FTAI Infrastructure (US:FIP)2025-10-31 20:02Financial 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].