FTAI Aviation Ltd.

Ladies and gentlemen, thank you for standing by. Welcome to the third quarter 2026 FTIE Aviation Earnings Conference call. At this time, all participants are in a 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 1 1 on your telephone. You will then hear an automated message advising your hand is raised. and to withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to turn the conference over to Charlie Arestia, Principal Investor Relations. Please go ahead.

Thank you, Michelle. I'd like to welcome you all to the FTIE Aviation third quarter 2026 earnings call, which is open to the public and listen only mode and is being webcast. Joining me here today are Joe Adams, our Chief Executive Officer, David Moreno, our President, Nicholas McAleese, our Chief Financial Officer, and Stacy Kuperus, our Chief Operating Officer. We posted an investor presentation in our press release on our website, which we encourage you to download if you have not already done so. We will be discussing some non-GAAP financial measures during the call today, including adjusted EBITDA. The reconciliation of these measures to the most directly comparable GAAP measures can be found in the earnings supplement. In addition, 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, Charlie.

We have built FTIE around solving the problems our customers face. Our solutions combine engineering and asset ownership to innovate around the turbine. In both aviation and power, customers want to partner that is flexible and thinks differently and creatively now more than ever. And we are very well positioned to be the go-to partner in both of these markets. Every business we've built at FTIE began with a challenge our customer face. We built our MRE business originally to help airlines avoid costly engine maintenance and streamline their operations. Today, with the challenges facing new generation engines, and new aircraft sold out until 2032, we are helping our customers fly their 737 NGs and A320 CO fleets longer by providing efficient ways to support their engine maintenance needs. In addition, with higher oil prices pressuring airline liquidity, predictable engine maintenance costs is more important than ever. SAFTAI was built for exactly this environment. We keep midlife fleets flying at lower costs through our aerospace products division and we turn these fleets into liquidity for the airline through strategic capital. And we've started to offer flexible financing solutions for engines in partnership with institutional investors. I'll touch on the high level impacts and David will walk you through how that is benefiting each of our businesses. Aerospace products had a strongest quarter yet. Adjusted EBITDA was 282.4 million up 57% year over year at an EBITDA margin of 31% in line with our guidance of 30%. We produced a record 311 CFM 56 modules and our market share reached approximately 15% this quarter. The strategic capital ramp is accelerating with 410 aircraft closed or under LOI across SCI-1 and SCI-2 and importantly, the second vehicle, SCI2, started investing in September of this year and is off to a great start. For power, we reached two important milestones this quarter. First, we now have over 100 Mod 1 units under contract for 2027 and 2028 with a significant pipeline of customer demand behind that. And second, we have completed all critical testing milestones and the Mod 1 unit has produced 25 megawatts at peak output and 23 megawatts at ISO continuous output. Finally, capital allocation. This morning we announced a $500 million accelerated share repurchase program that will be complete by the end of this year and was accompanied by an increase in overall authorization from $500 million to $1 billion. In addition, we've completed 80 million of share repurchases since our initial announcement in September. And this will leave us with 420 million of authorization available for one year after the ASR, Accelerated Share Repurchase Program, has been completed.