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  "documentTitle": "FTAI Aviation, Ltd. (FTAI)",
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  "authorName": "Muddy Waters Research",
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  "presentationDate": "2025-01-15 00:00:00",
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  "notes": "The slide uses a strong accusatory tone typical of activist short reports, focusing on accounting manipulation and channel stuffing.",
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      "text": "To exaggerate the size of its MRO business, reportedly FTAI deceptively counts each whole engine sale as a sale of three separate modules.",
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      "text": "EBITDA margin: 80%",
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      "text": "Muddy Waters is short FTAI Aviation Ltd. (FTAI US) because its financial reporting is highly misleading. We believe revenue from true maintenance and individual off-the-rack module sales are materially lower than reported.",
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      "text": "Our analysis finds that FTAI's current EBITDA margin run-rate is not sustainable. FTAI's outlier EBITDA margins appear to be due to an accounting game FTAI plays whereby it depreciates engines in its Leasing segment, even when engines are not on lease.",
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      "text": "FTAI claims that the average Aerospace Products transaction is two modules. We disagree. We think ~70% to 80% of module sales are whole engine sales. To exaggerate the size of its MRO business, reportedly FTAI deceptively counts each whole engine sale as a sale of three separate modules.",
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      "kind": "quote",
      "text": "So, but on average, the average transaction averages out to two modules per transaction. — FTAI Aviation Q1 2024 Earnings Call April 26, 2024.",
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      "text": "1 FTAI Aviation Q1 2024 Earnings Call April 26, 2024. Per FTAI's CEO: \"So, on average, the average transaction averages out to two modules per transaction.\" 2 FTAI's Aerospace Products reports minimal D&A allowing for this comparison.",
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      "text": "FTAI Materially Manipulates Its Financials",
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