Latest news with #V2500
Yahoo
13-05-2025
- Business
- Yahoo
FTAI Aviation Ltd. (FTAI): A Bull Case Theory
We came across a bullish thesis on FTAI Aviation Ltd. (FTAI) on Substack by Autumn Capital. In this article, we will summarize the bulls' thesis on FTAI. FTAI Aviation Ltd. (FTAI)'s share was trading at $110.01 as of May 8th. FTAI's trailing and forward P/E were 458.38 and 21.14 respectively according to Yahoo Finance. Engineers examining stress tests of an aircraft engine, working to make sure its ready for flight. FTAI Aviation (FTAI) began as an aircraft and engine leasing business, but it is now undergoing a strategic transformation into a high-margin, capital-efficient maintenance, repair, and overhaul (MRO) company. Its MRO operations primarily focus on CFM56 and V2500 engines, which power a significant portion of Boeing and Airbus narrow-body aircraft and are expected to remain in wide use for decades. Despite only holding approximately 5% share of the fragmented MRO market for these engine types, FTAI is growing rapidly and has a long runway for further expansion. What sets FTAI apart is its unique approach to engine servicing — rather than performing full overhauls, the company repairs or swaps out individual engine modules using a proprietary inventory. This significantly reduces customer downtime and repair costs, enabling FTAI to achieve superior margins compared to traditional MRO providers. The company's legacy leasing business plays a synergistic role in fueling the growth of its MRO segment by supplying used modules and generating consistent demand for swaps, effectively accelerating the MRO flywheel. Earlier this year, the company faced pressure following the release of short-seller reports, which triggered a stock price decline. However, at the same time, FTAI announced a transformative multi-billion-dollar capital transaction, shifting a significant portion of its leasing assets into a new partnership structure. This move not only reduced capital intensity but also unlocked further growth opportunities for the leasing side while freeing FTAI to focus more aggressively on its higher-return MRO operations. The combination of the stock pullback and this capital realignment created a compelling entry point for investors. FTAI now trades at roughly 10x next-twelve-month EV/EBITDA, an attractive multiple given its strong growth outlook. Even without any multiple expansion, organic growth toward a 10–12% MRO market share, bolstered by its capital-light leasing structure, points to a high-teens IRR potential. If the stock re-rates to a 20x multiple—inline with top-tier MRO peers—and as the company rolls out higher-margin PMA parts and scales its operations, the return profile becomes even more compelling. With the possibility of exceeding 10% market share and capturing significant per-unit EBITDA growth, FTAI offers a rare opportunity to earn 20%+ IRRs over the long term, making it one of the most attractively positioned aerospace aftermarket plays in the public markets today. FTAI Aviation Ltd. (FTAI) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 54 hedge fund portfolios held FTAI at the end of the fourth quarter which was 41 in the previous quarter. While we acknowledge the risk and potential of FTAI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than FTAI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey.
Yahoo
19-04-2025
- Business
- Yahoo
FTAI Aviation Ltd. (FTAI) Slid After a Short-Seller Report
Fred Alger Management, an investment management company, released its 'Alger Small Cap Focus Fund' first quarter 2025 investor letter. A copy of the letter can be downloaded here. Changing trade, monetary, and fiscal policies increased volatility in US stocks. The emergence of artificial intelligence (AI) models from China added to the uncertainty. Against this backdrop, the class A shares of the fund underperformed the Russell 2000 Growth Index. The Communication Services and Energy sectors contributed to the relative performance of the fund in the quarter, while the Health Care and Information Technology sectors detracted. In addition, you can check the fund's top 5 holdings to determine its best picks for 2025. In its first-quarter 2025 investor letter, Alger Small Cap Focus Fund highlighted stocks such as FTAI Aviation Ltd. (NASDAQ:FTAI). FTAI Aviation Ltd. (NASDAQ:FTAI) owns and acquires aviation and offshore energy equipment for transportation, operating through the Aviation Leasing and Aerospace Products segments. The one-month return of FTAI Aviation Ltd. (NASDAQ:FTAI) was -12.84%, and its shares gained 36.62% of their value over the last 52 weeks. On April 17, 2025, FTAI Aviation Ltd. (NASDAQ:FTAI) stock closed at $93.00 per share with a market capitalization of $9.538 billion. Alger Small Cap Focus Fund stated the following regarding FTAI Aviation Ltd. (NASAQ:FTAI) in its Q1 2025 investor letter: "FTAI Aviation Ltd. (NASAQ:FTAI) is a global aviation company specializing in the acquisition, leasing, and sales of aircraft and aircraft engines, particularly focused on CFM56 and V2500 engines. The company operates through two main segments: Aviation Leasing, which manages and leases aviation assets generating rental income, and Aerospace Products, which develops, manufactures, repairs, and sells aircraft engines and aftermarket components. FTAI primarily earns revenue from leasing fees, equipment sales, and maintenance services. We believe FTAI has established a differentiated business model that maximizes profits from a highly attractive niche within the aerospace aftermarket—used CFM56 jet engines, which dominate short- to medium haul flights globally. During the quarter, shares detracted from performance following a short-seller report alleging that actual maintenance revenue and individual engine module sales were materially lower than reported, claiming FTAI inflated Aerospace Products revenues by categorizing one-time engine sales as Maintenance, Repair, and Overhaul (MRO) revenue, and suggesting profitability was driven more by asset sales than genuine value-added services. In response, FTAI's board commissioned an independent audit, which cleared the company of all allegations, allowing FTAI to file its annual report on time. Aside from the short-seller impact, shares were also pressured by broader market trends as investors rotated away from last year's strong performers. Despite these near-term challenges, we remain confident in FTAI's fundamentals and believe it represents one of the best investment opportunities to capitalize on the multi-year commercial aerospace cycle." A team of airline employees surrounded by flight deck controls, with a variety of aircraft outside. FTAI Aviation Ltd. (NASDAQ:FTAI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 54 hedge fund portfolios held FTAI Aviation Ltd. (NASDAQ:FTAI) at the end of the fourth quarter compared to 41 in the third quarter. FTAI Aviation Ltd. (NASDAQ:FTAI) ended the year strongly and reported adjusted EBITDA of $252 million in Q4 2024, up 9% from Q3 2024 and up 55% from Q4 2023. While we acknowledge the potential of FTAI Aviation Ltd. (NASDAQ:FTAI) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. In another article, we covered FTAI Aviation Ltd. (NASAQ:FTAI) and shared the list of beaten down large cap stocks that can double according to Wall Street. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Trade Arabia
13-03-2025
- Automotive
- Trade Arabia
Sanad achieves $1.34bn revenue for 2024, up 40%
Sanad, the global aerospace engineering and leasing solutions leader wholly owned by Abu Dhabi's sovereign investor Mubadala Investment Company (Mubadala), has announced exceptional financial results for 2024, with revenue surpassing the $1-billion milestone for the first time in its history. The company reported AED4.92 billion ($1.34 billion) in revenue, a 40 percent increase from AED3.4 billion ($925 million) in 2023, underscoring its rapid expansion and strategic market positioning, said a WAM news agency report. Sanad's exceptional performance was fuelled by unprecedented global demand for engine MRO services, expansion into key global markets, and transformative strategic agreements with leading airlines and global Original Engine Manufacturers (OEM). Sanad's leasing division witnessed significant achievements, executing five major transactions exceeding AED1.8 billion in combined value, positioning the division to develop its new long-term growth strategy. The company's AED33 billion order book was bolstered by major partnerships with Air Mauritius, Deucalion Aviation, Asiana Airlines, and Lion Air, propelling its contracted business by an additional AED4 billion in 2024, it said. Additionally, Sanad's global expansion strategy was reinforced by establishing a dedicated sales presence in Singapore, further strengthening its footprint in the high-growth APAC region and enhancing its global sales network. Amer Siddiqui, Group Chairman of Sanad, stated: 'Sanad's record-breaking performance in 2024 is a testament to our resilient strategy, operational excellence, and long-term investment plans. This achievement reinforces our pivotal role in Abu Dhabi's vision of becoming a global aviation hub which solidifies Sanad's position as a leader in the global aviation market. Our continued growth underscores the strength of our business model and our unwavering commitment to delivering world-class solutions to our partners from our home base in Abu Dhabi.' Mansoor Janahi, Managing Director and Group CEO of Sanad, said: '2024 was a transformational year for Sanad. Surpassing US$1.34 billion in revenue reflects the strong market demand for our services, our advanced engine MRO and leasing capabilities, and the dedication of our exceptional teams. With strategic expansions, new partnerships, and an unwavering focus on innovation and service-delivery, we are well-positioned to sustain this momentum and drive the future of the aerospace sector in Abu Dhabi.' Sanad further solidified its position as a leading independent engine MRO service provider, recording 161 engine inductions, a 29 percent increase from 2023. This surge was fueled by soaring demand for Trent 700, V2500, and LEAP engine maintenance. To accommodate this demand, Sanad invested over AED100 million to expand its MRO infrastructure, ensuring state-of-the-art engine repair and maintenance capabilities. In 2024, Sanad's MRO division processed 54 V2500 engines, 40 Trent 700 engines, 28 GEnx engines, and 21 LEAP engines, performing over 43,000-part inspections and 19,000 in-house repairs. Additionally, Sanad welcomed seven new customers in 2024, bringing its total customer base to over 40, including leading airlines and OEMs worldwide. This expansion of capacity and capabilities, combined with growing global air travel, positions Sanad as a preferred partner for airlines and OEMs worldwide. Sanad's workforce saw a 20 percent expansion in 2024, with over 130 new hires joining the company. Emiratisation remained a core focus, with UAE nationals now comprising 32 percent of the workforce, a 19 percent increase from 2023.
Khaleej Times
12-03-2025
- Business
- Khaleej Times
Sanad surpasses Dh4.92 billion in revenues for 2024
Sanad, the global aerospace engineering and leasing solutions leader wholly owned by Abu Dhabi's sovereign investor Mubadala Investment Company, on Wednesday announced Dh4.92 billion ($1.34 billion) in revenue for 2024, a 40 per cent increase from Dh3.4 billion in 2023. Sanad's performance was fueled by strong global demand for engine MRO services, expansion into key global markets, and strategic agreements with leading airlines and global original engine manufacturers (OEM). Sanad's leasing division witnessed significant achievements, executing five major transactions exceeding Dh1.8 billion ($490 million) in combined value, positioning the division to develop its new long-term growth strategy. The company's Dh33 billion order book was bolstered by major partnerships with Air Mauritius, Deucalion Aviation, Asiana Airlines, and Lion Air, propelling its contracted business by an additional Dh4 billion in 2024. Additionally, Sanad's global expansion strategy was reinforced by establishing a dedicated sales presence in Singapore, further strengthening its footprint in the high-growth APAC region and enhancing its global sales network. Amer Siddiqui, group chairman of Sanad, said: 'Sanad's record-breaking performance in 2024 is a testament to our resilient strategy, operational excellence, and long-term investment plans. This achievement reinforces our pivotal role in Abu Dhabi's vision of becoming a global aviation hub which solidifies Sanad's position as a leader in the global aviation market. Our continued growth underscores the strength of our business model and our unwavering commitment to delivering world-class solutions to our partners from our home base in Abu Dhabi.' Mansoor Janahi, managing director and group CEO of Sanad, said: '2024 was a transformational year for Sanad. Surpassing $1.34 billion in revenue reflects the strong market demand for our services, our advanced engine MRO and leasing capabilities, and the dedication of our exceptional teams. With strategic expansions, new partnerships, and an unwavering focus on innovation and service-delivery, we are well-positioned to sustain this momentum and drive the future of the aerospace sector in Abu Dhabi.' MRO capabilities to meet unprecedented demand During the year, Sanad recorded 161 engine inductions, a 29 per cent increase from 2023. This surge was fueled by soaring demand for Trent 700, V2500, and LEAP engine maintenance. To accommodate this demand, Sanad invested over Dh100 million to expand its MRO infrastructure, ensuring state-of-the-art engine repair and maintenance capabilities. In 2024, Sanad's MRO division processed 54 V2500 engines, 40 Trent 700 engines, 28 GEnx engines, and 21 LEAP engines, performing over 43,000-part inspections and 19,000 in-house repairs. Additionally, Sanad welcomed seven new customers in 2024, bringing its total customer base to over 40, including leading airlines and OEMs worldwide. Sanad's leasing division played a pivotal role in revenue growth executing a total of five strategic deals, with a combined capital value exceeding Dh1.8 billion. Among the division's standout achievements was the sale of 16 engines to Etihad Airways, valued at nearly Dh1.5 billion. 'Additionally, high-value CFM56 engine transactions with CFM Materials and component sales to AerSale, further bolstered Sanad's financial position, demonstrating its ability to extract maximum value from its leasing assets,' a statement said. Sanad also completed the sale of a GE90 engine and key component transactions with AerCap, executed the sale of two CFM56-7B26 engines to CFM Materials. 'These strategic asset monetisation efforts further enhanced Sanad's financial position and supported its long-term growth strategy,' the statement said. Sanad's workforce saw a 20 per cent expansion in 2024, with over 130 new hires joining the company. Emiratisation remained a core focus, with UAE nationals now comprising 32 per cent of the workforce, a 19 per cent increase from 2023. Looking ahead Sanad plans to increase engine MRO capacity within the UAE while targeting global growth in emerging markets in Africa, India, and Southeast Asia. 'The company is strengthening its human capital development, forging strategic industry collaborations, and continues to invest in cutting-edge MRO solutions, automation, and AI-driven initiatives to drive efficiency and innovation,' the statement said.
Al Etihad
12-03-2025
- Automotive
- Al Etihad
Sanad achieves Dh4.92 billion in revenues for 2024, marking 40 percent surge
12 Mar 2025 16:46 ABU DHABI (ALETIHAD)Sanad, the global aerospace engineering and leasing solutions leader wholly owned by Abu Dhabi's sovereign investor Mubadala Investment Company PJSC (Mubadala), has announced exceptional financial results for 2024, surpassing the US$1 billion milestone for the first time in its company reported Dh4.92 billion (US$1.34 billion) in revenue, a 40 percent increase from Dh3.4 billion (US$925 million) in 2023, underscoring its rapid expansion and strategic market exceptional performance was fueled by unprecedented global demand for engine MRO services, expansion into key global markets, and transformative strategic agreements with leading airlines and global Original Engine Manufacturers (OEM).Sanad's Leasing division witnessed significant achievements, executing five major transactions exceeding Dh1.8 billion ($490 million) in combined value, positioning the division to develop its new long-term growth strategy. The company's Dh33 billion order book was bolstered by major partnerships with Air Mauritius, Deucalion Aviation, Asiana Airlines, and Lion Air, propelling its contracted business by an additional Dh4 billion in Sanad's global expansion strategy was reinforced by establishing a dedicated sales presence in Singapore, further strengthening its footprint in the high-growth APAC region and enhancing its global sales Siddiqui, Group Chairman of Sanad, stated, 'Sanad's record-breaking performance in 2024 is a testament to our resilient strategy, operational excellence, and long-term investment plans. This achievement reinforces our pivotal role in Abu Dhabi's vision of becoming a global aviation hub which solidifies Sanad's position as a leader in the global aviation market. Our continued growth underscores the strength of our business model and our unwavering commitment to delivering world-class solutions to our partners from our home base in Abu Dhabi.'Mansoor Janahi, Managing Director and Group CEO of Sanad, said, '2024 was a transformational year for Sanad. Surpassing US$1.34 billion in revenue reflects the strong market demand for our services, our advanced engine MRO and leasing capabilities, and the dedication of our exceptional teams. With strategic expansions, new partnerships, and an unwavering focus on innovation and service-delivery, we are well-positioned to sustain this momentum and drive the future of the aerospace sector in Abu Dhabi.'Sanad further solidified its position as a leading independent engine MRO service provider, recording 161 engine inductions, a 29 percent increase from 2023. This surge was fueled by soaring demand for Trent 700, V2500, and LEAP engine maintenance. To accommodate this demand, Sanad invested over Dh100 million to expand its MRO infrastructure, ensuring state-of-the-art engine repair and maintenance 2024, Sanad's MRO division processed 54 V2500 engines, 40 Trent 700 engines, 28 GEnx engines, and 21 LEAP engines, performing over 43,000-part inspections and 19,000 in-house repairs. Additionally, Sanad welcomed seven new customers in 2024, bringing its total customer base to over 40, including leading airlines and OEMs worldwide. This expansion of capacity and capabilities, combined with growing global air travel, positions Sanad as a preferred partner for airlines and OEMs worldwide. Sanad's workforce saw a 20 percent expansion in 2024, with over 130 new hires joining the company. Emiratisation remained a core focus, with UAE Nationals now comprising 32 percent of the workforce, a 19 percent increase from 2023.
