FTA Infrastructure's 2025Q2 Earnings Call: Unpacking Key Contradictions on EBITDA, Growth, and M&A Strategy

Long Ridge $70 million EBITDA opportunity, Phase 2 Repauno commissioning date, Synergies and divestment strategy, growth expectations and strategic focus, M&A activity and potential transactions are the key contradictions discussed in FTAI Infrastructure Inc.'s latest 2025Q2 earnings call.



Acquisition and Financial Strategy:
- FTAI Infrastructure acquired the Wheeling & Lake Erie Railway for $1.05 billion, aiming to transform the freight rail segment.
- The acquisition is expected to generate over $150 million in revenue and targets an annual EBITDA of at least $200 million by the end of 2026.
- The transaction is part of a broader refinancing strategy that includes issuing preferred stock and new debt, targeting increased free cash flow and flexibility for future growth.

Rail Segment Integration and EBITDA Growth:
- The combination of Transtar and the Wheeling is expected to create immediate efficiencies, resulting in $20 million in annual cost savings.
- This integration will also create high confidence revenue opportunities, with an estimated $20 million in annual EBITDA from the Repauno terminal and $15 million from increased freight volumes at Transtar.
- The acquisition is expected to increase the combined EBITDA of the rail companies, providing material value creation for shareholders.

Power Generation and Capacity Expansion:
- Long Ridge's power plant capacity factor was 83%, impacted by a 14-day maintenance outage in May.
- Higher capacity revenues kicked in on June 1, representing $30 million in additional annual EBITDA, with expected significant results in the following quarter.
- The company is advancing behind-the-meter projects, including negotiations with data center developers, with anticipated transactions expected prior to the end of 2025.

Segment Performance and Key Initiatives:
- Transtar's adjusted EBITDA was $20.7 million, up 4% from the previous quarter, supported by steady volumes and average rates.
- Jefferson's EBITDA increased to $11.1 million, benefiting from the return of storage tanks to service, with significant long-term EBITDA contracts commencing in the second half.
- Repauno's Phase 2 transloading project is on track, with tax-exempt financing secured and construction underway, expected to commence operations in Q4 2025.