FTAI Aviation secures $1.47 billion gas turbine order from cloud provider

FTAI Aviation Ltd. secured a $1.465 billion order for Mod-1 gas turbine generator sets from a leading international cloud service provider, the company said Wednesday.

The initial purchase order was placed under a five-year master agreement between J&F Power Systems LLC, FTAI's joint venture with Jereh Group, and the unnamed customer. J&F will supply mobile Mod-1 CFM56 aeroderivative gas turbine generator sets to support the customer's power infrastructure buildout, with equipment delivered in batches through November 2027.

The order represents a substantial portion of FTAI Power's targeted 2027 Mod-1 unit deliveries. The master agreement allows the customer to issue additional purchase orders to expand the relationship over its five-year term.

Payments follow a milestone-based structure, beginning with an advance payment at signing and continuing through production, testing and on-site commissioning. Final settlement amounts include a performance adjustment mechanism — equipment exceeding performance standards receives upward price adjustments, while lower power output triggers downward adjustments capped at 10% of the corresponding equipment's value.

FTAI shares rose 5.28% to $210.25 on the Nasdaq following the announcement, with pre-market trading reaching $230. The order comes as cloud providers race to secure power generation capacity for data center expansion. Major cloud operators including Amazon Web Services, Microsoft Azure and Google Cloud have announced billions in data center capital expenditure, driving demand for both grid-connected and backup power generation.

The Mod-1 turbine is based on the CFM56 engine, one of the most widely used aircraft engines in commercial aviation, repurposed for ground-based power generation. FTAI's joint venture with Jereh Group handles packaging and distribution of the turbine systems. The mobile configuration allows rapid deployment at data center construction sites.

The order gives FTAI significant revenue visibility heading into 2027. Investors will watch for additional purchase orders under the master agreement and updates on delivery timelines as the company scales production through its J&F joint venture. The five-year agreement structure suggests the relationship could expand well beyond the initial $1.465 billion order.

This article is for informational purposes only and does not constitute investment advice.