Opening: The paradox at the heart of FTAI’s 2024 results#
FTAI Aviation Ltd. ([FTAI]) posted FY2024 revenue of $1,730,000,000, a sharp acceleration of +47.86% year-over-year, yet ended the year with free cash flow of -$1.34B and net debt of $3.33B — all while continuing a $0.90 annual dividend program. That contrast — strong top-line growth funded by heavy fleet investment and rising leverage, producing negative free cash flow even as GAAP net income stayed positive — is the single most consequential development in the company’s recent performance (company filings, FY2024, filed 2025-03-03). This combination creates both upside (growth in lease revenue and EBITDA) and material balance-sheet risk (large debt loads, thin equity base) that investors must reconcile.
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Financial performance: growth, margins and cash conversion#
FTAI’s income statement shows a clear growth trajectory in revenue but a dramatic deterioration in cash conversion. Revenue expanded from $1,170,000,000 in FY2023 to $1,730,000,000 in FY2024 (+47.86%), driven by fleet additions and higher lease revenue (company filings, FY2024). Gross profit rose to $690,950,000, producing an EBITDA of $469,550,000, which implies an EBITDA margin of +27.16% for FY2024. Operating income was $252,380,000 (operating margin +14.59%) and GAAP net income was $8,680,000 (net margin +0.50%).
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The accounting picture therefore shows profitable operations on a GAAP basis and healthy operating leverage, but cash flows tell a different story. Net cash provided by operating activities in FY2024 was -$187,960,000 and free cash flow was -$1,340,000,000, driven primarily by capital expenditures of -$1.16B and heavy investments in property, plant and equipment (investments in PPE of -$1.31B) as the company added aircraft to the portfolio (cash flow statement, FY2024). Dividend payments of -$154.34M also contributed to the financing outflows.
These numbers produce a stark metric set: net debt of $3.33B against EBITDA of $469.55M, implying an approximate Net Debt / EBITDA of +7.09x at year-end 2024, and a balance sheet where debt finances the large majority of assets — total debt of $3.44B versus total assets of $4.04B (balance sheet, FY2024). Equity has contracted to $81.37M, leaving book equity equal to roughly 2.01% of total assets. Those ratios underline how growth has been executed: high-leverage fleet build financed predominantly with long-term debt (company filings, FY2024).
Recalculations, data conflicts and prioritization#
The data set provided includes several internally inconsistent ratio metrics (for example, a reported TTM current ratio of 5.01x and a net-debt-to-EBITDA of -0.34x) that conflict with balance-sheet and income-statement line items. Using the raw FY2024 statements yields materially different — and, in many cases, more conservative — ratios. For transparency, I prioritize the primary financial statements and compute ratios independently. The reconciled, computed metrics used in this piece are derived from the reported line items in the FY2024 filings (filed 2025-03-03) rather than summary TTM fields that appear internally inconsistent.
Table 1 — Income statement trends (FY2021–FY2024)#
| Year | Revenue | Gross Profit | Operating Income | EBITDA | Net Income | EBITDA Margin | Net Margin |
|---|---|---|---|---|---|---|---|
| 2024 | $1,730,000,000 | $690,950,000 | $252,380,000 | $469,550,000 | $8,680,000 | +27.16% | +0.50% |
| 2023 | $1,170,000,000 | $498,890,000 | $356,990,000 | $530,660,000 | $243,820,000 | +45.32% | +20.82% |
| 2022 | $708,410,000 | $307,110,000 | $156,960,000 | $230,710,000 | -$110,610,000 | +32.57% | -15.61% |
| 2021 | $455,800,000 | $254,050,000 | $25,900,000 | $263,020,000 | -$130,710,000 | +57.71% | -28.68% |
The table shows that while EBITDA has increased in absolute terms, the EBITDA margin compressed YoY from FY2023’s unusually high level to FY2024’s still-healthy +27.16%. The swing in net income from +$243.82M in 2023 to +$8.68M in 2024 reflects higher financing costs, increased depreciation from new assets and one-time or non-cash items that affected reported earnings; nevertheless, GAAP net income remained positive in FY2024 (company filings, FY2024).
Table 2 — Balance sheet and cash-flow highlights (FY2021–FY2024)#
| Year | Cash & Equivalents | Total Assets | Long-Term Debt | Total Liabilities | Total Equity | Net Debt | CapEx | Free Cash Flow |
|---|---|---|---|---|---|---|---|---|
| 2024 | $115,120,000 | $4,040,000,000 | $3,440,000,000 | $3,960,000,000 | $81,370,000 | $3,324,880,000 | -$1,160,000,000 | -$1,340,000,000 |
| 2023 | $90,760,000 | $2,960,000,000 | $2,520,000,000 | $2,790,000,000 | $175,350,000 | $2,429,240,000 | -$776,890,000 | -$647,910,000 |
| 2022 | $33,560,000 | $2,430,000,000 | $2,180,000,000 | $2,410,000,000 | $18,880,000 | $2,146,440,000 | -$813,650,000 | -$834,310,000 |
| 2021 | $188,080,000 | $4,860,000,000 | $3,290,000,000 | $3,740,000,000 | $1,115,000,000 | $3,101,920,000 | -$767,630,000 | -$789,670,000 |
Two dynamics stand out in the balance-sheet table. First, total assets increased by roughly $1.08B year-over-year as the company invested aggressively in aircraft. Second, long-term debt rose by approximately $920M between 2023 and 2024, indicating the fleet build was substantially debt-financed. Equity contracted materially from $175.35M to $81.37M despite asset growth, reflecting the balance of retained losses, dividends and capital structure effects (company filings, FY2024).
Capital allocation and dividend policy: tension between growth and payout#
FTAI maintained a quarterly dividend schedule in 2024 and 2025 (three $0.30 payments per year reported through 2025), producing an annual dividend per share of $0.90 and a dividend yield of about 0.61% at the current market price (stock quote snapshot). That dividend stream totaled roughly $154.34M in FY2024 and, importantly, was paid in a year when free cash flow was deeply negative and net debt increased. Using FY2024 GAAP earnings yields an eyebrow-raising payout multiple: dividends paid represented many multiples of 2024 net income because 2024 net income was only $8.68M. By contrast, using TTM EPS metrics (netIncomePerShareTTM = 4.30) the dividend payout is approximately +20.93% of earnings per share — a materially different picture.
This divergence underscores the importance of the metric choice. If management is targeting payout ratios against TTM EPS (which reflects recent quarters), the dividend level may be sustainable in the short term. However, if dividends are financed from incremental debt or asset sales during cyclical weak points, the policy raises questions about capital allocation discipline and balance-sheet resilience.
Strategic interpretation: fleet growth as a deliberate growth lever#
The FY2024 cash-flow and capex profile indicates deliberate, fleet-focused growth. The company’s investments in PPE of -$1.31B and net acquisitions indicate that FTAI is expanding lease revenue by adding aircraft rather than primarily through rate increases. That strategic posture is standard for lessors: scale the leasing fleet to capture yield on each incremental aircraft when the spread between lease rates and financing costs is attractive.
The forward estimates embedded in the dataset suggest analysts expect that investment to pay off in the medium term: FY2025 revenue consensus of $2.52B and EPS of $5.09 imply significant revenue and profitability acceleration versus FY2024. If the company realizes those top-line gains and preserves or improves margins, the current high leverage could unwind as higher operating cash flows convert to positive free cash flow. But that path is contingent on lease utilization, lessee credit performance, and the refinancing environment.
Risk profile: leverage, refinancing and residual-value exposure#
The most immediate risk is refinancing and leverage. With long-term debt of $3.44B and a thin equity cushion ($81.37M), covenant headroom, interest costs and access to debt markets matter more here than at a lightly-levered lessor. The FY2024 net-debt / EBITDA we calculate at +7.09x places FTAI squarely in a high-leverage category compared with large diversified global lessors where mid-single-digit leverage is common. High leverage amplifies both upside (through higher equity returns if market conditions remain favorable) and downside (if lease rates fall, aircraft values decline, or key lessees default).
Residual-value exposure is the second major risk. Lessors earn much of their long-term return from the residual value of aircraft at lease end. FTAI’s heavy investment cadence increases the company’s exposure to used-aircraft market cycles. If supply from OEMs accelerates or certain models become less desirable (due to fuel efficiency, noise or regulatory changes), remarketing costs and time-to-re-lease could compress returns materially.
Finally, the company’s dividend policy in a negative-free-cash-flow year amplifies capital-allocation risk. Funding dividends while investing aggressively forces a specialization in financing solutions that must be sustainable across cycles.
Earnings quality and recent quarter signals#
Recent reported quarterly results embedded in the dataset show mixed near-term execution. The company reported quarterly earnings surprises with the July 29, 2025 release beating consensus (actual $1.57 vs estimate $1.33, a +18.05% beat) and two earlier quarters in 2025 showing small misses. These micro-level beats and misses indicate volatility at the quarter level but also suggest management has some ability to outperform near-term expectations on earnings per share, likely through higher lease revenue recognition or favorable lease re-pricings in the quarter (earnings surprise entries in the dataset).
However, quality of earnings is weaker when cash flow divergence is large. Positive GAAP earnings accompanied by negative operating cash flows (FY2024 operating cash flow -$187.96M) highlight non-cash items, working-capital swings, and the timing effects of large aircraft purchases. Investors focused on durability should prioritize free-cash-flow pathways and covenant schedules over single-quarter EPS beats.
What this means for investors#
First, FTAI is executing a clear growth strategy: accelerate lease revenue through fleet additions financed primarily with debt. That has produced rapid revenue growth but negative free cash flow and materially higher leverage. Second, the company’s operating margins and EBITDA show the business can be profitable at scale, but profitability alone is not sufficient if cash generation lags capital spending and interest costs. Third, the dividend policy and capital allocation choices raise governance and sustainability questions: paying meaningful dividends while issuing debt to fund capex is a legitimate strategic choice only if the incremental aircraft generate sustained positive free cash flow once ramped into the lease book.
Put differently, the key questions that will determine ultimate investor outcomes are whether FTAI can (i) convert the growing revenue base into positive operating cash flow at scale, (ii) refinance or manage its debt maturities without materially increasing finance costs or diluting equity, and (iii) preserve residual-value realization on the aircraft added during the aggressive expansion.
Key takeaways#
FTAI delivered strong top-line growth in FY2024 (+47.86%), but that growth was financed with heavy capex and new debt, leaving the company with free cash flow of -$1.34B and net debt of $3.33B at year-end. EBITDA and operating margins remain healthy, yet cash conversion is negative. Dividend payments continued despite negative free cash flow, producing a potential tension in capital allocation. Forward analyst estimates imply a recovery in cash generation and profitability in 2025–2029, but those projections depend on successful lease-up, favorable market conditions and access to financing. Investors should monitor quarterly operating cash flow, debt maturities and lease portfolio utilization closely.
Conclusion#
FTAI’s FY2024 results tell a two-part story: disciplined fleet-growth execution that materially expanded revenue and EBITDA, and a cash-flow and leverage profile that has become significantly riskier in the near term. The strategic decision to scale via debt-financed aircraft acquisitions can deliver attractive returns if lease yields, residual values and financing costs align favorably. Conversely, a deterioration in any of those variables could pressure the company’s thin equity base. For stakeholders, the immediate priority is clarity on the durability of cash flows — specifically, the company’s path to converting higher lease revenue into sustainable free cash flow — and transparency around debt maturities and covenant headroom.
(Reported figures in this article are drawn from FTAI’s FY2024 financial statements and supplemental data provided in the research packet; filing dates and line-item figures cited are from the FY2024 submission filed 2025-03-03.)