FTAI Infrastructure (NASDAQ:FIP) reported a fourth-quarter 2025 adjusted EBITDA record of $80.2 million, up from $70.9 million in the third quarter and $29.2 million in the year-ago period, as the company benefited from the first full-quarter contribution from the Wheeling & Lake Erie Railway and continued strength at its Long Ridge power and gas asset.
CEO Ken Nicholson said the quarter’s adjusted EBITDA excluded a $9 million gain tied to a write-up of a non-core investment in Clean Planet Energy, which management characterized as a one-time item not expected to repeat. For the full year 2025, adjusted EBITDA totaled $232.3 million, up from $127.6 million in fiscal 2024.
Management cites higher run-rate exiting 2025
Based on these events, Nicholson said the company exited 2025 at an “EBITDA run rate of just over $320 million annually,” which he noted was meaningfully higher than reported figures for the year.
Rail results boosted by Wheeling, integration work underway
In the rail segment, fourth-quarter revenue was $86.4 million and adjusted EBITDA was $41.3 million, compared with revenue of $61.7 million and adjusted EBITDA of $29.1 million in the third quarter. The quarter was FTAI Infrastructure’s first full quarter of ownership of the Wheeling, with management stating it took active control at the end of December following Surface Transportation Board approval.
Of the rail segment’s $41.3 million of adjusted EBITDA, $22.0 million was attributed to Transtar and $19.3 million to Wheeling. Nicholson said Transtar metrics were generally stable, though coke volumes were slightly lower due to an incident at U.S. Steel’s Clairton production unit that kept it down for the full fourth quarter; management said Clairton returned to full operations in January and coke volumes have recovered.
For Wheeling, Nicholson said fourth-quarter revenue of $43.8 million increased 8% year over year and adjusted EBITDA rose 34% year over year to $19.3 million, exceeding early expectations.
Management also provided an update on integration-related synergy targets, reiterating an annual cost savings goal of $20 million and stating that “a little bit more than half” has already been implemented year-to-date. Nicholson said the remaining savings should be implemented in the first half of 2026.
Beyond costs, Nicholson discussed longer-term revenue opportunities tied to the combined rail footprint, including incremental volumes from investments at U.S. Steel’s Edgar Thomson Plant facility and additional propane carloads tied to Repauno’s Phase 2 start-up. Nicholson said the company now estimates “over $50 million of incremental EBITDA potential” from future new revenue sources.
Long Ridge posts record quarter despite outages; sale process continues
Long Ridge generated $36.2 million of EBITDA in the fourth quarter, a record, compared with $35.7 million in the third quarter. Nicholson said results included a planned 8.5-day outage in October and an additional one-time 19-day outage in December for a steam turbine repair, estimating the incremental outage reduced quarterly EBITDA by approximately $3.5 million.
Management said the power plant capacity factor was 81% in the quarter. Nicholson noted power prices averaged $45 per megawatt hour, and said capacity revenue remained at historically high levels and was unaffected by the outages.
The company also highlighted record gas production of roughly 105,000 MMBtu per day versus approximately 70,000 MMBtu per day required at the plant, with Nicholson saying the company expects to maintain production above plant requirements and continue generating revenue from excess gas sales.
On growth, Nicholson said the company continues to advance a 20-megawatt upgrade, estimating it could add $5 million to $10 million of annual EBITDA at current power prices. He also cited ongoing negotiations to sell land holdings and described interest from parties seeking long-term power purchase agreements “well above the current market,” along with invitations to co-develop new plants in the region.
Regarding monetization, Nicholson said the Long Ridge sale process is progressing within expectations and he expects the company to provide additional information “in the coming months.” In response to a question, he said the goal would be to announce a transaction in the first half of the year and that net proceeds could be “hundreds of millions of dollars,” while adding the company does not expect significant tax leakage due to net operating losses. Nicholson said proceeds would primarily be used to deleverage.
Jefferson ramps on ammonia contract; Repauno Phase 2 construction continues
At Jefferson, fourth-quarter revenue rose to $23.5 million from $21.1 million in the third quarter, while adjusted EBITDA increased to $13.6 million from $11.0 million. Nicholson said volumes averaged 210,000 barrels per day and revenue reached a quarterly record, driven by the late-November startup of the new ammonia export contract, with about one month of contribution in the quarter.
During Q&A, Nicholson said the company is in advanced negotiations on three contract expansions with existing customers, which he grouped into additional ammonia volumes, additional refined products leaving by rail, and increased inbound volumes of Utah crudes. He outlined potential EBITDA contributions as follows:
- Additional ammonia volumes that could “roughly double” current quantities: $10 million to $15 million of incremental EBITDA
- Additional refined products leaving by rail: another $10 million to $15 million of incremental EBITDA
- Expanded Utah crude volumes: roughly another $25 million of EBITDA
On Repauno, Nicholson said Phase 2 construction is progressing to plan and reiterated expectations that, once operational, Phase 2 would enable handling of over 80,000 barrels per day of natural gas liquids, generating approximately $80 million of annual EBITDA. In response to a question about timing, Nicholson said the company has long discussed Phase 2 being ready around year-end and is now communicating a “very early 2027” start to customers to account for commissioning, emphasizing that major construction de-risking items are largely complete and he does not foresee meaningful delays.
For Phase 3 at Repauno, Nicholson said the company has permits in hand and is advancing planning, cost estimates, and commercial discussions, but does not intend to build on spec. He said the goal is to secure anchor customers over the next six months and potentially begin construction later in 2026. In a separate exchange, Nicholson said monetizing Repauno would likely require construction underway and anchor contracts for Phase 3, suggesting a window of “six to nine months” before considering such an option and agreeing that monetization by the first half of next year is “not unthinkable” in that context.
Refinancing and non-core investment update
On the balance sheet, Nicholson said the company closed a new term loan of approximately $1.3 billion and used the net proceeds to repay in full the bridge loan associated with the Wheeling acquisition. He described the term loan as the only parent-level debt, carrying a 9.75% coupon and featuring a prepayment premium that declines over its two-year term. Nicholson added that proceeds from a potential Long Ridge sale would be used to repay the loan at a lower premium than otherwise applicable.
Management also addressed Clean Planet Energy, a non-core investment. Nicholson said FTAI Infrastructure exchanged its 50% interest in a U.S. joint venture for a 49% stake in the global company, resulting in the quarter’s write-up gain. While he said that specific exchange transaction would not recur, Nicholson said he expects Clean Planet to become an EBITDA contributor “starting in 2027,” as it has one facility under construction and two under advanced development.
About FTAI Infrastructure (NASDAQ:FIP)
FTAI Infrastructure Ltd (NASDAQ: FIP) is a closed-end investment company that acquires and manages infrastructure assets offering stable, long-term cash flows. The company targets core and core-plus infrastructure sectors with contracted or regulated revenue streams, aiming to deliver attractive risk-adjusted returns for its shareholders. FTAI Infrastructure’s portfolio is diversified across multiple sub-sectors, geographies and counterparties to manage risk and capture growth opportunities in global infrastructure markets.
The company focuses on three primary investment categories: communications infrastructure, transport and logistics infrastructure, and utility infrastructure.
