Group 1 - The discussion includes both macroeconomic factors and specific stocks such as Norfolk Southern (NSC), Caterpillar (CAT), and Duke Energy (DUK) [1] - The focus is on long-term investment strategies in U.S. and European equities, emphasizing undervalued growth stocks and high-quality dividend growers [2] - Sustained profitability, characterized by strong margins, stable and expanding free cash flow, and high returns on invested capital, is highlighted as a more reliable driver of returns than valuation alone [2] Group 2 - The analyst has a beneficial long position in the shares of NSC and CNI through stock ownership, options, or other derivatives [3] - The article expresses the author's own opinions and is not compensated for it, aside from Seeking Alpha [3] - Seeking Alpha clarifies that past performance does not guarantee future results and does not provide specific investment recommendations [4]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q2 was $45.9 million, up 30% from Q1 2025 and up 34% from Q2 2024 [18] - The company expects annual EBITDA to exceed $450 million, including the acquisition of Wheeling and Lake Erie Railway [19] Business Line Data and Key Metrics Changes - TransStar reported adjusted EBITDA of $20.7 million, up 4% from Q1 2025 [20] - Long Ridge generated $23 million of EBITDA in Q2, up from $18.1 million in Q1 [21] - Jefferson's EBITDA was $11.1 million, up from $8 million in Q1 [22] Market Data and Key Metrics Changes - The Wheeling and Lake Erie Railway generated total revenue of approximately $150 million for the latest twelve months [7] - The company expects $20 million of annual cost savings from the Wheeling acquisition, primarily from network efficiencies [11] Company Strategy and Development Direction - The company announced a major acquisition of Wheeling and Lake Erie Railway for $1.05 billion, expected to transform its freight rail segment [6] - Plans to refinance the corporate balance sheet to increase free cash flow and provide flexibility for future growth [6] - The company aims to grow its freight rail segment and may consider monetizing other assets to focus on rail acquisitions [68] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving $200 million of targeted annual EBITDA from the combined rail companies by 2026 [10] - The company anticipates significant growth in revenues and EBITDA in 2025 due to the Wheeling acquisition and contracted business [19] - Management noted a mild pickup in M&A activity in the rail sector and sees opportunities for further acquisitions [44] Other Important Information - The company completed financing for its Phase II transloading project at Repauno, issuing $300 million of tax-exempt debt [22] - The company is actively pursuing additional acquisitions of complementary railroads to diversify revenue and commodity base [24] Q&A Session Summary Question: Can you talk about the synergies of putting TransStar and Wheeling together? - Management highlighted the expected $20 million of annual savings from the integration, emphasizing the strategic fit and immediate efficiencies [33][34] Question: What are the implications of the Wheeling acquisition on diversification? - The acquisition is expected to significantly enhance diversification, with TransStar's reliance on U.S. Steel decreasing from 85% to one-third of total business [36][38] Question: Are there continued opportunities for consolidation in the rail space? - Management noted a mild pickup in M&A activity and expressed confidence in pursuing additional acquisitions [44] Question: Can you elaborate on the $70 million EBITDA opportunity at Long Ridge? - Management clarified that the $70 million includes contracted revenue and potential future growth from data center opportunities, which are not yet included in the bar chart [48][49] Question: What is the status of Phase III at Repauno? - The permitting process is expected to be finalized by September 30, with a total cost of about $200 million and a projected payback period of two years [55] Question: How will the $1 billion of preferred stock impact cash flow? - The preferred stock will not trap cash, allowing significant excess cash flow to be distributed to the holding company after debt service [78]

Acquisition and Refinancing - FTAI Infrastructure is acquiring the Wheeling & Lake Erie Railway (W&LE) for $1.05 billion[13] - The combined Transtar / W&LE business is expected to generate annual Adjusted EBITDA of $200+ million by the end of 2026[16] - Corporate fixed charges are expected to reduce by ~$30 million annually due to refinancing[19] - $2.25 billion of new capital is being issued, including $1.25 billion in new corporate debt and $1.0 billion of preferred stock[21] Q2 2025 Financial Performance - Consolidated Adjusted EBITDA for Q2 2025 was $45.9 million[29] - Transtar's Adjusted EBITDA for Q2 2025 was $20.7 million, up 4% from Q1 2025[25, 31] - Long Ridge's Adjusted EBITDA for Q2 2025 was $23.0 million[25, 32] - Jefferson Terminal's Adjusted EBITDA for Q2 2025 was $11.1 million[25, 34] - Repauno's Adjusted EBITDA for Q2 2025 was $(2.1) million[25, 34] Growth Opportunities - Expect ~$15+ million of incremental annual Adjusted EBITDA from Nippon's investments in U S Steel facilities[37] - Two contracts commencing in fall 2025 at Jefferson Terminal represent $20 million of incremental annual Adjusted EBITDA[34, 45] - Contracts and a LOI in place at Repauno represent approximately $80 million of annual Adjusted EBITDA[34]

[Financial and Operational Highlights](index=1&type=section&id=Financial%20and%20Operational%20Highlights) FTAI Infrastructure reported a Q2 2025 net loss of $79.8 million and Adjusted EBITDA of $45.9 million, with strategic acquisitions progressing Q2 2025 Selected Financial Results | (in thousands, except per share data) | Q2'25 | | :--- | :--- | | **Net Loss Attributable to Stockholders** | $(79,816) | | **Basic and Diluted Loss per Share** | $(0.73) | | **Adjusted EBITDA** | $45,916 | | **Adjusted EBITDA - Four core segments** | $52,642 | - The Board of Directors declared a quarterly cash dividend of **$0.03** per common share, payable on September 8, 2025[4](index=4&type=chunk) - Key strategic initiatives in Q2 2025 include: - Agreed to acquire Wheeling & Lake Erie Railway for **$1.05 billion** in cash - Planning to refinance existing 10.50% senior notes and Series A preferred stock concurrent with the acquisition closing - Closed **$300 million** of tax-exempt debt financing at Repauno, with phase 2 construction now fully underway[9](index=9&type=chunk) [Consolidated Financial Statements](index=3&type=section&id=Consolidated%20Financial%20Statements) Consolidated financial statements show total assets increased to **$4.41 billion** by June 30, 2025, with Q2 2025 revenues at **$122.3 million**, resulting in a **$70.0 million** net loss [Consolidated Statements of Operations](index=3&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Q2 2025 vs Q2 2024 Statement of Operations Highlights | (in thousands, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Total revenues** | $122,286 | $84,887 | | **Total expenses** | $129,080 | $87,925 | | **Interest expense** | $59,204 | $29,690 | | **Net (loss) income** | $(69,959) | $(48,140) | | **Net (loss) attributable to stockholders** | $(79,816) | $(54,350) | | **Basic and Diluted (Loss) per share** | $(0.73) | $(0.52) | [Consolidated Balance Sheets](index=4&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) Balance Sheet Highlights (June 30, 2025 vs Dec 31, 2024) | (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $33,626 | $27,785 | | **Property, plant, and equipment, net** | $3,232,712 | $1,653,468 | | **Total assets** | $4,406,960 | $2,374,388 | | **Debt, net (Current + Non-current)** | $3,084,363 | $1,587,835 | | **Total liabilities** | $3,631,040 | $1,918,032 | | **Total equity** | $225,626 | $75,138 | [Consolidated Statements of Cash Flows](index=6&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Six Months Ended June 30, Cash Flow Summary | (in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash used in operating activities** | $(90,872) | $(21,470) | | **Net cash provided by (used in) investing activities** | $78,359 | $(52,652) | | **Net cash provided by financing activities** | $313,480 | $173,108 | | **Net increase in cash** | $300,967 | $98,986 | [Non-GAAP Financial Measures](index=8&type=section&id=Non-GAAP%20Financial%20Measures) The company uses Adjusted EBITDA as a key performance measure, which increased to **$45.9 million** in Q2 2025, with core segments generating **$52.6 million** [Reconciliation of Net Loss to Adjusted EBITDA](index=8&type=section&id=Reconciliation%20of%20Net%20Loss%20to%20Adjusted%20EBITDA) - Adjusted EBITDA is a key performance measure used by the Chief Operating Decision Maker (CODM) to assess operational performance and make resource allocation decisions[21](index=21&type=chunk)[22](index=22&type=chunk) Reconciliation of Net Loss to Adjusted EBITDA (Q2 2025 vs Q2 2024) | (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net (loss) attributable to stockholders** | $(79,816) | $(54,350) | | Add: Depreciation and amortization expense | $32,086 | $21,596 | | Add: Interest expense | $59,204 | $29,690 | | Add: Acquisition and transaction expenses | $8,704 | $921 | | **Adjusted EBITDA (Non-GAAP)** | **$45,916** | **$34,256** | [Segment Adjusted EBITDA Reconciliation](index=10&type=section&id=Segment%20Adjusted%20EBITDA%20Reconciliation) Adjusted EBITDA by Core Segment (Q2 2025) | (in thousands) | Adjusted EBITDA | | :--- | :--- | | **Railroad** | $20,671 | | **Jefferson Terminal** | $11,082 | | **Repauno** | $(2,082) | | **Power and Gas** | $22,971 | | **Total Four Core Segments** | **$52,642** |

Financial Overview - FTAI Infrastructure reported a net loss attributable to stockholders of $79.816 million for Q2 2025, compared to a loss of $54.350 million in Q2 2024 [2][24] - The basic and diluted loss per share for common stock was $0.73 for Q2 2025, compared to a loss of $0.52 in the same quarter of the previous year [2][24] - Adjusted EBITDA for Q2 2025 was $45.916 million, an increase from $34.256 million in Q2 2024 [2][24] Dividend Declaration - The Board of Directors declared a cash dividend of $0.03 per share for the quarter ended June 30, 2025, payable on September 8, 2025 [3] Business Highlights - The company agreed to acquire the Wheeling & Lake Erie Railway for $1.05 billion [9] - Plans to refinance existing 10.50% senior notes and Series A preferred stock upon closing of the acquisition [9] - Closed financing of $300 million of tax-exempt debt at Repauno with average coupons of 6.50%, with construction of phase 2 infrastructure fully underway [9] Key Performance Measures - Adjusted EBITDA is utilized as the key performance measure by the Chief Operating Decision Maker, providing insights into operational performance and resource allocation [21][22] - The reconciliation of net loss attributable to stockholders to Adjusted EBITDA for Q2 2025 indicates significant adjustments for various expenses, including interest and depreciation [23][24] Financial Position - Total assets as of June 30, 2025, were $4.407 billion, up from $2.374 billion as of December 31, 2024 [16][17] - Current assets increased to $539.045 million from $219.851 million year-over-year [16] - Total liabilities rose to $3.631 billion from $1.918 billion as of December 31, 2024 [17] Cash Flow Analysis - Net cash used in operating activities for the six months ended June 30, 2025, was $90.872 million, compared to $21.470 million in the same period of 2024 [19] - Cash flows from investing activities showed a net cash provided of $78.359 million, contrasting with a net cash used of $52.652 million in the previous year [19] - Net cash provided by financing activities was $313.480 million, up from $173.108 million in the same period of 2024 [19]

Core Viewpoint - FTAI Infrastructure Inc. is set to announce its financial results for the second quarter of 2025 on August 7, 2025, after the market closes [1] Group 1: Financial Results Announcement - The financial results for Q2 2025 will be released after the closing of Nasdaq on August 7, 2025 [1] - A press release and earnings supplement will be available on the Company's Investor Relations website [1] Group 2: Conference Call Details - Management will host a conference call on August 8, 2025, at 8:00 A.M. Eastern Time [2] - Participants can register for the call via a provided link to receive dial-in information [2] - A simultaneous webcast of the conference call will be available for public listening [3] Group 3: Replay Information - A replay of the conference call will be accessible from 11:30 A.M. on August 8, 2025, until 11:30 A.M. on August 15, 2025 [3] Group 4: Company Overview - FTAI Infrastructure focuses on investing in critical infrastructure sectors such as rail, ports, terminals, and power and gas [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]

Company Overview - Long Ridge Energy LLC (LRE) is part of Long Ridge Energy & Power LLC (LREP), which is a wholly owned portfolio company of FTAI Infrastructure, Inc. [1] - LRE operates a 485 MW combined cycle power plant and natural gas wells in Southeastern Ohio and West Virginia [3]. Financial Information - LRE completed the incurrence of $1 billion in new debt, which includes $600 million of Senior Secured Notes and a $400 million Term Loan B, both due in 2032 [1]. - The first quarter 2025 financial statements and an investor presentation will be posted on the company's website prior to the earnings call [2]. Conference Call Details - The investor call is scheduled for June 12, 2025, at 10:00 AM EDT, and will be accessible via registration [1]. - A simultaneous webcast will be available for public listening [2]. - A replay of the conference call will be available from June 12, 2025, at 12:00 PM until June 20, 2025, at 12:00 PM [3]. Infrastructure and Development - LREP is developing additional opportunities for data centers on its property, utilizing access to the PJM grid [3]. - The company also provides commodity transloading and storage services due to its location along the Ohio River [3]. Parent Company Information - FTAI Infrastructure focuses on investing in critical infrastructure sectors, generating strong cash flows and potential for earnings growth [4].

Financial Performance - Total revenues for the three months ended March 31, 2025, increased by $13.6 million to $96.2 million compared to $82.5 million in the same period of 2024 [234]. - Adjusted EBITDA for the three months ended March 31, 2025, was $155.2 million, a significant increase of $128 million from $27.2 million in 2024 [235]. - Net income attributable to stockholders for the three months ended March 31, 2025, was $109.7 million, compared to a net loss of $56.6 million in 2024, representing a change of $166.3 million [234]. - Net income increased by $170.5 million for the three months ended March 31, 2025, compared to the previous year [242]. - Adjusted EBITDA decreased by $1.7 million during the same period, totaling $19.9 million [251]. - Total revenues decreased by $3.7 million, primarily due to a decrease in carloads and rates per car [248]. - Total expenses decreased by $1.9 million, reflecting a decrease in operating expenses mainly due to reduced carloads [249]. - Other income increased by $0.8 million, primarily from favorable adjustments in pension and OPEB benefits [250]. Segment Performance - Power revenues rose by $15.8 million due to the acquisition of Long Ridge Energy & Power LLC in February 2025 [237]. - In the Railroad segment, total revenues were $42.6 million, down from $46.3 million, with a net income of $13.7 million [246]. - In the Jefferson Terminal segment, total revenues increased by $0.8 million to $19.4 million, with a net loss attributable to stockholders of $15.1 million [253]. - Power segment revenues increased by $17.3 million to $17.294 million, mainly due to a $15.8 million rise in power revenues and a $1.2 million increase in gas revenues from the acquisition of Long Ridge [270]. - The power segment reported a net income attributable to stockholders of $170.044 million, a significant increase from a loss of $5.427 million in the previous year [269]. - Net loss attributable to stockholders for the Repauno segment was $6.793 million, compared to a loss of $4.260 million in the prior year [261]. Expenses and Costs - Operating expenses increased by $2.5 million, primarily due to higher costs associated with the acquisition of Long Ridge Energy & Power LLC [239]. - Acquisition and transaction expenses surged by $2.6 million, mainly due to legal fees related to the Long Ridge acquisition [239]. - Depreciation and amortization expenses increased by $4.5 million, attributed to additional assets from the Long Ridge acquisition [240]. - Asset impairment charges rose by $1.4 million, primarily due to the write-off of the remaining GM-FTAI note receivable in the Sustainability and Energy Transition segment [240]. - Interest expense increased by $7.3 million due to additional borrowings issued in June 2024 [256]. - Total expenses increased by $0.9 million to $9.478 million, driven by higher operating expenses, acquisition costs, and depreciation [263]. - Total expenses in the power segment rose by $12.8 million to $13.470 million, influenced by increased operating, acquisition, and depreciation expenses [271]. Cash Flow and Investments - Net cash used in operating activities increased by $81.8 million to $(85.651) million for the three months ended March 31, 2025 [290]. - Net cash provided by investing activities increased by $183.1 million, primarily due to an increase in the acquisition of business by $226.6 million [291]. - Net cash used in financing activities increased by $2.1 million, primarily due to increased payments of cash dividends on preferred and common stock [292]. - Cash used for investments was $164.2 million in Q1 2025, up from $18.9 million in Q1 2024, indicating a significant increase in investment activity [294]. - Cash flows used in operating activities were $85.7 million in Q1 2025, compared to $3.9 million in Q1 2024, reflecting a substantial rise in operational expenditures [294]. Debt and Obligations - As of March 31, 2025, the company had outstanding principal debt obligations of $2.8 billion and interest payment obligations of $1.2 billion, with $94.6 million in principal and $189.5 million in interest due within the next twelve months [295]. - The company acquired Long Ridge Energy & Power LLC, resulting in additional borrowings totaling $1.165 billion during Q1 2025, including a $600 million Senior Secured Note due 2032 [294]. - Operating and finance lease obligations amounted to $171.8 million as of March 31, 2025, with $8.8 million due within the next twelve months [297]. - Dividend payments of $90.1 million on redeemable preferred stock are due within the next twelve months, with options for paid-in-kind dividends [298]. - A hypothetical 100-basis point increase in variable interest rates could result in an increase of approximately $4.7 million in interest expense over the next 12 months [315]. Future Outlook - The company expects to meet future short-term liquidity requirements through cash on hand and operational cash flow, indicating a stable financial position [300]. - The Jefferson Terminal reporting unit had an estimated fair value exceeding its carrying value by more than 10% as of October 1, 2024, indicating a positive outlook for future performance [306].

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q1 2025 was $35.2 million, up 21% from Q4 2024 and up 29% from Q1 2024 [7] - A non-cash gain of $120 million was recorded due to the acquisition of a partner's 49.9% interest in Long Ridge, which is excluded from adjusted EBITDA for comparative purposes [8] - Total debt reported was $2.8 billion as of March 31, with corporate level debt unchanged at $572 million [14] Business Line Data and Key Metrics Changes - TransStar reported adjusted EBITDA of $19.9 million, slightly up from $19.4 million in Q4 2024, with stable volumes despite tariff uncertainties [10][15] - Long Ridge generated $18.1 million of EBITDA in Q1, up from $9.9 million in Q4, with a power plant capacity factor of nearly 99% [11][17] - Jefferson's EBITDA was $8 million, down from $11.1 million in Q4, impacted by four storage tanks being off lease [19] - Repauno is launching a Phase II transloading project with $300 million in tax-exempt debt to fund construction, expecting $80 million in annual EBITDA from new contracts [13][21] Market Data and Key Metrics Changes - The company has approximately $190 million of incremental locked-in annual EBITDA under executed agreements, targeting over $400 million in annual EBITDA potential [10] - Repauno is positioned to benefit from increased energy exports to Europe, with recent contracts signed at higher rates [40] Company Strategy and Development Direction - The company is focused on transformational growth in 2025, with strategic objectives including acquisitions and expanding operational capacity [9] - Long Ridge is exploring data center partnerships to generate additional EBITDA while maintaining existing power plant revenues [29] - TransStar aims to diversify revenue through M&A efforts and new freight business opportunities [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the year ahead, citing strong performance and strategic developments across business units [9][22] - The operating environment remains uncertain due to tariffs, but certain segments are positioned to benefit from global trade dynamics [38] Other Important Information - The company plans to refinance corporate bonds and existing preferred stock to reduce fixed charges and increase cash flow for shareholders [14] Q&A Session Summary Question: Timeline for CABERON approvals after public hearing - Management expects a typical thirty-day wait after the hearing date for approvals [26] Question: Types of data center deals at Long Ridge - Management discussed leasing land and providing backup power to data center developers, estimating incremental EBITDA of around $70 million [28][29] Question: Update on the Nippon deal and its implications - Management is optimistic about the Nippon acquisition of US Steel, with positive indications from Washington [32] Question: Impact of tariffs on business - Management noted mixed effects from tariffs, with some segments potentially benefiting from increased energy exports [39] Question: Remaining capacity for contracting at Repauno - Management indicated limited remaining capacity for Phase II but potential upside from Phase I [44][46] Question: Incremental earnings from the 20 MW increase at Long Ridge - Management expects about $8 million of incremental EBITDA from the power plant upgrade, likely to be approved by late 2025 [48]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q1 2025 was $35.2 million, up 21% from Q4 2024 and up 29% from Q1 2024 [6] - A non-cash gain of $120 million was recorded due to purchase accounting adjustments from the acquisition of a partner's 49.9% interest in Long Ridge [7] - Total debt reported was $2.8 billion as of March 31, with corporate level debt unchanged at $572 million [13] Business Line Data and Key Metrics Changes - TransStar reported adjusted EBITDA of $19.9 million, slightly up from $19.4 million in Q4 2024 [9] - Long Ridge generated $18.1 million of EBITDA in Q1, up from $9.9 million in Q4 2024, with a power plant capacity factor of 99% [15] - Jefferson's EBITDA was $8 million, down from $11.1 million in Q4 2024, impacted by four storage tanks being off lease [18] Market Data and Key Metrics Changes - TransStar's revenue was $42.6 million, with stable volumes despite uncertainties in global trade [14] - Long Ridge's March EBITDA run rate was over $10 million, indicating strong performance following recent transactions [10] - Repauno's Phase II project is expected to generate approximately $80 million of annual EBITDA upon completion [20] Company Strategy and Development Direction - The company aims for transformational growth in 2025, driven by Long Ridge activities and other strategic developments [7] - Focus on acquiring complementary railroads to diversify revenue and enhance growth opportunities at TransStar [15] - Long Ridge is exploring data center partnerships to generate additional EBITDA while maintaining existing power plant revenues [26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the year ahead, citing strong performance and strategic opportunities [7] - The company is well-positioned to benefit from increasing energy exports to Europe, particularly through Repauno [35] - Management highlighted the potential for significant EBITDA growth from new contracts and operational improvements across business units [19] Other Important Information - A quarterly dividend of $0.03 per share was authorized, to be paid on May 27 [5] - The company is planning to refinance corporate bonds and existing preferred stock to reduce fixed charges and increase cash flow [13] Q&A Session Summary Question: Timeline for CABERON approvals after the public hearing - Management expects a typical thirty-day process post-hearing for approvals [24] Question: Types of data center deals at Long Ridge - Discussions involve leasing land and providing backup power to data center developers, potentially generating $70 million in incremental EBITDA [26] Question: Update on the Nippon deal and its implications - Management is optimistic about the Nippon acquisition of US Steel, which could positively impact TransStar [28] Question: Impact of tariffs on business - Management noted mixed effects, with some businesses positioned to benefit from changes in global trade dynamics [34] Question: Remaining capacity for contracting at Repauno - Limited additional capacity exists for Phase II, but Phase I has potential for increased utilization and additional EBITDA [40] Question: Incremental earnings from the 20 megawatt increase at Long Ridge - Expected to generate approximately $8 million of incremental EBITDA upon approval, likely in late 2025 [43] Question: CapEx requirements for TransStar's EBITDA growth - No significant additional capital required; growth will come from existing operations and new customer engagements [47]