Stabilis Solutions, Inc. Quarterly Report Released - Here’s What You Should Know

Stabilis Solutions, Inc.
Quarter Ended June 30, 2025 – Investor Summary

Key Financial Metrics

• Revenues for Q2 2025 were $17.3 million, a decrease of 7% from $18.6 million in Q2 2024.
  • Six months ended June 30, 2025 revenues were $34.6 million, down 10% from $38.4 million the prior year.
• Net loss for Q2 2025 was $0.6 million (-$0.03/share), versus net income of $27,000 in Q2 2024 ($0.00/share).
  • Six month net loss was $2.2 million (-$0.12/share) compared to net income of $1.5 million ($0.08/share) in the prior year.
• Cash and cash equivalents at June 30, 2025 were $12.2 million, up from $9.0 million at the end of 2024.
• Total current assets were $17.8 million; total assets $83.2 million (down from $85.6 million at year-end 2024).
• Current liabilities were $11.3 million; total liabilities $17.8 million.
• Total stockholders’ equity at quarter-end was $65.5 million, down from $67.0 million at year-end 2024.
• Net cash provided by operating activities was $5.5 million for the six months ended June 30, 2025 (vs. $9.0 million in 2024).
• Capital expenditures for the first half of 2025 were $1.1 million.
• Outstanding debt (excluding current portion): $6.3 million.

Segment/Operational Details

• LNG product revenue for Q2 2025: $14.6 million, flat year-over-year; gallons delivered decreased.
• Rental revenue: $1.3 million (down 23% year-over-year).
• Service revenue: $1.2 million (down 31% year-over-year).
• Other revenue: $0.2 million (down 64% year-over-year).
• U.S. revenues were $16.4 million, Mexican revenues $0.9 million for the quarter.
• Gross profit from the 40% BOMAY joint venture (electrical systems in China): $2.9 million in Q2 2025 on $29.5 million revenue. Stabilis’ equity income from the JV in Q2 2025: $50,000 (down from $295,000 Q2 2024).

Risks

• Market/Volume Decline: Revenues and LNG volumes delivered both declined in the quarter and six months (3.8 million fewer gallons delivered compared to prior year six months), indicating weaker demand or customer activity.
• Customer Mix & Pricing: Unfavorable customer pricing mix contributed to year-over-year revenue losses, partially offset by higher natural gas prices.
• International Exposure: Continued exposure to tariffs and U.S.-China trade risk is specifically cited, with Stabilis’ 40% BOMAY JV dependent upon Chinese manufacturing and markets—escalating tariffs or trade restrictions could materially adversely affect financial results.
• Concentrated Revenue Base: The bulk of revenues (over 95%) come from the U.S. market and LNG product sales, increasing vulnerability to domestic market shifts.
• Debt Covenants/Liquidity: While liquidity is stable, $8.4 million is outstanding on a revolving credit facility ($10 million max), and financial covenants on term loans could restrict operational flexibility.
• Joint Venture Risks: Decrease in equity income from BOMAY (from $295,000 to $50,000 quarter-over-quarter) exposes Stabilis to operational or market risks in the JV.

Management Discussion and Outlook

• Demand: Lower LNG delivery volumes and reduced service/rental revenues negatively impacted overall top-line numbers for both the quarter and six months. Management attributes this to temporary reduction in customer activity and less favorable pricing, though partial offset came from higher natural gas prices.
• Cost Management: Operating expenses decreased for the quarter by 4%, mainly due to lower LNG volumes and reduced service, rental, and transportation costs. However, SG&A expenses increased year-over-year for the six months ($8.1 million vs. $6.8 million), partly driven by increased costs associated with stock-based compensation and normal business inflation.
• Capital Investment: Capex remains limited and is focused on maintenance and small improvements ($1.1 million in six months).
• Financial Position: Management believes current cash and cash flow from operations are sufficient to meet operating needs and debt service.
• Management Changes: J. Casey Crenshaw is serving as Interim President & CEO following the January 2025 executive transition.
• Environmental/Legal: No significant environmental or legal issues reported this period.
• No dividends have been paid historically and none are expected.
• No significant changes in controls or off-balance sheet arrangements.

Conclusion

Stabilis Solutions, Inc. ended Q2 2025 with reduced revenues, negative net income, and stable cash flow. The declines in LNG volumes and service/rental segments reflect current market and customer softness, while BOMAY JV earnings also declined. The company remains liquid, with manageable debt and no dividend commitments, but is exposed to risks from declining volumes, customer mix, and trade policy. Investors should monitor ongoing revenue trends, cost management initiatives, and JV performance.

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