FTAI Aviation Ltd.

Good day, and thank you for standing by. Welcome to the first quarter of 2026 FTIE Aviation Earnings Conference Call. At this time, all participants are in listen-only mode. After this previous presentation, there will be a question and answer session. To ask a question during the session, you will 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 that today's conference will be recorded. I would like to hand the conference over to your first speaker today, Alan Andrini, Investment Relations. Please go ahead.

Thank you, Marvin. I would like to welcome you all to the FTIA Aviation First Quarter 2026 Earnings Call. Joining me here today are Joe Adams, our Chief Executive Officer, David Marino, our President, Nicholas McLeese, our Chief Financial Officer, and Stacey Kuperis, 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 supplements. 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. The first quarter was a solid start to the year for us, and we'd like to begin this morning by highlighting the key objectives for each of our businesses in 2026 and the progress we made during this first quarter. Across aerospace products, strategic capital, and power, we are scaling platforms with strong structural demand in a disciplined manner and deploying capital to support growth where we see the most attractive long-term returns. I'll start with aerospace products. First, a top priority for us in 2026 is to focus on accelerating our market share growth. As our production capabilities, parts procurement strategies, and overall MRE customer adoption reach an inflection point, now is the time for us to take full advantage of our competitive moat and focus on market share growth. As a reminder, we're only five years into building our aerospace products business, and as the business continues to mature and grow, we have the opportunity to leverage our enhanced execution capabilities to take more market share more quickly from traditional engine maintenance shops. Second, as the market for the CFM56 and V2500 engines continues to mature, we've seen a notable increase in demand for leased engine solutions from top-tier airlines. even those with in-house engine MRO capabilities. We offer flexibility, customized pricing and scale that no one else can fulfill, and these large programs are very sticky. It's a key priority for us in 2026 to win more of this business. Third is production. We've always talked about expanding production capacity well ahead of growth, as well as adding maintenance facilities in parts of the world where we see strong traction with our customer base. It's notable today that when you look at the map, we have no major maintenance facilities east of Rome, Italy. I'd expect this to look different when we are on next year's first quarter call. Turning to results, aerospace products results support the objective I just outlined with top line revenue growth accelerating both year over year and quarter over quarter up 104% year-over-year and 32% quarter-over-quarter, respectively. First quarter adjusted EBITDA of $223 million is an increase of 70% year-over-year and up 14% from $195 million in Q4 of 2025. EBITDA margins for the quarter of 30% are indicative of an increased mix of deals with large airline customers and a larger mix of full performance restoration shop visits. We expect this to be the trend line going forward as our capabilities have been built out and we're able to bring volumes to the market that others simply cannot. Shifting now to strategic capital where our top priority is completing the deployment of the 2025 SPV or special purpose vehicle. Our deployment pace for the first vehicle has been strong and our engine maintenance focused approach to adding value to aircraft ownership has been well received by the market. As we approach the end of the second quarter, the 2025 SPV will be fully invested and we will shift from the deployment period to the harvest period where quarterly distribution will now begin. David will share more with you about the goals for adding value to the portfolio during this phase. As an active asset manager, We're always pursuing ways to enhance the returns above what is the contractual lease stream. Our second area of focus for strategic capital is the launch of the 2026 SPV. We continue to plan to have a first close at the end of the second quarter and we'll start acquiring aircraft in the third quarter of this year. The investment strategy, 12 to 15 month deployment period and size of the vehicle will be consistent with the 2025 SPV. Last, to support the build of the strategic capital business, we've added to the team and now have over 40 dedicated individuals focused on sourcing, underwriting, and servicing the portfolio across offices in Dublin, Dubai, Cardiff, and New York. The growth ambitions and differentiated strategy around engine maintenance has resonated in the market. and we've been able to attract great talent to supplement our existing team and scale the platform. Finally, the F-Type Power business continues to make strong progress towards its commercial launch in the fourth quarter of this year. This week, we signed an important joint venture agreement with the Jera Group for packaging and customer conversions that are in advanced stages, both of which David will share more details about. shortly. Before I pass it over to David, I want to address the conflict in the Middle East that began at the end of February and the broader geopolitical environment our industry is navigating today. We are hopeful for a peaceful resolution and a return to more normal energy trading and prices, but we're also realistic about some of the challenges of today's environment. Beginning with aerospace products, our exposure to the Middle East is limited. less than 3% of our global current-gen narrow-body fleet is based in the region, and we have very little customer exposure. More generally, we've not seen any meaningful change in shop-as-a-demand to date. That said, elevated oil prices and fuel prices do negatively impact our customers' financial situation, and while this can create some volatility, it's the exact environment where our F-type value proposition becomes even more critical to the customer. When an airline is facing a multimillion-dollar engine shop visit in comparison to a faster, lower-cost engine exchange with FTI, the decision is even easier to make when liquidity is top of mind. It's also worth remembering that airlines cannot meaningfully change their fleets in response to short-term volatility. New aircraft orders are locked in for the next four to five years, and the current generation aircraft will continue to be a vital part of the global fleet for many, many years. In short, market share gains in aerospace products are much more consequential to us compared to overall market growth. For strategic capital, periods of volatility create opportunities, investment opportunities. When liquidity is tight, sale-leaseback transactions help raise funds and avoid future shop visits. As the only lessor in the world that covers all engine maintenance for its aircraft portfolio, We are uniquely positioned to help airlines in this matter. And lastly, for power, our business is largely insulated from the geopolitical dynamic today. The Mod 1, our product, runs predominantly on natural gas, and to the extent we see additional aviation retirements, it will just provide additional feedstock to grow our conversion efforts. So I will now hand it over to David Moreno.