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SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
SEGMENT INFORMATION
12. SEGMENT INFORMATION
The key factors used to identify the reportable segments are the organization and alignment of our internal operations and the nature of our products and services. Our two reportable segments are (i) Aviation Leasing and (ii) Aerospace Products. The Aviation Leasing segment owns and manages aviation assets, including aircraft and aircraft engines, which it leases and sells to lessees, directly and also through its equity method investment. The Aerospace Products segment, through our maintenance facilities, equity method investment and exclusivity arrangements, develops and manufactures, repairs/refurbishes and sells aircraft engines and aftermarket components for the CFM56-5B, CFM56-7B and V2500 commercial aircraft engines. During the fourth quarter of 2023, the Company changed the composition of its operating segments to include V2500 engines within the Aerospace Products segment. Prior periods have been restated to reflect the change in accordance with the requirements of ASC 280, Segment Reporting. See Note 2 for additional information.
Corporate and Other primarily consists of debt, unallocated corporate general and administrative expenses, internalization fee and management fees and incentive compensation pursuant to the Management Agreement prior to the Internalization effective May 28, 2024. Additionally, Corporate and Other also includes results from an offshore energy business, which consists of equipment that support offshore oil and gas activities and production. We previously owned two offshore vessels that were sold in the fourth quarter of 2024.
The accounting policies of the segments are the same as those described in the summary of significant accounting policies; however, financial information presented by segment includes the impact of intercompany eliminations. Our Chief Executive Officer is our Chief Operating Decision Maker (“CODM”). Segment information is presented in the same manner that our CODM reviews the operating results in assessing performance and allocating resources. The CODM evaluates performance for each reportable segment based on net income (loss) attributable to shareholders and is used to monitor budget vs. actual results.
The CODM determined that segment asset information is not a key factor in measuring performance or allocating resources. Therefore, segment asset information is not included in the tables below as it is not provided to or reviewed by our CODM.
The following tables set forth certain information, which include all significant expenses reviewed by the CODM, for each reportable segment (unaudited):
I. For the Three Months Ended June 30, 2025
Three Months Ended June 30, 2025
Aviation LeasingAerospace ProductsCorporate and OtherEliminationsTotal
Revenues
Aerospace products revenue$— $420,686 $— $— 420,686 
MRE Contract revenue— 69,585 — — 69,585 
Lease income62,439 — — — 62,439 
Maintenance revenue73,104 — — — 73,104 
Asset sales revenue47,915 — — — 47,915 
Other revenue (1)
2,508 — — — 2,508 
Total revenues$185,966 $490,271 $— $— $676,237 
Expenses
Cost of sales51,789 317,469 — — 369,258 
Operating expenses11,089 8,989 14,250 — 34,328 
General and administrative— — 2,442 — 2,442 
Acquisition and transaction expenses577 1,414 2,498 — 4,489 
Depreciation and amortization50,423 3,704 1,109 — 55,236 
Total expenses113,878 331,576 20,299 — 465,753 
Other income (expense)
Interest expense— — (63,965)— (63,965)
Equity in (losses) earnings of unconsolidated entities (2)
(782)714 — (4,935)(5,003)
Gain on sale to the 2025 Partnership34,604 — — — 34,604 
Other income26,974 — 182 — 27,156 
Total other income (expense)60,796 714 (63,783)(4,935)(7,208)
Income (loss) before income taxes132,884 159,409 (84,082)(4,935)203,276 
Provision for (benefit from) income taxes26,453 25,827 (14,402)— 37,878 
Net income (loss)106,431 133,582 (69,680)(4,935)165,398 
Less: Dividends on preferred shares— — 3,709 — 3,709 
Net income (loss) attributable to shareholders$106,431 $133,582 $(73,389)$(4,935)$161,689 
______________________________________________________
(1) Includes servicing fees of $2,052 for the three months ended June 30, 2025 from the 2025 Partnership.
(2) Includes the profit elimination of $(4,935) for the three months ended June 30, 2025 for sales to the 2025 Partnership within the Aerospace Products segment.
Summary information with respect to our geographic sources of revenue, based on location of customer and lessee, is as follows:
Three Months Ended June 30, 2025
Aviation LeasingAerospace ProductsCorporate and OtherTotal
Revenues
Africa$8,595 $17,000 $— $25,595 
Asia54,211 39,327 — $93,538 
Europe83,257 126,444 — $209,701 
North America31,602 298,039 — $329,641 
South America8,301 9,461 — $17,762 
Total revenues (1)
$185,966 $490,271 $— $676,237 
______________________________________________________
(1) The United States, included in North America, and Ireland, included in Europe, represent 38% and 14% of total revenues, respectively, based on the location of our lessees. No other country represents more than 10% of total revenues.
II. For the Six Months Ended June 30, 2025
Six Months Ended June 30, 2025
Aviation LeasingAerospace ProductsCorporate and OtherEliminationsTotal
Revenues
Aerospace products revenue$— $685,111 $— $— $685,111 
MRE Contract revenue— 170,223 — — 170,223 
Lease income130,879 — — — 130,879 
Maintenance revenue122,711 — — — 122,711 
Asset sales revenue66,854 — — — 66,854 
Other revenue (1)
2,535 — 4 — 2,539 
Total revenues$322,979 $855,334 $4 $— $1,178,317 
Expenses
Cost of sales71,748 546,224 — — 617,972 
Operating expenses18,515 14,676 33,575 — 66,766 
General and administrative— — 5,558 — 5,558 
Acquisition and transaction expenses3,482 2,546 5,753 — 11,781 
Depreciation and amortization105,484 7,288 2,026 — 114,798 
Total expenses199,229 570,734 46,912 — 816,875 
Other income (expense)
Interest expense— — (126,005)— (126,005)
Equity in (losses) earnings of unconsolidated entities (2)
(1,559)827 — (11,885)(12,617)
Gain on sale to the 2025 Partnership45,474 — — — 45,474 
Other income59,593 — 634 — 60,227 
Total other income (expense)103,508 827 (125,371)(11,885)(32,921)
Income (loss) before income taxes227,258 285,427 (172,279)(11,885)328,521 
Provision for (benefit from) income taxes43,801 45,202 (28,266)— 60,737 
Net income (loss)183,457 240,225 (144,013)(11,885)267,784 
Less: Dividends on preferred shares— — 9,824 — 9,824 
Less: Loss on redemption of preferred shares— — 6,327 — 6,327 
Net income (loss) attributable to shareholders$183,457 $240,225 $(160,164)$(11,885)$251,633 
______________________________________________________
(1) Includes servicing fees of $2,600 for the six months ended June 30, 2025 from the 2025 Partnership.
(2) Includes the profit elimination of $(11,885) for the six months ended June 30, 2025 for sales to the 2025 Partnership within the Aerospace Products segment.
Summary information with respect to our geographic sources of revenue, based on location of customer and lessee, is as follows:
Six Months Ended June 30, 2025
Aviation LeasingAerospace ProductsCorporate and OtherTotal
Revenues
Africa$10,794 $26,482 $— $37,276 
Asia86,352 82,286 4 $168,642 
Europe157,301 223,316 — $380,617 
North America49,865 505,471 — $555,336 
South America18,667 17,779 — $36,446 
Total revenues (1)
$322,979 $855,334 $4 $1,178,317 
______________________________________________________
(1) The United States, included in North America, and Ireland, included in Europe, represent 33% and 16% of total revenues, respectively, based on the location of our lessees. No other country represents more than 10% of total revenues.
Presented below are the contracted minimum future annual revenues to be received under existing operating leases as of June 30, 2025:
Operating Leases
Remainder of 2025$91,960 
2026135,206 
2027114,153 
202895,939 
202966,769 
Thereafter91,318 
Total$595,345 
III. For the Three Months Ended June 30, 2024
Three Months Ended June 30, 2024
Aviation LeasingAerospace ProductsCorporate and OtherTotal
Revenues
Aerospace products revenue— 245,200 — 245,200 
Lease income$60,759 $— $9,995 $70,754 
Maintenance revenue51,187 — — 51,187 
Asset sales revenue72,433 — — 72,433 
Other revenue58 — 3,962 4,020 
Total revenues$184,437 $245,200 $13,957 $443,594 
Expenses
Cost of sales58,969 146,888 — 205,857 
Operating expenses8,782 6,423 13,894 29,099 
General and administrative— — 2,969 2,969 
Acquisition and transaction expenses1,969 525 5,525 8,019 
Management fees and incentive allocation to affiliate — — 3,554 3,554 
Internalization fee to affiliate— — 300,000 300,000 
Depreciation and amortization52,672 938 3,081 56,691 
Total expenses122,392 154,774 329,023 606,189 
Other expense
Interest expense— — (55,196)(55,196)
Loss on extinguishment of debt— — (13,920)(13,920)
Equity in losses of unconsolidated entities(61)(633)— (694)
Other (expense) income(911)— 413 (498)
Total other expense(972)(633)(68,703)(70,308)
Income (loss) before income taxes61,073 89,793 (383,769)(232,903)
Provision for (benefit from) income taxes8,293 4,918 (26,244)(13,033)
Net income (loss)52,780 84,875 (357,525)(219,870)
Less: Dividends on preferred shares— — 8,335 8,335 
Net income (loss) attributable to shareholders$52,780 $84,875 $(365,860)$(228,205)
Summary information with respect to our geographic sources of revenue, based on location of customer and lessee, is as follows:
Three Months Ended June 30, 2024
Aviation LeasingAerospace ProductsCorporate and OtherTotal
Revenues
Africa$1,255 $2,585 $— $3,840 
Asia33,642 28,530 13,957 76,129 
Europe107,573 104,900 — 212,473 
North America26,162 105,770 — 131,932 
South America15,805 3,415 — 19,220 
Total revenues (1)
$184,437 $245,200 $13,957 $443,594 
______________________________________________________
(1) The United States, included in North America, and Ireland, included in Europe, represent 29% and 25% of total revenues, respectively, based on the location of our lessees. No other country represents more than 10% of total revenues.
IV. For the Six Months Ended June 30, 2024
Six Months Ended June 30, 2024
Aviation LeasingAerospace ProductsCorporate and OtherTotal
Revenues
Aerospace products revenue$— $434,257 $— $434,257 
Lease income111,605 — 12,310 123,915 
Maintenance revenue96,977 — — 96,977 
Asset sales revenue111,040 — — 111,040 
Other revenue125 — 3,974 4,099 
Total revenues$319,747 $434,257 $16,284 $770,288 
Expenses
Cost of sales90,858 257,803 — 348,661 
Operating expenses16,989 13,893 23,534 54,416 
General and administrative— — 6,652 6,652 
Acquisition and transaction expenses4,730 771 8,697 14,198 
Management fees and incentive allocation to affiliate— — 8,449 8,449 
Internalization fee to affiliate— — 300,000 300,000 
Depreciation and amortization98,756 1,871 5,984 106,611 
Asset impairment962 — — 962 
Total expenses212,295 274,338 353,316 839,949 
Other expense
Interest expense— — (102,903)(102,903)
Loss on extinguishment of debt — — (13,920)(13,920)
Equity in losses of unconsolidated entities(207)(1,154)— (1,361)
Other (expense) income(542)— 678 136 
Total other expense(749)(1,154)(116,145)(118,048)
Income (loss) before income taxes106,703 158,765 (453,177)(187,709)
Provision for (benefit from) income taxes11,326 7,457 (26,244)(7,461)
Net income (loss)95,377 151,308 (426,933)(180,248)
Less: Dividends on preferred shares— — 16,670 16,670 
Net income (loss) attributable to shareholders$95,377 $151,308 $(443,603)$(196,918)
Summary information with respect to our geographic sources of revenue, based on location of customer and lessee, is as follows:
Six Months Ended June 30, 2024
Aviation LeasingAerospace ProductsCorporate and OtherTotal
Revenues
Africa$2,123 $8,271 $— $10,394 
Asia58,761 57,030 16,284 132,075 
Europe178,617 172,616 — 351,233 
North America47,009 187,142 — 234,151 
South America33,237 9,198 — 42,435 
Total revenues (1)
$319,747 $434,257 $16,284 $770,288 
______________________________________________________
(1) The United States, included in North America, and Ireland, included in Europe, represent 29% and 20% of total revenues, respectively, based on the location of our lessees. No other country represents more than 10% of total revenues.
V. Location of Long-Lived Assets
The following tables sets forth the geographic location of property, plant and equipment and leasing equipment, net:
June 30, 2025
(unaudited)		December 31, 2024
Property, plant and equipment and leasing equipment, net
Africa$22,881 $37,369 
Asia419,001 596,547 
Europe756,237 1,038,176 
North America540,084 592,675 
South America221,397 216,414 
Total property, plant and equipment and leasing equipment, net (1)
$1,959,600 $2,481,181 
________________________________________________________
(1) The United States, included in North America, represents 21% of property, plant and equipment and leasing equipment, net as of June 30, 2025. The United States, included in North America, and Italy, included in Europe, represent 17% and 12% of property, plant and equipment and leasing equipment, net as of December 31, 2024, respectively. No other country represents more than 10% of property, plant and equipment and leasing equipment, net.