Financial Analysis

13. COMMITMENTS AND CONTINGENCIES In the normal course of business, the Company and its subsidiaries may be involved in various claims, legal proceedings, or may enter into contracts that contain a variety of representations and warranties and which provide general indemnifications. Within the Companys offshore energy business, a lessee did not fulfill its obligation under its charter arrangement, therefore the Company is pursuing rights afforded to it under the charter and the range of potential losses against the obligation is $0.0 million to $3.3 million. The Company believes the risk of loss in connection with such arrangements is remote. …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

6. DEBT, NET The Companys debt, net is summarized as follows: June 30, 2026 (unaudited) December 31, 2025 Outstanding Borrowings Stated Interest Rate Maturity Date Outstanding Borrowings Loans payable Revolving Credit Facility (1) $ (i) Base Rate + 0.25% - 1.00%; or (ii) Adjusted Term SOFR Rate + 1.25% - 2.00% 4/24/31 $ Total loans payable Bonds payable Senior Notes due 2028 (2) 1,000,793 5.50% 5/1/28 1,000,995 Senior Notes due 2030 (3) 497,682 7.88% 12/1/30 497,470 Senior Notes due 2031 700,000 7.00% 5/1/31 700,000 Senior Notes due 2032 800,000 7.00% 6/15/32 800,000 Senior Notes due 2033 (4) 497,905 5.88% 4/15/33 497,784 Total bonds payable 3,496,380 3,496,249 Debt 3,496,380 3,496,249 Less: Debt issuance costs (43,060) (47,358) Total debt, net $ 3,453,320 $ 3,448,891 Total debt due within one year $ $ (1) Requires a quarterly commitment fee at a rate of 0.15% - 0.30% on the average daily unused portion, as well as customary letter of credit fees and agency fees. Both the quarterly commitment fee and the margin for the Base Rate and Adjusted Term SOFR Rate are based upon the debt to EBITDA ratio as of the end of the most recent fiscal quarter. (2) Includes an unamortized premium of $793 at June 30, 2026 (December 31, 2025 - $995). (3) Includes an unamortized discount of $2,318 at June 30, 2026 (December 31, 2025 - $2,530). (4) Includes an unamortized discount of $2,095 at June 30, 2026 (December 31, 2025 - $2,216). The Company was in compliance with all debt covenants as of J …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

8. EQUITY-BASED COMPENSATION The Company has a FTAI Aviation Ltd. 2025 Omnibus Incentive Plan (the Incentive Plan) which provides for the ability to award equity compensation awards in the form of stock options to eligible employees, consultants, directors, and other individuals who provide services to the Company, each as determined by the Compensation Committee of the Board of Directors. As of June 30, 2026, the Incentive Plan provides for the issuance of up to 5.7 million shares. Equity-based compensation expense is reported within cost of sales and operating expenses. Unvested equity-based awards are subject to forfeiture. The Companys accounting policy is to record the impact of forfeitures when they occur. Equity-based compensation for each type of award was as follows (unaudited): Three Months Ended June 30, Six Months Ended June 30, Remaining Expense To Be Recognized, If All Vesting Conditions Are Met Weighted Average Remaining Contractual Term (in years) 2026 2025 2026 2025 Stock Options $ 127 $ 127 $ 254 $ 254 $ 1,016 7.2 Performance shares 4,552 3,501 8,362 6,763 24,780 2.3 Restricted Shares 2,653 1,887 5,063 3,387 40,563 1.3 Total $ 7,332 $ 5,515 $ 13,679 $ 10,404 $ 66,359 Options During the six months ended June 30, 2026 and 2025, the Company did not issue any options to employees. Performance Shares During the six months ended June 30, 2026, the Company issued performance shares to select officers and employees of the Company with a grant date fair value of $12. …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

7. FAIR VALUE MEASUREMENTS Fair value measurements and disclosures require the use of valuation techniques to measure fair value that maximize the use of observable inputs and minimize use of unobservable inputs. These inputs are prioritized as follows: Level 1: Observable inputs such as quoted prices in active markets for identical assets or liabilities. Level 2: Inputs other than quoted prices included within Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities or market corroborated inputs. Level 3: Unobservable inputs for which there is little or no market data and which require the Company to develop its own assumptions about how market participants price the asset or liability. The valuation techniques that may be used to measure fair value are as follows: Market approachUses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. Income approachUses valuation techniques to convert future amounts to a single present amount based on current market expectations about those future amounts. Cost approachBased on the amount that currently would be required to replace the service capacity of an asset (replacement cost). The Companys cash and cash equivalents and restricted cash consist largely of demand deposit accounts with maturities of 90 days or less when purchased that are considered to be highly liquid. These instruments are valued using …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

9. INCOME TAXES The current and deferred components of the provision for income taxes are as follows (unaudited): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Current: Ireland $ 9,405 $ 1,944 $ 26,196 $ 3,433 Cayman Islands Bermuda 5,552 7,265 United States: Federal 2,408 7,615 2,408 7,859 State and local 10 1,155 724 1,545 Other Non-Ireland including Pillar Two top-up tax 5,253 48 5,287 101 Total current provision 22,628 10,762 41,880 12,938 Deferred: Ireland 6,879 17,212 14,158 30,912 Cayman Islands Bermuda (3,459) 6,195 1,679 10,636 United States: Federal (861) 4,206 2,104 5,432 State and local 486 2,068 724 2,446 Other Non-Ireland (54) (2,565) (3,466) (1,627) Total deferred provision 2,991 27,116 15,199 47,799 Total provision for income taxes $ 25,619 $ 37,878 $ 57,079 $ 60,737 The Company is incorporated in the Cayman Islands where income taxes are not imposed. Taxable income or loss generated by the Companys corporate subsidiaries is subject to Irish, U.S. federal, state and foreign corporate income tax in locations where they conduct business. The Companys effective tax rate differs from the Irish statutory rate of 12.5% primarily due to the impact of Pillar II and the portion of its income that is subject to taxation in jurisdictions other than Ireland. As of and for the six months ended June 30, 2026, the Company had not established a liability for uncertain tax positions as no such positions existed. In general, the Companys tax returns …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In July 2025, the FASB issued ASU 2025-05, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets, which provides a practical expedient in developing reasonable and supportable forecasts as apart of estimating expected credit losses, allowing entities to assume that current conditions as of the balance sheet date do not change for the remaining life of the asset. The amendments in ASU 2025-05 are effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. The Company adopted this guidance in the first quarter of 2026. However, the Company did not elect the practical expedient or make the accounting policy election provided by the ASU and, accordingly, the amendments did not have an impact on its consolidated financial statements. Accounting Pronouncements Not Yet Adopted There have been no other changes to the discussion of recently issued accounting standards included in our Annual Report on Form10-K for the year ended December 31, 2025. Specifically, the Company continues to monitor the future adoption of ASU2024-03, Income StatementReporting Comprehensive Income (Topic220): Improvements to Reportable Segment Expense Disclosures , which has a future effective date. The Company is currently evaluating the impact this standard may have on its consolida …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

10. AFFILIATE TRANSACTIONS AND FORMER MANAGEMENT AGREEMENT Strategic Capital Initiative 2025 Partnership On June 29, 2026, the Company amended and restated the Aircraft Sale and Purchase agreement, originally entered into as of December 30, 2024, pursuant to which the SPVs of the 2025 Partnership would acquire 15 on-lease 737NG and A320ceo aircraft in addition to the originally committed 45 on-lease 737NG and A320ceo aircraft. As of June 30, 2026, the Company sold all committed aircraft to the 2025 Partnership. In aggregate, the net purchase price for the committed on-lease 737NG and A320ceo aircraft was approximately $700.0 million. The purchase price of the seed assets were contractual and the Company received customary, market-based compensation for the sale of the seed assets to the 2025 Partnership. During the six months ended June 30, 2026, on behalf of the 2025 Partnership, the Company paid refundable deposits of $0.0 million (2025 - $23.5 million), to unrelated, third-parties on future purchases of aircraft. During the six months ended June 30, 2026, the 2025 Partnership reimbursed the Company $0.0 million (2025 - $42.8 million) in refundable deposits. During the three and six months ended June 30, 2026, the Company recorded $182.8 million and $404.0 million of MRE Contract revenue, respectively (2025 - $69.6 million and $170.2 million, respectively), for the sale and purchase of such engines to and from the 2025 Partnership. Refer to Note 2 Summary of Significant Acc …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

11. SEGMENT INFORMATION The key factors used to identify the reportable segments are the organization and alignment of the Companys internal operations and the nature of its products and services. The Companys two reportable segments are (i) Aerospace Products and (ii) Aviation Leasing. The Aerospace Products segment, through the Companys maintenance facilities and joint ventures, among other investments, develops and manufactures, repairs/refurbishes and sells aircraft engines and aftermarket components for the CFM56-7B, CFM56-5B and V2500 commercial aircraft engines. The Aviation Leasing segment owns and manages aviation assets, including aircraft and aircraft engines, which it leases to lessees directly and through the Companys equity method investment formed as part of the Companys Strategic Capital Initiative. Corporate and Other primarily consists of debt, unallocated corporate general and administrative expenses, internalization fee and management fees and incentive compensation pursuant to the Management Agreement prior to the Internalization effective May 28, 2024. Additionally, Corporate and Other also includes results from an offshore energy business, which consists of equipment that support offshore oil and gas activities and production, and expenses relating to FTAI Power. The accounting policies of the segments are the same as those described in the summary of significant accounting policies; however, financial information presented by segment includes the impac …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting The accompanying consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) and include the accounts of the Company and its subsidiaries. Principles of Consolidation The Company consolidates all entities in which it has a controlling financial interest and control over significant operating decisions. All adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The Company uses the equity method of accounting for investments in entities in which it exercises significant influence, but which does not meet the requirements for consolidation. Under the equity method, the Company records its proportionate share of the underlying net income (loss) of these entities. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Reclassifications Certain amounts from prior periods in the Companys consolidated financial statements have been reclassified to align with the presentation in the current period. Risks and Uncertainties …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

14. SUBSEQUENT EVENTS Dividends On July 28, 2026, the Companys Board of Directors declared a cash dividend on its ordinary shares and eligible participating securities of 0.50 per share for the three months ended June 30, 2026, payable on August 24, 2026 to the holders of record on August 12, 2026. Additionally, on July 28, 2026, the Companys Board of Directors also declared cash dividends on the Series D Preferred Shares of $0.59 per share, payable on September 15, 2026 to the holders of record on September 1, 2026. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing