Trumponomics aviation winner? FTAI’s used engine business could be surprise safe haven in trade war

Shares of FTAI Aviation (FTAI) plunged nearly 19% on Thursday after the company reported a notable earnings miss that caught Wall Street off guard.

Revenue for the quarter came in at $502.08 million, just below the expected $502.31 million. While adjusted EBITDA soared 64% year-over-year, earnings per share (EPS) came in at $0.87, well short of the $0.97 analysts were looking for.

Based in New York, FTAI owns, leases, and services aircraft and aircraft engines, with a focus on the CFM56, the best-selling commercial aircraft engine in aviation history, used in both Boeing and Airbus fleets.

Despite the earnings miss, FTAI CEO Joe Adams argued on the company’s earnings call that the company’s business model is largely immune to Trumponomics.

“One is the nature of our business, which is to rebuild assets,” Adams said. “We use a lot of used material. This isn’t a new asset being delivered into the market; it’s typically not the target of tariffs.”

He added that demand for rebuilt engines remains strong across the industry, giving FTAI flexibility to sell to a wide range of third-party customers.

International flexibility

Another key advantage is FTAI’s international footprint, according to Adams.

The company operates in the U.S., Canada, and the EU, giving it levers to shift deliveries and optimize supply chains if necessary.

“We could deliver products to different markets from different sourced locations if we needed to do some optimization,” he said.

FTAI also has the ability to pass along price increases, a major benefit if trade tensions escalate. And in the event of a prolonged tariff regime, Adams believes the value proposition for rebuilt engines only grows stronger.

“If these tariffs stick for extended periods of time, you should see the price of new assets go higher,” he said. “Which means used assets should be more attractive, and that’s good for us.”

FTAI is projecting full-year 2025 adjusted EBITDA between $1.1 billion and $1.15 billion.

The company also said it’s planning to expand production capacity, pursue strategic acquisitions, and grow its footprint in the aerospace products sector.

While the stock is down 39.7% year-to-date, it’s still up 18.7% over the past 12 months, reflecting investor confidence in the company’s longer-term story.