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

Stabilis Solutions, Inc. Q3 2025 Investor Summary

Financial Highlights:

• Revenue: Q3 2025 revenue rose to $20.3 million, up 15% from $17.6 million in Q3 2024, driven primarily by increased LNG product revenues (up 22.9% to $17.5 million).
• YTD Revenue: For the nine months ended September 30, 2025, total revenue was $55.0 million, a 2% decrease compared to $56.0 million in the same 2024 period, largely due to declines in rental and service revenues.
• Net Income: Q3 2025 net income was $1.1 million ($0.06/share basic and diluted), versus $1.0 million ($0.05/share) in Q3 2024. YTD net loss was $(1.1) million versus net income of $2.5 million for the 2024 period, mainly due to higher expenses and lower contributions from foreign joint ventures.
• Gross Margin: Q3 cost of revenues rose 16.5% to $14.7 million due to increased LNG volumes and higher natural gas prices. YTD cost of revenues were $40.2 million (73.2% of revenue).
• Operating Income: Q3 operating income rose 36.8% year-over-year to $1.1 million. YTD operating loss was $(1.0) million compared to $2.8 million operating profit in 2024.
• Joint Venture Income: Net equity income from the Chinese joint venture BOMAY decreased to $0.3 million in Q3 2025 (from $0.5 million in Q3 2024) and $0.7 million YTD (down from $1.0 million in 2024).
• Cash Position & Liquidity: Cash and cash equivalents as of September 30, 2025 totaled $10.3 million (vs. $9.0 million at 2024 year-end). Debt outstanding: $8.3 million (down from $8.9 million at year-end).
• Net Cash Provided by Operating Activities: $7.9 million for the nine months ended September 30, 2025 (down from $11.5 million the prior year), reflecting cash earnings and working capital changes.

Key Developments:

• Long-term Agreement: In Q3 2025, Stabilis executed a 10-year LNG bunkering agreement with a leading global shipping company—potentially strengthening future recurring revenue.
• DOE Export Authorization: The company retains U.S. Department of Energy approval for LNG export to free trade and non-free trade countries, supporting its expansion strategy.
• CAPEX: $5.0 million was invested in capital expenditures YTD, primarily for expansion of cryogenic equipment and liquefaction plant upgrades.

Balance Sheet:

• Total Assets: $87.1 million as of September 30, 2025.
• Stockholders’ Equity: $66.7 million.
• Leverage: Notes payable (net): $8.3 million; Current ratio: 1.4x ($19.4 million current assets vs. $13.6 million current liabilities).

Geographic & Segment Revenue:

• U.S. Revenue: $19.4 million in Q3 2025 (96% of quarter’s total).
• Mexico Revenue: $0.9 million (4%).
• Breakdown (Q3 2025): LNG product $17.5 million, Rental $1.4 million, Service $1.2 million, Other $0.2 million.

Risks and Considerations:

• Volatility in Input Prices: Profitability is sensitive to natural gas price fluctuations, as seen in both higher revenues and higher gross costs this quarter.
• Reliance on LNG Demand and Customer Mix: Revenue and margin variability related to customer pricing mix, volumes delivered, and take-or-pay contract utilization.
• Joint Venture Performance: BOMAY’s contribution to earnings declined YTD; future results may be affected by JV performance and international business risks.
• Debt Covenants: Compliance with debt and credit facility covenants is required; leverage remains moderate but needs ongoing monitoring.
• Trade Policy and Tariffs: Exposure to changes in U.S. trade policy, tariffs, and foreign market access pose ongoing risks.

Summary:
Stabilis Solutions delivered solid Q3 2025 results with significant revenue gains from LNG volumes and price, returning to quarterly profitability after YTD losses. However, YTD performance lags last year due to rising operating costs and lower JV income. The company remains well-capitalized, has secured meaningful long-term revenue streams, and retains a strong cash position. Key areas for investors to watch include margin management, effective capital deployment for expansion, and continued contribution from joint ventures amidst global trade uncertainties.

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