0001899883-25-000041
SEC filingFTAI Infrastructure's Q2 2025 net loss widened to $70M as higher interest and expenses from the Long Ridge acquisition offset revenue growth, though H1 net income reached $50M on a $120M consolidation gain.
For the three months ended June 30, 2025, FTAI Infrastructure reported total revenue of $122.3 million, up 44% from $84.9 million in the same period last year. The increase was primarily driven by the acquisition of Long Ridge Energy & Power LLC in February 2025, which added $41.8 million in Power and Gas segment revenue (power and gas sales). Excluding the new segment, revenue declined slightly, with Railroad revenue falling 8% to $42.1 million due to lower carloads and rates, and Repauno down 23% from a contract termination.
Net loss attributable to stockholders was $79.8 million, compared to a loss of $54.4 million a year ago. The larger loss reflected a $29.5 million increase in interest expense (to $59.2 million) from new debt issued for the Long Ridge acquisition, $8.7 million in acquisition costs, and $4.4 million in asset impairment charges. However, the H1 picture was boosted by a $120 million gain on the step acquisition of Long Ridge, resulting in net income of $29.9 million for the first six months versus a loss of $110.9 million in H1 2024.
Earnings per share (basic and diluted) were -$0.73 in Q2, versus -$0.52 last year. For H1, EPS was $0.21, recovering from -$1.06.
Total assets more than doubled to $4.41 billion from $2.37 billion at year-end 2024, largely due to the consolidation of Long Ridge’s property, plant, and equipment ($1.52 billion) and restricted cash ($218 million). Debt, net of issuance costs, rose to $3.08 billion from $1.59 billion, including $600 million of 8.75% senior secured notes due 2032 and $400 million term loan at Long Ridge.
Current liabilities increased to $363 million, and the company disclosed $302.5 million in debt maturing within 12 months. Management acknowledged that current liquidity and forecasted cash flows are insufficient to repay that amount but has a plan involving refinancing the Jefferson Taxable Series 2024B bonds, the Wheeling acquisition, and new long-term senior notes. The Series A Preferred Stock carries a redemption value of $435.5 million, and the Series B is convertible at $8.18 per share.
For the six months ended June 30, 2025, cash used in operations was $90.9 million, versus $21.5 million used in the prior year. The increase largely reflects higher interest payments, acquisition costs, and working capital changes. Investing activities provided $78.4 million, driven by $226.6 million in cash acquired from the Long Ridge acquisition net of purchase consideration, partially offset by $148.3 million in capital expenditures. Financing activities contributed $313.5 million from $494.1 million in debt proceeds, net of $126.1 million in repayments and $21.5 million in financing costs.
Free cash flow was deeply negative, with capex of $148.3 million far exceeding operating cash flow. The company's reliance on debt markets is high, and the pending Wheeling acquisition will require further significant capital.
Management highlighted that the Long Ridge acquisition transformed the company, adding a 485 MW power plant and natural gas assets. The Power and Gas segment contributed $161 million of Adjusted EBITDA in H1 2025, up from $19 million pro forma in the prior year. The Railroad segment saw Adjusted EBITDA decline 14% to $40.6 million, impacted by lower volumes and an asset impairment charge. The Jefferson Terminal segment managed to hold Adjusted EBITDA flat at $19 million despite higher interest costs.
The company’s key near-term priority is closing the $1.05 billion acquisition of The Wheeling Corporation, subject to Surface Transportation Board approval. Financing is committed via a $1.25 billion bridge loan and $1.0 billion of preferred equity from Ares Management. This acquisition is expected to materially expand the Railroad segment and could improve leverage dynamics.
Risks highlighted include customer concentration (one customer in Railroad accounted for 32% of total revenue), reliance on the success of the Wheeling integration, and the need to refinance near-term maturities. Management remains focused on organic growth at Jefferson Terminal (capacity expansion) and Repauno’s development as a deep-water port.
Equity method investments were $17.7 million, primarily Clean Planet Energy. Goodwill increased to $401 million, with $126 million from Long Ridge. The company recognized a $120 million gain on the step acquisition and a $42.5 million deferred tax benefit from a partial valuation allowance release. Stock-based compensation totaled $2.2 million in H1, and the company issued 2.9 million manager options. Total diluted shares were 115.3 million in H1.
Subsequent events: On August 6, 2025, the company signed a stock purchase agreement for Wheeling; the board declared a $0.03 per share dividend for Q2 2025, payable September 8, 2025.