FIP

• Core 2026 Strategic Goal Progress

  • Announced the sale of Longridge at the end of April 2026, with transaction closing expected by the end of Q3 2026. The sale will deliver substantial deleveraging and reduce parent-level annual interest expense by $25 million.
  • Grew the railroad portfolio to new record revenue and EBITDA, and completed the small add-on acquisition of Tidewater Logistics at the end of Q2.
  • Advanced value-creating projects at the Jefferson and Rapano terminals to position both for monetization in 2027 at attractive valuations.

• Railroad Segment Operational Updates

  • Integration of the Wheeling and Lake Erie railways is progressing smoothly, with critical IT consolidation scheduled to wrap up in Q3 2026. Cost synergies are on track to hit the original $20 million annual target, with full impact expected in H2 2026.
  • Acquired Tidewater Logistics for $45 million in cash, a business operating four rail-served terminals handling over 20,000 annual carloads. Tidewater is expected to contribute ~$9 million in annual EBITDA, and management will leverage its expertise to expand the rail terminal business.
  • Management identifies three categories of active M&A opportunities: large portfolios of short-line/regional railroads, industrial carve-outs of rail lines owned by corporate operators, and small tuck-in acquisitions of single railroads or terminals like Tidewater.
  • Management estimates over $50 million in potential incremental annual EBITDA from future new rail revenue opportunities.

• Terminal Segment Operational Updates

  • At Jefferson, refined product and ammonia export volumes hit new records, and management is pursuing three low-capital expansion opportunities with existing customers that represent over $50 million in incremental annual EBITDA if fully executed. Temporary Q2 crude volume reductions from Middle East volatility are expected to reverse in Q3, supplemented by growing inbound crude-by-rail volumes.
  • At Rapano, Phase 2 construction is progressing on schedule for completion by the end of 2026, with revenue service starting in early 2027. Long-term contracts are already in place for a portion of capacity, and management expects to start operations near full capacity, with attractive propane export spreads supported by Middle East market disruptions. Phase 2 construction is mostly financed via low-cost long-term tax debt.

• Balance Sheet and Deleveraging

  • The Longridge sale proceeds will allow the company to eliminate approximately $1.4 billion in total debt ($1.1 billion at Longridge, ~$300 million in parent-level other debt), reducing annual parent-level debt service by $25 million and materially improving leverage metrics.

• Longridge sale transaction closing is expected by the end of Q3 2026.
• Revenue and adjusted EBITDA for the core rail and terminal segments are expected to continue growing, driven by the Tidewater acquisition and Rapano Phase 2 ramp-up.
• Rapano Phase 2 is on track for completion by the end of 2026, with revenue service starting in early 2027 at near-full capacity.
• Jefferson crude volumes are expected to recover in Q3 2026 as ship shipments return and inbound crude-by-rail volumes increase.
• Terminal monetization for Jefferson and Rapano is targeted for 2027, with management expecting attractive valuations in the 12x to 15x EBITDA range for the strategic export assets.
• No material changes to prior long-term growth targets were announced.

1. Railroad Segment: Q2 2026 revenue was $92.2 million, with adjusted EBITDA of $42.4 million. This compares to pro forma Q2 2025 revenue of $81.2 million and adjusted EBITDA of $37.6 million, marking new quarterly records for both metrics. It contributed 71% of total adjusted EBITDA (excluding Longridge) for the quarter.
2. Jefferson Terminal Segment: Q2 2026 revenue was $24.3 million, with adjusted EBITDA of $13 million, versus $21.6 million revenue in Q2 2025. It contributed 22% of total adjusted EBITDA (excluding Longridge). Refined products and ammonia volumes hit new quarterly records, while crude volumes were temporarily reduced by Middle East supply volatility.
3. Rapano Terminal Segment: The segment continued Phase 2 construction, with no full Q2 revenue/EBITDA breakdown provided. Once Phase 2 is completed in late 2026, the combined Phase 1 and Phase 2 facility will reach total capacity of ~100,000 barrels per day, with projected annual EBITDA of approximately $80 million.
4. Longridge (Asset Held for Sale): Q2 2026 adjusted EBITDA was $27.4 million, up from $23 million in Q2 2025. It is accounted for as an asset held for sale pending closure of the announced divestment.

• Forward-looking statements about future results, transaction closing, project completion, and monetization are inherently uncertain, and actual outcomes may differ materially from projections.
• Crude volumes at Jefferson are exposed to supply chain volatility and disruption related to ongoing conflict in the Middle East.
• Rail M&A opportunities are not guaranteed to close or deliver projected growth and synergies.
• Full contracting of Rapano Phase 2 capacity and future Phase 3 development is subject to market demand and customer contract negotiations.

Q: One year after the Wheeling acquisition, how has performance and integration progressed relative to expectations? / A: Management says the Wheeling acquisition has exceeded original expectations and been a transformative addition to the rail platform. Integration has gone very smoothly with few issues, and Wheeling's higher average rates offset temporary softer volumes at Transtar during Q2, which stemmed from U.S. Steel's planned Gary Works blast furnace upgrade. Management notes strong growth momentum, particularly in propane volumes, that will continue over the next six months. The acquisition has added valuable diversification and incremental growth opportunities to the portfolio. (338 characters)

Q: For the industrial carve-out category of rail acquisitions, what makes these opportunities uniquely attractive? / A: Industrial carve-outs involve shorter rail lines owned by large corporate operators in sectors like agriculture, metals and mining. These opportunities allow corporate parents to generate liquidity and refocus on their core businesses by divesting non-core rail assets. Historically, these assets have only served the parent and have not pursued third-party growth opportunities, which creates significant upside for FTI Infrastructure to expand revenue after acquisition. Management notes a recent pickup in activity for this type of divestiture and plans to pursue opportunities aggressively. (445 characters)

Q: How much progress has been made on Wheeling integration synergies, and have any unplanned opportunities emerged? / A: The integration is ~80% complete, with IT consolidation wrapping up in Q3. The original $20 million annual cost synergy target remains on track, with full impact hitting in Q3 and Q4; no unplanned additional cost synergies have been identified. However, management has found more incremental revenue opportunities than originally projected, including new transload facilities in Pittsburgh and expanded industrial customer reach that were not part of the original plan. These revenue opportunities take time to develop, but they build long-term sustainable growth for the combined rail platform. (479 characters)

Q: What factors does FTI prioritize when evaluating new rail acquisition targets? / A: First, management prioritizes opportunities to diversify the existing commodity base, particularly adding exposure to agriculture and intermodal, which the current portfolio lacks. Second, it prefers assets where FTI owns (rather than leases) the property and has full pricing freedom to adjust rates over time. Most importantly, management targets assets with clear organic and capital-driven growth opportunities; its goal is to find railroads where it can double EBITDA over a 3-5 year period via expansion, new customer attraction, and better monetization of existing assets like right-of-way for energy and data infrastructure. (456 characters)

Q: How will Jefferson offset Middle East-related crude tanker volatility, and what is the outlook for terminal monetization next year? / A: Jefferson can access crude via three inbound sources, and only tanker shipments from the Middle East are exposed to volatility; crude-by-rail from Utah and pipeline volumes are unaffected. Management expects tanker volumes to recover in Q3, and growing crude-by-rail volumes deliver an unexpected 2x throughput benefit due to required blending with pipeline-sourced crude. Management notes the market for strategic export terminals is strong, with activity picking up due to post-conflict supply chain shifts, and expects to achieve valuations of 12x to 15x EBITDA for Jefferson and Rapano when monetizing in 2027. (472 characters)