INVESTMENTS

9 Months Ended

Sep. 30, 2025

Equity Method Investments and Joint Ventures [Abstract]

5. INVESTMENTS

The following table presents the ownership interests and carrying values of the Company’s investments:


			Carrying Value
	Investment	Ownership Percentage	September 30, 2025 (unaudited)		December 31, 2024
Advanced Engine Repair JV	Equity method	25%	$	20,623	$	19,048
2025 Partnership	Equity method	20%	133,171		—
QuickTurn Europe	Equity method	50%	10,552		—
			$	164,346	$	19,048

The Company did not recognize any other-than-temporary impairments for the three and nine months ended September 30, 2025 and 2024.

The following table presents the Company’s proportionate share of equity in (losses) earnings (unaudited):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Advanced Engine Repair JV	$	668	$	(438)	$	1,576	$	(1,592)
2025 Partnership (1)	(4,992)		—		(18,436)		—
Falcon MSN 177 LLC (2)	—		—		—		(207)
QuickTurn Europe	100		—		19		—
Total	$	(4,224)	$	(438)	$	(16,841)	$	(1,799)

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(1) Includes the profit elimination of $(3,908) and $(15,793) for the three and nine months ended September 30, 2025, respectively, for sales to the 2025 Partnership.

(2) On May 3, 2024, the Company purchased the remaining interest of Falcon MSN 177 LLC (“Falcon”). As a result, Falcon became a consolidated subsidiary, and is no longer accounted for as an equity method investment.

Equity Method Investments

Advanced Engine Repair JV

In December 2016, the Company invested $15.0 million for a 25% interest in an advanced engine repair joint venture. This joint venture is focused on developing new cost savings programs for engine repairs.

In August 2019, the Company expanded the scope of our joint venture and invested an additional $13.5 million and maintained a 25% interest. The Company exercises significant influence over this investment and accounts for this investment as an equity method investment.

Falcon MSN 177 LLC

Since November 2021, the Company owned a 50% interest in Falcon MSN 177 LLC (“Falcon”), an entity that consists of one Dassault Falcon 2000 aircraft. Falcon leases the aircraft to charter operators on aircraft, crew maintenance, and insurance contracts. The Company accounted for its investment in Falcon as an equity method investment as it had significant influence through its interest.

On May 3, 2024, the Company purchased the remaining interest from S7 Aerospace for total cash consideration of $0.8 million and it is now a consolidated subsidiary.

2025 Partnership

In the nine months ended September 30, 2025, the Company invested $151.6 million in the 2025 Partnership, an investment focused on acquiring 737NG and A320ceo on-lease narrowbody aircraft, for which the Company is the Servicer and holds a 20% limited partner ownership. The Company exercises significant influence over this investment and accounts for it using the equity method. As the Servicer, The Company is responsible for lessee invoicing and collections, airline relationship management, contracts management including lease extension and aircraft deliveries and redeliveries. The Company's proportionate share of equity in earnings related to this investment is based on the contractual profit-sharing arrangement, the elimination of profit on sales of engine and modules to the 2025 Partnership under ASC 606, and the servicing fees charged by us in our capacity as the Servicer to the 2025 Partnership. The profit from the MRE Contract revenue is eliminated through equity method earnings and will be recognized over time as the 2025 Partnership generates income from leasing and sales activities.

QuickTurn Europe

On June 5, 2025, the Company invested $10.5 million for a 50% interest in Quick Turn Engine Center Europe S.r.l. (previously IAG Engine Center Europe S.r.l.) or “QuickTurn Europe”, a 200,000 square-foot CFM56 engine maintenance repair and overhaul facility located at the Rome Fiumicino Airport. The joint venture was established to expand the Company’s global engine maintenance capabilities and meet increasing demand for MRE services. The Company accounts for its investment in QuickTurn Europe as an equity method investment as it has significant influence through its interest.

FTAI Aviation Ltd. 10-Q