NEW YORK, December 30, 2025, 20:02 ET — Market closed
- FTAI Aviation shares rose 14.4% from their prior close after the company unveiled a new power-turbine platform tied to AI data-center demand.
- The company said the unit will convert CFM56 jet engines into 25-megawatt power turbines, with production planned to start in 2026.
- Analysts at Jefferies and RBC said the move could extend the runway for FTAI’s core engine franchise, but flagged execution as the next test.
FTAI Aviation Ltd. (NASDAQ: FTAI) shares jumped on Tuesday after the aircraft engine lessor and maintenance provider launched a new business aimed at supplying electricity to AI-focused data centers. The stock was last up 14.4% at $197.68, after trading between $170.84 and $199.84.
The announcement tapped into a market anxiety that has moved from tech into heavy industry: power availability. Large “hyperscalers” — the biggest data-center operators — are hunting for generation that can be deployed faster than traditional grid buildouts.
FTAI said it formed “FTAI Power” to convert CFM56 aircraft engines into 25-megawatt “aeroderivative” gas turbines — generators built from jet-engine cores — designed to offer grid operators more flexibility and finer output control than larger units. The company said production is expected to begin in 2026 and it believes it can deliver more than 100 units annually, drawing on an inventory of over 1,000 engines and more than one million square feet of maintenance facilities; it did not disclose any signed customer orders or contracts. 1
Jefferies analyst Sheila Kahyaoglu said, “Production is expected to begin in 2026 & scaling to >100 units/yr.” In the same note, she estimated the initiative could be worth more than $750 million of annual EBITDA at full run-rate, depending on pricing and margins. 2
RBC Capital said the pivot into aeroderivative turbines could “elongate” the life of the CFM56 program and reinforce the company’s aftermarket prospects, keeping an Outperform rating with a $200 price target. 3
Investors’ focus has been on speed and availability. Investor’s Business Daily cited industry data pointing to multi-year waits for new turbine deliveries, a backdrop that helps explain why a converted, smaller unit pitched as modular and scalable drew attention. 4
The move also broadens FTAI’s narrative beyond its core engine-maintenance franchise and leasing activities. Bulls see a way to monetize an installed base of widely used engines, while bears will press for proof that conversions can meet power-market reliability and service expectations at scale.
Execution risk is the immediate watchpoint. Investors will be looking for milestones on testing, certification, manufacturing throughput and the first disclosed customer wins — the details that turn a concept into a bookings pipeline.
Before Wednesday’s session, traders will be watching whether the rally holds after a wide intraday swing. The $200 area is the obvious psychological marker, with the session’s low near $171 acting as a near-term reference point for support.
Beyond the next session, the next major catalyst is likely the company’s next earnings update, when investors typically get fuller capital allocation and margin detail. Market calendars list FTAI’s next report as a mid-February event on a projected basis. 5
