FTAI Infrastructure Reports Soaring Growth, Deep Net Loss

NEW YORK, NY – February 26, 2026 – FTAI Infrastructure Inc. (NASDAQ:FIP) today announced a year of dramatic operational expansion, posting a remarkable 82% increase in full-year Adjusted EBITDA, a key measure of operational performance. However, the impressive growth, fueled by major acquisitions, was overshadowed by a significant net loss, revealing the high costs associated with its aggressive expansion strategy.

In a sign of confidence in its long-term cash flow, the company’s Board of Directors also declared a quarterly cash dividend of $0.03 per share. The results present a complex picture for investors, highlighting a company successfully executing a high-growth strategy while simultaneously navigating the considerable financial headwinds that come with it.

The Acquisition Engine Fuels Growth

The standout highlight from the 2025 fiscal year was the formidable growth in the company's operational earnings. FTAI Infrastructure reported full-year Adjusted EBITDA of $232.3 million, a surge of 82% compared to the $127.6 million reported in fiscal 2024. The fourth quarter was particularly strong, with an Adjusted EBITDA of $80.2 million, which the company noted represents an annualized run rate of over $320 million.

This growth is largely attributable to the company's ambitious acquisition strategy, headlined by the recent takeover of the Wheeling & Lake Erie Railway (W&LE). The railroad segment was the star performer, contributing $41.3 million in Adjusted EBITDA in the fourth quarter alone as the integration of W&LE commenced. FTAI gained control of the railway in late December 2025 after a $1.05 billion transaction, adding over 1,000 miles of track and roughly 250 customers across Ohio, Pennsylvania, West Virginia, and Maryland.

Management has signaled high expectations for the combined rail business, projecting that the synergies from integrating W&LE with its existing Transtar rail assets could generate over $200 million in annual Adjusted EBITDA by the end of 2026. The company is actively pursuing further M&A opportunities to continue bolstering its core infrastructure portfolio.

Deconstructing the Bottom Line

Despite the robust operational performance, the company's GAAP financial statements tell a different story. FTAI reported a net loss attributable to stockholders of $207.4 million for the full year 2025, or a diluted loss per share of $2.26. This stands in stark contrast to the positive Adjusted EBITDA figures and underscores the significant costs associated with the company’s growth.

The divergence between the two metrics is driven primarily by a handful of major expenses that are excluded from the Adjusted EBITDA calculation. A primary contributor is a massive increase in interest expense, which ballooned to $90.3 million in the fourth quarter of 2025, nearly triple the $33.3 million recorded in the same period of 2024. For the full year, interest expense reached $265.9 million.

Furthermore, the company incurred substantial one-time costs related to its acquisitions. Acquisition and transaction expenses for the full year 2025 totaled $27.1 million. Other significant items impacting the net loss included a $59.3 million loss on the modification or extinguishment of debt and significant non-cash depreciation and amortization charges of $132.5 million for the year, reflecting the company’s expanding asset base.

A Reshaped Capital Structure

Underpinning the surge in interest expense is a fundamental reshaping of FTAI Infrastructure's capital structure to finance its growth. Just this week, on February 25, 2026, the company closed a new $1.315 billion secured term loan. The proceeds were immediately used to pay off a 2025 bridge facility that was instrumental in financing the W&LE acquisition.

While this move successfully refinances the short-term bridge loan, it comes at a cost. The new term loan carries a high interest rate of 9.75% per year and matures on February 1, 2028. This higher-coupon debt locks in substantial interest payments for the next few years, directly impacting the company's path to GAAP profitability. The new loan is secured by first-priority liens on substantially all of the company’s assets, indicating that while leverage remains a meaningful factor, lenders are confident in the underlying value of the infrastructure portfolio.

This debt-fueled expansion is reflected in the company's balance sheet, which saw total assets more than double from $2.37 billion at the end of 2024 to $5.75 billion at the end of 2025.

A Dividend Amidst the Red Ink

In a move that signals strong management belief in the future, FTAI's board declared a cash dividend of $0.03 per share for the fourth quarter. The decision to return capital to shareholders, even while reporting a net loss and a negative free cash flow of over $68 million in the fourth quarter, is a powerful statement.

This 'dividend paradox' suggests that the company's leadership is focused on the long-term, stable cash-generating potential of its critical infrastructure assets, which include not only railroads but also ports, terminals, and power generation facilities. The dividend implies a conviction that once the one-time acquisition costs subside and operational synergies are realized, the underlying business will produce more than enough cash to service its debt, fund future growth, and reward shareholders.

Beyond the rail segment, the company's other assets showed signs of progress. The Jefferson Terminal segment benefited from higher throughput volumes and new contracts. Meanwhile, FTAI continues to evaluate strategic alternatives for its Long Ridge power and gas asset, which could include a potential sale to unlock value and redeploy capital. For now, the market will be closely watching whether the operational promise of FTAI's newly expanded empire can translate into bottom-line profit.