10 Best Performing Stocks in 2024

6. FTAI Aviation Ltd. (NASDAQ:FTAI)

Year-to-Date Performance as of September 23: 180.04%

Market Cap as of September 23: $13.28 billion

Number of Hedge Fund Holders: 33

FTAI Aviation Ltd. (NASDAQ:FTAI) is an aerospace company that provides a complete suite of aviation products that include aircraft leasing, engine leasing, and engine repairs, as well as CFM56 engines, modules, and materials. It leases these aircraft to airlines around the world, providing them with the flexibility to expand their operations without having to purchase the aircraft outright.

The company’s Module Factory is a key competitive advantage that could position the company for success in the future. With Boeing’s production challenges reducing the global supply of commercial jets, it can benefit from airlines extending the life of their existing fleets. The company can further strengthen its position by expanding its support for additional engines and partnering with more engine manufacturers. To maintain its market share, FTAI Aviation Ltd. (NASDAQ:FTAI) will need to cultivate strong industry relationships and develop innovative factory processes.

It made $443.59 million in Q2 2024 revenue, up 61.69% from a year-ago period. Despite major growth, there was a loss per share of $2.26. EBITDA reached $213.9 million, with $125 million from Leasing, $91.2 million from Aerospace Products, and a negative $2.3 million from Corporate and Other.

Excluding asset sales, pure leasing EBITDA increased to $112 million in Q2. It sold assets worth $59 million for a gain of $13.5 million. Aerospace Products delivered $91.2 million in EBITDA with a 37% margin. Strong demand for refurbished modules and engines, coupled with increased efficiency at maintenance facilities, is driving margin expansion.

FTAI Aviation Ltd. (NASDAQ:FTAI) is well-positioned for long-term growth due to its strategic focus on the aerospace industry and strong financial performance. The company’s Module Factory offers a competitive advantage in the face of global supply chain challenges.

Columbia Acorn Fund stated the following regarding FTAI Aviation Ltd. (NASDAQ:FTAI) in its Q2 2024 investor letter:

“FTAI Aviation Ltd. (NASDAQ:FTAI) is an aviation leasing, maintenance and repair company that has built a unique business model, with exposure to the most attractive part of the aerospace aftermarket today — the CFM56 jet engine (sole-sourced engine for the Boeing 737 family and one of the two engine options for the Airbus A320 family). CFM56 engines are the largest engine market, with more than 22,000 engines manufactured and more than 21,000 in service today. FTAI’s strategic partnerships with Lockheed Martin and other engine manufacturers provide a significant moat. The company is well positioned to take advantage of the utilization of engine leasing assets due to strong demand, as airline traffic continues to pick up amid asset scarcity.”