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Stabilis Solutions, Inc. (SLNG)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 revenue was $17.3M, GAAP net loss was $0.6M ($0.03 diluted EPS), and Adjusted EBITDA was $1.5M; cash from operations was $4.5M and quarter-end liquidity reached a record $16.1M (cash $12.2M and ~$3.9M availability) .
  • Mix shift toward growth end-markets continued: aerospace, marine, and power generation represented ~77% of revenue vs 62% in Q2 2024, with aerospace revenue up 83% YoY and power generation up 10% YoY .
  • Sequentially, revenue was flat vs Q1 2025 ($17.3M) but Adjusted EBITDA margin compressed to 8.6% vs 11.9% in Q1; YoY, revenue declined 7% and EPS fell to a loss vs $0.00 last year, driven by roll-off of a large short-duration industrial project .
  • Catalysts: management is working to finalize multi-year offtake contracts (marine/aerospace/power), enabling a potential FID and project financing for a Gulf Coast liquefier; George West capacity could be expanded quickly; distributed power demand tied to data centers/AI is an emerging opportunity .

What Went Well and What Went Wrong

What Went Well

  • Record liquidity and strong operating cash generation: “record liquidity position of $16,100,000… $12,200,000 of cash and approximately $4,000,000 of availability” and $4,500,000 CFO in Q2 .
  • Strategic mix shift toward growth verticals: growth end-markets rose to ~77% of revenue; aerospace +83% YoY; power generation +10% YoY .
  • Continued execution in marine bunkering (Carnival), with long-term offtake agreements under negotiation to anchor new Gulf Coast liquefaction capacity .

What Went Wrong

  • YoY decline in revenue (−7%) and profitability: net loss of $0.6M vs $27k profit last year; Adjusted EBITDA down to $1.5M from $2.1M, driven by roll-off of a large industrial contract .
  • Margin compression: Adjusted EBITDA margin fell to 8.6% vs 11.3% last year and 11.9% in Q1 2025; EBITDA also impacted by a ~$200k nonrecurring JV charge .
  • SG&A normalization post-Q1 severance; while SG&A fell by $0.2M YoY in Q2, earlier Q1 non-recurring SG&A ($2.1M) reflected executive transition costs and affected 1H trajectory .

Financial Results

Quarterly Performance (oldest → newest)

MetricQ2 2024Q4 2024Q1 2025Q2 2025
Revenue ($USD Millions)$18.598 $19.770 $17.338 $17.309
GAAP Net Income ($USD Millions)$0.027 $1.469 $(1.598) $(0.613)
Diluted EPS ($USD)$0.00 $0.08 $(0.09) $(0.03)
EBITDA ($USD Millions)$2.192 $3.355 $0.160 $1.420
Adjusted EBITDA ($USD Millions)$2.110 $4.013 $2.069 $1.480
Adjusted EBITDA Margin (%)11.3% 23.2% 11.9% 8.6%
Cash from Operations ($USD Millions)$5.540 $2.171 $1.025 $4.515
Cash and Equivalents ($USD Millions)$11.483 $8.987 $9.003 $12.220
Available Credit ($USD Millions)$15.9 total liquidity (breakout NA) $4.3 $3.5 $3.9
Total Liquidity ($USD Millions)$15.9 $13.3 $12.5 $16.1

Notes: Q4 2024 figures are sourced from the Q1 2025 press release tables where applicable; Adjusted EBITDA margin references are taken from highlights and CFO commentary .

Segment/End-Market Mix and KPIs

MetricQ2 2024Q1 2025Q2 2025
Revenue Mix: Aerospace+Marine+Power Generation (%)~62% ~70% ~77%
Aerospace Revenue YoY Growth (%)NA+13% (combined aerospace+marine) +83%
Power Generation Revenue YoY Growth (%)NANA+10%
Marine Execution DetailLNG bunkering with Carnival underway Strong demand across marine Continuing contract perf.; working on Gulf Coast liquefier offtakes
Debt and Lease Obligations Outstanding ($USD Millions)NANA$8.4
Capital Expenditure in Quarter ($USD Millions)NANA$0.6
Distributions received from JV ($USD Millions)NA$—$1.637

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY / Q3None provided None provided Maintained (no formal guidance)
Adjusted EBITDA / MarginsFY / Q3None provided None provided Maintained (no formal guidance)
OpEx / SG&AFY / Q3None provided None provided Maintained
OI&E / Tax RateFY / Q3None provided None provided Maintained
Segment-specificMarine/Aerospace/PowerDirectional only (working on multi-year offtakes; capex to accelerate when finalized) Same directional commentary; no numeric ranges Maintained
DividendsFYNot applicable/not disclosed Not applicable/not disclosed NA

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024 and Q1 2025)Current Period (Q2 2025)Trend
Marine bunkering & Gulf Coast liquefierExecuted industry-first LNG bunkering in Galveston; planning first dedicated Gulf Coast bunkering facility; customer discussions ongoing . Q1: strong marine demand, pursuing strategic opportunities .Performing well on Gulf Coast bunkering (Carnival); negotiating multiyear offtake agreements sufficient to support FID/project financing for Gulf Coast liquefier .Positive momentum toward anchored offtakes and capacity addition.
Aerospace demandAnticipated 2024 aerospace volumes +76% YoY; ~40% market share in high-purity LNG for space launch providers; potential to increase with capacity . Q1: aerospace demand strong, increasing 13% YoY (with marine) .Aerospace revenue +83% YoY; more than doubled in 1H vs prior year; quality requirements favor own liquefiers .Accelerating growth; capacity/quality considerations.
Distributed power / data centersQ1: building capabilities and pursuing opportunities in power generation .Increased interest in LNG as bridge/backup fuel for rising electric demand from data centers; actively engaged with multiple customers .Emerging pipeline; early-stage but expanding.
Liquefaction capacity (George West, Gulf Coast)Q4: expanded Texas storage from 270k to 630k gallons; inland supply chain bolstered .George West can be expanded quickly (long-lead items in hand); Gulf Coast liquefier pre-FEED and engineering underway; sourcing LNG via ~30+ third-party liquefiers as needed .Near-term flex at George West; medium-term Gulf Coast build contingent on offtakes.
Liquidity & capital allocationQ4: $13.3M liquidity; operating cash flow more than doubled YOY; $7.4M growth capex in 2024 . Q1: $12.5M liquidity .Record $16.1M liquidity; ended in net cash (no net debt); capex $0.6M with expectations to accelerate alongside contracts .Strengthening liquidity; poised to invest.

Management Commentary

  • “Demand for our turnkey small-scale LNG solutions remains strong, underpinned by continued growth in commercial space applications… we are prepared to invest in additional LNG infrastructure in response to emerging commercial opportunities.” — Casey Crenshaw, Executive Chairman & Interim CEO .
  • “Approximately 77% of our revenues were derived from aerospace, marine and power generation… Adjusted EBITDA margin was 8.6%… record liquidity position of $16.1M… ended the quarter in a net cash position.” — Andy Puhala, CFO .
  • “We are working on a Gulf Coast liquefier to support the marine market… very large offtake agreements… enough to support FID and project financing.” — Casey Crenshaw .
  • “Distributed power generation… we have supply arrangements with 30+ other liquefiers around the U.S.” — Casey Crenshaw .

Q&A Highlights

  • Offtake agreements timing and magnitude: management expects multiyear, firm-commitment contracts across marine, aerospace, and distributed power; marine offtakes are intended to anchor FID/project financing for Gulf Coast liquefaction capacity .
  • Capacity ramp and sourcing: George West offers quickest capacity expansion given long-lead equipment already purchased; until on-water capacity is built, SLNG can source LNG from >30 third-party liquefiers for distributed power projects and use own liquefiers for high-purity aerospace needs .
  • Marine customer mix: management indicated ongoing cruise customer deliveries and multiple discussions across marine end-markets, but declined to detail all counterparties at this stage .
  • Investor outreach and narrative: management aims to secure contracts to provide specifics for the market; reiterated bullish long-term outlook and desire to avoid quarter-to-quarter minutiae, emphasizing transformative project pipeline .

Estimates Context

  • S&P Global consensus for Q2 2025 was unavailable in our data pull for SLNG (EPS and Revenue). We therefore cannot quantify a beat/miss versus Wall Street for this quarter; future estimate-driven comparisons should be updated once coverage is available via S&P Global data.
  • Note: Values retrieved from S&P Global.
MetricPeriodConsensusActual
Primary EPS Consensus MeanQ2 2025Unavailable (S&P Global)$(0.03)
Revenue Consensus Mean ($USD Millions)Q2 2025Unavailable (S&P Global)$17.309

Key Takeaways for Investors

  • Mix shift toward aerospace/marine/power is real and accelerating; aerospace revenue +83% YoY supports the high-purity LNG moat and potential share gains as capacity expands .
  • Liquidity is at a record ($16.1M), with net cash and robust operating cash flow, giving SLNG dry powder to fund growth pending contract finalizations .
  • The marine offtake agreements are the linchpin for Gulf Coast liquefier FID/project financing; announcements here are likely to be stock-moving catalysts .
  • Near-term margin pressure (8.6% Adjusted EBITDA margin) reflects contract roll-off/nonrecurring items; margin recovery hinges on incremental long-duration contracts and capacity utilization .
  • George West capacity can be expanded quickly to meet demand; distributed power tied to data centers/AI offers optionality via third-party liquefier sourcing and last-mile capabilities .
  • With no formal quantitative guidance, watch for contract awards and capex commitments as leading indicators of revenue/EBITDA trajectory .
  • Tactical implication: in absence of consensus benchmarks, focus on upcoming offtake announcements, marine infrastructure milestones, and aerospace customer wins as triggers; medium-term thesis revolves around scaling small-scale LNG solutions into multi-year demand verticals .

Appendix: Primary Source References

  • Q2 2025 8-K Results Press Release (Item 2.02; Exhibit 99.1): revenues, net income, EBITDA/Adjusted EBITDA, liquidity and operating cash flow; strategic update .
  • Q2 2025 Earnings Call Transcript: segment growth metrics, margin commentary, liquidity detail, offtake/FID/project financing discussion, distributed power and sourcing strategy .
  • Q1 2025 8-K Results Press Release: prior quarter revenue, margins, cash, tables for Q4 2024 comparative figures .
  • Q2 2024 8-K Results Press Release: prior-year context; second-quarter Adjusted EBITDA and strategic updates including marine and aerospace .
  • Q4 2024 8-K Results Press Release: full-year and Q4 highlights including Adjusted EBITDA margin, liquidity .