FTAI Aviation Ltd. 9.500% Fixed-Rate Reset Series D Cumulative Perpetual Redeemable Preferred Shares (FTAIM)

FairStock Score: 60/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am examining FTAI Aviation's 9.500% Fixed-Rate Reset Series D Cumulative Perpetual Redeemable Preferred, not the common equity. At the 2026-10-13 close of $26.56, the stated dividend yield is 8.94%, and the issue trades near the bottom of its 52-week range of $26.30 to $27.81. As a preferred holder, I stand ahead of common dividends, and the coupon is cumulative, but I am still relying on the company's ability to generate cash through aviation cycles. The operating picture is mixed. In fiscal Q2 2026 (the quarter ended 2026-06-30), revenue was $953.1M, up from $676.2M in fiscal Q2 2025, but net income fell to $125.1M from $165.4M and diluted EPS slipped to $1.13 from $1.57. Fiscal 2025 (year ended 2025-12-31) showed revenue of $2.5B, net income of $501.1M, and diluted EPS of $4.60, a sharp recovery from fiscal 2024's $8.7M net income and $-0.32 diluted EPS. FairStock labels this a TURNAROUND, but the trend is uneven. Financial health is the weak link. FairStock calculates debt/equity at 8.65, a Piotroski F-Score of 3/9, an Altman Z-Score of 1.44, and trailing free cash flow of -$891.2M, for a -32.7% FCF yield. ROE of 174.46% is not comfort; it is leverage at work. The EV/EBITDA of 5.36 looks low, but preferred investors are paid after debt and before common, so cash flow coverage matters more than headline earnings. At an 8.94% yield with negative free cash flow and heavy debt, I see fair compensation for credit risk, not a margin of safety. I would need durable cash generation and lower leverage before treating this as a Graham-style bargain.

In plain English: FTAI Aviation owns and leases aircraft and engines and sells related aviation products. The business is growing sales quickly and is profitable, but it is using more cash than it takes in, carries a lot of debt, and profit fell in the latest quarter. The preferred shares pay a high dividend, and at the recent price the yield is 8.94%, so the price looks fair rather than a bargain for the risk.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer