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FTAI Infrastructure Incorporation (FIP)
NASDAQ:FIP
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FTAI Infrastructure Incorporation (FIP) AI Stock Analysis

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FIP

FTAI Infrastructure Incorporation

(NASDAQ:FIP)

Rating:48Neutral
Price Target:
$5.50
▲(31.58% Upside)
FTAI Infrastructure's overall stock score is primarily impacted by its weak financial performance, characterized by high leverage and poor cash flow management. While the earnings call provided a positive outlook with strategic acquisitions and refinancing, the technical and valuation metrics remain concerning.
Positive Factors
Acquisitions
The acquisition diversifies the rail business away from its largest customer, and management expects the combined business to reach ~$200M of annual EBITDA by the end of 2026, post-synergies.
Financial Performance
FIP's EBITDA run rate looks poised to finally step up, with acquisitions and new contracts contributing to significant growth.
Negative Factors
Customer Dependency
The rail business is currently highly dependent on its largest customer, accounting for ~90% of 2024 rail revenue.

FTAI Infrastructure Incorporation (FIP) vs. SPDR S&P 500 ETF (SPY)

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 Inc. generates revenue through a diversified portfolio of infrastructure assets. The company's primary revenue streams include leasing and operating income from its transportation and energy assets, which might include airports, railways, and energy facilities. Additionally, FIP may engage in strategic partnerships and joint ventures to enhance asset performance and increase profitability. The company focuses on optimizing asset efficiency and capitalizing on market opportunities to ensure sustainable income growth.

FTAI Infrastructure Incorporation Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant positive developments, including a transformative acquisition, strong EBITDA growth, and strategic refinancing moves. While there was a minor impact from maintenance at Long Ridge, the overall outlook remains highly optimistic.
Q2-2025 Updates
Positive Updates
Major Acquisition Announcement
FTAI Infrastructure announced the acquisition of Wheeling & Lake Erie Railway for $1.05 billion, expected to significantly enhance the freight rail segment.
Refinancing for Increased Cash Flow
The company plans to refinance its corporate balance sheet to materially increase free cash flow and provide flexibility for future growth.
EBITDA Growth
Adjusted EBITDA for Q2 was $45.9 million, up 30% from Q1 2025 and 34% from Q2 last year.
Combined Rail Platform Expected EBITDA
The acquisition is expected to be highly accretive with a target of at least $200 million in annual EBITDA by the end of 2026.
Long Ridge EBITDA Growth
Long Ridge's reported EBITDA increased to $23 million in Q2 from $18.1 million in Q1.
Jefferson EBITDA Increase
Jefferson reported EBITDA of $11.1 million, up from $8 million in Q1.
Repauno Phase 2 Financing
Closed $300 million of tax-exempt debt financing for Phase 2 of the Repauno transloading project.
Negative Updates
Maintenance Outage at Long Ridge
Long Ridge's EBITDA was impacted by a 14-day planned maintenance outage, representing approximately $3 million not materialized.
Company Guidance
During the Second Quarter 2025 FTAI Infrastructure Earnings Conference Call, the company provided guidance on several significant developments and financial metrics. The major highlight was the acquisition of the Wheeling & Lake Erie Railway for $1.05 billion, expected to boost the company's freight rail segment. This acquisition, combined with Transtar, is projected to achieve at least $200 million in annual EBITDA by the end of 2026. FTAI Infrastructure also plans to refinance its corporate balance sheet, which will enhance free cash flow by reducing annual cash fixed charges from over $130 million to just over $100 million. The company's adjusted EBITDA for the second quarter was reported at $45.9 million, reflecting a 30% increase from the previous quarter. Additionally, the company aimed for a pro forma annual EBITDA exceeding $450 million, including the acquisition. The financing strategy involves issuing $1 billion in preferred stock with a 10% annual dividend rate and $1.25 billion in new debt at approximately 8.25% interest, contributing to improved leverage and cash flow.

FTAI Infrastructure Incorporation Financial Statement Overview

Summary
FTAI Infrastructure faces significant financial challenges. Despite revenue growth, the company struggles with profitability and high leverage. The balance sheet shows high debt levels, and cash flow management is weak, with negative operating and free cash flows.
Income Statement
35
Negative
FTAI Infrastructure Incorporation's income statement shows a mixed performance. The company has experienced revenue growth, with a 10.84% increase in the TTM period. However, profitability remains a significant concern, as evidenced by negative net profit margins and EBIT margins. The gross profit margin is relatively low at 24.11%, indicating challenges in managing cost of goods sold. Overall, while revenue is growing, the company struggles with profitability.
Balance Sheet
40
Negative
The balance sheet reveals a high debt-to-equity ratio of 3.40, indicating significant leverage and potential financial risk. The return on equity is negative, reflecting ongoing losses and inefficient use of equity. The equity ratio stands at 21.00%, suggesting a moderate reliance on equity financing. Overall, the balance sheet highlights financial instability and high leverage, which could pose risks if not managed carefully.
Cash Flow
30
Negative
Cash flow analysis shows a concerning trend with negative operating and free cash flows. The free cash flow growth rate is positive at 27.34%, but the overall cash flow situation remains weak. The operating cash flow to net income ratio is negative, indicating cash flow challenges relative to earnings. The free cash flow to net income ratio is high, suggesting that despite losses, the company is generating some cash flow relative to net income. Overall, cash flow management is a critical area for improvement.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue382.52M331.50M320.47M261.97M120.22M68.56M
Gross Profit92.21M331.50M-26.66M-29.90M-47.98M-45.02M
EBITDA108.13M-61.23M23.32M-59.06M-39.94M-31.83M
Net Income-74.59M-223.65M-121.34M-153.58M-79.87M-55.20M
Balance Sheet
Total Assets4.41B2.37B2.38B2.48B2.44B1.40B
Cash, Cash Equivalents and Short-Term Investments448.26M27.79M29.37M36.49M49.87M15.71M
Total Debt3.15B1.66B1.41B1.30B789.03M339.38M
Total Liabilities3.63B1.92B1.64B1.69B980.25M403.61M
Stockholders Equity925.76M583.87M809.52M816.21M1.46B973.05M
Cash Flow
Free Cash Flow-309.31M-98.10M-95.23M-259.83M-202.61M-294.38M
Operating Cash Flow-84.68M-15.28M5.51M-42.69M-61.72M-46.86M
Investing Cash Flow12.87M-118.14M-147.12M-267.27M-828.72M-252.22M
Financing Cash Flow333.60M193.23M79.45M157.74M1.14B337.63M

FTAI Infrastructure Incorporation Technical Analysis

Technical Analysis Sentiment
Negative
Last Price4.18
Price Trends
50DMA
5.74
Negative
100DMA
5.46
Negative
200DMA
5.97
Negative
Market Momentum
MACD
-0.41
Positive
RSI
33.09
Neutral
STOCH
5.18
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 4.18 is below the 20-day moving average (MA) of 4.71, below the 50-day MA of 5.74, and below the 200-day MA of 5.97, indicating a bearish trend. The MACD of -0.41 indicates Positive momentum. The RSI at 33.09 is Neutral, neither overbought nor oversold. The STOCH value of 5.18 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 65 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 (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
$804.33M4.2418.71%5.04%7.61%
64
Neutral
$10.73B15.747.56%2.01%2.76%-15.10%
57
Neutral
$131.28M-21.54%-9.86%1.22%
53
Neutral
$766.39M-12.81%4.02%-11.13%-351.71%
48
Neutral
$476.46M-9.32%2.15%16.07%30.39%
47
Neutral
$455.58M230.99-0.11%14.79%-141.14%
44
Neutral
$113.26M-27.32%-19.00%48.70%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FIP
FTAI Infrastructure Incorporation
4.18
-3.73
-47.16%
MATW
Matthews International
24.90
2.51
11.21%
NNBR
NN
2.49
-0.94
-27.41%
SPLP
Steel Partners Holdings
41.75
2.25
5.70%
TRC
Tejon Ranch Company
16.60
-0.31
-1.83%
TUSK
Mammoth Energy Services
2.29
-1.36
-37.26%

FTAI Infrastructure Incorporation Corporate Events

Private Placements and FinancingM&A TransactionsBusiness Operations and Strategy
FTAI Infrastructure Completes Acquisition of Wheeling Corporation
Positive
Aug 25, 2025

On August 25, 2025, FTAI Infrastructure Inc.’s subsidiary, FIP RR Holdings LLC, completed the acquisition of The Wheeling Corporation from WLE Management Partners, L.P. for approximately $1.05 billion. This acquisition, facilitated by a $1.25 billion secured bridge loan, involves a voting trust agreement pending regulatory approval and includes the issuance of Series A Preferred Units and Warrants to finance the deal. The transaction aims to strengthen FTAI’s position in the railway sector, with significant financial arrangements and strategic moves designed to optimize its asset management and operational capabilities.

M&A Transactions
FTAI Infrastructure Announces Acquisition of Wheeling Corporation
Positive
Aug 6, 2025

On August 6, 2025, FTAI Infrastructure Inc. announced its agreement to acquire The Wheeling Corporation, which owns the Wheeling & Lake Erie Railway Company, for $1.05 billion. This acquisition is expected to enhance FTAI’s freight rail platform by combining Wheeling with its existing Transtar operations, potentially driving substantial growth in revenue and EBITDA. The transaction is subject to customary closing conditions and regulatory approvals, with the expectation to close in the third quarter of 2025.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 26, 2025