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    FIP
    Earnings call· Jun 2026(Q2 FY26)

    FTAI Infrastructure Q2 FY26 earnings call FIP

    Aug 6, 2026 Source

    Executive summary

    FTAI Infrastructure Q2 FY26 — Record Rail & Terminal Growth, Longridge Sale on Track

    FTAI Infrastructure delivered record Q2 results, driven by strong performance in its rail and terminal segments, excluding Longridge. The company is on track to close the Longridge sale by Q3, significantly deleveraging its balance sheet and improving financial flexibility for future rail M&A. Strategic investments in terminals, particularly Rapano's Phase 2, are progressing towards monetization next year, while Jefferson navigates temporary Middle East-related shipping disruptions with rail-inbound offsets.

    Highlights

    5

    • Rail business posted new quarterly records in revenue ($92.2 million) and adjusted EBITDA ($42.4 million).

    • Adjusted EBITDA (excluding Longridge) reached a new quarterly record of $48.7 million, equating to just under $200 million on an annualized basis.

    • The sale of Longridge is expected to close by the end of Q3, eliminating approximately $1.4 billion of total debt and reducing parent-level debt service by $25 million annually.

    • Jefferson terminal achieved new quarterly records for refined products and ammonia volumes and revenues.

    • The acquisition of Tidewater Logistics for $45 million is expected to contribute $9 million of annual EBITDA.

    Concerns

    2

    • Food volumes at Jefferson were impacted by Middle East volatility and a temporary reduction in inbound ship volumes during Q2.

    • Transtar volumes were slightly softer in Q2 due to U.S. Steel undertaking a substantial overhaul and upgrade of its largest blast furnace at Gary Works.

    Guidance & targets

    8
    CategoryTargetConfidence
    Longridge Sale Completion
    close by the end of Q3
    high materiality
    High
    Rail and Terminal Segments Revenue and Adjusted EBITDA
    continue to grow
    high materiality
    High
    Rapano Phase 2 Completion
    completion by the end of this year
    high materiality
    High
    Rapano Phase 2 Revenue Service Commencement
    early 2027
    high materiality
    High
    Jefferson Contract Expansions
    execute on all three opportunities during this year and commence revenue planning shortly thereafter
    medium materiality
    Medium
    Wheeling Integration IT Consolidation
    wrapping up here in Q3
    low materiality
    High
    Rail M&A Activity
    remainder of the year to be an active one
    medium materiality
    Medium
    Longridge Q3 Capacity Factor
    nearly 100%
    low materiality
    High

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    Railroad
    Posted new quarterly records for both revenue and adjusted EBITDA. Integration of the Wheeling and Lake Erie railway is going smoothly with anticipated synergies accumulating as expected. Critical IT consolidation wrapping up in Q3.
    Pro forma Q2 25 revenue: $81.2 millionPro forma Q2 25 adjusted EBITDA: $37.6 millionOverall volumes: steadyCar loads: higher at Wheeling offsetting slightly lower at Transtar
    		$92.2 million——$42.4 million
    Jefferson
    Export business with customers for refined products and ammonia continues to grow. Food volumes were impacted by volatility in the Middle East and a temporary reduction in inbound ship volumes during Q2. Expect ship volumes to return in Q3 and be supplemented by inbound rail.
    Q2 25 revenue: $21.6 millionQ2 25 adjusted EBITDA: $11.1 millionRefined products and ammonia volumes: new quarterly recordsRefined products and ammonia revenues: new quarterly records
    		$24.3 million——$13 million
    Rapano
    Focus continues on Phase 2, with construction proceeding as planned toward completion by year-end 2026 and revenue commencing early 2027. Long-term contracts are in place for a portion of capacity, and high demand is seen for the remaining space.
    Phase 2 construction: progressing wellCombined assets (Phase 1 & 2) capacity: close to 100,000 barrels per day
    		————
    Longridge (Asset Held for Sale)
    Q2 adjusted EBITDA was impacted by a planned outage that continued for 11 days into Q2. Fundamentals remain strong with power prices and capacity revenue at historically high levels. Expect to maintain production well in excess of plant requirements and generate continued revenues from excess gas sales. Q3 is off to a great start with nearly 100% capacity factor.
    Q2 25 adjusted EBITDA: $23 millionPower plant capacity factor: 85%Gas production: little more than 73,000 MMBTU per dayGas required at plant: 70,000 MMBTU per day
    		———$27.4 million

    Operational metrics

    12
    Adjusted EBITDA (excluding Longridge)
    $48.7 millionnew quarterly record
    Q2 FY26

    Represents a new quarterly record and equates to just under $200 million on an annualized basis.

    Total debt elimination from Longridge sale
    $1.4 billion
    Q3 FY26 (expected close)

    Expected to eliminate approximately $1.4 billion of total debt from the balance sheet.

    Parent-level debt service reduction
    $25 million
    Annually

    Debt service at the parent level will decline by about $25 million annually, meaningfully improving leverage metrics.

    Incremental annual EBITDA potential from new revenue sources
    $50 million
    Annually (future)

    In total, we continue to estimate in excess of $50 million of incremental annual EBITDA potential from the various new revenue sources manifesting in the future.

    Tidewater Logistics acquisition cash consideration
    $45 million
    Q2 FY26

    At the end of Q2, we acquired Tidewater for $45 million of cash consideration, funded with an add-on to our existing parent-level term loan.

    Tidewater Logistics annual EBITDA contribution
    $9 million
    Annually (expected)

    We expect Tidewater to contribute approximately $9 million of annual EBITDA, applying an attractive purchase multiple.

    Carloads handled annually by Tidewater Logistics
    20,000
    Annually

    Handling and transloading over 20,000 carloads annually of a variety of commodities.

    Annual incremental EBITDA potential from contract expansions
    $50 million
    Annually (future)

    In total, three opportunities represent an excess of $50 million of annual incremental EBITDA and utilize existing assets requiring little to no incremental investment or capex.

    Annual EBITDA potential from combined Rapano Phase 1 and Phase 2 assets
    $80 million
    Annually (future)

    In the aggregate, we can handle close to 100,000 barrels per day for the combined assets of phase one and phase two, representing approximately $80 million of annual EBITDA.

    Combined capacity of Rapano Phase 1 and Phase 2 assets
    100,000
    N/A

    In the aggregate, we can handle close to 100,000 barrels per day for the combined assets of phase one and phase two.

    Cost efficiencies from Wheeling integration
    $20 million
    Annually

    We identified $20 million of cost efficiencies. We are right on that target.

    Longridge gas production
    73,000versus 70,000 MMBTU per day required at the plant
    Q2 FY26

    We average a little more than 73,000 MMBTU per day of gas production versus 70,000 MMBTU per day required at the plant.

    Industry KPIs

    2
    MetricValueDetails
    Volumesteady overall
    Pricing vs rail inflationhigher average pricing

    Deals & partnerships

    2
    nullSale of Longridge asset.

    We announced the sale of Longridge at the end of April, and while timing is not necessarily an exact science, we currently expect to be in a position to close the transaction by the end of Q3.

    Tidewater LogisticsAcquisition of rail-served terminals.$45 million

    At the end of Q2, we acquired Tidewater for $45 million of cash consideration, funded with an add-on to our existing parent-level term loan. Tidewater operates a total of four rail-served terminals.

    Capital programs

    1
    Rapano Phase 2 Constructionunderway
    Funding: long-term, low-cost tax debt

    Benefit: close to 100,000 barrels per day (combined Phase 1 & 2)

    Construction proceeds as planned toward our goal of completion by the end of this year with revenue commencing shortly thereafter. The majority of expenditures have been financed with long-term, low-cost tax debt.

    Risks & headwinds

    2
    Middle East Volatility Impact on Jefferson TerminalQ2 FY26 (impacted), Q3 FY26 (expected recovery)

    temporary reduction in inbound ship volumes during Q2

    Mitigation: Expect ship volumes to return in Q3 and be further supplemented by inbound rail volumes. Completed Southern Star pipeline project to enable efficient handling of light and heavy crudes.

    U.S. Steel Blast Furnace Overhaul Impact on Transtar VolumesQ2 FY26 (impacted)

    slightly lower volumes at Tramp Star in Q2

    Mitigation: Higher car loads at Wheeling offset Transtar's lower volumes, contributing to aggregate record results for the rail segment. The overhaul will ultimately be a meaningful plus for us.

    What to watch in Q3 FY26

    5

    Longridge Sale Completion

    Q3 FY26
    CurrentAnnounced, expected end of Q3
    TargetClosed

    Why it matters

    Significant deleveraging event, reducing parent-level debt by $1.4 billion and annual interest expense by $25 million.

    First, we announced the sale of Longridge at the end of April, and while timing is not necessarily an exact science, we currently expect to be an position to close the transaction by the end of Q3.

    Q&A highlights

    6

    How has the Wheeling acquisition performed a year later, and how has the integration evolved?

    Management is thrilled with the Wheeling acquisition, calling it a game-changer that has exceeded original expectations. The integration has been smooth with few issues. While Transtar volumes were softer due to a U.S. Steel overhaul, Wheeling's performance offset this, leading to aggregate record results for the rail segment. The management team has done a superb job integrating the two companies.

    “I would say we are thrilled. The the acquisition has been a game changer for our rail platform. Of course, the wheeling itself is exceeding our original expectations.”

    asked by Juliana Bologna · answered by Kenneth Nicholson

    3 min read7 chapters

    Detailed Narrative

    01

    Strategic Goals & Q2 Progress

    FTAI Infrastructure outlined three primary goals for the year: selling Longridge and deleveraging the balance sheet, continuing to grow its railroad portfolio, and positioning terminals for monetization in the next year. The company reported good progress on all fronts in Q2. The Longridge sale was announced in April and is expected to close by the end of Q3, leading to substantial deleveraging. The rail business achieved record revenues and adjusted EBITDA, and the terminals made progress on projects to enhance value for future monetization.

    02

    Rail Segment Performance & Growth Outlook

    The rail segment posted new quarterly records with $92.2 million in revenue and $42.4 million in adjusted EBITDA for Q2 FY26. This compares to pro forma Q2 FY25 figures of $81.2 million and $37.6 million, respectively. Overall volumes were steady, with higher carloads at Wheeling offsetting slightly lower volumes at Transtar due to a U.S. Steel blast furnace overhaul. The integration of Wheeling is proceeding smoothly, with IT consolidation expected to wrap up in Q3, and the company anticipates over $50 million of incremental annual EBITDA potential from new revenue sources in the future.

    03

    Tidewater Logistics Acquisition

    At the end of Q2, FTAI acquired Tidewater Logistics for $45 million in cash, funded by an add-on to its parent-level term loan. Tidewater operates four rail-served terminals, with the largest directly served by Wheeling, making it a highly accretive acquisition. It handles over 20,000 carloads annually of various commodities and is expected to contribute approximately $9 million of annual EBITDA. The acquisition is also strategic for leveraging Tidewater's management expertise to expand the rail terminals business.

    04

    Rail M&A Strategy

    The company is actively pursuing rail M&A opportunities, categorizing them into three primary buckets: portfolios of short-line and regional railroads for needle-moving investments, sales by corporate and industrial parties divesting non-core rail assets (like the prior Transtar acquisition), and regional tuck-ins of smaller railroads or terminals, similar to Tidewater. Management expressed optimism about continuing to grow its existing platform through these avenues, noting a pickup in activity for industrial carve-outs.

    05

    Jefferson Terminal Developments

    Jefferson reported $24.3 million in revenue and $13 million in adjusted EBITDA for Q2 FY26, up from $21.6 million and $11.1 million in Q2 FY25. Refined products and ammonia achieved new quarterly records. While food volumes were temporarily impacted by Middle East volatility and reduced inbound ship volumes, the company expects ship volumes to return in Q3, supplemented by increasing inbound rail volumes. Three new contract opportunities are being pursued, representing over $50 million of annual incremental EBITDA with minimal capex.

    06

    Rapano Phase 2 Progress & Potential

    Construction for Rapano's Phase 2 is progressing as planned, targeting completion by year-end 2026, with revenue commencing in early 2027. Long-term contracts are already in place for a portion of capacity, and high demand is observed for the remaining space, driven by attractive propane export spreads. The combined assets of Phase 1 and Phase 2 are projected to handle close to 100,000 barrels per day, representing approximately $80 million of annual EBITDA. Phase 2 expenditures have been financed with long-term, low-cost tax debt.

    07

    Longridge Update (Asset Held for Sale)

    Longridge, accounted for as an asset held for sale, generated $27.4 million in adjusted EBITDA in Q2, up from $23 million in Q2 FY25. Its power plant capacity factor was 85%, impacted by an 11-day planned outage. Despite this, fundamentals remain strong with high power prices and capacity revenue. Gas production averaged over 73,000 MMBTU per day, exceeding the plant's requirement of 70,000 MMBTU per day, allowing for continued revenues from excess gas sales. Q3 started strong with nearly 100% capacity factor.

    AI-generated summary of the company’s earnings call. Not investment advice.