By Sabela Ojea
Shares of FTAI Aviation dropped after a report from short seller Muddy Waters Research accused the company of an alleged accounting manipulation within the company's maintenance, repair and overhaul business.
The stock was down 27% to $111.36 in Wednesday trading. Shares have surged 123% over the past 12 months.
Muddy Waters said that FTAI Aviation, which owns and maintains commercial jet engines, misrepresented whole engine sales as smaller, higher-margin module sales. It also alleged that FTAI inflated earnings before interest, taxes, depreciation and amortization margins by utilizing questionable depreciation methods and that the company may be engaging in channel stuffing to artificially boost year-end revenue.
FTAI Aviation said that it will be responding shortly to the allegations.
Write to Sabela Ojea at sabela.ojea@wsj.com
(END) Dow Jones Newswires
January 15, 2025 15:50 ET (20:50 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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