Shares of FTAI Aviation were down over 25% on January 15, 2025, following the release of a report by Muddy Waters Research. The report alleges possible accounting manipulation within the company’s Maintenance, Repair, and Overhaul (MRO) business, claiming that the company misrepresented whole engine sales as smaller, higher-margin module sales. Muddy Waters Research also accuses FTAI of inflating EBITDA margins by utilizing questionable depreciation methods and alleges that the company may be engaging in channel stuffing to artificially boost year-end revenue.
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