0001193125-26-212193
SEC filingRevenue surged 37.6% to $433.4M, driven by the Jamaica acquisition, while operating income rose 24.7% to $82.0M. Diluted EPS declined 19.6% to $0.37 due to higher depreciation and interest costs.
Revenue for the first quarter of 2026 increased 37.6% to $433.4 million compared to $315.1 million in the same period last year. The growth was primarily attributable to the May 2025 acquisition of the Jamaica LNG terminal, which added long-term LNG sales volumes. The company also benefited from higher LNG market prices, though management noted that market dynamics were driven more by geopolitical risk and security of supply considerations than by underlying demand fundamentals.
Net cash provided by operating activities declined to $60.0 million from $154.8 million in the prior year quarter. The decrease was driven by working capital timing, including changes in accounts receivable and payable related to the increased scale of operations. Capital expenditures were not disclosed in the authoritative packet, but management expects future uses of cash to include additional capex to fund growth, income taxes, and distributions.
The company's balance sheet reflects the impact of the Jamaica acquisition and related financing. Management considers Adjusted Gross Margin, Adjusted EBITDA, and Capital Expenditures as key non-GAAP measures to assess business performance. Adjusted Gross Margin is defined as revenues less direct cost of sales and operating expenses, excluding depreciation and amortization. The company expects to continue using cash for growth capex, tax obligations, and potential dividends.
Operating results for the first quarter are not necessarily indicative of full-year performance. Management highlighted that new LNG volumes coming online are expected to improve market liquidity and alleviate structural tightness over time. Key risks include geopolitical developments affecting LNG supply and demand, as well as the company's ability to manage working capital and fund its growth strategy.