FTAI Infrastructure (NasdaqGS:FIP) Q4 2025 Earnings call February 27, 2026 08:00 AM ET Company ParticipantsAlan Andreini - Head of Investor RelationsKen Nicholson - CEO and PresidentConference Call ParticipantsBrian McKenna - Managing Director, and Equity Research AnalystCraig Shere - Director of Research, and Senior Equity AnalystGiuliano Anderes Bologna - Managing Director, and Equity Research AnalystSherif Elmaghrabi - Equity Research Analyst, and Vice PresidentOperatorGood day, and thank you for standin ...

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q4 2025 reached a record $80.2 million, up from $70.9 million in Q3 2025 and $29.2 million in Q4 2024 [5][6] - For the full fiscal year 2025, adjusted EBITDA was $232.3 million, significantly higher than $127.6 million in fiscal 2024 [6] - The company exited 2025 with an EBITDA run rate of over $320 million annually, indicating strong future performance [8] Business Line Data and Key Metrics Changes - In the rail segment, adjusted EBITDA was $41.3 million in Q4, with $22 million from Transtar and $19.3 million from Wheeling [8][9] - Long Ridge generated $36.2 million of EBITDA in Q4, slightly up from $35.7 million in Q3, despite outages impacting production [17][18] - Jefferson terminal reported $13.6 million of adjusted EBITDA in Q4, up from $11 million in Q3, driven by a new ammonia export contract [20] Market Data and Key Metrics Changes - Wheeling's Q4 revenue was $43.8 million, an 8% year-over-year increase, with adjusted EBITDA up 34% year-over-year [15] - Gas production at Long Ridge averaged approximately 105,000 MMBtu per day, exceeding the plant's requirements [18] - Jefferson terminal volumes averaged 210,000 barrels per day, setting a new quarterly revenue record [20] Company Strategy and Development Direction - The company is focused on integrating Transtar and Wheeling, with a target of $20 million in annual cost savings [12][16] - Plans to monetize Long Ridge are progressing, with expectations for a sale announcement in the first half of 2026 [12][60] - The company is pursuing four M&A opportunities in the rail sector, aiming to enhance its freight rail business [39][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong macro environment for power generation and the potential for growth at Long Ridge [19] - The company anticipates continued growth at Jefferson, with multiple new contracts expected to contribute significantly to revenues [20][21] - Management highlighted the importance of deleveraging and optimizing operations before pursuing further acquisitions [42][63] Other Important Information - A new term loan of approximately $1.3 billion was closed, used to repay a bridge loan related to the Wheeling acquisition [11] - The company is advancing construction on phase two of the Repauno project, with expectations for operational commencement in early 2027 [22][36] Q&A Session Summary Question: Expansion opportunities at Jefferson Terminal - Management noted significant commercial interest and potential for additional ammonia volumes, refined products, and Utah crudes, estimating $50 million in incremental EBITDA from these opportunities [28][30] Question: Updates on Repauno phase two and three - Management clarified that phase two is on track for early 2027, with ongoing demand driving the need for phase three planning and construction [36][38] Question: M&A market for rail - Management discussed the active M&A market, focusing on smaller, geographically relevant opportunities that could enhance the existing rail portfolio [48][49] Question: Long Ridge asset sale impact - Management confirmed that the sale process is progressing well, with expectations for significant net proceeds and minimal tax implications [59][62]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q4 2025 reached a record $80.2 million, up from $70.9 million in Q3 2025 and $29.2 million in Q4 2024 [5][6] - For the full fiscal year 2025, adjusted EBITDA was $232.3 million, significantly higher than $127.6 million in fiscal 2024 [6] - The company exited 2025 with an EBITDA run rate of over $320 million annually, indicating strong future performance [7] Business Line Data and Key Metrics Changes - Rail segment adjusted EBITDA was $41.3 million in Q4, with $22 million from Transtar and $19.3 million from Wheeling [7][8] - Long Ridge generated $36.2 million in EBITDA for Q4, a slight increase from $35.7 million in Q3 [19] - Jefferson terminal reported $13.6 million in adjusted EBITDA for Q4, up from $11 million in Q3 [21] Market Data and Key Metrics Changes - Wheeling's Q4 revenue was $43.8 million, an 8% year-over-year increase, with adjusted EBITDA up 34% year-over-year [15] - Gas production at Long Ridge averaged approximately 105,000 MMBtu per day, setting a new record [9] - Jefferson terminal volumes averaged 210,000 barrels per day, driven by the new ammonia export contract [21] Company Strategy and Development Direction - The company is focused on integrating Transtar and Wheeling, with a target of $20 million in annual cost savings [12] - Plans to monetize Long Ridge are progressing, with expectations for a sale announcement in the first half of 2026 [12][56] - The company is pursuing four M&A opportunities in the rail sector, aiming to enhance its freight rail business [40][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong macro environment for power generation, anticipating continued growth for Long Ridge [20] - The company is optimistic about the demand for services at Jefferson, expecting significant revenue contributions from new contracts [22] - Management highlighted the importance of deleveraging and optimizing operations while exploring strategic acquisitions [40] Other Important Information - A new term loan of approximately $1.3 billion was closed, used to repay a bridge loan related to the Wheeling acquisition [11] - The company is advancing construction on phase two of the Repauno project, with expectations for operational commencement in early 2027 [35][36] Q&A Session Summary Question: Expansion of business development opportunities at Jefferson - Management noted increased commercial interest at Jefferson, with potential for $10 million-$15 million in incremental EBITDA from ammonia contracts and additional refined products [28][30] Question: Updates on Repauno phase two and three - Management clarified that phase two is on track for early 2027, with significant demand driving the need for phase three [35][36] Question: M&A opportunities in the rail segment - Management confirmed active pursuit of four actionable M&A opportunities, focusing on smaller properties that fit well with existing operations [46][48] Question: Impact of Long Ridge asset sales on data center discussions - Management indicated no impact on data center developments, with a goal to announce a transaction for Long Ridge in the first half of 2026 [56]

The major U.S. index futures are currently pointing to a higher open on Wednesday, with stocks poised to add to the strong gains posted in the previous session.The may continue to benefit from strength in the tech sector amid optimism ahead of the release of earnings news from AI chipmaker and market leader Nvidia (NVDA).Nvidia, which is due to release its fourth quarter financial results after the close of today's trading, is climbing by 0.8 percent in pre-market trading.Software giants Salesforce (CRM) a ...

Market Overview - Asian stocks experienced a rally, with Japanese and South Korean shares reaching record highs, driven by strong stock performance [1] - The dollar weakened in Asian trade, contributing to a surge in gold prices towards $5,200 per ounce, while oil prices approached seven-month highs amid geopolitical tensions [2] Japan's Market Dynamics - The Nikkei average increased by 2.20 percent to 58,583.12, supported by strong performances in chip and AI sectors, as the government nominated dovish candidates to the Bank of Japan's board, reducing rate hike expectations [3] - Nippon Steel shares fell by 5.5 percent after raising ¥600 billion ($3.9 billion) through an upsized convertible bond sale [4] South Korea's Market Performance - Seoul's Kospi index surged 1.91 percent to 6,083.86, marking a new record, as concerns over AI's disruptive effects eased ahead of Nvidia Corp's earnings report [4] - Hyundai Motor's shares rose by 9.2 percent following news of a potential IPO for its U.S. affiliate Boston Dynamics, while Kia Corp's shares skyrocketed by 12.7 percent [5] Australian Market Highlights - Australian shares reached a record high, with the S&P/ASX 200 closing 1.17 percent higher at 9,128.30, driven by strong inflation data and speculation of further rate hikes [6] - Woolworths shares surged by 13 percent to a 17-month high after reporting a strong half-year profit and raising full-year guidance [6] Technology Sector Developments - WiseTech Global's shares jumped over 11 percent following the announcement of a significant AI overhaul and plans to lay off about 2,000 employees over the next two years [7] - The tech-heavy Nasdaq Composite rose by 1 percent, bolstered by AMD's major supply deal with Meta [8]

Key TakeawaysAustralia's January CPI rose 3.8% year-over-year, exceeding economist estimates of 3.7% and signaling that inflationary pressures remain stickier than anticipated.The Nikkei 225 index surged to a new all-time high as Japanese government bond yields eased following dovish signals from Prime Minister Takaichi regarding Bank of Japan (BoJ) appointments.Autonomous driving startup Wayve raised $1.2 billion in a Series D round backed by Nvidia (NVDA) and major automakers, with plans to launch robotax ...

Group 1: Netflix and Warner Bros. Discovery - Netflix has the capacity to increase its current offer of $27.75 per share for Warner Bros. Discovery's studio and streaming segments amid a bidding war with Paramount Skydance, which has proposed a $108.4 billion deal for the entire company [2][9] - Warner Bros. Discovery is set to hold a shareholder vote on Netflix's proposal on March 20, while giving Paramount seven days to submit a "best and final" offer [3] Group 2: U.S. Treasury and TIPS Auction - The recent auction of 30-year Treasury Inflation-Protected Securities (TIPS) yielded a high rate of 2.473%, down from 2.650% in the previous sale, indicating strong demand with a bid-to-cover ratio of 2.750 [4][5][9] Group 3: Federal Reserve Outlook - Federal Reserve Governor Stephen Miran has revised his interest rate projections for 2026, now suggesting a potential cut of 100 basis points instead of the previously anticipated 150 basis points, influenced by strong labor market data and rising goods inflation [6][7][9] Group 4: Corporate Finance Developments - Nippon Steel plans to raise $1.9 billion by selling off shareholdings to finance its $14.9 billion acquisition of U.S. Steel, which has recently cleared regulatory hurdles [8][9] Group 5: Biotech Developments - PureTech Health has received dual Orphan Drug Designation for its idiopathic pulmonary fibrosis candidate, LYT-100, from both the U.S. FDA and the European Commission, providing market exclusivity and development incentives [11][9] Group 6: Sovereign Debt Markets - Sri Lanka has initiated a tender offer for its $1 billion 5.875% bonds, offering to pay full principal plus 50.2% of accrued unpaid interest to bondholders, with results expected on March 16 [10]

A top official at Japan’s biggest steelmaker said a supply glut driven by surging Chinese exports may finally be nearing an end, a shift that could pave the way for a recovery in Asian markets. https://t.co/0mqeTF9p3x ...

Financial Data and Key Metrics Changes - Ternium's EBITDA margin reached 10% in 2025, supported by a cost reduction program that generated $250 million in savings compared to 2024 [4] - Net income for the fourth quarter totaled $171 million, impacted by one-time charges related to an impairment in one of its mining operations [13][14] - Cash generated by operations reached $2.3 billion in 2025, allowing the company to finance capital expenditures [18] Business Line Data and Key Metrics Changes - The steel segment experienced a decline in shipments due to weaker volumes in the US and Brazil, but higher volumes in Mexico partially offset this decline [15] - Mining cash operating income increased sequentially, driven by stronger shipments and higher realized iron ore prices [16] Market Data and Key Metrics Changes - Apparent consumption of steel in Mexico decreased by 10% in 2025, with flat products consumption down 14% compared to 2024 [23] - The Mexican government raised import tariffs on steel from 25% to 35%, aiming to protect local producers [5][9] Company Strategy and Development Direction - Ternium is focusing on enhancing operational efficiency and reducing costs while expanding its footprint in Mexico with new facilities [8][11] - The company is optimistic about profitability improvements in 2026, driven by cost reductions and favorable trade policies [10] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of ongoing trade negotiations in North America and expressed confidence in reaching a mutually beneficial agreement [10][11] - The company is cautious about the timing of the USMCA renewal, projecting it may not significantly impact 2026 but could be more relevant in 2027 [24][25] Other Important Information - Ternium secured a $1.25 billion loan through a green financing facility to support its new projects, which received several awards for sustainability [8][9] - The company proposed an annual dividend of $2.7 per ADS for fiscal year 2025, maintaining the same level as 2024, reflecting confidence in future prospects [18] Q&A Session Summary Question: Outlook for the Mexican market and demand recovery - Management noted that demand in Mexico was significantly low in 2025, with expectations for a 4% market growth in 2026, driven by local steel mills gaining market share [23][24] Question: Impact of anti-dumping measures in Brazil - Management indicated that the impact of anti-dumping measures would be gradual, with expectations for a moderate increase in domestic prices [22][26] Question: Ternium's plan if USMCA is not renewed - Management stated that they operated in 2025 without a renewed USMCA and would continue to adapt to the environment, focusing on market share gains [30][34] Question: Volume expectations for 2026 - Management expects volume increases in Mexico, with a recovery in Argentina anticipated in the second half of the year, while Brazil is expected to maintain healthy volume levels [35][36] Question: Margin potential without USMCA changes - Management expressed that they expect to enhance margins in 2026, aiming for a return to the 15%-20% range, but acknowledged that this would depend on market conditions [40][44] Question: Capital allocation priorities - Management confirmed that both increasing dividends and exploring growth opportunities in key markets are priorities, with no immediate plans for share buybacks [87]

Financial Data and Key Metrics Changes - Ternium reported a net income of $171 million for the fourth quarter of 2025, with adjusted EBITDA slightly declining sequentially, in line with expectations [13][14] - The EBITDA margin reached 10% for the year, supported by a cost reduction program that generated $250 million in savings [4][18] - Cash generated by operations in 2025 was strong at $2.3 billion, allowing the company to finance capital expenditures [18] Business Line Data and Key Metrics Changes - The steel segment experienced a decline in shipments due to weaker volumes in the U.S. and Brazil, although higher volumes were noted in Mexico [15][16] - Mining cash operating income increased sequentially, driven by stronger shipments and higher realized iron ore prices [16] Market Data and Key Metrics Changes - Apparent consumption of steel in Mexico decreased by 10% in 2025, with flat products consumption down 14% compared to 2024 [23] - The U.S. implemented significant trade measures against unfair practices from China, impacting the global steel market [5][9] Company Strategy and Development Direction - Ternium is focusing on enhancing operational efficiency and reducing costs while expanding its footprint in Mexico with new facilities [8][11] - The company is optimistic about profitability improvements in 2026, driven by cost reductions and favorable trade policies [10][11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by a fatal accident at Ternium Mexico and emphasized the importance of safety [4] - The outlook for the Mexican market is cautiously optimistic, with expectations of a 4% growth in 2026 despite current low demand levels [23][24] Other Important Information - Ternium secured a $1.25 billion loan through a green financing facility to support its new projects, which received several awards [8][9] - The company proposed an annual dividend of $2.7 per ADS for fiscal year 2025, maintaining the same level as 2024 [18] Q&A Session Summary Question: Outlook for the Mexican market and recovery path - Management noted that demand in Mexico was significantly low in 2025, with expectations of a 4% market growth in 2026, aiming to gain market share against imports [23][24] Question: Impact of anti-dumping measures in Brazil - Management indicated that the impact of anti-dumping measures would be gradual, with expectations of a moderate increase in domestic prices [22][25] Question: Ternium's plan if USMCA is not renewed - Management stated that they operated in 2025 under the assumption of no renewal and would continue to adapt to the environment [30][34] Question: Volume expectations for 2026 - Management expects volumes to increase in Mexico, while the southern region may see recovery in the second half of the year [35][36] Question: Margin potential without USMCA changes - Management expressed that margins could improve, but the full impact of USMCA negotiations would likely be seen in 2027 [40][79] Question: Capital allocation priorities - Management confirmed that both increasing dividends and exploring growth opportunities in key markets are priorities [86]