FTAI Infrastructure Inc. (FIP) reported a GAAP loss of $1.08 per share for the fourth quarter of 2025, falling short of the consensus estimate of $0.43 per share. Revenue totaled $143.5 million, 77.7% higher year‑over‑year but still $25.7 million below the $169.2 million consensus estimate. Despite the earnings miss, the company posted a record adjusted EBITDA of $80.2 million, up 174.7% from $29.2 million in the same quarter of 2024 and beating the $77.73 million consensus estimate.
Revenue growth was largely driven by the recent acquisition of Wheeling & Lake Erie Railway, which added $143.5 million in top‑line activity. The acquisition also contributed to higher-than‑expected integration costs, which weighed on the quarter’s earnings. While the rail segment’s performance helped lift revenue, the company still missed analyst expectations due to the upfront costs associated with the deal.
The GAAP loss was amplified by significant non‑cash charges, including depreciation and interest expense on the company’s $3.77 billion debt load, of which $2.55 billion is non‑recourse project‑level financing. The high operating margin of 88.9%—up from 24.4% a year earlier—reflects the high‑margin nature of rail operations, but the large interest and depreciation expenses offset this advantage, resulting in a net loss.
Management highlighted a focus on cost discipline and the acceleration of synergies from the Wheeling integration, which is projected to add $20 million in annual EBITDA by the end of 2026. The company also completed a $1.315 billion refinancing of its bridge facility, improving liquidity and extending debt maturities. Despite the current earnings miss, management reiterated confidence in the long‑term transformation strategy and the company’s ability to generate a $320 million EBITDA run rate by year‑end.
The earnings report underscores the company’s ongoing liquidity challenges, with $1.55 billion of debt due within 12 months. However, the refinancing plan and the expected synergies from the Wheeling acquisition provide a pathway to strengthen the balance sheet and improve profitability over the next few years. Investors will likely view the record adjusted EBITDA and the projected EBITDA gains as positive indicators of operational strength, while the GAAP loss and debt profile remain key risks to monitor.
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