory sales, which directly corresponds to components of increases in Aerospace products revenue over the same period.

Comparison of the nine months ended September 30, 2025 and 2024

• Lease income decreased by $28.5 million, primarily due to decreases in aircraft lease revenue of $24.9 million, driven by the sale of Seed Assets to the 2025 Partnership.

• Maintenance revenue decreased by $19.0 million, due to decreases in aircraft maintenance revenue of $8.1 million and engine maintenance revenue of $10.9 million, both driven by a decrease in revenue generating assets on lease.

Comparison of the three months ended March 31, 2026 and 2025

Total expenses increased by $309.2 million, driven by the following:

• Cost of sales increased by $275.6 million, primarily due to increases in CFM56-5B, CFM56-7B and V2500 engine and module sales, and parts inventory sales, which directly corresponds to components of increases in Aerospace products revenue over the same period.

• Internalization fee to affiliate decreased by $300.0 million relating to the Internalization effective May 28, 2024.

• Operating expenses increased by $32.5 million, primarily due to increases in compensation and benefits expense and shipping and logistics expense across our operating segments, as well as increased technology development costs and general operating expense resulting from acquisitions in the second half of 2025.

Other (expense) income

Comparison of the three months ended September 30, 2025 and 2024

Total other expense increased by $1.4 million driven by the following:

• Gain on sale to the 2025 Partnership increased by $4.6 million, resulting from the sale of 8 aircraft to the 2025 Partnership within the Aviation Leasing Segment.

• Interest expense increased by $2.8 million, reflecting an increase in interest expense of $7.3 million on the 5.875% Senior Notes due 2033, which were issued in October 2024, partially offset by decreases in interest expense in (i) the 9.75% Senior Notes due 2027, which were redeemed in October 2024, of $3.2 million and (ii) the Revolving Credit Facility of $1.5 million, driven by the increase in average debt outstanding of $66.7 million.

• Equity in losses of unconsolidated entities increased by $3.8 million, primarily driven by the profit elimination of $3.9 million for sales to the 2025 Partnership.

Comparison of the nine months ended September 30, 2025 and 2024

Comparison of the three months ended March 31, 2026 and 2025

Total other expense decreased by $24.7 million driven by the following:

• Other income increased by $60.8 million, primarily due to a $54.3 million insurance settlement and a $5.3 million increase in interest income earned on financing receivables within our Aviation Leasing Segment.

• Other income increased $14.5 million, driven by an increase in insurance proceeds in the current period.

• Equity in losses of unconsolidated entities increased by $5.3 million, driven by net income realized by the 2025 Partnership.

• Gain on sale to the 2025 Partnership increased by $4.3 million, resulting from the sale of 9 aircraft to the 2025 Partnership within the Aviation Leasing Segment.

• Loss on debt extinguishment decreased by $13.9 million driven by the 2024 redemption of Senior Notes due 2025 and partial redemption of Senior Notes due 2027.

• Interest expense increased by $25.9 million, reflecting increases in interest expense in (i) the 7.00% Senior Notes due 2032 of $26.0 million, (ii) the 5.875% Senior Notes due 2033 of $22.0 million, and (iii) the 7.00% Senior Notes due 2031 of $13.8 million.

These were partially offset by decreases in interest expense in (i) the 9.75% senior notes due 2027 of $22.0 million, and (ii) the 6.5% senior notes due 2025 of 13.0 million.

• Equity in losses of unconsolidated entities increased by $15.0 million, primarily driven by the profit elimination of $15.8 million for sales to the 2025 Partnership.

Provision for (benefit from) income taxes

The provision for income taxes increased $19.0 million and $87.2 million for the three and nine months ended September 30, 2025, respectively, as compared to the prior period, primarily driven by the higher income generated in the Aerospace Products segment within taxable jurisdictions for both the three and nine months ended September 30, 2025, and the higher income generated in the Aviation Leasing segment within taxable jurisdictions for the nine months ended September 30, 2025.

Net income (loss)

Net income increased by $31.2 million and $479.3 million for the three and nine months ended September 30, 2025, respectively, as compared to the prior period, primarily due to the changes noted above.

Provision for income taxes

The provision for income taxes increased $8.6 million for the three months ended March 31, 2026, as compared to the prior period, primarily driven by higher income generated in the Aerospace Products segment within taxable jurisdictions.

Net income increased by $35.5 million for the three months ended March 31, 2026, as compared to the prior period, primarily due to the changes noted above.

Adjusted EBITDA (Non-GAAP)

Adjusted EBITDA increased by $65.4 million and $303.7 million for the three and nine months ended September 30, 2025, respectively, as compared to the prior period, primarily due to the changes noted above.

Aviation Leasing Segment

As of September 30, 2025, in our Aviation Leasing segment, we own and manage 323 aviation assets, consisting of 48 commercial aircraft and 275 engines, including eight aircraft and seventeen engines that were still located in Russia.

As of September 30, 2025, 39 of our commercial aircraft and 167 of our engines were leased to operators or other third parties.

Aviation assets currently off lease are either undergoing repair and/or maintenance, being prepared to go on lease or held in short term storage awaiting a future lease.

Our aviation equipment was approximately 76% utilized during the three months ended September 30, 2025, based on the percent of days on-lease in the quarter weighted by the monthly average equity value of our aviation leasing equipment, excluding airframes.

Our aircraft currently have a weighted average remaining lease term of 47 months, and our engines currently on-lease have an average remaining lease term of 35 months.

The table below provides additional information on the assets in our Aviation Leasing segment, including transfers which involve aircraft breakdowns, engine transfers from leasing equipment to inventory for manufacturing and sales, and engine transfers from inventory to leasing equipment for rebuilding and sales:

Aviation Assets Widebody Narrowbody Total

Assets at January 1, 2025 5 104 109

Purchases — 17 17

Sales — (45) (45)

Transfers — (33) (33)

Assets at September 30, 2025

Assets at January 1, 2025 23 289 312

Purchases — 70 70

Sales (5) — (5)

Transfers — (102) (102)

Assets at September 30, 2025 18 257 275

The following table presents our results of operations for our Aviation Leasing segment:

Three Months Ended September 30, Change Nine Months Ended

September 30, Change

Adjusted EBITDA increased by $57.0 million for the three months ended March 31, 2026, as compared to the prior period, primarily due to the changes noted above.

Aerospace Products Segment

The Aerospace Products segment, through our maintenance facilities and joint ventures, among other investments, develops and manufactures, repairs/refurbishes, and sells aircraft engines and aftermarket components primarily for the CFM56-7B, CFM56-5B, and V2500 commercial aircraft engines.

Our engine, module, and parts sales are facilitated through a dedicated commercial maintenance program designed to focus on modular and parts repair and refurbishment of CFM56-7B and CFM56-5B engines.

In addition, other serviceable used modules and parts are sold through our exclusive partnership, which is responsible for the teardown, repair, marketing, and sales of parts from our CFM56 engine pool.

In 2023, we acquired the remaining interest in Quick Turn Engine Center LLC (“QuickTurn”), a dedicated hospital maintenance and testing facility specializing in the CFM56-7B and CFM56-5B engines.

In 2024, we acquired Lockheed Martin Commercial Engine Solutions (“LMCES”) to establish permanent engine and module manufacturing capabilities.

In 2025, we entered into an agreement within our MRE business to supply replacement aircraft engines and modules for the life of the 2025 Partnership.

We also acquired Pacific Aerodynamic Inc.

(“Pac Aero”), a specialist in CFM56 compressor blade and vane repairs, expanding our repair capabilities, and the MRE business of AerotechOPS (“ATOPS”), expanding our MRE business in Miami.

Additionally, we maintain a (i) 25% equity interest in the Advanced Engine Repair joint venture, which focuses on developing innovative cost-saving programs for engine repairs, (ii) 50% equity interest in QuickTurn Europe, which operates as a dedicated maintenance, repair, and overhaul facility for CFM56 engines, and (iii) 50% equity interest in Prime Engine Accessories LLC, which focuses on developing in-house CFM56 accessory maintenance repairs.

The following table presents our results of operations:

Three Months Ended March 31, Change

(in thousands) 2026 2025

Lease income $ 55,072 $ 57,322 $ (2,250) $ 185,951 $ 168,927 $ 17,024

Maintenance revenue 52,370 59,917 (7,547) 175,081 156,894 18,187

Asset sales revenue 38,461 34,953 3,508 105,315 145,993 (40,678)

Other revenue (1)

3,292 74 3,218 5,827 199 5,628

Aerospace products revenue $ 522,585 $ 264,425 $ 258,160

MRE Contract revenue 221,230 100,638 120,592

Total revenues 743,815 365,063 378,752

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Depreciation and amortization 4,678 3,584 1,094

Asset impairment — — — — 962 (962)

Total expenses 526,514 239,158 287,356

Other income (expense)

Equity in losses of unconsolidated entities (1,083) — (1,083) (2,642) (207) (2,435)

Gain on sale to the 2025 Partnership 4,609 — 4,609 50,083 — 50,083

Other income 2,103 1,982 121 61,696 1,440 60,256

Equity in (losses) earnings of unconsolidated entities

(40) 113 (153)

Total other income

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Net income attributable to shareholders $ 183,735 $ 106,643 $ 77,092

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(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.

The following table sets forth a reconciliation of net income attributable to shareholders to Adjusted EBITDA:

Three Months Ended September 30, Change Nine Months Ended

September 30, Change

Three Months Ended March 31, Change

(in thousands) 2026 2025

1 unchanged sentence

Provision for income taxes

33,697 19,375 14,322

Equity-based compensation expense 27 155 (128)

1 unchanged sentence

Losses on the modification or extinguishment of debt and preferred shares and capital lease obligations — — —

Changes in fair value of non-hedge derivative instruments — — — — — —

Asset impairment charges — — —

5 unchanged sentences

Pro-rata share of Adjusted EBITDA from unconsolidated entities (1)

10,575 — 10,575 14,379 (123) 14,502

Equity in losses of unconsolidated entities 1,083 — 1,083 2,642 207 2,435

Non-controlling share of Adjusted EBITDA — — — — — —

Equity in losses (earnings) of unconsolidated entities

Adjusted EBITDA (non-GAAP) $ 222,576 $ 130,945 $ 91,631

________________________________________________________

(1) Includes the following items for the three months ended September 30, 2025 and 2024:

(i) depreciation expense of $50,226 and $52,455, (ii) lease intangible amortization of $534 and $3,720 and (iii) amortization for lease incentives of $12,043 and $8,958, respectively.

Includes the following items for the nine months ended September 30, 2025 and 2024:

(i) depreciation expense of $155,710 and $151,211, (ii) lease intangible amortization of $5,893 and $11,482 and (iii) amortization for lease incentives of $25,950 and $19,516, respectively.

(2) Includes the following items for the three months ended September 30, 2025 and 2024:

(i) net loss of $1,083 and $0, (ii) interest expense of $2,629 and $0, and (iii) depreciation and amortization of $9,029 and $0, respectively.

Includes the following items for the nine months ended September 30, 2025 and 2024:

(i) net loss of $2,642 and $207, (ii) interest expense of $4,119 and $0, (iii) depreciation and amortization of $12,432 and $84 and (iv) acquisition and transaction expenses of $470 and $0, respectively.

Comparison of the three months ended September 30, 2025 and 2024

Total reven ue decreased by $3.1 million, driven by the following:

• Maintenance revenue decreased by $7.5 million, primarily due to a decrease in aircraft maintenance revenue of $7.0 million, driven by the sale of Seed Assets to the 2025 Partnership, as well as a decrease in utilization.

• Lease income decreased by $2.3 million due to a decrease in aircraft lease revenue of $9.0 million, driven by the sale of Seed Assets to the 2025 Partnership, partially offset by an increase in engine lease revenue of $6.6 million.

• Asset sales revenue increased by $3.5 million, primarily due to an overall increase in the number of sales transactions of commercial aircraft and engines in the current period as compared to the prior period.

• Other revenue increased by $3.2 million as a result of servicing fees earned in our capacity as the Servicer to the 2025 Partnership.

Comparison of the nine months ended September 30, 2025 and 2024

Total revenue increased $0.2 million, driven by the following:

• Maintenance revenue increased by $18.2 million, primarily due to an increase in aircraft maintenance revenue of $17.7 million driven by higher end-of-lease return compensation and an increase in the recognition of maintenance deposits due to aircraft redelivery, partially offset by the sale of Seed Assets to the 2025 Partnership, as well as a decrease in utilization.

• Lease income increased by $17.0 million, primarily due to an increase in engine lease revenue of $16.9 million, driven by an increased number of engines on lease in addition to higher rental rates.

• Other revenue increased by $5.6 million as a result of servicing fees earned in our capacity as the Servicer to the 2025 Partnership.

• Asset sales revenue decreased by $40.7 million, primarily due to change in product mix of assets sold in the current period as compared to the prior period.

Specifically, while the number of total assets sold in the current period was higher than prior period, the number of engines sold in the prior period was higher than the current period.

Comparison of the three months ended September 30, 2025 and 2024

Total expenses increased by $13.0 million, driven by the following:

• Cost of sales increased by $14.1 million, primarily due to an increase in asset sales as compared to the prior period.

• Depreciation and amortization expense decreased by $2.2 million, primarily driven by the sale of Seed Assets to the 2025 Partnership.

Comparison of the nine months ended September 30, 2025 and 2024

Total expenses decreased by $0.1 million, driven by the following:

• Cost of sales decreased by $5.0 million, primarily due to an overall decrease in the number of sales transactions of commercial aircraft and engines, which is in line with an overall decrease in the corresponding asset sales revenue.

• Depreciation and amortization expense increased by $4.5 million, primarily driven by a higher average book value of engines on lease, partially offset by the sale of Seed Assets to the 2025 Partnership during the period.

Other income (expense)

Total other income increased by $3.6 million and $107.9 million for the three and nine months ended September 30, 2025, respectively, as compared to the prior period, primarily due to (i) gains on sale to the 2025 Partnership of $4.6 million and $50.1 million, respectively, (ii) a $0.8 million and $5.3 million increase in interest income earned on financing receivables during 2025, respectively, and (iii) an insurance settlement of $54.3 million in the nine months ended September 30, 2025.

(1) Includes the following items for the three months ended March 31, 2026 and 2025:

(i) net loss of $40 and net income of $113, (ii) depreciation and amortization expense of $427 and $56, and (iii) tax expense of $27 and $0, respectively.

Comparison of the three months ended March 31, 2026 and 2025

Total revenues increased by $378.8 million, due to the following:

• Aerospace Products revenue increased by $258.2 million, primarily due to a $246.8 million increase in CFM56-5B, CFM56-7B and V2500 engine and module sales.

• MRE Contract revenue increased by $120.6 million, primarily due to an increase in engine and module sales made to the 2025 Partnership.

Comparison of the three months ended March 31, 2026 and 2025

Tota l expenses increased by $287.4 million, due to the following:

• Cost of sales increased by $282.3 million, primarily due to increases in CFM56-5B, CFM56-7B and V2500 engine and module sales and parts inventory sales, which directly corresponds to components of increases in Aerospace products revenue over the same period.

• Operating expenses increased by $5.2 million, primarily due to higher operating expenses due to the acquisition of ATOPS, compensation and benefits expense due to increased headcount at the Company’s maintenance facilities, as well as an increase in shipping and logistics expense.

Provision for income taxes

The provision for income taxes increased by $5.6 million and $38.1 million for the three and nine months ended September 30, 2025, respectively, as compared to the prior period, primarily due to the respective changes in income discussed above from leasing activities in jurisdictions subject to taxes.

Net income decreased by $18.0 million and increased by $70.1 million for the three and nine months ended September 30, 2025, respectively, as compared to the prior period, primarily due to the changes noted above.

The provision for income taxes increased by $14.3 million for the three months ended March 31, 2026, as compared to the prior period, primarily due to the increase in income discussed above from Aerospace Products activities in jurisdictions subject to taxes.

Net income increased $77.1 million for the three months ended March 31, 2026, as compared to the prior period, primarily due to the changes noted above.

Adjusted EBITDA (Non-GAAP)

Adjusted EBITD A decreased by $2.0 million and increased by $129.5 million for the three and nine months ended September 30, 2025, respectively, as compared to the prior period, primarily due to the changes noted above.

Aerospace Products Segment

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

Our engine, module, and parts sales are facilitated through a dedicated commercial maintenance program designed to focus on modular and parts repair and refurbishment of these engines.

To further enhance this business and establish permanent engine and module manufacturing capabilities, we acquired Lockheed Martin Commercial Engine Solutions (LMCES).

Refer to Note 3, “Acquisition of Lockheed Martin Commercial Engine Solutions” in our “Notes to Consolidated Financial Statements” for additional information.

We entered into an agreement within our MRE business to supply replacement aircraft engines and modules for the life of the 2025 Partnership.

Other serviceable used modules and parts are sold through our exclusive partnership, which is responsible for the teardown, repair, marketing, and sales of parts from our CFM56-5B and CFM56-7B engine pool.

We also acquired the remaining interest in Quick Turn Engine Center LLC, or “QuickTurn” (formerly iAero Thrust LLC), a hospital maintenance and testing facility specializing in the CFM56-5B and CFM56-7B engines.

We further expanded our footprint in engine services by acquiring a 50% equity interest in QuickTurn Europe, which will operate as a dedicated maintenance, repair, and overhaul facility for CFM56 engines.

Additionally, we maintain a 25% ownership stake in the Advanced Engine Repair joint venture, which is focused on developing innovative cost-saving programs for engine repairs.

The following table presents our results of operations:

Three Months Ended September 30, Change Nine Months Ended

September 30, Change

Adjusted EBITD A increased $91.6 million for the three months ended March 31, 2026, as compared to the prior period, primarily due to the changes noted above.

Aviation Leasing Segment

As of March 31, 2026, in our Aviation Leasing segment, we own and manage 230 aviation assets, consisting of 29 commercial aircraft and 201 engines.

As of March 31, 2026, 26 of our commercial aircraft and 114 of our engines were leased to operators or other third parties.

Aviation assets currently off lease are either undergoing repair and/or maintenance, being prepared to go on lease or held in short term storage awaiting a future lease.

Our aviation equipment was approximately 73% utilized during the three months ended March 31, 2026, based on the percent of days on-lease in the quarter weighted by the monthly average equity value of our aviation leasing equipment, excluding airframes.

Our aircraft currently have a weighted average remaining lease term of 37 months, and our engines currently on-lease have an average remaining lease term of 38 months.

Aviation Assets Widebody Narrowbody Total

Assets at January 1, 2026

Purchases — — —

Sales — (9) (9)

Transfers — (1) (1)

Insurance settlement - Russia assets

Assets at March 31, 2026

Assets at January 1, 2026 18 225 243

Purchases 1 9 10

Sales — (1) (1)

Transfers (1) (33) (34)

Insurance settlement - Russia assets

(10) (7) (17)

Assets at March 31, 2026 8 193 201

The following table presents our results of operations for our Aviation Leasing segment:

Three Months Ended March 31, Change

(in thousands) 2026 2025

Aerospace products revenue $ 459,206 $ 303,469 $ 155,737 $ 1,144,317 $ 737,726 $ 406,591

MRE Contract revenue 58,663 — 58,663 228,886 — 228,886

Lease income $ 39,892 $ 68,440 $ (28,548)

Maintenance revenue 30,599 49,607 (19,008)

Asset sales revenue 10,184 18,939 (8,755)

Other revenue (1)

6,207 27 6,180

Total revenues 86,882 137,013 (50,131)

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Equity in earnings (losses) of unconsolidated entities

Total other income (expense) 767 (438) 1,205 1,594 (1,592) 3,186

7,677 (777) 8,454

Gain on sale to the 2025 Partnership 15,168 10,870 4,298

Other income 47,239 32,619 14,620

Total other income 70,084 42,712 27,372

Income before income taxes 82,764 94,374 (11,610)

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Net income attributable to shareholders $ 64,438 $ 77,026 $ (12,588)

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

The following table sets forth a reconciliation of net income attributable to shareholders to Adjusted EBITDA:

Three Months Ended September 30, Change Nine Months Ended

September 30, Change

Three Months Ended March 31, Change

(in thousands) 2026 2025

Net income attributable to shareholders

$ 64,438 $ 77,026 $ (12,588)

Provision for income taxes

18,326 17,348 978

Equity-based compensation expense 164 175 (11)

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Losses on the modification or extinguishment of debt and preferred shares and capital lease obligations — — —

Changes in fair value of non-hedge derivative instruments — — — — — —

Asset impairment charges — — —

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Depreciation and amortization expense (1)

53,709 63,886 (10,177)

Interest expense and dividends on preferred shares — — —

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Equity in (earnings) losses of unconsolidated entities

Non-controlling share of Adjusted EBITDA — — — — — —

Adjusted EBITDA (non-GAAP) $ 180,421 $ 101,814 $ 78,607 $ 476,230 $ 263,331 $ 212,899

(7,677) 777 (8,454)

(1) Includes the following items for the three months ended September 30, 2025 and 2024:

(i) net income of $767 and net loss of $438, (ii) depreciation and amortization expense of $420 and $56, and (iii) tax benefit of $105 and $0, respectively.

Includes the following items for the nine months ended September 30, 2025 and 2024:

(i) net income of $1,594 and net loss of $1,592, (ii) depreciation and amortization expense of $645 and $168, and (iii) tax benefit of $105 and $0, respectively.

Comparison of the three months ended September 30, 2025 and 2024

Total revenues increased by $214.4 million, due to the following:

• Aerospace Products revenue increased by $155.7 million, primarily due to a $145.7 million increase in CFM56-5B, CFM56-7B and V2500 engine and module sales, as well as a $7.4 million increase in other maintenance service revenues.

• MRE Contract revenue increased by $58.7 million, primarily due to an increase in engine and module sales made to the 2025 Partnership.

Comparison of the nine months ended September 30, 2025 and 2024

Total revenues increased by $635.5 million, due to the following:

• Aerospace Products revenue increased by $406.6 million, primarily due to a $382.7 million increase in CFM56-5B, CFM56-7B and V2500 engine and module sales, as well as a $19.3 million increase in other maintenance service revenues.

• MRE Contract revenue increased by $228.9 million, primarily due to an increase in engine and module sales made to the 2025 Partnership.

Comparison of the three months ended September 30, 2025 and 2024

Tota l expenses increased by $138.4 million, due to the following:

• Cost of sale s increased by $129.3 million, primarily due to increases in CFM56-5B, CFM56-7B and V2500 engine and module sales and parts inventory sales, which directly corresponds to components of increases in Aerospace products revenue over the same period.

• Operating expenses increased by $7.9 million, primarily due to higher compensation and benefits expense due to the acquisition of LMCES and an increase in shipping and logistics expense.

Comparison of the nine months ended September 30, 2025 and 2024

Tota l expenses increased by $434.8 million, due to the following:

• Cost of sale s increased by $417.8 million, primarily due to increases in CFM56-5B, CFM56-7B and V2500 engine and module sales and parts inventory sales, which directly corresponds to components of increases in Aerospace products revenue over the same period.

• Operating expenses increased by $8.7 million, primarily due to higher compensation and benefits expense due to the acquisition of LMCES.

• Depreciation and amortization increased by $8.0 million due to the acquisition of LMCES in the third quarter of 2024.

Adjusted EBITDA (non-GAAP) $ 152,959 $ 161,989 $ (9,030)

(1) Includes the following items for the three months ended March 31, 2026 and 2025:

(i) depreciation expense of $46,485 and $55,061, (ii) lease intangible amortization of $337 and $3,206 and (iii) amortization for lease incentives of $6,887 and $5,619, respectively.

(2) Includes the following items for the three months ended March 31, 2026 and 2025:

(i) net income of $7,677 and net loss of $777, (ii) interest expense of $3,496 and $0, (iii) depreciation and amortization of $8,640 and $102, and (iv) acquisition and transaction expense of $0 and $547, respectively.

Comparison of the three months ended March 31, 2026 and 2025

Total reven ue decreased by $50.1 million, driven by the following:

• Lease income decreased by $28.5 million, primarily due to decreases in aircraft lease revenue of $24.9 million, driven by the sale of Seed Assets to the 2025 Partnership.

• Asset sales revenue decreased by $8.8 million, primarily due to an overall decrease in the number of sales transactions of commercial aircraft and engines in the current period as compared to the prior period.

• Other revenue increased by $6.2 million, primarily as a result of servicing fees earned in our capacity as the Servicer to the 2025 Partnership.

Comparison of the three months ended March 31, 2026 and 2025

Total expenses decreased by $11.1 million, driven by the following:

• Depreciation and amortization expense decreased by $8.6 million, primarily driven by the sale of Seed Assets to the 2025 Partnership.

• Cost of sales decreased by $6.7 million, primarily due to the decrease in asset sales noted above.

• Operating expense increased by $2.8 million, primarily driven by increases in compensation and benefits, equipment leases, and shipping and logistics expenses.

Other income (expense)

Comparison of the three months ended March 31, 2026 and 2025

Total other income increased by $27.4 million, primarily due (i) a $14.5 million increase in insurance settlements, (ii) an $8.5 million increase in equity in earnings of unconsolidated entities as a result of net income earned by the 2025 Partnership, and (iii) a $4.3 million increase in gain on sale to the 2025 Partnership, driven by the sale of Seed Assets to the 2025 Partnership.

Provision for income taxes

The provision for income taxes increased by $22.4 million and $60.2 million for the three and nine months ended September 30, 2025, respectively, as compared to the prior period, primarily due to the increase in income discussed above from Aerospace Products activities in jurisdictions subject to taxes.

Net income increased $54.8 million and $143.7 million for the three and nine months ended September 30, 2025, respectively, as compared to the prior period, primarily due to the changes noted above.

The provision for income taxes decreased by $1.0 million for the three months ended March 31, 2026, as compared to the prior period, primarily due to the respective changes in income discussed above from leasing activities in jurisdictions subject to taxes.

Net income decreased by $12.6 million for the three months ended March 31, 2026, as compared to the prior period, primarily due to the changes noted above.

Adjusted EBITDA (Non-GAAP)

Adjusted EBITD A increased $78.6 million and $212.9 million for the three and nine months ended September 30, 2025, respectively, as compared to the prior period, primarily due to the changes noted above.

Adjusted EBITD A decreased by $9.0 million for the three months ended March 31, 2026, as compared to the prior period, primarily due to the changes noted above.

Corporate and Other

The following table presents our results of operations:

Three Months Ended September 30, Change Nine Months Ended

September 30, Change

Three Months Ended March 31, Change

(in thousands) 2026 2025

Lease income $ — $ 8,128 $ (8,128) $ — $ 20,438 $ (20,438)

Other revenue $ — $ 4 $ (4)

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Acquisition and transaction expenses 12,190 3,255 8,935

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

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

Depreciation and amortization 1,126 917 209

Total expenses 59,602 26,613 32,989

Other income (expense)

Other (expense) income

Interest expense (61,407) (62,040) 633

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

Other income 172 452 (280)

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The following table sets forth a reconciliation of net loss attributable to shareholders to Adjusted EBITDA:

Three Months Ended September 30, Change Nine Months Ended

September 30, Change

Three Months Ended March 31, Change

(in thousands) 2026 2025

Net loss attributable to shareholders

$ (103,983) $ (86,775) $ (17,208)

Benefit from income taxes

(20,563) (13,864) (6,699)

Equity-based compensation expense 6,156 4,559 1,597

1 unchanged sentence

Losses on the modification or extinguishment of debt and preferred shares and capital lease obligations — 6,327 (6,327)

Changes in fair value of non-hedge derivative instruments — — — — — —

Asset impairment charges — — —

1 unchanged sentence

Depreciation and amortization expense

1,126 917 209

Interest expense and dividends on preferred shares 65,116 68,155 (3,039)

2 unchanged sentences

Equity in losses (earnings) of unconsolidated entities

Non-controlling share of Adjusted EBITDA — — — — — —

Adjusted EBITDA (non-GAAP) $ (39,958) $ (17,426) $ (22,532)

Total revenues decreased $10.1 million and $26.3 million for the three and nine months ended September 30, 2025, respectively, as compared to the prior period, primarily due to the sale of the two vessels within the Offshore Energy business during the fourth quarter of 2024.

Comparison of the three months ended September 30, 2025 and 2024

Total expens es decreased by $1.7 million, due to the following:

• Acquisition and transaction expense decreased $1.7 million, primarily due to lower professional fees associated with the Internalization.

• Depreciation and amortization decreased by $1.9 million, due to the sale of the two vessels within the Offshore Energy business during the fourth quarter of 2024.

• General and administrative decreased by $2.2 million, primarily due higher expenses in the comparative period related to the Internalization effective May 28, 2024.

• Operating expenses increased $4.2 million, primarily due to higher compensation and benefits expense due to an increase in employee headcount and increased overall compensation.

Comparison of the nine months ended September 30, 2025 and 2024

Total expenses decreased by $308.1 million, primarily due to the Internalization effective May 28, 2024, which resulted in an internalization fee to affiliate of $300.0 million in the comparative period.

Other income (expense)

Total other expense increased by $2.3 million for the three months ended September 30, 2025, as compared to the prior period, due to the following:

• Interest expense increased by $2.8 million, reflecting an increase in interest expense of $7.3 million on the 5.875% Senior Notes due 2033, which were issued in October 2024, partially offset by decreases in interest expense in (i) the 9.75% Senior Notes due 2027, which were redeemed in October 2024, of $3.2 million and (ii) the Revolving Credit Facility of $1.5 million, driven by the decrease in average debt outstanding of $66.7 million.

Total other expense increased by $11.5 million for the nine months ended September 30, 2025, as compared to the prior period, due to the following:

These were partially offset by decreases in interest expense in (i) the 9.75% senior notes due 2027 of $22.0 million, and (ii) the 6.5% senior notes due 2025 of $13.0 million.

• Loss on extinguishment of debt decreased by $13.9 million, driven by the 2024 redemption of Senior Notes due 2025 and partial redemption of Senior Notes due 2027.

Comparison of the three months ended March 31, 2026 and 2025

Total expens es increased by $33.0 million, primarily due to the following:

• Operating expenses increased $24.5 million, primarily due to an increase in compensation and benefits expense due to an increase in employee headcount and increased overall compensation, technology development costs and general corporate expenses.

• Acquisition and transaction expense increased $8.9 million, primarily due to higher professional fees associated with acquisitions and transactions.

Benefit from income taxes

The benefit from income taxes increased by $9.0 million and $11.0 million for the three and nine months ended September 30, 2025, as compared to the prior period.

The benefit from income taxes increased by $6.7 million for the three months ended March 31, 2026, as compared to the prior period.

The increase was mainly driven by higher corporate overhead expenses deductible for 2026 tax purposes.

Net loss increased by $1.7 million and decreased by $281.2 million during the three and nine months ended September 30, 2025, respectively, as compared to the prior period, primarily due to the changes noted above.

Net loss increased by $25.9 million during the three months ended March 31, 2026, respectively, as compared to the prior period, primarily due to the changes noted above.

Adjusted EBITDA (Non-GAAP)

Adjusted EBITDA decreased by $7.3 million and $22.9 million during the three and nine months ended September 30, 2025, respectively, as compared to the prior period, primarily due to the changes noted above.

Adjusted EBITDA decreased by $22.5 million during the three months ended March 31, 2026, respectively, as compared to the prior period, primarily due to the changes noted above.

Liquidity and Capital Resources

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

The first partnership under the initiative, the 2025 Partnership, focuses on acquiring 737NG and A320ceo aircraft.

The Strategic Capital Initiative, and its related partnerships, allows the Company to maintain an asset-light business model while the partnerships actively acquire on-lease narrowbody aircraft at scale.

The Company has agreed that the 2025 Partnership, and follow-on partnerships, will be the primary buyer of on-lease 737NG and A320ceo aircraft.

The Company, as the Servicer, will manage the aircraft in the 2025 Partnership, and the Company will receive customary, market-based compensation.

The Company has also made a minority investment and will make future investments in the 2025 Partnership.

The Company expects to manage the aircraft for and make minority investments in, future partnerships.

The first partnership under the initiative, the 2025 Partnership, focuses on acquiring 737NG and A320ceo aircraft.

The 2025 Partnership completed its fundraise in October 2025 with $2.0 billion of equity commitments.

The 2025 Partnership, and follow-on partnerships, is the primary buyer of all future on-lease 737NG and A320ceo aircraft.

The Company, as the Servicer, manages the aircraft in the 2025 Partnership, and the Company receives customary, market-based compensation for providing such services.

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

Our principal uses of liquidity have been and continue to be (i) acquisitions of aircraft and engines, (ii) dividends to our ordinary and preferred shareholders, (iii) expenses associated with our operating activities, and (iv) debt service obligations associated with our investments.

In the future, instead of acquiring on-lease aircraft directly, as part of the Strategic Capital Initiative, we will invest in the related partnerships and such partnerships will acquire on-lease aircraft.

• Cash used for the purpose of making investments was $757.4 million and $1.0 billion during the nine months ended September 30, 2025 and 2024, respectively.

• Distributions to shareholders, including cash dividends, were $105.8 million and $115.8 million during the nine months ended September 30, 2025 and 2024, respectively.

• Cash used for the purpose of making investments was $133.6 million and $339.4 million during the three months ended March 31, 2026 and 2025, respectively.

• Distributions to shareholders, including cash dividends, were $44.7 million and $36.9 million during the three months ended March 31, 2026 and 2025, respectively.

• Uses of liquidity associated with our operating expenses are captured on a net basis in our cash flows from operating activities.

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Our principal sources of liquidity to fund these uses have been and continue to be (i) revenues from our aviation assets (including finance lease collections and maintenance reserve collections) net of operating expenses, (ii) proceeds from borrowings or the issuance of securities and (iii) proceeds from asset sales.

• Cash flows used in operating activities, plus the principal collections on finance leases and maintenance reserve collections were $89.8 million and $108.7 million during the nine months ended September 30, 2025 and 2024, respectively.

• During the nine months ended September 30, 2025, additional borrowings and total principal repayments in connection with the Revolving Credit Facility were $430.0 million and $430.0 million, respectively.

During the nine months ended September 30, 2024, additional borrowings were obtained in connection with the (i) Senior Notes due 2032 of $800.0 million, (ii) Senior Notes due 2031 of $700.0 million and (iii) Revolving Credit Facility of $590.0 million and total principal repayments were made of (i) $650.0 million related to the Senior Notes due 2025, (ii) $440.0 million relating to the Revolving Credit Facility and (iii) $269.5 million related to the Senior Notes due 2027.

• Proceeds from the sale of assets were $1,375.5 million and $542.9 million during the nine months ended September 30, 2025 and 2024, respectively.

• Cash flows from operating activities, plus the principal collections on finance leases and maintenance reserve collections were $152.6 million and $11.0 million during the three months ended March 31, 2026 and 2025, respectively.

• During the three months ended March 31, 2026, additional borrowings and total principal repayments in connection with the Revolving Credit Facility were $125.0 million and $125.0 million, respectively.

During the three months ended March 31, 2025, additional borrowings and total principal repayments in connection with the Revolving Credit Facility were $290.0 million and $90.0 million, respectively.

• Proceeds from the sale of assets were $409.6 million and $263.1 million during the three months ended March 31, 2026 and 2025, respectively.

We are currently evaluating several potential transactions and related financings, including, but not limited to, certain additional debt and equity financings, which could occur within the next 12 months.

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Historical Cash Flow

Comparison of the nine months ended September 30, 2025 and 2024

The following table compares the historical cash flow for the nine months ended September 30, 2025 and 2024:

Nine Months Ended September 30,

Comparison of the three months ended March 31, 2026 and 2025

The following table compares the historical cash flow for the three months ended March 31, 2026 and 2025:

Three Months Ended March 31,

(in thousands) 2026 2025

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Net cash (used in) provided by financing activities (45,178) 50,610

Net cash used in operating activities decreased $14.5 million, primarily reflecting an increase in our Net income of $479.3 million and certain adjustments to reconcile net income to cash used in operating activities, including an:

• increase in Deferred income taxes of $80.0 million;

partially offset by

Net cash used in operating activities increased $134.1 million, primarily reflecting an increase in our Net income of $35.5 million and certain adjustments to reconcile net income to cash used in operating activities, including an:

• increase in Gain on sale of assets of $84.0 million

• decrease in Changes in net working capital of $49.3 million,

• decrease in Non-cash termination fee to affiliate of $150.0 million,

• increase in Gain on insurance recoveries of $14.5 million,

• increase in Gain on sale of assets of $50.4 million,

• decrease in Deferred income taxes of $8.5 million

• decrease in Depreciation and amortization of $7.3 million, and

• increase in Gain on sale of assets to the 2025 Partnership of $4.3 million.

Net cash provided by investing activities increased $1.2 billion, primarily due to an:

• increase in Proceeds from the sale of assets to the 2025 partnership of $485.1 million,

• increase in Proceeds from the sale of assets of $347.5 million,

Net cash provided by investing activities increased $344.6 million, primarily due to an:

• decrease in Acquisition of leasing equipment of $179.6 million,

• decrease in Acquisition of business, net of cash acquired of $106.5 million,

• increase in Proceeds from the sale of assets of $118.2 million,

• increase in Proceeds from the sale of assets to the 2025 partnership of $58.5 million, and

• decrease in Investment in unconsolidated entities of $18.7 million.

• decrease in Deposits for acquisition of leasing equipment of $9.2 million;

partially offset by

• increase in Investment in unconsolidated entities of $188.7 million.

• decrease in Return of deposits for acquisition of leasing equipment of $38.9 million.

Net cash used in financing activities increased $95.8 million, primarily due to a:

• decrease in Proceeds from debt of $1.6 billion, and

• increase in Redemption of preferred shares of $124.2 million;

• decrease in Proceeds from debt of $165.0 million,

• increase in Repayment of debt of $35.0 million,

• increase in cash dividends on ordinary shares of $10.3 million, and

• decrease in receipt of maintenance deposits under operating lease agreements of $7.5 million;

partially offset by,

• decrease in Repayment of debt of $937.3 million.

• decrease in Redemption of preferred shares of $124.2 million.

Contractual Obligations

Our material cash requirements include the following contractual and other obligations:

Debt Obligations — As of September 30, 2025, we had outstanding principal and interest payment obligations of $3.5 billion and $1.2 billion, respectively, of which only interest payments of $228.8 million are due in the next twelve months.

Debt Obligations — As of March 31, 2026, we had outstanding principal and interest payment obligations of $3.5 billion and $1.1 billion, respectively, of which only interest payments of $228.8 million are due in the next twelve months.

Refer to Note 6, “Debt” in our “Notes to Consolidated Financial Statements” for additional information about our debt obligations.

Lease Obligations —As of September 30, 2025, we had outstanding operating and finance lease obligations of $41.0 million, of which $4.4 million is due in the next twelve months.

Lease Obligations —As of March 31, 2026, we had outstanding operating and finance lease obligations of $45.4 million, of which $8.2 million is due in the next twelve months.

Other Cash Requirements —In addition to our contractual obligations, we pay quarterly cash dividends on our ordinary shares and preferred shares, which are subject to change at the discretion of our Board of Directors.

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We expect that our operating subsidiaries will generate sufficient cash flow to cover operating expenses and the payment of principal and interest on our indebtedness as they become due.

We may elect to meet certain long-term liquidity requirements or to continue to pursue strategic opportunities through utilizing cash

on hand, cash generated from our current operations and the issuance of securities in the future.

We may elect to meet certain long-term liquidity requirements or to continue to pursue strategic opportunities through utilizing cash on hand, cash generated from our current operations and the issuance of securities in the future.

Management believes adequate capital and borrowings are available from various sources to fund our commitments to the extent required.

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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 2. Management’s Discussion and Analysis