FTAI Aviation Ltd.

Good day and thank you for standing by. Welcome to the Q3 2024 FTAI Aviation Earnings Conference Call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Alan Andrini, Investor Relations. Please go ahead.

Thank you, Liz. I would like to welcome you all to the FCA Aviation Third Quarter 2024 Earnings Call. Joining me here today are Joe Adams, our Chief Executive Officer, Angela Nam, our Chief Financial Officer, and David Marino, our Chief Operating Officer. We have posted an investor presentation and our press release on our website, which we encourage you to download if you have not already done so. Also, please note that this call is open to the public in listen-only mode and is being webcast. In addition, we will be discussing some non-GAAP financial measures during the call today, including EBITDA. The reconciliation of those measures to the most directly comparable GAAP measures can be found in the earnings supplement. Before I turn the call over to Joe, I would like to point out that certain statements made today will be forward-looking statements, including regarding future earnings. These statements, by their nature, are uncertain and may differ materially from actual results. We encourage you to review the disclaimers in our press release and investor presentation regarding non-GAAP financial measures and forward-looking statements, and to review the risk factors contained in our quarterly report filed with the SEC. Now I would like to turn the call over to Joe.

Thank you, Alan. To start today, I'm pleased to announce our 38th dividend as a public company and our 53rd consecutive dividend since inception. The dividend of 30 cents per share will be paid on November 25th based on a shareholder record date of November 14th. Now let's turn to the numbers. The key metric for us is adjusted EBITDA. We continued our strong performance with adjusted EBITDA of $232 million in Q3 2024, which is up 8% compared to $213.9 million in Q2 of this year, and up 50% compared to $154.2 million in Q3 of 2023. During the third quarter, the $232.9 million EBITDA number was comprised of 136.4 million from our leasing segment, 101.8 million from our aerospace product segment, and negative 6.2 million from corporate and other. Turning now to leasing, leasing had another great quarter, posting approximately 136 million of EBITDA. The pure leasing component of that number came in at 122 million for Q3, versus 112 million in Q2 of 2024 and 102 million in Q3 2023. Additionally, we sold 20.7 million book value of assets for a gain of 14.3 million and have more sales coming in the final quarter of this year. With continuing high demand for assets, we remain confident in generating 500 million in leasing EBITDA in 2024 including $50 million in gains on asset sales. Aerospace Products had yet another excellent quarter with $101.8 million EBITDA and an overall EBITDA margin of 34%, which is up 12% compared to $91.2 million in Q2 of this year and up 135% compared to $43.3 million in Q3 2023. We're seeing tremendous growth in adoption and usage of our aerospace products and are increasing our 2024 estimated EBITDA to 360 to 375 million, up from our previous estimate of 325 to 350 million. Overall, we now expect annual aviation EBITDA for 2024 to be between 860 to 875 million, not including corporate and other, up from $825 to $850 million that we got into last quarter. With that, let me turn the call back over to Alan.