FTAI Infrastructure Inc. Q1 FY2025 earnings call

Management Statement and Operational Highlights

• Board authorized quarterly dividend of $0.03 per share to be paid on May 27.
• Welcomed Buck Fletcher as new CFO.
• Adjusted EBITDA for Q1 2025 was $35.2 million, up 21% from Q4 and 29% from Q1 2024.
• Long Ridge completed transactions, recorded $120 million non-cash gain (excluded from adjusted EBITDA). March EBITDA at Long Ridge was over $10 million, approaching $130 million annualized.
• Jefferson had 4 tanks off lease in Q1 but transitioning to new profitable contract.
• Repauno Phase 2 financing underway with $300 million tax-exempt debt, 3 contracts/LOI signed with ~71,000 bpd minimum volume.

Segment Performance

• Transtar: Posted revenue of $42.6 million and adjusted EBITDA of $19.9 million in Q1 2025, compared to revenue of $43.3 million and adjusted EBITDA of $19.4 million in Q4 2024. Carloads, average rates, and revenues were largely unchanged vs Q4. There are over a dozen third party opportunities across Transtar's railroads with annual revenue ~$20 million and annual EBITDA at least $10 million.
• Long Ridge: Reported EBITDA of $18.1 million in Q1 2025 (excluding $120 million non-cash gain). Q4 2024 EBITDA was $9.9 million. Power plant capacity factor was 99% in Q1 vs 87% in Q4. By mid-year, expected to reach annual run rate EBITDA of ~$160 million, including $30 million from higher capacity revenue starting June 1.
• Jefferson: Generated revenue of $19.4 million and adjusted EBITDA of $8 million in Q1 2025, vs revenue of $21.2 million and EBITDA of $11.1 million in Q4 2024. 4 tanks were off lease in Q1 but transitioned to new contract effective April 1. Has $25 million of long-term annual EBITDA commencing this year under 3 contracts.
• Repauno: Commercial progress on Phase 2 with 3 contracts and a letter of intent, totaling ~71,000 barrels per day minimum volume and ~$80 million annual EBITDA. $300 million tax-exempt debt issuance for Phase 2 construction underway, expected to price and close in May.

Guidance

• Expect 2025 to be transformational; total company annual EBITDA over $330 million from executed agreements, potential over $400 million with new business.
• Long Ridge expected to reach annual run rate EBITDA of ~$160 million by mid-year, including $30 million from higher capacity revenue starting June 1.
• Jefferson has $25 million of long-term annual EBITDA commencing this year under 3 contracts.
• Repauno Phase 2 financing expected to price and close in May.

Risks

• Uncertain environment surrounding tariffs and impacts on global trade.
• Timing uncertainty for regulatory approvals, e.g., cavern approvals at Repauno.
• Volatility in energy market flows and demand affecting business performance.

Q: Giuliano Bologna asked about the time frame for cavern approvals at Repauno after the May 14 public hearing.

A: Ken Nicholson said typically 30 days wait after hearing date, maybe max 45 days, and expects to have permit in hand soon, potentially allowing Phase 3 to start later this year.

Q: Brian McKenna asked about puts and takes from tariffs on the business.

A: Ken Nicholson said it depends; some businesses like Repauno are positioned to benefit from increased energy exports to Europe, while others have varying exposures depending on trade direction.

Q: Greg Lewis asked about the $10 million adjusted EBITDA at Transtar and CapEx.

A: Ken Nicholson said no additional capital required, just squeezing more from existing footprint with tens of thousands of dollars for minor projects across over a dozen opportunities at Transtar.