What changed in this filing

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Item 1. Financial Statements

2026-07-31 compared with 2026-05-01 · 288 added, 161 removed, 638 unchanged (41% of the section changed)

3 unchanged sentences

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

Notes March 31, 2026 December 31, 2025

Notes June 30, 2026 December 31, 2025

Current Assets

3 unchanged sentences

Inventory, net 2 1,544,592 1,193,773

Assets held for sale 2 75,703 —

Other current assets (2)

13 unchanged sentences

Current security deposits 12,368 14,001

Liabilities held for sale 2 23,420 —

Other current liabilities 2 89,086 62,202

6 unchanged sentences

Commitments and contingencies 13

Ordinary shares ($ 0.01 par value per share;

Ordinary shares:

$ 0.01 par value per share;

2,000,000,000 shares authorized;

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

102,625,424 shares issued and outstanding as of June 30, 2026 (December 31, 2025 - 102,573,283 )

$ 1,026 $ 1,026

Preferred shares ($ 0.01 par value per share;

Preferred shares:

$ 0.01 par value per share;

200,000,000 shares authorized;

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

2,600,000 shares issued and outstanding as of June 30, 2026 (December 31, 2025 - 6,800,000 )

Additional paid in capital — 50,567

2 unchanged sentences

Total liabilities and equity $ 4,489,162 $ 4,373,758

(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.

(1) Includes accounts receivable from the 2025 Partnership of $ 25,456 as of June 30, 2026 (December 31, 2025 - $ 47,294 ).

(2) Includes receivables from the 2025 Partnership of $ 9,267 as of June 30, 2026 (December 31, 2025 - $ 20,681 ).

See accompanying notes to consolidated financial statements.

2 unchanged sentences

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

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

Notes 2026 2025 2026 2025

5 unchanged sentences

Other revenue (1)

7,574 2,508 13,781 2,539

Total revenues 11 953,085 676,237 1,783,782 1,178,317

7 unchanged sentences

Interest expense ( 64,102 ) ( 63,965 ) ( 125,509 ) ( 126,005 )

Equity in losses of unconsolidated entities (2)

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

4 9,970 ( 5,003 ) 7,607 ( 12,617 )

17 unchanged sentences

Diluted 104,044,113 103,147,860 104,039,259 103,144,727

(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.

(1) Includes servicing fees of $ 6,988 and $ 12,849 for the three and six months ended June 30, 2026, respectively (2025 - $ 2,052 and $ 2,600 , respectively), from the 2025 Partnership.

(2) Includes the profit elimination of $( 6,597 ) and $( 16,597 ) for the three and six months ended June 30, 2026, respectively (2025 - $( 4,935 ) and $( 11,885 ), respectively), for sales to the 2025 Partnership.

See accompanying notes to consolidated financial statements.

2 unchanged sentences

(Dollars in thousands)

Three Months Ended March 31, 2026

Three and Six Months Ended June 30, 2026

Ordinary Shares Preferred Shares Additional Paid In Capital Retained Earnings

8 unchanged sentences

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

Three Months Ended March 31, 2025

Net income 125,094 125,094

Total comprehensive income 125,094 125,094

Redemption of preferred shares ( 42 ) ( 57,492 ) ( 44,159 ) ( 101,693 )

Loss on redemption of preferred shares ( 3,800 ) ( 3,800 )

Issuance of ordinary shares 570 570

Dividends declared - ordinary shares ( 46,162 ) ( 46,162 )

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

Equity-based compensation 7,332 7,332

Net settlement on vesting of equity awards

( 5,321 ) ( 5,321 )

Equity - June 30, 2026 $ 1,026 $ 26 $ — $ 402,935 $ 403,987

See accompanying notes to consolidated financial statements.

FTAI AVIATION LTD.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (unaudited)

(Dollars in thousands)

Three and Six Months Ended June 30, 2025

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

10 unchanged sentences

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

Net income 165,398 165,398

Total comprehensive income 165,398 165,398

Issuance of ordinary shares 174 174

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

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

Equity-based compensation 5,515 5,515

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

See accompanying notes to consolidated financial statements.

2 unchanged sentences

(Dollars in thousands)

Three Months Ended March 31,

Six Months Ended June 30,

Cash flows from operating activities:

2 unchanged sentences

Equity in losses of unconsolidated entities (1)

( 7,607 ) 12,617

Gain on sale of assets ( 177,937 ) ( 226,116 )

18 unchanged sentences

Investment in unconsolidated entities ( 99,251 ) ( 118,727 )

Return of capital from unconsolidated entities 19,210 —

Principal collections on finance leases — 950

Principal collections on notes receivable 2,384 2,010

11 unchanged sentences

Return of deposits for acquisition of leasing equipment (2)

Net cash provided by (used in) investing activities $ 317,018 $ ( 27,627 )

Net cash provided by investing activities $ 515,714 $ 496,148

See accompanying notes to consolidated financial statements.

2 unchanged sentences

(Dollars in thousands)

Three Months Ended March 31,

Six Months Ended June 30,

Cash flows from financing activities:

10 unchanged sentences

Cash dividends - preferred shares ( 7,418 ) ( 9,824 )

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

Net cash used in financing activities $ ( 213,692 ) $ ( 173,069 )

Net increase in cash and cash equivalents and restricted cash 36,719 186,795

7 unchanged sentences

Accounts receivable settled with maintenance deposits ( 6,692 ) ( 9,248 )

(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.

(1) Includes the profit elimination of $( 16,597 ) for the six months ended June 30, 2026 (2025 - $( 11,885 )) 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 for the six months ended June 30, 2026 (2025 - $ 23,473 ), and return of deposits for the acquisition of leasing equipment reimbursed from the 2025 Partnership of $ 0 for the six months ended June 30, 2026 (2025 - $ 42,813 ).

See accompanying notes to consolidated financial statements.

12 unchanged sentences

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, 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.

18 unchanged sentences

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.

The Company does not have significant exposure to foreign currency risk as all of its leasing arrangements are denominated in U.S.

The Company does not have significant exposure to foreign currency risk as all of its leasing and sale arrangements are denominated in U.S.

Cash and Cash Equivalents — The Company considers all highly liquid short-term investments with a maturity of 90 days or less when purchased to be cash equivalents.

9 unchanged sentences

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.

In certain transactions, the Company may receive noncash consideration from a customer in the form of engines or modules.

Such noncash consideration is measured at fair value at the time of the sale and is included in the transaction price used to recognize revenue.

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.

35 unchanged sentences

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.

Gain on Sale to the 2025 Partnership — The 2025 Partnership acquired 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 and six months ended June 30, 2026, 6 and 15 aircraft were sold to the 2025 Partnership for a gain of $ 2.5 million and $ 17.6 million, respectively (2025 - 33 and 37 aircraft sold for a gain of $ 34.6 million and $ 45.5 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.

Other Income — During the three and six months ended June 30, 2026, the Company recognized $ 5.0 million and $ 49.5 million, respectively (2025 - $ 24.2 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.

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 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.

The Company earned 30 % and 20 % of its revenue from two customers in the Aerospace Products segment during the three months ended June 30, 2026, and 23 %, 21 % and 13 % of its revenue from three customers in the Aerospace Products segment during the six months ended June 30, 2026.

The Company earned 11 % and 14 % of its revenue from one customer in the Aviation Leasing segment during the three and six months ended June 30, 2025.

As of June 30, 2026, there were two customers in the Aerospace Products segment that represented 17 % and 14 %, respectively, 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.

4 unchanged sentences

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 allowance for doubtful accounts was $ 28.4 million as of June 30, 2026 (December 31, 2025 - $ 28.4 million) .

There was no provision for credit losses for the three and six months ended June 30, 2026, respectively (2025 - $ 0.0 million and $ 0.2 million, 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 six months ended June 30, 2025, the Company recorded write-offs and recoveries, net, of its allowance for doubtful accounts of $ 46.7 million.

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

March 31, 2026 (unaudited) December 31, 2025

June 30, 2026 (unaudited) December 31, 2025

Notes receivable $ 217,507 $ 216,298

4 unchanged sentences

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

March 31, 2026 (unaudited) December 31, 2025

June 30, 2026 (unaudited) December 31, 2025

Customer deposits and advanced payments

4 unchanged sentences

Other current liabilities $ 89,086 $ 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

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

For the three and six months ended June 30, 2026, the Board of Directors declared cash dividends of $ 0.50 and $ 0.95 per ordinary share, respectively (2025 - $ 0.30 and $ 0.60 , respectively).

FTAI AVIATION LTD.

1 unchanged sentence

(Dollars in tables in thousands, unless otherwise noted)

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 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.

Additionally, for the three months ended June 30, 2026, the Board of Directors declared cash dividends on the Series D Preferred Shares of $ 0.59 per share, respectively (2025 - Series C Preferred Shares of $ 0.52 and Series D Preferred Shares of $ 0.59 ).

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.

7 unchanged sentences

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.

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,

The cash and noncash related activities described above during the six months ended June 30, 2026 and 2025 are detailed below (unaudited):

Six Months Ended June 30,

(in thousands) 2026 2025

12 unchanged sentences

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.

However, the Company did not elect the practical expedient or make the accounting policy election provided by the ASU and, accordingly, the amendments did not 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.

2 unchanged sentences

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

FTAI AVIATION LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in tables in thousands, unless otherwise noted)

LEASING EQUIPMENT, NET

Leasing equipment, net is summarized as follows:

March 31, 2026 (unaudited) December 31, 2025

June 30, 2026 (unaudited) December 31, 2025

Leasing equipment $ 1,528,257 $ 2,057,624

2 unchanged sentences

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

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

During the three and six months ended June 30, 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 March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Depreciation expense for leasing equipment $ 41,810 $ 51,249 $ 89,120 $ 107,135

FTAI AVIATION LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in tables in thousands, unless otherwise noted)

The following table presents the ownership interests and carrying values of the Company’s investments:

Carrying Value

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

Investment Ownership Percentage June 30, 2026 (unaudited) December 31, 2025

Advanced Engine Repair JV Equity method 25 % $ 22,212 $ 22,429

3 unchanged sentences

$ 401,803 $ 314,156

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 March 31,

The Company did not recognize any other-than-temporary impairments for the three and six months ended June 30, 2026 and 2025.

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

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Advanced Engine Repair JV $ ( 156 ) $ 795 $ ( 217 ) $ 908

3 unchanged sentences

Total $ 9,970 $ ( 5,003 ) $ 7,607 $ ( 12,617 )

(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.

(1) Includes the profit elimination of $( 6,597 ) and $( 16,597 ) for the three and six months ended June 30, 2026, respectively (2025 - $( 4,935 ) and $( 11,885 ), respectively), for sales to the 2025 Partnership.

Equity Method Investments

6 unchanged sentences

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.

During the six months ended June 30, 2026, the Company invested $ 95.1 million in the 2025 Partnership, and received $ 19.2 million in distributions from 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.

The Company exercises significant influence

FTAI AVIATION LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in tables in thousands, unless otherwise noted)

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.

6 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:

March 31, 2026 (unaudited) December 31, 2025

June 30, 2026 (unaudited) December 31, 2025

Intangible assets

10 unchanged sentences

Acquired unfavorable lease intangibles, net $ 3,454 $ 5,556

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

The weighted average amortization period of intangible assets acquired during the six months ended June 30, 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 March 31,

Lease intangibles Lease income $ 337 $ 3,206

Customer relationships Depreciation and amortization 378 95

Total $ 715 3,301

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

Remainder of 2026

Thereafter 4,844

Total $ 9,008

Classification in Consolidated Statements of Operations Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Lease income $ ( 89 ) $ 2,153 $ 248 $ 5,359

Depreciation and amortization 379 124 757 219

$ 290 2,277 $ 1,005 5,578

FTAI AVIATION LTD.

1 unchanged sentence

(Dollars in tables in thousands, unless otherwise noted)

As of June 30, 2026, estimated net annual amortization of intangibles is as follows (unaudited):

Remainder of 2026

Thereafter 4,867

Total $ 9,594

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

March 31, 2026 (unaudited) December 31, 2025

June 30, 2026 (unaudited) December 31, 2025

Outstanding Borrowings Stated Interest Rate Maturity Date Outstanding Borrowings

19 unchanged sentences

(1) Requires a quarterly commitment fee at a rate of 0.15 % - 0.30 % on the average daily unused portion, as well as customary letter of credit fees and agency fees.

(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.

Both the quarterly commitment fee and the margin for the Base Rate and Adjusted Term SOFR Rate are based upon the debt to EBITDA ratio as of the end of the most recent fiscal quarter.

(2) Includes an unamortized premium of $ 793 at June 30, 2026 (December 31, 2025 - $ 995 ).

(3) Includes an unamortized discount of $ 2,318 at June 30, 2026 (December 31, 2025 - $ 2,530 ).

(4) Includes an unamortized discount of $ 2,095 at June 30, 2026 (December 31, 2025 - $ 2,216 ).

The Company was in compliance with all debt covenants as of June 30, 2026.

Revolving Credit Facility

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.

FTAI AVIATION LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in tables in thousands, unless otherwise noted)

FAIR VALUE MEASUREMENTS

10 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:

March 31, 2026 (unaudited) December 31, 2025

June 30, 2026 (unaudited) December 31, 2025

Senior Notes due 2028 $ 999,310 $ 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 $ 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 guarantees are valued at $ 12.9 million as of June 30, 2026 (December 31, 2025 - $ 12.0 million), 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 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.

During the three and six months ended June 30, 2026, the Company recorded a $ 0.4 million and $ 0.8 million increase, respectively (2025 - $ 1.8 million and $ 2.1 million increase, respectively) related to the change in fair value, which is recorded in Asset sales revenue.

During the three and six months ended June 30, 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 June 30, 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 leasing and sale of assets.

Fair value measurements for assets subject to impairment tests, as well as for noncash consideration on sales, 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 leasing and sale of assets.

FTAI AVIATION LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in tables in thousands, unless otherwise noted)

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

As of June 30, 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.

2 unchanged sentences

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

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

Performance shares 3,810 3,262 43,924 2.6 years

Restricted Shares 2,410 1,500 24,786 1.5 years

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

2026 2025 2026 2025

Stock Options $ 127 $ 127 $ 254 $ 254 $ 1,016 7.2

Performance shares 4,552 3,501 8,362 6,763 24,780 2.3

Restricted Shares 2,653 1,887 5,063 3,387 40,563 1.3

Total $ 7,332 $ 5,515 $ 13,679 $ 10,404 $ 66,359

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)

During the six months ended June 30, 2026 and 2025, the Company did not issue any options to employees.

Performance Shares

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 %).

During the six months ended June 30, 2026, the Company issued performance shares to select officers and employees of the Company with a grant date fair value of $ 12.2 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 six months ended June 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 %).

Restricted Shares

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.

During the six months ended June 30, 2026, the Company issued restricted shares to select officers and employees of the Company with a grant date fair value of $ 13.9 million, vesting over 3 years.

Additionally, the Company issued restricted shares to the directors of the Company with a grant date fair value of $ 0.9 million.

These awards vest on the earlier of (i) the one-year anniversary of the grant date (May 28, 2027) or (ii) the date of the Company’s next annual general meeting of shareholders occurring after the grant date.

During the six months ended June 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.

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 March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

$ 9,405 $ 1,944 $ 26,196 $ 3,433

Cayman Islands — — — —

4 unchanged sentences

Other Non-Ireland including Pillar Two top-up tax

5,253 48 5,287 101

Total current provision

22,628 10,762 41,880 12,938

6,879 17,212 14,158 30,912

Cayman Islands — — — —

13 unchanged sentences

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.

As of and for the six months ended June 30, 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.

FTAI AVIATION LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in tables in thousands, unless otherwise noted)

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.

On June 29, 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 would acquire 15 on-lease 737NG and A320ceo aircraft in addition to the originally committed 45 on-lease 737NG and A320ceo aircraft.

As of June 30, 2026, the Company sold all committed aircraft to the 2025 Partnership.

In aggregate, the net purchase price for the committed on-lease 737NG and A320ceo aircraft was approximately $ 700.0 million.

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

During the six months ended June 30, 2026, on behalf of the 2025 Partnership, the Company paid refundable deposits of $ 0.0 million (2025 - $ 23.5 million), to unrelated, third-parties on future purchases of aircraft.

During the six months ended June 30, 2026, the 2025 Partnership reimbursed the Company $ 0.0 million (2025 - $ 42.8 million) in refundable deposits.

During the three and six months ended June 30, 2026, the Company recorded $ 182.8 million and $ 404.0 million of MRE Contract revenue, respectively (2025 - $ 69.6 million and $ 170.2 million, 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.

FTAI AVIATION LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in tables in thousands, unless otherwise noted)

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.

21 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:

5 unchanged sentences

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

The expenses required to be paid by the Company included, but were not limited to, issuance and transaction costs incident to the acquisition, disposition and financing of its assets, legal and auditing fees and expenses, the compensation and expenses of its independent directors, the costs associated with the establishment and maintenance of any credit facilities and other indebtedness of the Company (including commitment fees, legal fees, closing costs, etc.), expenses associated with other securities offerings of the Company, costs and expenses incurred in contracting with third parties (including affiliates of the Former Manager), the costs of printing and mailing proxies and reports to its shareholders, costs incurred by the Former Manager or its affiliates for travel on the Company’s behalf, costs associated with any computer software or hardware that was used by the Company, costs to obtain liability insurance to indemnify the Company’s directors and officers and the compensation and expenses of the Company’s transfer agent.

FTAI AVIATION LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in tables in thousands, unless otherwise noted)

affiliates of the Former Manager), the costs of printing and mailing proxies and reports to its shareholders, costs incurred by the Former Manager or its affiliates for travel on the Company’s behalf, costs associated with any computer software or hardware that was used by the Company, costs to obtain liability insurance to indemnify the Company’s directors and officers and the compensation and expenses of the Company’s transfer agent.

The Company paid or reimbursed the Former Manager and its affiliates for performing certain legal, accounting, due diligence tasks and other services that outside professionals or outside consultants otherwise would perform, provided that such costs and reimbursements were no greater than those which would be paid to outside professionals or consultants.

2 unchanged sentences

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

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Classification in the Consolidated Statements of Operations:

24 unchanged sentences

(Dollars in tables in thousands, unless otherwise noted)

For the Three Months Ended March 31, 2026

Three Months Ended March 31, 2026

For the Three Months Ended June 30, 2026

Three Months Ended June 30, 2026

Aerospace Products Aviation Leasing Corporate and Other Eliminations Total

13 unchanged sentences

Total expenses 630,573 75,871 51,835 — 758,279

Other income (expense)

Other (expense) income

Interest expense — — ( 64,102 ) — ( 64,102 )

3 unchanged sentences

Other income ( 59 ) 7,237 396 — 7,574

Total other income (expense) 131 70,084 ( 61,235 ) ( 10,000 ) ( 1,020 )

Total other (expense) income ( 241 ) 26,451 ( 63,706 ) ( 6,597 ) ( 44,093 )

Income (loss) before income taxes 244,214 28,637 ( 115,541 ) ( 6,597 ) 150,713

2 unchanged sentences

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

Loss on redemption of preferred shares — — 3,800 — 3,800

Net income (loss) attributable to shareholders $ 194,244 $ 20,866 $ ( 90,928 ) $ ( 6,597 ) $ 117,585

(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.

(1) Includes servicing fees of 6,988 for the three months ended June 30, 2026 from the 2025 Partnership.

(2) Includes the profit elimination of $( 6,597 ) for the three months ended June 30, 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:

Three Months Ended March 31, 2026

Three Months Ended June 30, 2026

Aerospace Products Aviation Leasing Corporate and Other Total

6 unchanged sentences

$ 875,028 $ 78,057 $ — $ 953,085

(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.

(1) The United States, included in North America, and Ireland, included in Europe, represent 48 % and 23 % 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 March 31, 2026:

March 31, 2026

FTAI AVIATION LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(Dollars in tables in thousands, unless otherwise noted)

For the Six Months Ended June 30, 2026

Six Months Ended June 30, 2026

Aerospace Products Aviation Leasing Corporate and Other Eliminations Total

Aerospace products revenue $ 1,214,814 $ — $ — $ — $ 1,214,814

MRE Contract revenue 404,029 — — — 404,029

Lease income — 67,657 — — 67,657

Maintenance revenue — 56,392 — — 56,392

Asset sales revenue — 27,109 — — 27,109

Other revenue (1)

— 13,781 — — 13,781

Total revenues 1,618,843 164,939 — — 1,783,782

Cost of sales 1,125,541 34,509 — — 1,160,050

Operating expenses 21,836 22,060 88,658 — 132,554

General and administrative — — 4,658 — 4,658

Acquisition and transaction expenses 129 6,034 15,897 — 22,060

Depreciation and amortization 9,581 87,470 2,224 — 99,275

Total expenses 1,157,087 150,073 111,437 — 1,418,597

Other (expense) income

Interest expense — — ( 125,509 ) — ( 125,509 )

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

( 222 ) 24,426 — ( 16,597 ) 7,607

Gain on sale to the 2025 Partnership — 17,633 — — 17,633

Other income 112 54,476 568 — 55,156

Total other (expense) income ( 110 ) 96,535 ( 124,941 ) ( 16,597 ) ( 45,113 )

Income (loss) before income taxes 461,646 111,401 ( 236,378 ) ( 16,597 ) 320,072

Provision for (benefit from) income taxes 83,667 26,097 ( 52,685 ) — 57,079

Net income (loss) 377,979 85,304 ( 183,693 ) ( 16,597 ) 262,993

Dividends on preferred shares — — 7,418 — 7,418

Loss on redemption of preferred shares — — 3,800 — 3,800

Net income (loss) attributable to shareholders $ 377,979 $ 85,304 $ ( 194,911 ) $ ( 16,597 ) $ 251,775

(1) Includes servicing fees of $ 12,849 for the six months ended June 30, 2026 from the 2025 Partnership.

(2) Includes the profit elimination of $( 16,597 ) for the six months ended June 30, 2026 for sales to the 2025 Partnership within the Aerospace Products segment.

FTAI AVIATION LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(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:

Six Months Ended June 30, 2026

Aerospace Products Aviation Leasing Corporate and Other Total

Africa $ 9,500 $ 5,219 $ 14,719

Asia 119,412 36,059 155,471

Europe 473,867 58,691 532,558

North America 985,976 49,327 1,035,303

South America 30,088 15,643 45,731

Total revenues (1)

$ 1,618,843 $ 164,939 $ — $ 1,783,782

(1) The United States, included in North America, Bermuda, included in North America, and Ireland, included in Europe, represent 40 %, 15 % and 22 % of total revenues, respectively, based on the location of our 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 June 30, 2026:

June 30, 2026

Remainder of 2026

4 unchanged sentences

(Dollars in tables in thousands, unless otherwise noted)

For the Three Months Ended March 31, 2025

Three Months Ended March 31, 2025

For the Three Months Ended June 30, 2025

Three Months Ended June 30, 2025

Aerospace Products Aviation Leasing Corporate and Other Eliminations

6 unchanged sentences

Other revenue (1)

— 2,508 — — 2,508

Total revenues 490,271 185,966 — — 676,237

5 unchanged sentences

Total expenses 331,576 113,878 20,299 — 465,753

Other expense

Other income (expense)

Interest expense — — ( 63,965 ) — ( 63,965 )

4 unchanged sentences

Other income — 26,974 182 — 27,156

Total other expense 113 42,712 ( 61,588 ) ( 6,950 ) ( 25,713 )

Total other income (expense) 714 60,796 ( 63,783 ) ( 4,935 ) ( 7,208 )

Income (loss) before income taxes 159,409 132,884 ( 84,082 ) ( 4,935 ) 203,276

2 unchanged sentences

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

Loss on redemption of preferred shares

Net income (loss) attributable to shareholders $ 133,582 $ 106,431 $ ( 73,389 ) $ ( 4,935 ) $ 161,689

(1) Includes servicing fees of $ 2,052 for the three months ended June 30, 2025 from the 2025 Partnership.

(2) Includes the profit elimination of $( 4,935 ) for the three months ended June 30, 2025 for sales to the 2025 Partnership within the Aerospace Products segment.

FTAI AVIATION LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(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 June 30, 2025

Aerospace Products Aviation Leasing Corporate and Other Total

Africa $ 17,000 $ 8,595 $ — $ 25,595

Asia 39,327 54,211 — 93,538

Europe 126,444 83,257 — 209,701

North America 298,039 31,602 — 329,641

South America 9,461 8,301 — 17,762

Total revenues (1)

$ 490,271 $ 185,966 $ — $ 676,237

(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 Six Months Ended June 30, 2025

Six Months Ended June 30, 2025

Aerospace Products Aviation Leasing Corporate and Other Eliminations Total

Aerospace products revenue $ 685,111 $ — $ — $ — $ 685,111

MRE Contract revenue 170,223 — — — 170,223

Lease income — 130,879 — — 130,879

Maintenance revenue — 122,711 — — 122,711

Asset sales revenue — 66,854 — — 66,854

Other revenue (1)

— 2,535 4 — 2,539

Total revenues 855,334 322,979 4 — 1,178,317

Cost of sales 546,224 71,748 — — 617,972

Operating expenses 14,676 18,515 33,575 — 66,766

General and administrative — — 5,558 — 5,558

Acquisition and transaction expenses 2,546 3,482 5,753 — 11,781

Depreciation and amortization 7,288 105,484 2,026 — 114,798

Total expenses 570,734 199,229 46,912 — 816,875

Other income (expense)

Interest expense — — ( 126,005 ) — ( 126,005 )

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

827 ( 1,559 ) — ( 11,885 ) ( 12,617 )

Gain on sale to the 2025 Partnership — 45,474 — — 45,474

Other income — 59,593 634 — 60,227

Total other income (expense) 827 103,508 ( 125,371 ) ( 11,885 ) ( 32,921 )

Income (loss) before income taxes 285,427 227,258 ( 172,279 ) ( 11,885 ) 328,521

Provision for (benefit from) income taxes 45,202 43,801 ( 28,266 ) — 60,737

Net income (loss) 240,225 183,457 ( 144,013 ) ( 11,885 ) 267,784

Dividends on preferred shares — — 9,824 — 9,824

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

Net income (loss) attributable to shareholders $ 240,225 $ 183,457 $ ( 160,164 ) $ ( 11,885 ) $ 251,633

(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.

(1) Includes servicing fees of $ 2,600 for the six months ended June 30, 2025 from the 2025 Partnership.

(2) Includes the profit elimination of $( 11,885 ) for the six months ended June 30, 2025 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:

Three Months Ended March 31, 2025

Six Months Ended June 30, 2025

Aerospace Products Aviation Leasing Corporate and Other Total

6 unchanged sentences

$ 855,334 $ 322,979 $ 4 $ 1,178,317

(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.

(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 the Company’s customers and lessees.

No other country represents more than 10% of total revenues.

1 unchanged sentence

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

March 31, 2026 (unaudited) December 31, 2025

June 30, 2026 (unaudited) December 31, 2025

Property, plant and equipment and leasing equipment, net

6 unchanged sentences

$ 1,281,115 $ 1,665,872

(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.

(1) The United States, included in North America, and Chile, included in South America, represents 20 % and 14 % of property, plant and equipment and leasing equipment, net, respectively, as of June 30, 2026.

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

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

7 unchanged sentences

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

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

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

9 unchanged sentences

Diluted $ 1.13 $ 1.57 $ 2.42 $ 2.44

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.

For the three and six months ended June 30, 2026, 52,791 shares were excluded from the calculation of Diluted EPS (2025 - none ).

During the three and six months ended June 30, 2026, the Company issued 329 and 915 ordinary shares, respectively, to certain directors as compensation (2025 - 676 and 676 , respectively).

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.

In June 2026, the Company redeemed in full the outstanding 4,200,000 8.25 % Fixed-Rate Reset Series C Cumulative Perpetual Redeemable Preferred Shares at a redemption price equal to $ 25.00 per share in cash .

COMMITMENTS AND CONTINGENCIES

3 unchanged sentences

SUBSEQUENT EVENTS

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”).

On July 28, 2026, the Company’s Board of Directors declared a cash dividend on its ordinary shares and eligible participating securities of 0.50 per share for the three months ended June 30, 2026, payable on August 24, 2026 to the holders of record on August 12, 2026.

Additionally, on July 28, 2026, the Company’s Board of Directors also declared cash dividends on the Series D Preferred Shares of $ 0.59 per share, payable on September 15, 2026 to the holders of record on September 1, 2026.

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