We came across a bullish thesis on FTAI Aviation Ltd. on Bullseye Picks’s Substack by Bullseye Investing. In this article, we will summarize the bulls’ thesis on FTAI. FTAI Aviation Ltd.’s share was trading at $276.01 as of January 29th. FTAI’s trailing and forward P/E were 63.16 and 34.25 respectively according to Yahoo Finance.
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FTAI Aviation (FTAI) operates as an aircraft equipment manufacturer and lessor with exposure across two core segments: Aerospace Products and Aviation Leasing, positioning the company at the intersection of aviation asset ownership and high-margin aftermarket services. The Aerospace Products business has become a key growth engine, benefiting from strong demand for aircraft engine modules and parts, while Aviation Leasing provides recurring cash flows through long-term leases to airlines and operators.
FTAI has delivered exceptional financial performance, with revenues growing 51% year-over-year, underscoring the scalability of its model and the strength of demand across its portfolio. The company’s return on equity stands at an eye-catching 263%, reflecting both operational leverage and a capital structure that amplifies equity returns.
Valuation remains the primary concern for investors. FTAI currently trades at roughly 38x trailing earnings, which appears elevated relative to traditional aviation peers, though this multiple compresses to approximately 21x forward earnings as earnings growth accelerates. The company previously faced accounting-related scrutiny, which created uncertainty around the business, but those issues were ultimately found to be unfounded, helping restore confidence and drive a strong rerating in the stock.
Following a significant run-up and another solid quarterly performance, the shares now embed high expectations, making entry timing more sensitive to broader market pullbacks or company-specific volatility. Despite valuation concerns, the underlying fundamentals remain compelling. FTAI combines rapid growth, strong asset economics, and expanding aftermarket exposure, which together support durable cash generation over the long term. While patience may be warranted to secure a more attractive entry point, a meaningful drawdown could present an opportunity to reenter a high-quality aviation platform with proven execution and substantial long-term upside.
Previously, we covered a bullish thesis on FTAI Aviation Ltd. (FTAI) by Komodo Capital in March 2025, which highlighted the company’s vertically integrated MRO model, pricing power from engine supply constraints, PMA-driven margin expansion, and multiple rerating potential. FTAI’s stock price has appreciated by approximately 167.34% since our coverage. This is because the thesis played out as operational leverage and aftermarket growth materialized. Bullseye Investing shares a similar view but emphasizes valuation discipline and entry-point risk following the sharp run-up.
