What FTAI Infrastructure (FIP) Said on Its Q3 Earnings Call

Key Points

• FTAI reported record third-quarter results: Adjusted EBITDA rose to $95.3 million, while rail revenue and EBITDA reached quarterly highs at $104.2 million and $47.4 million, respectively.
• The company expects to close the Long Ridge sale by the end of November, using just over $1.5 billion in proceeds largely to repay debt. The transaction is expected to remove about $1.4 billion of debt and lower annual parent-level debt service by roughly $25 million.
• FTAI expects new Jefferson Terminal crude-export business to add about $8 million in annual EBITDA and is acquiring logistics assets expected to generate about $50 million annually. It plans to prepare Jefferson for a potential sale in 2027, while Repauno could also be sold as its cash flow becomes visible.

FTAI Infrastructure NASDAQ: FIP reported record third-quarter revenue and adjusted EBITDA, driven by growth in its freight railroad business, while management outlined plans to reduce debt and eventually sell its terminal assets.

Adjusted EBITDA rose to $95.3 million from $70.9 million a year earlier. Excluding Long Ridge Power & Gas, which the company has agreed to sell, adjusted EBITDA was a quarterly record $54.4 million, CEO Ken Nicholson said on the earnings call.

Nicholson said the company had received regulatory approvals for the Long Ridge sale and expected to close it by the end of November. He said gross proceeds of just over $1.5 billion would be used almost entirely to repay debt, allowing the company to focus on expanding its rail business.

Rail business posts record results

Rail revenue increased to $104.2 million from $61.7 million in the third quarter of 2025, while adjusted EBITDA rose to $47.4 million from $29.1 million. Nicholson cautioned that the year-over-year figures were not fully comparable because FTAI closed its acquisition of the Wheeling & Lake Erie Railway in August 2025. He said all key metrics would have increased even if the company had owned Wheeling for the full prior-year quarter.

Carloads, average rates per car, revenue and adjusted EBITDA all reached quarterly highs, Nicholson said. He cited strong volumes across most categories, higher pricing and fuel surcharges. Volumes at Gary Railway were slightly lower as U.S. Steel overhauled its largest blast furnace at Gary Works; the work was completed in September.

Nicholson said he expected continued double-digit rail revenue growth and somewhat higher EBITDA growth year over year, supported by volumes and pricing. He also said the company was evaluating several potential rail acquisitions, with an emphasis on larger, strategic assets.

Longer term, Nicholson pointed to Nippon Steel’s planned investment in the Mon Valley complex as a potential source of additional rail traffic. He estimated that higher production could generate tens of thousands of incremental carloads and roughly $20 million in additional EBITDA, with benefits beginning in approximately two to three years.

John Carnes, CEO of the Wheeling & Lake Erie Freight Rail business, said the company was on track for about $19 million in annual cost savings from integration, excluding one-time costs. He said most of the savings would come from personnel reductions, with additional benefits from procurement and lower overhead. The full benefit is expected to take effect Jan. 1.

Debt reduction and terminal plans

The Long Ridge sale is expected to eliminate approximately $1.4 billion of debt from FTAI’s balance sheet, including a little over $1.1 billion at Long Ridge and a little under $300 million at other parent entities, Nicholson said. He estimated that annual parent-level debt service would decline by approximately $25 million.

At Jefferson Terminal, third-quarter revenue increased to $24.9 million from $21.1 million a year earlier, and adjusted EBITDA rose to $14.2 million from $11 million. Refined-products volumes and revenue reached quarterly records, although crude volumes remained under pressure from Middle East volatility and reduced inbound ship traffic.

Nicholson said crude volumes recovered in October to an average of 85,000 barrels per day, more than twice the third-quarter average of 41,000 barrels per day. He said the company had finalized commercial terms with two new crude-export customers, with business beginning Jan. 1 and expected to add approximately $8 million in annual adjusted EBITDA.

FTAI also expects to close its acquisition of logistics assets from USD Group in November, with Nicholson saying the company hoped to complete the transaction during the week of Nov. 16. The assets include a rail-connected crude terminal in the Beaumont/Port Arthur Energy Complex and a 50% joint venture interest in an Alberta diluent recovery unit. At contracted minimum volumes, the assets generate approximately $50 million in annual EBITDA, he said.

The combined Jefferson and USD business is expected to generate more than $100 million in annual EBITDA before potential gains from increased capacity utilization at Jefferson’s main terminal, according to Nicholson. He said FTAI plans to prepare Jefferson for a potential sale in 2027.

At Repauno, construction of the second phase is progressing toward completion in the coming months, Nicholson said. The company has long-term contracts for part of the capacity and expects revenue service to begin in 2027 near or at full capacity. FTAI also sees a potential sale of Repauno as cash flow becomes visible, he said.

About FTAI Infrastructure (NASDAQ:FIP)

FTAI Infrastructure Inc is an infrastructure company that owns and operates critical transportation and energy assets. Its portfolio is designed to support the movement, storage and processing of essential commodities and industrial products, with a focus on long-lived infrastructure that serves industrial and logistics customers.

The company's businesses include Transtar, an industrial rail network serving manufacturing facilities, ports and other freight customers; Jefferson Terminal, a multimodal port and logistics facility on the U.S.

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