FTAI Aviation Soars 37% in 2025: Can Its New Power Venture Fuel Further Gains in 2026?
Shares of FTAI Aviation (NASDAQ: FTAI) continued their impressive ascent in 2025, climbing 36.7% according to S&P Global Market Intelligence data. This performance handily outpaced the S&P 500's 16.4% gain, marking another strong year for the stock following its meteoric 210% rise in 2024.
The journey, however, wasn't without turbulence. For the first half of 2025, FTAI shares lagged dramatically, falling over 20% while the broader market advanced. The turning point came in late July with the company's second-quarter earnings report, which served as a powerful catalyst.
FTAI Aviation reported Q2 2025 revenue of $676.2 million, soaring past analyst estimates of $542.6 million. Perhaps more critically, earnings per share of $1.57 crushed expectations of $1.26. The market's response was immediate and decisive, with the stock surging more than 26% the following day.
The strong results triggered a wave of bullish analyst sentiment. Firms including Citizens JMP and BTIG significantly raised their price targets, citing robust fundamentals and growth in the company's core engine leasing and aerospace infrastructure businesses.
As the year drew to a close, FTAI provided investors with a glimpse into its future growth engine—quite literally. The company announced the formation of FTAI Power, a new platform designed to repurpose its CFM56 aircraft engines into modular 25-megawatt power units for data centers. This strategic pivot directly targets the escalating power demands of artificial intelligence computing and data infrastructure, offering grid operators enhanced flexibility.
The momentum has spilled into 2026, with shares up approximately 39% year-to-date. The critical question for investors now is whether the FTAI Power initiative can transition from a promising announcement to a material revenue stream. Success in this new venture could unlock significant value, positioning FTAI at the intersection of aerospace and the global data center power crisis.
Market Voices: A Split Reaction
David Chen, Portfolio Manager at Horizon Capital: "This is a classic case of a company executing flawlessly in its core business while intelligently deploying assets into a adjacent, high-growth market. The data center power play isn't just a story; it's a logical use of their engineering expertise and asset base. The 2025 performance was fundamentally driven."
Rebecca Vance, Independent Aerospace Analyst: "The numbers were undeniably strong, and the Power division is a fascinating narrative. But let's not ignore the valuation. The stock has run very far, very fast. A lot of future demand from data centers is already priced in. Execution risk on this new venture is high, and the stock could be vulnerable to any hiccups."
Marcus Thorne, Retail Investor & Frequent Financial Forum Commentator: "Everyone's cheering the data center move, but this feels like a desperate pivot. They're turning airplane engines into generators? It's a complicated, capital-intensive sideline that distracts from their main business. The 2025 pop was just a recovery from the summer lows fueled by analyst hype. This smells like a bubble waiting for a pin."
Priya Sharma, Infrastructure Sector Analyst at ClearWater Research: "The market for modular, flexible power solutions is real and growing exponentially, especially with AI. FTAI isn't the first to see this opportunity, but their unique asset portfolio gives them a potential cost advantage. If they can secure even a handful of anchor tenants, the 2026 upside could be substantial. It's a high-risk, high-reward bet on infrastructure convergence."