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FTAI Infrastructure Incorporation (FIP)
:FIP
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FTAI Infrastructure Incorporation
(NASDAQ:FIP)
47Neutral
Positive Factors
Equity Value
Transtar's potential valuation suggests a substantial increase in FIP's equity value, given the asset's debt-free status and projected earnings.
Growth Potential
Management has visibility into significant growth potential with an annual adjusted EBITDA target of $220M, driven by a strong pipeline of new business opportunities.
Revenue and EBITDA
Solid 3Q24 results with increased revenue and EBITDA highlight steady performance across key assets at FTAI Infrastructure.
Negative Factors
Asset Maturity
Several underlying assets are expected to become more mature, which might slow down the pace of new growth initiatives.
Operational Challenges
The quarter included record revenue and throughput volumes, but roughly two-thirds of quarterly volume coming from refined products and the balance from crude oil could pose challenges.
Strategic Focus
Management highlighted that it is increasing focus on the strategic front, which indicates potential challenges in maintaining current operational momentum.
FTAI Infrastructure Incorporation (FIP) vs. S&P 500 (SPY)
Market Cap
$509.32M
Dividend Yield2.68%
Average Volume (3M)1.35M
Price to Earnings (P/E)―
Beta (1Y)1.74
Revenue Growth3.44%
EPS Growth-52.51%
CountryUS
Employees670
SectorIndustrials
Sector Strength65
IndustryConglomerates
Share Statistics
EPS (TTM)-2.72
Shares Outstanding113,941,864
10 Day Avg. Volume1,057,026
30 Day Avg. Volume1,346,001
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.82
Price to Cash Flow (P/CF)-18.70
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$12.50Price Target Upside179.64% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
FTAI Infrastructure Incorporation Business Overview & Revenue Model
Company DescriptionFTAI Infrastructure Inc. focuses on acquiring, developing, and operating assets and businesses that represent infrastructure for customers in the transportation and energy industries. It operates a multi-modal crude oil and refined products terminal, and other related assets. The company also has a 1,630-acre deep-water port located along the Delaware River with an underground storage cavern, a multipurpose dock, a rail-to-ship transloading system, and multiple industrial development opportunities; and a 1,660-acre multi-modal port located along the Ohio River with rail, dock, and multiple industrial development opportunities, including a power plant under construction. In addition, it operates five freight railroads and one switching facility. FTAI Infrastructure Inc. was incorporated in 2021 and is based in New York, New York. FTAI Infrastructure Inc. (NasdaqGS : FIP) operates independently of Fortress Transportation and Infrastructure Investors LLC as of August 1, 2022.
How the Company Makes MoneyFTAI Infrastructure Incorporation generates revenue through a multi-faceted business model that includes leasing and managing transportation and energy infrastructure assets. The company earns income by leasing aviation equipment, such as aircraft and engines, to airlines and other operators. Additionally, FIP invests in rail infrastructure, providing critical transportation links and charging fees for usage. In the energy sector, the company is involved in the development and management of energy-related infrastructure, generating revenue by supplying energy and related services. Strategic partnerships and joint ventures with key industry players further enhance FIP's revenue streams, allowing for shared investments and the optimization of infrastructure assets.
FTAI Infrastructure Incorporation Financial Statement Overview
Summary
FTAI Infrastructure's financial health is mixed. While revenue growth is promising, persistent net losses and a precarious balance sheet with negative equity indicate financial instability. Cash flow management issues further complicate the financial outlook.Income Statement
FTAI Infrastructure has shown a consistent increase in revenue over the years, with a recent 3.44% growth from 2023 to 2024. However, the company has struggled with profitability, reflected in negative net profit margins and EBIT margins. The TTM data indicates a further decline in EBITDA, suggesting operational inefficiencies. Overall, while revenue growth is positive, persistent net losses are a concern.40
Negative
Balance Sheet
The company's balance sheet reveals a precarious financial position with negative stockholders' equity as of 2024, indicating insolvency risk. The debt-to-equity ratio is not calculable due to negative equity, but the absence of total debt in 2024 is a positive note. The equity ratio is also negative, highlighting significant liabilities compared to assets. These factors suggest financial instability.30
Negative
Cash Flow
FTAI Infrastructure's cash flow statement shows negative operating and free cash flows in the recent period, indicating cash outflows that could hinder operational sustainability. While there is an improvement in the free cash flow from 2023 to 2024, the negative free cash flow to net income ratio reflects poor cash generation from operations relative to net losses. These trends signal cash management challenges.35
Negative
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 332.17M | 331.50M | 320.47M | 261.97M | 120.22M | 68.56M | Gross Profit |
| 76.49M | 331.50M | -26.66M | 245.12M | -47.98M | -45.02M | EBIT |
| -20.18M | 83.82M | -39.49M | -111.36M | -79.14M | -56.55M | EBITDA |
| 19.38M | -333.84M | 23.32M | -59.06M | -39.94M | -31.83M | Net Income Common Stockholders |
| -140.94M | -298.14M | -121.34M | -187.52M | -106.34M | -71.72M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 15.71M | 1.51M | 29.37M | 36.49M | 49.87M | 15.71M | Total Assets |
| 0.00 | 936.18M | 2.38B | 2.48B | 2.44B | 1.40B | Total Debt |
| 0.00 | 0.00 | 1.41B | 1.30B | 789.03M | 339.38M | Net Debt |
| 15.71M | -1.51M | 1.38B | 1.26B | 739.16M | 323.67M | Total Liabilities |
| 0.00 | 1.20B | 1.64B | 1.69B | 980.25M | 403.61M | Stockholders Equity |
| 995.40M | -263.50M | 809.52M | 816.21M | 1.46B | 973.05M |
| Cash Flow | Free Cash Flow | ||||
| -86.50M | -15.28M | -95.23M | -259.83M | -202.61M | -294.38M | Operating Cash Flow |
| -9.89M | -15.28M | 5.51M | -42.69M | -61.72M | -46.86M | Investing Cash Flow |
| -96.10M | -118.14M | -147.12M | -267.27M | -828.72M | -252.22M | Financing Cash Flow |
| 172.33M | 193.23M | 79.45M | 157.74M | 1.14B | 337.63M |
FTAI Infrastructure Incorporation Technical Analysis
Negative
4.47
Price Trends
5.82
Negative
6.94
Negative
7.98
Negative
Market Momentum
-0.34
Positive
28.51
Positive
6.78
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FIP, the sentiment is Negative. The current price of 4.47 is below the 20-day moving average (MA) of 4.95, below the 50-day MA of 5.82, and below the 200-day MA of 7.98, indicating a bearish trend. The MACD of -0.34 indicates Positive momentum. The RSI at 28.51 is Positive, neither overbought nor oversold. The STOCH value of 6.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FIP.
FTAI Infrastructure Incorporation Risk Analysis
FTAI Infrastructure Incorporation disclosed 60 risk factors in its most recent earnings report. FTAI Infrastructure Incorporation reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
FTAI Infrastructure Incorporation Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Neutral | $2.30B | 17.11 | 14.57% | 4.05% | 3.21% | 29.59% | |
69 Neutral | $31.38B | 30.40 | 10.26% | 0.46% | 7.34% | 32.91% | |
66 Neutral | $1.60B | 8.83 | 13.71% | 2.35% | -9.47% | 69.11% | |
65 Neutral | $6.11B | 13.23 | 15.71% | 2.15% | 7.25% | 25.82% | |
62 Neutral | $8.08B | 13.63 | 3.82% | 3.13% | 3.58% | -14.35% | |
47 Neutral | $509.32M | ― | -32.63% | 2.68% | 3.44% | -52.51% | |
47 Neutral | $100.64M | ― | 156.43% | ― | 55.84% | -159.47% |
* Industrials Sector Average
Performance Comparison
FIP
FTAI Infrastructure Incorporation
4.49
-1.80
-28.62%
RAIL
Freightcar America
5.35
1.40
35.44%
GBX
Greenbrier
51.99
0.69
1.35%
R
Ryder System
151.66
36.54
31.74%
TRN
Trinity Industries
28.86
2.61
9.94%
WAB
Westinghouse Air Brake Technologies
185.91
39.27
26.78%
FTAI Infrastructure Incorporation Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -20.88% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Positive
The earnings call presented several significant positive developments, including substantial increases in EBITDA, successful refinancing and acquisition activities, and promising new business opportunities. While there were minor declines in quarterly performance for some segments, the overall outlook is positive with strong potential for growth and strategic expansion.Highlights
Increased Adjusted EBITDA
Adjusted EBITDA for 2024 was $127.6 million, up from $107.5 million in 2023, more than doubling over the past two years.
Successful Long Ridge Transactions
The refinancing and acquisition of the 49.9% stake in Long Ridge is expected to generate approximately $160 million of annual EBITDA, with significant portions locked-in for the next seven years.
New Business Opportunities at Jefferson
Jefferson has $25 million of long-term annual EBITDA commencing this year under three contracts, with potential for additional contracts to generate approximately $120 million in annual EBITDA.
Repauno Phase 2 Contracting Success
Repauno signed an additional contract for Phase 2, bringing contracted volumes to 40,000 barrels per day, representing a total of approximately $50 million of annual EBITDA. The project will be funded with $300 million of tax-exempt debt.
Strong M&A Pipeline for Transtar
Transtar is in discussions with parties on six opportunities, potentially representing over $100 million of annual EBITDA.
Positive Refinancing Changes
Plans to refinance corporate bonds and preferred stock are expected to reduce fixed charges and increase cash flow after debt service, which should be accretive.
Lowlights
Slight Decline in Transtar's Quarterly Performance
Transtar's Q4 revenue was $43.3 million with adjusted EBITDA of $19.4 million, down slightly from Q3's $44.8 million revenue and $21.1 million EBITDA.
Lower Quarterly Performance at Long Ridge
Long Ridge's Q4 EBITDA was $9.9 million, down from $11.1 million in Q3, due to a planned maintenance outage at the power plant.
Company Guidance
During the FTAI Infrastructure Fourth Quarter 2024 Earnings Conference Call, the company shared a promising outlook for 2025, underpinned by several key metrics and strategic initiatives. Adjusted EBITDA for 2024 was reported at $127.6 million, marking a significant increase from $107.5 million in 2023, with all four core business units contributing to this growth. The company has $195 million of incremental locked-in annual EBITDA under executed contracts, projecting a total annual EBITDA of approximately $323 million. Looking ahead, 2025 is expected to see substantial growth, with potential annual EBITDA exceeding $400 million if new business opportunities are successfully converted into contracts. Key strategic moves include the completion of a debt refinancing at Long Ridge, anticipated to generate $160 million of annual EBITDA, and the execution of contracts at Repauno and Jefferson projected to contribute significant EBITDA. Additionally, the company is actively pursuing M&A opportunities, particularly in the Transtar segment, which could add over $100 million of annual EBITDA. These initiatives, alongside favorable market conditions and strategic investments, position FTAI Infrastructure for transformative financial results in 2025.FTAI Infrastructure Incorporation Corporate Events
M&A TransactionsBusiness Operations and Strategy
FTAI Infrastructure Completes Full Acquisition of Long Ridge
Positive
Feb 27, 2025
On February 26, 2025, FTAI Infrastructure Inc. completed the acquisition of the remaining 49.9% interest in Long Ridge Energy & Power LLC, enhancing its stake to full ownership. This strategic move involved a $20 million promissory note, a $9 million cash payment, and the issuance of 160,000 shares of Series B Convertible Junior Preferred Stock to GCM Grosvenor affiliates. The acquisition is expected to strengthen FTAI’s market position and provide new opportunities for growth, impacting its operations and stakeholder interests.
Private Placements and FinancingBusiness Operations and Strategy
FTAI Infrastructure Completes $1 Billion Refinancing
Positive
Feb 25, 2025
On February 19, 2025, Long Ridge Energy LLC, a subsidiary of FTAI Infrastructure Inc., completed refinancing transactions totaling approximately $1 billion. This included $400 million in new term loans and a $600 million private offering of senior secured notes. The refinancing aims to improve Long Ridge’s financial structure, targeting annual revenues of $223 million and an adjusted EBITDA of $160 million. The transactions are expected to impact the company’s operations by enabling it to repay existing loans, fund reserve accounts, and enter new electricity sale contracts, potentially strengthening its market position.
Private Placements and FinancingM&A Transactions
FTAI Infrastructure Plans Refinancing and Acquisition Moves
Neutral
Jan 8, 2025
Long Ridge Energy & Power LLC, under FTAI Infrastructure Inc., plans to refinance its existing loans through a new secured loan and other secured debt financing to manage approximately $599 million in outstanding loans, derivative contracts, and transaction fees. Additionally, FIP is in discussions to acquire GCM Grosvenor’s interests in Long Ridge and its affiliate for about $200 million, potentially impacting the company’s ownership structure.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.