FTAI Aviation stock soars after launching new power turbine business

Investing.com -- FTAI Aviation Ltd. (NASDAQ: FTAI) stock surges 12.3% following the announcement of its new FTAI Power platform, which will convert CFM56 aircraft engines into power turbines for data centers.

The new business will focus on transforming the widely used CFM56 engines into 25-megawatt power units designed to provide flexible energy solutions for data centers globally. Production is expected to begin in 2026, with the company planning to leverage its existing fleet of over 1,000 engines and maintenance capabilities.

"The CFM56 engine market is the largest and most reliable in the world, making it an ideal candidate for aeroderivative conversion which will further extend the engine's life," said Joe Adams, Chairman and CEO of FTAI Aviation.

The company highlighted growing electricity demands from AI hyperscalers as a key market opportunity. FTAI expects to scale production to over 100 units annually once operations are fully established.

Jefferies analyst Sheila Kahyaoglu said, "This proprietary conversion architecture has been over 1yr in development to provide an alternative to rapidly expanding electricity demand. Production is expected to begin in 2026 & scaling to >100 units/yr + service support. Assuming ASP of $20MM+ & margins in the AP ballpark w/ price tailwinds, this could be worth $750MM+ of EBITDA/yr at full-rate."

FTAI Aviation operates over one million square feet of maintenance facilities globally and owns billions of dollars worth of engines, positioning it uniquely in the market to execute this strategic pivot.

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