Aircraft leasing company FTAI Aviation (NASDAQ: FTAI) fell short of the market’s revenue expectations in Q3 2026, but revenue rose 46.6% year on year to $977.7 million. Its GAAP profit of $1.43 per share was in line with analysts’ consensus estimates.

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“FTAI delivered another strong quarter. Aerospace Products delivered outstanding growth with margins in line with our guidance, SCI’s new vehicle is now investing, and the Mod-1 has cleared its critical testing milestones ahead of first deliveries next year,” said Joe Adams, Chairman and CEO. “We have momentum across every part of the business and clear visibility into 2027, which is why our Board doubled our share repurchase authorization to $1.0 billion and why we announced an accelerated share repurchase alongside our regular quarterly dividend.”

Revenue growth

Examining a company’s long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones sustain growth for years. FTAI Aviation’s revenue grew at a strong 58.4% compounded annual growth rate over the last five years. Its growth surpassed the average industrials company and shows its offerings resonate with customers.

Long-term growth matters most, but within industrials, a half-decade historical view may miss cycles, industry trends or a company capitalizing on catalysts such as a new contract win or a successful product line. FTAI Aviation’s annualized revenue growth of 48.7% over the last two years is below its five-year trend, but the results still suggest healthy demand.

This quarter, FTAI Aviation’s revenue grew 46.6% year on year, but its $977.7 million in revenue fell short of Wall Street’s consensus estimates.

Looking ahead, sell-side analysts expect revenue to grow 71.4% over the next 12 months, according to S&P, an improvement versus the last two years. This strong projection indicates its newer products and services will drive better revenue performance.

Operating margin

FTAI Aviation has performed well over the last five years. It demonstrated high profitability for an industrials business, with an average operating margin of 21.4%. That result is unsurprising given its favorable gross margin baseline.

Analyzing the trend in its profitability, FTAI Aviation’s operating margin rose by 31.5 percentage points over the last five years, as its revenue growth provided operating leverage. Its expansion shows it’s one of the better vehicle parts distributors, as most peers saw their margins decline.

This quarter, FTAI Aviation generated an operating margin of 22.4%, down 7.7 percentage points year on year. Its operating margin declined more than its gross margin, suggesting it was less efficient as expenses such as marketing, R&D and administrative overhead increased.

Earnings per share

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth. For example, a company could inflate its revenue through excessive spending on advertising and promotions.

FTAI Aviation’s full-year EPS turned positive over the last five years. This is a positive sign and shows it’s at an inflection point.

As with revenue, examining EPS over a more recent period can provide insight into an emerging theme or development for the business.

For FTAI Aviation, its two-year annual EPS growth of 263% was higher than its five-year trend. That acceleration is encouraging, particularly given the already high base.

In Q3, FTAI Aviation reported EPS of $1.43, up from $1.06 in the same quarter last year. This result was close to analysts’ consensus estimates. Over the next 12 months, Wall Street expects FTAI Aviation’s full-year EPS to grow 128% from $4.82 to $10.98, according to S&P.

Key takeaways from FTAI Aviation’s Q3 results

We were impressed by how significantly FTAI Aviation blew past analysts’ EBITDA expectations this quarter. On the other hand, its revenue missed. Looking ahead, previously-provided EBITDA guidance was reaffirmed, showing that the business is on track. Finally, the company announced a $500 million accelerated share repurchase, returning additional capital to shareholders. Overall, this quarter wasn't perfect but featured some important positives. The stock traded up 8% to $180.50 immediately following the results.

Is FTAI Aviation worth considering at its current price? The latest quarter matters when deciding whether to invest, but longer-term business quality and valuation matter more. For more on those factors, read the full research report here (it’s free).