NEW YORK, Dec. 01, 2025 (GLOBE NEWSWIRE) -- FTAI Infrastructure Inc. (NASDAQ:FIP) (the “Company”) announced today that the Surface Transportation Board has approved the acquisition of the Wheeling & Lake Erie Railway Company (“The Wheeling”) effective December 26, 2025 (the “Effective Date”). The voting trust that has controlled The Wheeling since the transaction closed on August 25, 2025 is expected to be dissolved on or shortly after the Effective Date and thereafter the Company would assume control of Th ...

Group 1: Market Performance - In the third quarter of 2025, small-cap stocks gained over 12% as measured by the Russell 2000 Index, while Diamond Hill Capital's Small Cap Strategy portfolio returned 7.93% net of fees, trailing the index [1] - The underperformance of the portfolio was attributed to the rally being driven by sectors that the portfolio typically does not own [1] Group 2: FTAI Infrastructure Inc. Overview - FTAI Infrastructure Inc. (NASDAQ:FIP) focuses on acquiring, developing, and operating infrastructure assets for the transportation and energy industries [2] - The stock experienced a one-month return of -26.11% and a 52-week loss of 53.93%, closing at $3.99 per share with a market capitalization of $464.015 million on November 24, 2025 [2] Group 3: FTAI Infrastructure Inc. Performance and Strategy - FTAI Infrastructure was among the bottom contributors in Q3, with slower-than-expected volume increases at its Jefferson terminal and planned maintenance at its Long Ridge facility impacting revenues and share price [3] - The company announced plans to acquire The Wheeling Corporation, which operates the Wheeling & Lake Erie Railway Company, indicating a strategic shift towards becoming primarily a freight rail business while monetizing other assets [3] Group 4: Hedge Fund Interest - FTAI Infrastructure Inc. was held by 24 hedge fund portfolios at the end of the second quarter, unchanged from the previous quarter, indicating stable interest among hedge funds [4] - Despite the potential of FTAI Infrastructure, the company is not considered among the most popular stocks, with certain AI stocks being viewed as offering greater upside potential and less downside risk [4]

Group 1: Tourlite Capital Management Overview - Tourlite Fund, LP returned -2.0% in Q3 2025, underperforming the S&P 500 and Russell 2000 Indexes, which returned 8.1% and 12.4% respectively [1] - Since inception, the fund has achieved annualized returns of 8.6%, compared to 13.4% for the S&P 500 and 6.3% for the Russell 2000 [1] - The firm noted a rise in speculative, lower-quality stocks, reminiscent of trends observed in late 2021 [1] Group 2: FTAI Infrastructure Inc. Analysis - FTAI Infrastructure Inc. (NASDAQ:FIP) experienced a one-month return of -27.44% and a 52-week loss of 52.48%, closing at $4.02 per share with a market capitalization of $467.504 million on November 19, 2025 [2] - The company announced a transformative acquisition of Wheeling & Lake Erie Railway Company and a refinancing of its holding company debt in August, which initially led to negative market reactions due to high leverage and preferred equity warrants [3] - Despite initial market concerns, the long-term value creation potential of FTAI's infrastructure assets is believed to be substantial, with the CEO and Chairman exercising options to increase their exposure at attractive share price levels [3]

Financial Performance - Total revenues for the three months ended September 30, 2025, increased by $57.245 million to $140.556 million compared to $83.311 million in the same period of 2024[268]. - Power revenues for the three months ended September 30, 2025, were $56.517 million, a significant increase from $0 in the same period of 2024[268]. - Total revenues increased by $57.2 million for the three months ended September 30, 2025, driven by a $58.6 million increase in the Power and Gas segment[272]. - Power revenues rose by $110.3 million for the nine months ended September 30, 2025, primarily due to the acquisition of Long Ridge Energy & Power LLC in February 2025[275]. - Total revenues increased by $58.6 million and $117.7 million for the three and nine months ended September 30, 2025, primarily due to increased power plant and gas revenues following the acquisition of Long Ridge[312]. - Total revenues for the nine months ended September 30, 2025, decreased by $1.0 million, primarily due to a decline in roadside services revenues[325]. Expenses and Losses - Net loss attributable to stockholders before series B preferred stock dividend for the three months ended September 30, 2025, was $118.352 million, compared to a loss of $49.971 million in the same period of 2024[268]. - Operating expenses for the three months ended September 30, 2025, were $74.985 million, an increase of $12.219 million from $62.766 million in the same period of 2024[268]. - Total expenses increased by $29.4 million for the three months ended September 30, 2025, mainly due to higher operating expenses, depreciation and amortization, and acquisition expenses[276]. - Operating expenses for the nine months ended September 30, 2025, increased by $27.9 million, largely due to the full inclusion of operating expenses from Long Ridge Energy & Power LLC[278]. - Total expenses decreased by $2.5 million during the three months ended September 30, 2025, mainly reflecting a decrease in operating expenses due to decreased carloads[290]. - Total expenses increased by $4.2 million during the three months ended September 30, 2025, largely driven by a $1.8 million rise in acquisition and transaction expenses[326]. EBITDA and Income - Adjusted EBITDA is utilized as the key performance measure, providing insights into operational performance and resource allocation decisions[264]. - Adjusted EBITDA increased by $34.0 million for the three months ended September 30, 2025, reflecting improved operational performance[284]. - Adjusted EBITDA decreased by $8.0 million and $4.9 million during the three and nine months ended September 30, 2025, respectively[294]. - Net income attributable to stockholders for the three months ended September 30, 2025, was $2.949 million, a decrease of $11.579 million compared to $14.528 million in the same period of 2024[288]. - Net income attributable to stockholders improved to $566,000 for the three months ended September 30, 2025, compared to a loss of $8.6 million in the same period of 2024, marking a change of $9.1 million[311]. Acquisitions and Investments - The acquisition of Fortress by Mubadala Investment Company was completed on May 14, 2024, allowing Fortress to operate independently under its brand[263]. - The acquisition of Long Ridge in February 2025 significantly impacted both revenues and expenses, with full operational integration reflected in the financial results[312]. - The company plans to continue investing in market sectors with high barriers to entry and stable cash flows, aiming for earnings growth and asset appreciation[260]. Debt and Liquidity - The company has $1.55 billion of debt due within approximately 12 months, with plans to refinance and alleviate liquidity risk[330]. - As of September 30, 2025, the company had outstanding principal and interest payment obligations of $3.8 billion and $1.3 billion, respectively[339]. - Cash used in investing activities was $1.1 billion for the nine months ended September 30, 2025, compared to $89.6 million for the same period in 2024[334]. - The company expects to meet future short-term liquidity requirements through cash on hand, unused borrowing capacity, and net cash from operations[344]. Interest Expense and Rate Sensitivity - Interest expense increased by $86.8 million primarily due to an increase in average outstanding debt of approximately $1.5 billion[286]. - A sensitivity analysis indicates that changes in interest rates could significantly impact the company's financial condition and results of operations, although it is not a forecast[359]. - The primary interest rate exposure relates to the company's term loan arrangements, which are sensitive to changes in interest rates and spreads[356]. - Some borrowing agreements require payments based on a variable interest rate index, such as the Secured Overnight Financing Rate, which may increase debt costs without a corresponding increase in rents or cash flow[358].

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q3 2025 was $70.9 million, up 55% from $45.9 million in Q2 and nearly double year-over-year [5][8] - Total debt at the end of September was $3.7 billion, with $1.2 billion at the parent level and $2.5 billion at subsidiaries [11][12] Business Line Data and Key Metrics Changes - Rail segment adjusted EBITDA was $29.1 million, including $8.4 million from the Wheeling acquisition for five weeks [8][12] - Long Ridge reported EBITDA for the quarter was $35.7 million, significantly up from $23 million in Q2, driven by higher capacity revenue and gas sales [17][19] - Jefferson generated $21.1 million in revenue and $11 million in adjusted EBITDA, slightly down from Q2 [20][21] - Repauno's phase two construction is fully funded and progressing, with contracts in place representing $80 million of annual EBITDA once operational [21][22] Market Data and Key Metrics Changes - The Wheeling segment saw volumes and revenues up approximately 10% compared to Q2, with EBITDA up 20% [14][15] - Long Ridge's gas production exceeded 100,000 MMBTU per day, well above the power plant's consumption [4][17] Company Strategy and Development Direction - The company aims to generate over $450 million of adjusted EBITDA annually, excluding organic growth or new business wins [5][6] - Plans to refinance existing parent-level debt with a new bond issuance to strengthen the balance sheet [10][11] - Exploring strategic alternatives for Long Ridge, including potential monetization due to its high efficiency and profitability [19][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a combined EBITDA run rate of at least $220 million by the end of 2026, up from the previous estimate of $200 million [15][16] - The company views the current macro environment as favorable for low-cost power generation and anticipates strong demand for its services [19][38] Other Important Information - The company is awaiting approval from the Surface Transportation Board to take active control of the Wheeling acquisition, which is expected to be a priority once the government reopens [10][30] - Repauno received a permit for the construction of its phase three cavern system, which is expected to significantly enhance its economic potential [22][35] Q&A Session Summary Question: Expectations for SG&A and cost structure with the transition to an operating company - Management expects G&A to remain relatively flat despite growth in revenues and EBITDA, with slight increases in Q4 due to year-end adjustments [24][25] Question: Synergies between Wheeling and TransStar - Management identified numerous synergies, including $20 million in cost savings and enhanced revenue opportunities through network optimization [25][26] Question: Timeline for STB approval - Management believes a decision from the STB is still a reasonable expectation by year-end, despite the federal government shutdown [29][30] Question: Cash generation in the rail segment - The rail segment generated approximately $35 million in cash flow for the quarter, which will be used primarily for debt service and potential deleveraging [30][31] Question: Next steps for Repauno's phase three - Phase three represents a significant expansion, with an estimated cost of $200 million per cavern and expected annual EBITDA of $70 to $80 million [34][35] Question: Strategic alternatives for Long Ridge - Management anticipates interest in the entire Long Ridge asset, emphasizing the integrated value of the gas wells and power generation facility [37][38]

FTAI INFRASTRUCTURE Supplemental Information Third Quarter 2025 Disclaimers IN GENERAL. This disclaimer applies to this document and the verbal of any person presenting it. This document, baker locesher with any such verbal or with any such verbal "Presentation" The information contained on, or accessible through, any websites included in this Presentation is not incorporated by reference into, ond should not be con FORW ARD LOOKING STATEMENTS. Certain strements in this Pesentation may consistanter "for wor ...

Financial Performance - FTAI Infrastructure reported a net loss attributable to stockholders of $118.352 million for Q3 2025, compared to a loss of $49.971 million in Q3 2024[2]. - Total revenues for Q3 2025 were $140.556 million, up from $83.311 million in Q3 2024[14]. - Basic and diluted loss per share of common stock for Q3 2025 was $1.38, compared to $0.45 in Q3 2024[14]. - Net loss for the nine months ended September 30, 2025, was $54.3 million, a significant improvement from a loss of $141.4 million in the same period of 2024[19]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $272.1 million, compared to $98.4 million for the same period in 2024, reflecting a 176% increase[23]. Assets and Liabilities - Total assets increased to $5.452 billion as of September 30, 2025, compared to $2.374 billion at the end of 2024[16]. - Total liabilities rose to $4.373 billion as of September 30, 2025, up from $1.918 billion at the end of 2024[16]. - Total liabilities, redeemable preferred stock, and equity amounted to $5.45 billion as of September 30, 2025, compared to $2.37 billion at December 31, 2024[17]. - Stockholders' equity decreased to $181.1 million as of September 30, 2025, from $202.7 million at December 31, 2024[17]. Cash Flow and Investments - Cash and cash equivalents at the end of the period were $353.9 million, up from $144.6 million at the beginning of the period[20]. - The company made an investment of $1.12 billion in unconsolidated entities during the nine months ended September 30, 2025[19]. - Proceeds from debt financing for the nine months ended September 30, 2025, were $1.74 billion, compared to $449.7 million in the same period of 2024[19]. - The company issued redeemable preferred stock amounting to $1 billion during the nine months ended September 30, 2025[20]. Operational Highlights - The acquisition of the Wheeling & Lake Erie Railway was completed on August 25, 2025[9]. - West Virginia gas production commenced in August 2025, leading to excess gas sales at Long Ridge[9]. - The company is evaluating strategic alternatives for Long Ridge, including a potential sale[9]. Expenses and Other Financial Metrics - Adjusted EBITDA for Q3 2025 was $70.931 million, representing a 54% increase from Q2 2025[9]. - The company incurred interest expenses of $11,768,000 for the nine months ended September 30, 2025, compared to $7,906,000 for the same period in 2024, reflecting a year-over-year increase of approximately 49%[28]. - Depreciation and amortization expenses for the three months ended September 30, 2025, were $26,561,000 across all segments, with the highest contribution from the Power and Gas segment at $15,568,000[30]. - The company reported acquisition and transaction expenses of $218,000 for the nine months ended September 30, 2025, a significant increase from $3,000 in the same period of 2024[28]. - Equity-based compensation expenses for the three months ended September 30, 2025, totaled $1,404,000, down from $1,179,000 in the same period of 2024[28]. - The company recognized a loss on the modification or extinguishment of debt amounting to $360,000 for the nine months ended September 30, 2025, compared to a loss of $1,975,000 in the same period of 2024[28]. - The company experienced a provision for income taxes of $202,000 for the nine months ended September 30, 2025, compared to a benefit of $(374,000) in the same period of 2024[28]. - The company reported other non-recurring items totaling $61,000 for the nine months ended September 30, 2025[28]. Segment Performance - For the three months ended September 30, 2025, the company reported a net income attributable to stockholders of $2,949,000, with a significant loss in the Power and Terminal segments of $(11,978,000) and $(6,167,000) respectively[28]. - Adjusted EBITDA for the four core segments totaled $76,554,000, with the Railroad segment contributing $29,128,000 and the Power and Gas segment contributing $11,024,000[28]. - The Railroad segment reported a severance expense of $7,000 for the three months ended September 30, 2025[31].

Core Insights - FTAI Infrastructure Inc. reported a net loss attributable to stockholders of $118.352 million for Q3 2025, with a basic and diluted loss per share of $1.38 [2][10][14] - Adjusted EBITDA for the company was $70.931 million, reflecting a 54% increase from the previous quarter [2][10][21] - The company declared a cash dividend of $0.03 per share for the quarter ended September 30, 2025, payable on November 28, 2025 [4] Financial Overview - Total revenues for Q3 2025 were $140.556 million, compared to $83.311 million in Q3 2024 [13] - Operating expenses for Q3 2025 were $74.985 million, up from $62.766 million in Q3 2024 [13] - The company incurred total expenses of $120.003 million in Q3 2025, compared to $90.580 million in Q3 2024 [13] Key Performance Measures - The company’s Adjusted EBITDA for the four core segments was $76.554 million [10][21] - The net loss attributable to stockholders before preferred stock dividends and loss on extinguishment of preferred stock was $118.352 million for Q3 2025, compared to $49.971 million in Q3 2024 [23] - The company’s cash and cash equivalents at the end of Q3 2025 were $34.722 million, an increase from $27.785 million at the end of 2024 [17] Strategic Developments - The acquisition of the Wheeling & Lake Erie Railway was completed on August 25, 2025 [10] - Gas production in West Virginia commenced in August 2025, leading to excess gas sales at Long Ridge [10] - The company is evaluating strategic alternatives for Long Ridge, including a potential sale [10]

Core Viewpoint - FTAI Infrastructure Inc.'s subsidiary, Delaware River Partners LLC, has received approval for the construction of underground caverns for liquefied petroleum gas storage, marking a significant expansion project along the Delaware River in New Jersey [1][2]. Group 1: Project Details - The Repauno Port and Rail Terminal will construct two underground granite caverns, each with a storage capacity of over 600,000 barrels, in addition to an existing cavern that holds 180,000 barrels [2]. - The underground storage caverns will be located over 700 feet below ground, positioning Repauno as a major energy hub for bulk liquid storage and enhancing its role in the international energy economy [3]. Group 2: Economic Impact - The construction of the caverns is expected to create over 500 local, well-paying union jobs and contribute to local commerce, aiding in the revitalization of the Delaware River industrial waterfront [5]. - The project aims to meet the growing demand for safe and reliable energy storage, thereby supporting American energy independence and long-term U.S. energy goals [4]. Group 3: Company Overview - FTAI Infrastructure focuses on investing in critical infrastructure sectors such as rail, ports, terminals, and power and gas, which generate strong cash flows and have potential for earnings growth and asset appreciation [6].

Core Viewpoint - FTAI Infrastructure Inc. is set to announce its financial results for the third quarter of 2025 on October 30, 2025, after the market closes [1] Financial Results Announcement - The financial results will be released via a press release and an earnings supplement, which will be available on the Company's Investor Relations website [1] - A conference call to discuss the results will take place on October 31, 2025, at 8:00 A.M. Eastern Time, accessible through a registration link [2] - A simultaneous webcast of the conference call will be available for public listening, with a replay accessible from October 31 to November 7, 2025 [3] Company Overview - FTAI Infrastructure primarily invests in critical infrastructure sectors such as rail, ports and terminals, and power and gas, focusing on areas with high barriers to entry [5] - The Company aims to generate strong and stable cash flows, with potential for earnings growth and asset appreciation [5] - FTAI Infrastructure is externally managed by an affiliate of Fortress Investment Group LLC, a diversified global investment firm [5]