0001437749-26-007090
SEC filingStabilis Solutions reported FY 2025 revenues of $68.2 million, representing a significant portion of its business from key customers including Carnival Corporation, Aggreko Plc, and Space Exploration Technologies Corp. The company generated a net loss of $1.4 million, with operating cash flow of $8.6 million. Key developments include securing two ten-year LNG supply bunkering agreements with cruise vessel operators to anchor development of a proposed 350,000 gallon-per-day Galveston LNG liquefaction facility, and executing a multi-year take-or-pay contract estimated at $200 million for data center power generation. The company faces challenges including the conclusion of a major marine bunkering contract that accounted for 32% of 2025 revenues, and the need to secure project financing for its Galveston facility by Q1 2026.
Stabilis Solutions reported FY 2025 revenues of $68.2 million with cost of revenues of $50.2 million, resulting in gross profit of $18.0 million. The company incurred a net loss of $1.4 million, primarily driven by operating expenses totaling $70.8 million. Despite the net loss, the company generated positive operating cash flow of $8.6 million, supported by $7.3 million in depreciation and $1.6 million in distributions from equity investment in joint venture. The balance sheet shows total assets of $83.1 million, with $7.5 million in cash and cash equivalents, and total liabilities of $16.4 million. Stockholders' equity stands at $66.7 million with an accumulated deficit of $37.0 million.
The company's revenue is derived from LNG product sales, rental revenue, and service revenue, though specific segment breakdowns are not provided in the available data. Key customers include Carnival Corporation, Aggreko Plc, and Space Exploration Technologies Corp, each accounting for more than 10% of 2025 revenues. The company serves diverse end markets including aerospace, agriculture, industrial, marine bunkering, mining, oil and gas, pipeline, remote power and utility markets. A significant development is the execution of a multi-year take-or-pay contract estimated at $200 million for data center power generation, with deliveries expected to commence in Q1 2027. However, the company concluded a marine bunkering contract that accounted for 32% of 2025 revenues and a remote power contract that accounted for 19% of 2025 revenues.
The company achieved a gross margin of 26.4% ($18.0 million gross profit on $68.2 million revenue). Operating expenses totaled $70.8 million, including $13.2 million in selling, general and administrative expenses and $7.3 million in depreciation expense. This resulted in an operating loss of $1.3 million and an operating margin of -1.9%. Other income included $1.2 million in net equity income from foreign joint venture operations. The company recorded income tax expense of $54,000 on a pre-tax loss of $1.3 million. Basic and diluted earnings per share were -$0 for the period.
Operating activities generated $8.6 million in cash, primarily from net income adjustments including $7.3 million depreciation and $1.6 million distributions from equity investment. Investing activities used $7.7 million, mainly for $8.1 million in acquisition of fixed assets. Financing activities used $2.4 million for debt payments and related costs. The net decrease in cash was $1.5 million, with ending cash of $5.4 million. The balance sheet shows current assets of $12.9 million and current liabilities of $10.0 million, resulting in working capital of $2.9 million. Property, plant and equipment net stands at $52.9 million, with investments in foreign joint ventures of $11.9 million. Long-term debt totals $5.8 million net of current portion.
The company's strategic focus includes development of a proposed 350,000 gallon-per-day Galveston LNG liquefaction facility, which would increase total liquefaction capacity to 480,000 gallons per day. This project requires $350-400 million in capital and must secure project financing by Q1 2026. The company has secured customer commitments for approximately 56% of the facility's capacity. Key risks include failure to obtain project financing, delays in construction, competition from alternative fuels, regulatory changes, and dependence on a limited number of customers. The company also faces the challenge of replacing concluded contracts that represented significant portions of 2025 revenue. The Chinese joint venture BOMAY has a finite life set to terminate in 2028, with extension subject to approval.