10-K: FTAI Infrastructure Reports Strong Revenue Growth in 2025

FTAI Infrastructure Inc. reported a significant increase in total revenues for the year ended December 31, 2025, driven by acquisitions and growth in its Power and Gas and Jefferson Terminal segments, despite a net loss.

Summary

• Total revenues increased by $171.0 million to $502.5 million for the year ended December 31, 2025, up from $331.5 million in 2024.
• The Power and Gas segment saw a $179.3 million increase in revenues, primarily due to the acquisition of GCM's 49.9% interest in Long Ridge Energy & Power LLC in February 2025.
• Jefferson Terminal revenues increased by $5.0 million, driven by higher average refined oil throughput volumes.
• The Railroad segment's revenues decreased by $7.1 million due to decreased carloads, despite the acquisition of The Wheeling Corporation in December 2025.
• Net loss for the year decreased to $152.1 million in 2025 from $266.1 million in 2024, an improvement of $114.0 million.
• Adjusted EBITDA significantly increased by $233.6 million to $361.2 million in 2025 from $127.6 million in 2024.
• The company completed the acquisition of 100% of Long Ridge Energy & Power LLC in February 2025 and The Wheeling Corporation in December 2025.
• Significant debt obligations exist, with $1.6 billion in principal payments and $248.9 million in interest payments due within the next twelve months.
• Management intends to refinance the $218 million Jefferson Taxable Series 2024B Bonds due July 1, 2026, with long-term financing, or draw on a $255 million bridge facility if needed.
• The company declared a cash dividend of $0.03 per share for the quarter ended December 31, 2025, payable on April 1, 2026.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this filing positively due to significant revenue growth and improved Adjusted EBITDA, driven by strategic acquisitions. However, the substantial increase in debt, ongoing net losses, and liquidity concerns regarding upcoming debt maturities temper the overall sentiment.

Positives

• Total revenues increased significantly by $171.0 million to $502.5 million in 2025, demonstrating strong top-line growth.
• Adjusted EBITDA saw a substantial increase of $233.6 million, reaching $361.2 million in 2025, indicating improved operational profitability.
• The Power and Gas segment experienced a $179.3 million revenue increase, primarily due to the full consolidation of Long Ridge Energy & Power LLC.
• Jefferson Terminal revenues grew by $5.0 million, driven by increased refined oil throughput volumes.
• Net loss decreased by $114.0 million, from $266.1 million in 2024 to $152.1 million in 2025, showing an improvement in overall financial performance.
• Successful acquisitions of Long Ridge Energy & Power LLC and The Wheeling Corporation expand the company's asset base and strategic positioning.
• The company maintains a diverse portfolio across rail, energy, intermodal transport, and ports and terminals, aiming for stable cash flows and long-term growth.
• Long Ridge Energy & Power LLC is evaluating opportunities to run its power plant on carbon-free hydrogen and has successfully tested hydrogen blending as a fuel, aligning with sustainability trends.
• The company is in compliance with all debt covenants as of December 31, 2025.

Negatives

• The company reported a net loss of $152.1 million for the year ended December 31, 2025.
• Rail revenues decreased by $5.8 million primarily due to decreased carloads in the Railroad segment.
• Roadside services revenue decreased by $2.8 million at FYX.
• Total expenses increased by $63.6 million, driven by higher operating expenses, general and administrative costs, acquisition and transaction expenses, and depreciation and amortization.
• Interest expense increased by $143.8 million, primarily due to an approximate $1.7 billion increase in average outstanding debt.
• Loss on modification or extinguishment of debt increased by $50.4 million, mainly due to the paydown of Senior Notes due 2027.
• The company's current liquidity and forecasted cash flows are not sufficient to meet all obligations, including the $218 million Jefferson Taxable Series 2024B Bonds maturity, without additional financing or extensions.
• The Sustainability and Energy Transition segment continues to generate operating losses, with GM-FTAI Holdco LLC's equity value fully written off in 2024 due to severe weather damage and underperformance, and both Gladieux Metals Recycling LLC and Aleon Renewable Metals LLC filing for Chapter 11 bankruptcy in August 2025.
• The company has material customer concentration, with one customer accounting for 27% of total revenue and 32% of Railroad segment revenue in 2025, and three customers representing 41% of total accounts receivable.

Risks

• Limited operating history as an independent company and uncertainty in successfully implementing business strategy or sustaining distributions.
• Uncertainty relating to macroeconomic conditions, including geopolitical conflicts, government shutdowns, trade policies, and commodity price volatility, may reduce demand for assets or limit capital access.
• Oversupply in industry sectors could depress asset values and decrease utilization, materially affecting results.
• Failure to achieve target returns for assets due to various factors beyond control, including economic conditions, natural disasters, or regulatory changes.
• Contractual defaults by customers could decrease revenues and increase expenses related to asset recovery and storage.
• High concentration of a particular asset type or sector could adversely affect business by specific market demand changes or problems.
• Inability to generate sufficient cash flow to fund operations or repay indebtedness and preferred stock.
• Highly competitive markets for acquiring infrastructure assets, potentially leading to fewer opportunities or significant price competition.
• Fluctuations in asset values due to general economic conditions, supply/demand, competition, regulations, and technological obsolescence.
• Risks associated with acquiring and operating businesses that are not fully matured and stabilized, including increased competition, cost overruns, delays, and difficulties in obtaining approvals or financing.
• Unforeseen obstacles or costs from joint ventures, partnerships, or outsourcing of certain functions to third parties.
• Increased costs of compliance with, or liability for violation of, extensive laws and regulations in the North American rail sector, including environmental, safety, and economic regulations.
• Potential for substantial expenditures for investigation or remediation of contamination at current or former sites, particularly Repauno and Long Ridge.
• Adverse effects from service interruptions on railroads or more stringent regulations regarding railcar design or hazardous material transportation.
• Negative impacts from environmental, social, and governance (ESG) and sustainability-related matters, including evolving regulations, reputational damage, and potential litigation.
• Significant costs and claims from rail accidents or incidents involving hazardous materials, potentially exceeding insurance coverage.
• Adverse effects from fluctuating fuel and energy prices on operating costs and commodity values.
• Deterioration of relationships with Class I railroads, which are critical for a significant portion of North American rail operations.
• Cyberattacks bypassing IT security systems, leading to disruption, loss of sensitive information, reputational harm, and financial costs.
• Being deemed an investment company under the Investment Company Act of 1940, which would subject the company to substantial regulation.
• Adverse judgments or settlements in legal proceedings could materially harm business.
• Restrictive covenants in debt and preferred stock instruments limiting business activities.
• Terrorist attacks or other hostilities negatively impacting operations and profitability.
• Inability to obtain sufficient capital constraining growth and revenue.
• Ownership change for Section 382 of the Code limiting the ability to utilize net operating loss and other tax attributes.
• Difficulties in successfully integrating acquired businesses like Wheeling, potentially leading to failure to realize anticipated benefits, increased costs, or operational disruptions.
• Undisclosed liabilities or issues of acquired businesses not identified during due diligence.
• Increased size and complexity of operations following acquisitions, requiring effective management.
• Costs and challenges of complying with Sarbanes-Oxley Act for newly acquired private companies.
• Volatility in the market price and trading volume of common stock.
• Adverse effect of increased market interest rates on common stock price and debt servicing ability.
• Potential dilution of percentage ownership due to future equity awards or issuances.
• Ownership and transfer restrictions on common stock to preserve net operating loss carryforwards.
• Provisions of Delaware law, certificate of incorporation, and bylaws preventing or delaying company acquisition.
• Exclusive forum provisions in bylaws limiting stockholders' ability to obtain a favorable judicial forum.
• Changes in dividend policy at any time, with no assurance of future dividend payments.
• Additional costs and demands on management as a public company.
• Lack of research or downgrades by securities analysts affecting stock price and trading volume.
• Dependence on the Manager and key personnel at Fortress, with risks if the Management Agreement is terminated or personnel depart.
• Conflicts of interest in the relationship with the Manager and its affiliates, including competition for investment opportunities.
• Structure of Manager's compensation arrangements potentially having unintended consequences.
• Broad asset acquisition strategy and ability to change it without stockholder vote, potentially leading to riskier or less profitable assets.
• Manager not liable for acts or omissions performed in good faith under the Management Agreement.
• Manager's due diligence of potential acquisitions may not identify all pertinent risks.
• Ownership by some directors of common shares, options, or other equity awards of FTAI creating conflicts of interest.

Future Outlook

The company expects to continue investing in infrastructure sectors and pursuing additional attractive investment opportunities. Management is actively evaluating potential acquisitions and related financings, including increased debt capacity at subsidiaries. The company plans to meet future short-term liquidity requirements through cash on hand, unused borrowing capacity, future financings, and net cash from current operations. Long Ridge continues to evaluate opportunities to deploy its assets for sustainable and traditional energy projects, including artificial intelligence data centers, and to transition its power plant to run on carbon-free hydrogen. Jefferson Terminal is exploring multiple opportunities for future development at Jefferson Terminal South and is undertaking a project to equip an existing crude oil pipeline with bi-directional flow capability.

Management Comments

• We target sectors that we believe value strong long-term growth potential and proactively seek investment opportunities within those sectors that we believe will generate strong risk-adjusted returns.
• We take an opportunistic approach—targeting assets that are distressed or undervalued, or where we believe we can add value through active management, without heavy reliance on the use of financial leverage to generate returns.
• We expect to continue to invest in such market sectors and pursue additional investment opportunities in other infrastructure businesses and assets we believe to be attractive and meet our investment objectives.
• We believe one of our strengths is our ability to create attractive follow-on investment opportunities and deploy incremental capital within our existing portfolio.
• Our Manager has significant prior experience in all of our target sectors, as well as a network of industry relationships, that we believe positions us well to make successful acquisitions and to actively manage and improve operations and cash flows of our existing and newly-acquired assets.
• We have a robust current pipeline of potential investment opportunities. This current pipeline consists of opportunities for renewable and non-renewable energy, intermodal, rail and port-related investments.
• We believe that sourcing assets both globally and through multiple channels will enable us to find the most attractive opportunities.
• We are selective in the assets we pursue and efficient in the manner in which we pursue them.
• While management intends to refinance the $218 million Jefferson Taxable Series 2024B Bonds with long term financing, if such plans are not met, the Company would draw on the Backstop Agreement to pay off the Jefferson Taxable Series 2024B Bonds due July 1, 2026.
• Management concluded that such plans are probable of being implemented and the Company will have sufficient liquidity to meet its obligations as they become due over the next twelve months from the date that the consolidated financial statements were issued.

Industry Context

StockSavvy.ai notes that FTAI Infrastructure Inc.'s strategic focus on acquiring and developing critical infrastructure assets in transportation, energy, and industrial products aligns with broader industry trends emphasizing long-term, stable cash flows and growth potential. The company's investments in sustainability and energy transition, such as hydrogen-fueled power plants and waste plastic-to-fuel facilities, position it within the growing green technology and decarbonization movement. The consolidation of Long Ridge Energy & Power LLC and the acquisition of The Wheeling Corporation reflect a trend towards vertical integration and expansion within core infrastructure segments, particularly rail and power generation. The emphasis on active management to enhance asset value is a common strategy among infrastructure funds. The challenges faced by the Sustainability and Energy Transition segment, including the bankruptcy filings of Aleon and Gladieux, highlight the inherent risks and development complexities in emerging green technologies, contrasting with the more established and revenue-generating traditional infrastructure assets.

Comparison to Industry Standards

• The company's strategy of targeting assets that are distressed or undervalued, or where value can be added through active management, is a common private equity approach in the infrastructure sector, similar to strategies employed by global infrastructure funds like Macquarie Asset Management or Brookfield Infrastructure Partners.
• The acquisition of regional freight railroads like Transtar and Wheeling positions the company in a sector with high barriers to entry, similar to major Class I railroads (e.g., Union Pacific, BNSF) but focusing on short-line operations that often serve as critical last-mile connections.
• Jefferson Terminal's multi-modal crude oil and refined products storage and handling terminal on the U.S. Gulf Coast competes with large-scale terminal operators such as Enterprise Products Partners or Magellan Midstream Partners, leveraging its strategic location and diverse handling capabilities.
• Long Ridge Energy & Power's 485-megawatt combined-cycle power plant and its exploration of carbon-free hydrogen fuel align with global energy transition efforts, comparable to initiatives by utilities and power generators like NextEra Energy or Siemens Energy in developing cleaner power solutions.
• The company's target of overall corporate leverage of no greater than 50% of total capital is a conservative approach compared to some highly leveraged infrastructure funds, aiming for financial stability.
• The challenges in the Sustainability and Energy Transition segment, particularly the bankruptcy of Aleon and Gladieux, underscore the high-risk, high-reward nature of early-stage green technology investments, which can be more volatile than established infrastructure projects.

Corporate Governance

Legal Proceedings

• Gladieux Metals Recycling LLC and Aleon Renewable Metals LLC filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas on August 17, 2025.
• The company is and may become involved in various claims and legal proceedings in the ordinary course of business, including regulatory investigations and inquiries. Management does not expect current and threatened legal proceedings to have a material adverse effect on the business, financial position, or results of operations, but acknowledges future adverse outcomes are possible.

Related Party Transactions

• The company is externally managed by FIG LLC (the Manager), an affiliate of Fortress, and pays management fees and is reimbursed for certain expenses.
• On May 14, 2024, certain members of Fortress management and affiliates of Mubadala Capital acquired 100% of the equity of Fortress from Softbank.
• One or more of the company's officers and directors have responsibilities and commitments to entities other than the company, including FTAI.
• The company's certificate of incorporation provides that Fortress Parties (Fortress Investment Group LLC, funds managed by Fortress, certain other Fortress related persons and their affiliates, and Ares Management LLC and its affiliates) have no duty to offer corporate opportunities to the company.
• The Management Agreement was not negotiated at arm's-length, and its terms, including fees payable, may not be as favorable as if negotiated with an unaffiliated third party.
• The company may compete with entities affiliated with or managed by the Manager or Fortress for certain assets.
• Certain employees of the Manager and their related parties collectively own approximately 20% interest in Jefferson Terminal.
• In March 2023, the company purchased the remaining non-controlling interest of FYX from an affiliate of the Manager for $4.4 million.
• The company subleases a portion of office space from an entity controlled by certain employees of the Manager.
• The company issued 10.9 million options to purchase common stock to the Manager in connection with the spin-off and redeemable preferred stock raise.
• In February 2025, the company issued 2.9 million options to purchase common stock to the Manager in connection with the Series B Preferred Stock offering.
• On August 25, 2025, RR Holdings issued 172,500 Series A Warrants RailCo to entities affiliated with Ares.

Stakeholder Impact

• **Shareholders:** Experience dilution from new equity issuances (Series B Preferred Stock, warrants, Manager options) and potential future capital raises. Benefit from increased revenues and improved Adjusted EBITDA, but face ongoing net losses and risks related to debt obligations and macroeconomic conditions. Common stock dividends are subject to change and may be eliminated to preserve liquidity.
• **Employees:** Approximately 1,110 employees at subsidiaries, with 640 subject to collective bargaining agreements. The company focuses on employee engagement, attraction, retention, and development. Pension and postretirement benefit plans are in place for eligible Transtar employees.
• **Customers:** Benefit from critical infrastructure services in transportation, energy, and industrial products. Face risks from potential service interruptions, increased costs due to regulatory changes, and reliance on a few major customers in certain segments.
• **Creditors:** Exposed to significant debt obligations, with substantial principal and interest payments due in the short term. The company's ability to meet these obligations depends on successful refinancing and cash flow generation. The recent refinancing of the Bridge Loan and the Backstop Agreement for the 2024B Bonds aim to manage these risks.
• **Suppliers:** May be impacted by the company's capital expenditure prioritization and operational changes. The bankruptcy filings of Aleon and Gladieux could affect their suppliers.
• **Regulatory Authorities:** The company operates in highly regulated industries (rail, energy) and is subject to federal, state, and local laws, including environmental and safety regulations. Compliance costs and potential liabilities are ongoing concerns.

Next Steps

• Refinance the $218 million Jefferson Taxable Series 2024B Bonds due July 1, 2026, with long-term financing or draw on the $255 million Backstop Agreement.
• Exercise existing contractual options to extend the DRP DB Term Loan of $106 million, the first tranche of EB-5 Loan Agreement of $26 million, and the second tranche of EB-5 Loan Agreement of $9.7 million to May 30, 2028, January 25, 2028, and March 11, 2028, respectively.
• Continue evaluating strategic alternatives for Long Ridge, including a potential sale.
• Continue to evaluate opportunities to deploy Long Ridge assets for sustainable and traditional energy projects, including artificial intelligence data centers.
• Continue to explore Long Ridge's ability to eventually run its power plant on carbon-free hydrogen.
• Continue to explore multiple opportunities for future development at Jefferson Terminal South.
• Undertake a project to equip an existing 14-mile crude oil pipeline at Jefferson Terminal with bi-directional flow capability.
• Integrate the operations and controls of Long Ridge Energy & Power LLC and The Wheeling Corporation into the company's internal control structure.
• Monitor and manage liquidity and financial position, updating future plans accordingly.

Key Dates

Recommendation

FTAI Infrastructure Inc. demonstrates strong revenue growth and a significant improvement in Adjusted EBITDA, driven by strategic acquisitions in core infrastructure sectors. The company's focus on energy transition and diverse asset classes presents long-term growth potential. However, the substantial increase in debt, ongoing net losses, and near-term liquidity challenges related to debt maturities introduce considerable risk. The bankruptcy of entities in the Sustainability and Energy Transition segment highlights the speculative nature of some investments. While the company has plans to address liquidity, the execution risk remains. A 'hold' recommendation is appropriate as the positive operational momentum is offset by financial leverage and execution risks, warranting careful monitoring of debt management and cash flow generation before a more definitive stance can be taken.

Keywords

Infrastructure, Railroad, Ports and Terminals, Power and Gas, Sustainability, Energy Transition, SEC Filing, 10-K, Financial Results, Acquisitions, Debt, Dividends, Adjusted EBITDA, Long Ridge Energy, Wheeling Corporation, Jefferson Terminal, Repauno, Corporate Governance, Risk Factors, Capital Raise