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FIP Nasdaq· FTAI Infrastructure Inc.
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FIP Nasdaq· FTAI Infrastructure Inc.
Earnings report Q3 2023

FIP Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

FIP's total revenues for the nine months ended September 30, 2023, increased by $48.5 million compared to the same period in 2022. This growth was driven by higher revenues in multiple segments. The Corporate and Other segment saw an increase of $23.8 million, the Railroad segment increased by $11.5 million, the Jefferson Terminal segment increased by $8.1 million, and the Repauno segment increased by $5.0 million.

Strengths

FIP demonstrated strong revenue growth in the latest quarter, with total revenues reaching $80.7 million. The increase in revenue can be attributed to several factors. Firstly, the acquisition and consolidation of FYX in May 2022 contributed to a $23.8 million increase in roadside services revenue. Additionally, terminal services revenues increased by $16.4 million due to higher throughput volumes at Jefferson Terminal and the commencement of a butane throughput contract at Repauno. Furthermore, rail revenues increased by $11.7 million, driven by an increase in both carloads and rates per car, as well as the implementation of a fuel surcharge.

Challenges

Despite the overall positive performance, FIP faced some challenges in the latest quarter. The company reported operating expenses of $68.4 million, which is a significant portion of their total revenues. Additionally, FIP incurred acquisition and transaction expenses of $649 thousand and management fees and incentive allocation to affiliates of $3.2 million. These expenses impacted the company's profitability and should be closely monitored.

Noteworthy

FIP's revenue growth in the latest quarter was primarily driven by the performance of its Railroad, Ports and Terminals, and Sustainability and Energy Transition segments. The acquisition of FYX and the increase in throughput volumes at Jefferson Terminal and Repauno were key contributors to the revenue growth. The implementation of a fuel surcharge and the increase in carloads and rates per car also positively impacted rail revenues.

Summary

FIP reported strong revenue growth in the latest quarter, with total revenues increasing by $48.5 million compared to the same period in the previous year. The company's Railroad, Ports and Terminals, and Sustainability and Energy Transition segments performed well, driving the overall revenue growth. However, FIP faced challenges in terms of operating expenses and incurred additional expenses related to acquisitions and management fees. Overall, FIP's revenue performance demonstrates positive momentum, but careful management of expenses is necessary to ensure sustained profitability.

Source documents

Form 10-Q  filed on Oct 27, 2023
6 pages scanned

Reference data

Company financials Q3 revenue 81.4M
Analyst estimates Q3 EPS missed by NaN%
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