Infrastructure investment and operations firm FTAI Infrastructure (NASDAQ: FIP) fell short of the market’s revenue expectations in Q2 CY2025, but sales rose 44.1% year on year to $122.3 million. Its GAAP loss of $0.73 per share was 95.5% below analysts’ consensus estimates.

Is now the time to buy FTAI Infrastructure? Find out by accessing our full research report, it’s free.

Company Overview

Spun off from FTAI Aviation in 2021, FTAI Infrastructure (NASDAQ: FIP) invests in and operates infrastructure and related assets across the transportation and energy sectors.

Revenue Growth

Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last four years, FTAI Infrastructure grew its sales at an incredible 57.1% compounded annual growth rate. Its growth beat the average industrials company and shows its offerings resonate with customers, a helpful starting point for our analysis.

Long-term growth is the most important, but within industrials, a stretched historical view may miss new industry trends or demand cycles. FTAI Infrastructure’s annualized revenue growth of 11.4% over the last two years is below its four-year trend, but we still think the results suggest healthy demand.

This quarter, FTAI Infrastructure achieved a magnificent 44.1% year-on-year revenue growth rate, but its $122.3 million of revenue fell short of Wall Street’s lofty estimates.

Looking ahead, sell-side analysts expect revenue to grow 69.2% over the next 12 months, an improvement versus the last two years. This projection is eye-popping and indicates its newer products and services will fuel better top-line performance.

Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.

Operating Margin

FTAI Infrastructure’s high expenses have contributed to an average operating margin of negative 12.8% over the last five years. Unprofitable industrials companies require extra attention because they could get caught swimming naked when the tide goes out.

On the plus side, FTAI Infrastructure’s operating margin rose by 36.4 percentage points over the last five years, as its sales growth gave it operating leverage. Still, it will take much more for the company to reach long-term profitability.

Earnings Per Share

Revenue trends explain a company’s historical growth, but the change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.

Although FTAI Infrastructure’s full-year earnings are still negative, it reduced its losses and improved its EPS by 7.5% annually over the last two years.

In Q2, FTAI Infrastructure reported EPS at negative $0.73, down from negative $0.52 in the same quarter last year. This print missed analysts’ estimates. Over the next 12 months, Wall Street expects FTAI Infrastructure to improve its earnings losses. Analysts forecast its full-year EPS of negative $1.53 will advance to negative $1.30.

Key Takeaways from FTAI Infrastructure’s Q2 Results

We struggled to find many positives in these results. Its revenue missed and its EBITDA fell short of Wall Street’s estimates. Overall, this was a weaker quarter. The stock traded down 3% to $6.05 immediately after reporting.

FTAI Infrastructure underperformed this quarter, but does that create an opportunity to invest right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free.