FIP Q1 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Mon, June 1, 2026 astatine 12:37 PM CDT 24 min read

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Date

Friday, May 8, 2026 astatine 8 a.m. ET

Call participants

• Chief Executive Officer — Kenneth Nicholson

• Head of Investor Relations — Alan Andreini

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Full Conference Call Transcript

Kenneth Nicholson: Thank you, Alan, and bully morning, everyone. Welcome to the call. As we typically do, we'll beryllium referring to the net supplement, which you tin find posted connected our website. Before we get into the quarterly fiscal results, we're going to footwear things disconnected with a treatment of Long Ridge and supply immoderate details connected the merchantability transaction that we announced past week. I'm going to concisely locomotion done the transaction presumption and past I'll speech a small spot astir wherefore we judge it to beryllium an important and highly accretive lawsuit for our company. Just implicit a week ago, we signed an statement to merchantability Long Ridge to Mara Holdings for an aggregate transaction worth of $1.52 billion.

We expect to adjacent the transaction successful the 3rd 4th of this twelvemonth aft receiving required regulatory approvals, and determination are nary different worldly conditions to closing. Existing Long Ridge indebtedness volition either beryllium repaid oregon assumed by the purchaser, bringing expected nett proceeds to FTAI successful excess of $300 million. We're pleased with the result of the merchantability process and judge Mara is simply a large acceptable arsenic the adjacent proprietor of Long Ridge.

I privation to admit and convey Bob Wholey and the Long Ridge squad for doing a singular occupation passim the full beingness rhythm of our investment, processing the concern program gathering a powerfulness plant, acquiring state reserves and turning connected and maintaining operations to yet make what contiguous is 1 of the astir businesslike and profitable powerfulness assets successful the country. The transaction worth reflects the uniqueness of the Long Ridge plus and results successful a meaningful economical instrumentality for FTAI implicit the beingness of our investment. More importantly, the merchantability of Long Ridge volition let america to execute 2 cardinal goals: First, deleveraging.

We program to usage the bulk of the nett proceeds received astatine closing to repay higher outgo indebtedness astatine a genitor level, resulting successful little involvement disbursal and higher escaped currency travel going forward; second, expanding our absorption connected our halfway freight obstruction business. We expect 2026 to beryllium an progressive twelvemonth for our railroad with maturation driven internally by integration of Transtar and the Wheeling and externally arsenic we prosecute a fig of acquisition opportunities that leverage our existing platform. Having higher currency travel and further indebtedness capableness to money acquisitions puts america successful a bully presumption to marque accretive investments successful the obstruction assemblage successful the adjacent future.