NEW YORK - FTAI Aviation Ltd. (NASDAQ: FTAI) and IAE International Aero Engines AG have entered into a five-year agreement to provide maintenance services for V2500 engines, a widely used powerplant for commercial, cargo, and military aircraft. The deal, announced today, encompasses over 100 full performance restoration shop visits.
The V2500 engine, known for its fuel efficiency and reliability, is supported by a global network of 13 maintenance, repair, and overhaul facilities. IAE, a consortium including Pratt & Whitney, a business of RTX (NYSE: RTX), and other international engine manufacturers, will collaborate with FTAI Aviation to optimize fleet performance worldwide.
Kim Kinsley, president of IAE AG and vice president of Mature Commercial Engines at Pratt & Whitney, expressed confidence in the V2500's value and reliability. Joe Adams, CEO of FTAI Aviation, highlighted the strong demand for the engine and the potential for extending its service life through this partnership.
FTAI Aviation, which specializes in engine leasing and maintenance products, currently owns and is committed to over 140 V2500 engines, aiming to increase its portfolio to 200 by 2025. The company focuses on cost savings and flexibility for its customers, which include airlines, lessors, and maintenance operators.
This maintenance agreement is part of Pratt & Whitney's EngineWise service portfolio, which offers a variety of aftermarket services designed to maximize engine performance and fleet availability.
Pratt & Whitney is recognized as a leading designer and manufacturer of aircraft engines, while RTX is noted as the world's largest aerospace and defense company, with a diverse range of businesses and a significant global workforce.
The information for this article is based on a press release statement.
In other recent news, FTAI Aviation Ltd. has announced its agreement to acquire the Lockheed Martin (NYSE:LMT) Commercial Engine Solutions (LMCES) from Lockheed Martin Canada for $170 million. The acquisition is expected to be finalized in the latter half of 2024, pending customary regulatory approvals. This move will bolster FTAI Aviation's Maintenance, Repair, and Exchange (MRE) business and expand its global customer base.
Meanwhile, Fortress Transportation (NASDAQ:FTAI) has seen its share target increased by Deutsche Bank (ETR:DBKGn), Compass Point, and Stifel following significant corporate changes. Deutsche Bank raised its price target to $90, Compass Point to $96, and Stifel to $69, all maintaining a Buy rating except for Stifel which holds a Hold rating. These revisions follow the termination of Fortress Transportation's management agreements with Fortress Investment Group, marking a transition to an internally managed structure.
Moreover, FTAI Aviation initiated a public offering of 2,090,561 ordinary shares, with all proceeds going to the Selling Shareholders. Citigroup acts as the sole underwriter for this offering. Despite these developments, FTAI Aviation will not gain any proceeds from this offering, with all proceeds directed to the Selling Shareholders.
InvestingPro Insights
FTAI Aviation's new agreement with IAE International Aero Engines AG comes at a time when the company is experiencing notable financial growth and market performance.
According to InvestingPro data, FTAI's revenue growth over the last twelve months as of Q1 2024 stands at an impressive 32.49%, reflecting the company's expanding operations and market reach. Furthermore, the company's gross profit margin during the same period is reported at 49.19%, showcasing its ability to maintain profitability amidst its growth trajectory.
Investors may also take interest in FTAI's stock price performance, which has seen a significant increase of 188.91% over the past year, indicating robust investor confidence and market sentiment towards the company. This trend aligns with the InvestingPro Tip that FTAI's stock price movements are quite volatile, suggesting potential opportunities for investors looking for dynamic growth stocks.
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