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ACQUISITION OF LOCKHEED MARTIN COMMERCIAL ENGINE SOLUTIONS
 12 Months Ended
Dec. 31, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
ACQUISITION OF LOCKHEED MARTIN COMMERCIAL ENGINE SOLUTIONS
3. ACQUISITION OF LOCKHEED MARTIN COMMERCIAL ENGINE SOLUTIONS
On September 9, 2024, the Company, through its subsidiary FTAIC Aviation Inc. (“FTAIC”) created on April 25, 2024, acquired certain assets and assumed certain liabilities of Lockheed Martin Commercial Engine Solutions (“LMCES”) from Lockheed Martin Canada for total consideration of $170.0 million. LMCES is a 526,000-square-foot aircraft engine maintenance repair facility located in Montréal, Quebec. The Company acquired LMCES to further enhance its MRE business and establish permanent engine and module manufacturing capabilities in Canada. The facility operates within its Aerospace Products segment, providing extensive engine and piece-part repair capabilities for the CFM56-5B and CFM56-7B engines. The results of operations of LMCES have been included in the Company’s results since the effective date of the acquisition.
In connection with the acquisition, the Company recorded $6.9 million of acquisition and transaction expense during the year ended December 31, 2024.
The acquisition of LMCES was accounted for as a business combination and, as such, the following fair values were assigned to assets acquired and liabilities assumed based on the Company’s estimates and assumptions. The significant assumptions used to estimate the fair values of the property, plant, and equipment and inventory included replacement cost estimates and market data for similar assets where available.
Subsequent to the acquisition, in the year ended December 31, 2025, measurement period adjustments as of the acquisition date were made as a result of the finalization of the net working capital adjustments which increased total consideration by $14.1 million. This adjustment resulted in an increase in goodwill of $14.1 million.
Subsequent to the acquisition, in the quarter ended December 31, 2024, measurement period adjustments as of the acquisition date were made to decrease accounts receivable by $1.5 million, decrease inventory by $21.5 million, increase other current assets by $4.1 million, increase property, plant and equipment by $1.0 million, increase other non-current assets by $0.1 million, decrease accounts payable by $0.4 million, decrease accrued liabilities by $0.1 million, decrease other current liabilities by $5.0 million, increase other non-current liabilities by $1.5 million an increase in total consideration transferred of $15.8 million. These adjustments resulted in an increase to goodwill of $29.6 million.

The following table summarizes the allocation of the net assets acquired:
September 9, 2024
Fair value of assets acquired:
Current Assets
Accounts receivable$10,758 
Inventory25,498 
Other current assets6,795 
Total current assets43,051 
Property, plant, and equipment72,151 
Leasing equipment5,675 
Other non-current assets10,633 
Total assets131,510 
Fair value of liabilities assumed:
Current Liabilities
Accounts payable7,669 
Accrued liabilities1,692 
Other current liabilities5,130 
Total current liabilities14,491 
Other non-current liabilities 14,347 
Total liabilities28,838 
Goodwill (1)
71,040 
Net assets acquired (2)
$173,712 
(1) Goodwill is assigned to the Aerospace Products segment and is deductible for income tax purposes.
(2) Total consideration is calculated as cash paid, adjusted for the settlement of pre-existing relationships.
The following table presents fair values of the components of property, plant and equipment acquired and their estimated useful lives:
Estimated useful life in yearsEstimated Fair value
Buildings and improvements25$40,953 
Machinery and equipment
2 - 21
30,397 
Other N/A801 
Total$72,151 
The unaudited financial information in the table below summarizes the combined results of operations of FTAI and LMCES on a pro forma basis. These pro forma results were based on estimates and assumptions which the Company believes are reasonable. The pro forma adjustments are primarily comprised of the following:
•The allocation of the purchase price and related adjustments, including adjustments to depreciation and amortization expense related to the fair value of property, plant and equipment;
•Associated tax-related impacts of adjustments.
The following unaudited pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place as of January 1, 2023.
Year ended December 31,
20242023
Total revenue$1,782,339 $1,257,302 
Net (loss) income attributable to shareholders$(35,850)$211,582 
4. ACQUISITION OF QUICKTURN
On December 1, 2023, the Company completed the acquisition of the remaining equity interest of Quick Turn Engine Center LLC (“QuickTurn”) from Unical Aviation Inc. (“Unical”) for total cash consideration of $30.3 million to obtain full ownership.
The Company acquired QuickTurn to better position the Company to have tighter integration over the development and delivery of aerospace products. QuickTurn is a hospital maintenance and testing facility dedicated to the CFM56 engine located in Miami, Florida that operates within the Company’s Aerospace Products segment. The results of operations at QuickTurn have been included in the Consolidated Statements of Operations beginning on the acquisition date.
The acquisition of QuickTurn was accounted for as a business combination and, as such, the following fair values were assigned to assets acquired and liabilities assumed based on management’s estimates and assumptions. The significant assumptions used to estimate the fair value of the property, plant, and equipment included replacement cost estimates and market data for similar assets where available. The significant assumptions used to estimate the value of the customer relationship intangible assets included the discount rate and future revenues and operating expenses.
The following table summarizes the allocation of the net assets acquired:
December 1, 2023
Fair value of assets acquired:
Current Assets
Cash and cash equivalents$518 
Restricted cash150 
Accounts receivable5,133 
Inventory9,332 
Other current assets2,889 
Total current assets18,022 
Property, plant, and equipment30,559 
Intangible assets2,377 
Other non-current assets1,412 
Total assets52,370 
Fair value of liabilities assumed:
Current Liabilities
Accounts payable3,424 
Accrued liabilities571 
Other current liabilities1,475 
Total current liabilities5,470 
Other non-current liabilities934 
Total liabilities6,404 
Goodwill (1)
4,630 
Net assets acquired $50,596 
(1) Goodwill is assigned to the Aerospace Products segment and is deductible for income tax purposes.