FTAI Infrastructure Inc. Q1 FY2026 earnings call

• Sale of Longridge: Agreed to sell to Mara Holdings for $1.52 billion, expected to close in third quarter, net proceeds over $300 million. Allows deleveraging (reduce parent debt by at least $300 million, reduce interest expense by ~$30 million/year) and focus on core freight rail business. - Rail segment: First full quarter with active control of wheeling, realized integration savings, targeting $23 million annual cost savings (10 million enacted in Q1, 13 million to be in effect soon), and over $50 million incremental annual EBITDA potential from new revenue sources. - Jefferson: Negotiating new contracts for over $50 million incremental annual EBITDA, volumes average 275,000 barrels per day. - Rapano: Phase II construction on plan, long-term contracts in place, high demand for remaining space.

Rail segment: Q1 revenue $85 million, adjusted EBITDA $40.2 million, up 31% vs same quarter 2025. Longridge: Q1 EBITDA $26.4 million, impacted by 25-day planned outage; without outage, EBITDA would have approached $40 million. Jefferson: Q1 revenue $27.3 million, adjusted EBITDA $14.4 million, included full quarter of new ammonia transloading contract. Rapano: Phase II construction on track, once operational expected to handle over 80,000 barrels per day of natural gas liquids, generating ~$80 million annual EBITDA.

• Longridge sale expected to close in mid-third quarter, pending FERC approval. - Target to reduce parent debt by at least $300 million, reduce parent-level interest expense by ~$30 million/year. - Expect remainder of 2026 to be active for rail sector M&A, actively evaluating multiple opportunities. - Jefferson expected to execute on three new business opportunities during the year, commencing revenue shortly thereafter. - Rapano Phase II planned to be operational early next year, commencing revenue service shortly after.

Q: On regulatory approvals for Longridge sale, walk through what they are and when transaction will close.

A: Requirement to file with FERC for change of control, filing imminent (possibly today or early next week), FERC process not prolonged, target mid-third quarter.

Q: On Holdco debt pay down and use of remaining cash.

A: Plan to pay down $300 million of debt, remaining cash can be used to repay debt, fund acquisitions, or other uses.

Q: On Jefferson's unit pricing softening.

A: Mix of business lines, no realized downward pricing for contracts, just mix of products.

Q: On commercializing Rapano Phase 3.

A: Phase 2 is core focus, Phase 3 continuing, next year doable for monetization.

Q: On scaling of Jefferson's incremental contracts.

A: Targeting volumes over 500,000 barrels per day, additional $50 million annual EBITDA from new business.

Q: On financing rail acquisitions and rail deal flow.

A: Likely use incremental debt, rail deal flow episodic with class one mergers, private equity funds approaching monetization, individual owners thinking about selling driving activity