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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 expert testimony to challenge the company's reported revenue composition.",
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      "text": "FTAI has likely sold ~70 whole engines through the first nine months of 2024, which are counted as three modules per engine, and likely account for ~80% of reported module sales",
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      "text": "FTAI apparently did not perform significant repairs or upgrades of these engines:",
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      "text": "FTAI is currently actively marketing 10-12 whole engines:",
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      "text": "Whole engine sales are getting done as exchanges or swaps:",
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      "text": "FTAI has likely sold ~70 whole engines through the first nine months of 2024, which are counted as three modules per engine, and likely account for ~80% of reported module sales (i.e. ~210 reported module sales are actually ~70 whole engines)",
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      "text": "revenue: 1/3",
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      "kind": "paragraph",
      "text": "MW engaged an industry expert with 20+ years of experience, who is also a former FTAI executive, to canvass the major aerospace asset traders to determine the magnitude of FTAI's whole engine sales. The research findings are below:",
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      "kind": "quote",
      "text": "\"They've not really had a lot of touch work done by FTAI...\"",
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      "kind": "quote",
      "text": "\"It looks like they're gonna sell around 90 for the year [2024], maybe a couple more than that...They're marketing a whole bunch right now to try to get some year-end sales in...I know right now they are trying to sell 10 or 12 engines...they could get [to]100 engines this year.\"",
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      "kind": "quote",
      "text": "\"They're doing a lot of the deals as exchanges, which makes sense. They're selling a good engine and taking in an unserviceable engine...They're selling three modules and taking in three modules.\"",
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      "kind": "quote",
      "text": "\"I've got the 10-Q right now...they've got one narrowbody [engine] sale all year... and actually the [true] number is closer to the purchase numbers...they could be recording the [engine] exchanges as purchases (ie. Engine being received in the exchange is disclosed as a purchase).\"",
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      "kind": "quote",
      "text": "\"FTAI is roughly selling 22 CFM[-56] engines (i.e., Narrowbody engines) a quarter. They've sold 82 to date [2024], and they still have some closing before the end of the year... I called all the major [traders], all the big guys... I'm averaging around that 22 a quarter.\"",
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      "text": "\"FTAI is roughly selling 22 CFM[-56] engines (i.e., Narrowbody engines) a quarter. They've sold 82 to date [2024], and they still have some closing before the end of the year... I called all the major [traders], all the big guys... I'm averaging around that 22 a quarter.\" — Consultant A.",
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      "kind": "title",
      "text": "Approximately One-Third of Aerospace Product's YTD 2024 Revenue Appears to Really Be Whole Engine Sales – Not Module Swaps",
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