FTAI Aviation Ltd.

Good day and thank you for standing by. Welcome to the fourth quarter 2025 FTAI Aviation Earnings Conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there'll be a question and answer session. To ask a question during the session, you'll need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised, today's conference is being recorded. I would now like to turn the conference over to your speaker today. Alan Andreini, please go ahead.

Thank you, Kevin. I would like to welcome you all to the FTIA Aviation Fourth Quarter 2025 Earnings Call. Joining me here today are Joe Adams, our Chief Executive Officer, David Moreno, our President, Stacey Kouperas, our Chief Operating Officer, and Angela Nam, our Chief Financial 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 the 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 on 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. 2025 was a defining year, and I'd like to start today by highlighting the major achievements we've accomplished over the past 12 months, positioning FTI for further success in market leadership in the years ahead. We began the year with the launch of the Strategic Capital Initiative, or what we call SCI, raising our first fund focused on acquiring 737NG and A320CO aircraft. This allowed FTIE to maintain an asset-light business model, while the fund acquires narrowbody aircraft at scale. The SCI investors benefit from FTIE's engine maintenance capabilities, as well as our decade-plus track record of successfully investing in on-lease narrowbody aircraft. Market demand for the first fund was exceptionally strong, including our own 19% co-investment. In just 10 months, we secured $2 billion in equity commitments, making SCI-1 the largest fund ever dedicated to narrow-body midlife aircraft. Together with the support of our leading financing partners, Atlas, an affiliate of Apollo and Deutsche Bank, we will invest $6 billion in total capital in Fund 1. Deployment for 2025 has been strong with 130 aircraft now closed as of December 31. The portfolio has a large concentration of aircraft with engine maintenance needs, which leverages the funds agreement with FTIE for engine exchanges and further differentiates our offering to investors. I am also pleased to announce that we have started the fundraising process for SCI2 off the back of great success we've had with the first vehicle. David will share additional details around the 2026 plan, but I can also share that we have an anchor equity commitment for SCI2, which positions us to start investing out of SCI2 once the first vehicle wraps up its final few investments in the next couple of months. Turning now to results, aerospace products finished the year with great momentum, generating $195 million of Q4 adjusted EBITDA at a 35% margin. an increase of approximately 66% year-over-year and up 8% from $180 million in Q3 of last year. For the full year, we delivered $671 million of adjusted EBITDA in line with our upwardly revised target of $650 to $700 million and well above our original goal of $600 to $650 million. This represents 76% growth over the $380 million generated in 2024 It is over four times the 160 million we reported two years ago, only in 2023. Our growth is driven by the value we provide to the industry by offering readily available fixed price engines, a flexible and cost-efficient alternative to traditional CFM56 and V2500 shop visits. We save our customers time and money, and our growth reflects the increasing market adoption of our products. The long-term outlook for the aftermarket on these platforms continues to strengthen as airlines increasingly opt to extend the life of their existing fleets rather than retiring aircraft for the newest technology. Shop visits for the LEAP and DTF engines are not expected to surpass the CFM56 and V2500 until at least the middle of the next decade, supporting a long and durable addressable market for many years for us. We're seeing this inflection point in the market today. Total maintenance spend is now expected to grow at a double-digit rate this year to approximately $25 billion per annum, up from $22 billion per annum projected last year. Retirements remain at historically low levels, and shop visit demand is shifting towards heavier maintenance overhauls that signal longer economic useful life for these engine types. Altogether, these trends reinforce our confidence that FTIE's differentiated MRE, or maintain, repair, and exchange model, and competitive advantages position us to continue to lead the aftermarket. We remain firmly on track to achieve our interim goal of reaching 25% market share through a combination of new and repeat customers, as well as an increasing volume of engine exchanges from SCI funds each year. Turning to production, we refurbished 228 CFM56 modules this quarter across our three facilities, an increase of 68% compared to Q4 2024, bringing our total for the year to 757 modules. This surpassed our 2025 goal of 750 and was an outstanding collective achievement by our 1,000-plus highly skilled and dedicated employees spread across 13 locations on three continents. 2025 was a defining year for our aerospace business as we continue to widen our competitive moat. Our multi-year materials agreement with CFM provides it with OEM replacement parts supply, thrust performance upgrades, and component repair, reinforcing our shared priority to extend the life of the CFM56 engines through an open MRO ecosystem. This agreement enhances supply resilience, helps us meet strong demand from our customers, and supports the continued scaling of our core module remanufacturing platform. Before I hand it over to David to talk about our key priorities for 2026, I want to take a moment to congratulate him and Stacey Kouperis, who were appointed president and COO of FTI earlier this month. a well-deserved promotion for both David and Stacey. They've been exceptional leaders for many years at FTI, and we're very grateful for their commitment to this business. With that, I will pass it over to David.