FTAI Infrastructure (FIP) - 2025 Q1 - Earnings Call Transcript

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]