What's Going On With FTAI Aviation Stock Today?

FTAI Aviation Ltd. FTAI shares are trading lower on Tuesday.

In an exchange filing, FTAI acknowledged that there could be a delay in filing its Annual Report on Form 10-K. This action follows a recent Short-Seller Report, which the company strongly disagrees with.

“The company strongly disagrees with the assertions made in the Short-Seller Report,” FTAI said in the filing.

“The company cannot rule out the possibility that the filing of company’s Annual Report on Form 10-K for fiscal year 2024 may be delayed,” the filing read.

Related Read: FTAI Aviation Shares Recover After Short Seller-Driven Decline: What To Know

On January 18, 2025, the company’s Audit Committee of the Board determined to begin a review, which included engaging independent advisors, in response to the assertions alleged in the January 15, 2025 report issued by Muddy Waters Research, a well-known short-seller.

Despite this, FTAI reiterated its commitment to high standards of corporate governance, transparent financial reporting, and regulatory compliance.

In December, the company launched a strategic capital initiative in partnership with institutional investors.

This initiative focuses on acquiring 737NG and A320ceo aircraft, with plans to deploy over $3 billion annually.

As part of this initiative, FTAI agreed to sell 46 on-lease narrowbody aircraft for $549 million, while maintaining an asset-light model by partnering in acquisitions.

In December, FTAI projected adjusted EBITDA for fiscal year 2025 to range from $1.1 billion to $1.15 billion, with about $500 million coming from Aviation Leasing and $600 to $650 million from Aerospace Products.

The company’s growth assumptions include producing an average of 100 modules per quarter at its Montreal facility and completing 25 to 35 V2500 engine MRO (Maintenance, Repair, and Overhaul) transactions in 2025.

As of September 30, 2024, FTAI held cash and equivalents totaling $111.9 million.

In addition, the company is facing legal challenges, as a class-action lawsuit has been filed against it and some of its executives.

The lawsuit, lodged in the Southern District of New York, aims to recover losses for investors who purchased FTAI securities between July 23, 2024, and January 15, 2025.

Price Action: FTAI shares are trading lower by 29.8% to $78.85 at last check Tuesday.

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