Financial Data and Key Metrics Changes - The company generated revenue of $40 million for Q1 2025, a decrease from $42.9 million in Q1 2024, primarily due to lower services activity [16] - Adjusted EBITDA for Q1 2025 was $4.5 million, up from $3.7 million in Q1 2024, reflecting improved performance in the fabrication division [16][17] - The cash and short-term investments balance at the end of Q1 2025 was over $67 million, consistent with the previous year-end balance [18] Business Line Data and Key Metrics Changes - Revenue from the Services Division was $19.9 million in Q1 2025, a 22% decrease compared to the same period last year, attributed to lower offshore maintenance activity [17] - The Fabrication Division reported revenue of $20.7 million, a 21% increase year-over-year, driven by higher small-scale fabrication activity [17] - The Corporate Division experienced an EBITDA loss of $2 million, slightly improved from a loss of $2.1 million in the prior year [18] Market Data and Key Metrics Changes - The company noted that macroeconomic uncertainty, including trade policies, has made market outlook difficult to forecast, particularly affecting project award decisions [12][19] - Customers in the Gulf of America are expected to reduce overall capital spending in 2025 due to lower crude demand and margins [13] Company Strategy and Development Direction - The company is focused on pursuing profitable growth, maintaining strong execution, and strategically deploying capital to drive shareholder value [7] - A strategic decision was made to acquire assets from ENGlobal Corporation, which is expected to diversify the business into new end markets and enhance existing offerings [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term market opportunities despite near-term challenges due to macroeconomic headwinds [12][14] - The company anticipates a significant decline in Q2 results compared to Q1, with potential operating losses of $1 million to $2 million during the integration of ENGlobal [19] Other Important Information - The company has maintained a disciplined financial management approach, allowing for continued investment in growth strategies despite economic uncertainties [14] - The acquisition of ENGlobal is expected to provide strategic benefits, including access to new markets and a stronger workforce [11] Q&A Session Summary Question: Can you elaborate on the ENGlobal business unit acquisitions and their customer base? - Management noted that while there is customer overlap, ENGlobal serves onshore projects, providing broader reach with key operators, and opens new markets through government services [24][25] Question: Are customers considering switching to domestic providers due to tariff uncertainties? - Management confirmed that some customers are exploring domestic options for LNG projects due to tariff and supply chain uncertainties, although discussions are currently paused [26][28] Question: What is driving the delays in LNG projects? - Management indicated that the delays are primarily related to minimizing overall costs rather than issues with off-take agreements, as projects are already sanctioned [29][30]

[First Quarter 2025 Performance Overview](index=1&type=section&id=First%20Quarter%202025%20Performance%20Overview) [Q1 2025 Highlights](index=1&type=section&id=Q1%202025%20Highlights) Gulf Island reported consolidated revenue of $40.3 million and a net income of $3.8 million for the first quarter of 2025, with both Services and Fabrication divisions profitable, alongside a strategic agreement to acquire certain ENGlobal Corporation assets Q1 2025 Financial Highlights | Metric | Value | | :--- | :--- | | **Consolidated Revenue** | $40.3 million | | **Consolidated Net Income** | $3.8 million | | **Consolidated EBITDA** | $4.5 million | | **Services Division Operating Income** | $1.6 million | | **Fabrication Division Operating Income** | $3.8 million | - In April, the company entered into an agreement to acquire certain assets of ENGlobal Corporation (ENG) related to its automation, engineering, and government services businesses[5](index=5&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management reported solid Q1 results driven by small-scale fabrication, but anticipates a significant Q2 decline due to macroeconomic uncertainty, while maintaining a strong financial position and proceeding with the strategic ENG acquisition - The market outlook for the remainder of 2025 is challenging due to macroeconomic uncertainty and trade policies, leading to extended decision cycles for fabrication projects and lower capital spending by offshore customers[4](index=4&type=chunk) - A significant decline in second-quarter results compared to the first quarter is anticipated, with profitability expected to be maintained[4](index=4&type=chunk) - The company maintains a strong financial position with over **$67 million in cash and short-term investments** at the end of the quarter[4](index=4&type=chunk) - The acquisition of certain assets from ENGlobal (ENG) is a key strategic initiative aimed at expanding product/service capabilities and diversifying into new end markets, though it is not expected to be accretive to operating results in 2025[4](index=4&type=chunk) [Detailed Financial Results](index=2&type=section&id=Detailed%20Financial%20Results) [Consolidated Results](index=2&type=section&id=Consolidated%20Results) Q1 2025 consolidated revenue slightly decreased to $40.3 million, net income fell to $3.8 million, but Adjusted EBITDA increased to $4.5 million after excluding a prior-year property sale gain Consolidated Financial Performance (Q1 2025 vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | **Revenue** | $40.3M | $42.9M | -6.1% | | **Net Income** | $3.8M | $6.2M | -38.7% | | **Adjusted EBITDA** | $4.5M | $3.7M | +21.6% | [Segment Performance](index=2&type=section&id=Segment%20Performance) In Q1 2025, Fabrication revenue grew 20.7% to $20.7 million, while Services revenue declined 22.2% to $19.9 million, with the Shipyard division's wind-down completed and Corporate reporting a stable operating loss [Services Division](index=2&type=section&id=Services%20Division) The Services Division's Q1 2025 revenue decreased 22.2% to $19.9 million due to reduced offshore maintenance, leading to a fall in operating income to $1.6 million and an EBITDA margin contraction to 10.4% Services Division Performance (Q1 2025 vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | **Revenue** | $19.9M | $25.5M | -22.2% | | **Operating Income** | $1.6M | $2.9M | -44.8% | | **EBITDA** | $2.1M | $3.3M | -36.4% | | **EBITDA Margin** | 10.4% | 13.1% | -2.7 p.p. | [Fabrication Division](index=2&type=section&id=Fabrication%20Division) The Fabrication Division's Q1 2025 revenue increased 20.7% to $20.7 million driven by small-scale activity, with Adjusted EBITDA significantly growing to $4.5 million after excluding a prior-year property sale gain Fabrication Division Performance (Q1 2025 vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | **Revenue** | $20.7M | $17.1M | +20.7% | | **Operating Income** | $3.8M | $4.7M | -19.1% | | **Adjusted EBITDA** | $4.5M | $2.5M | +80.0% | [Former Shipyard Division](index=2&type=section&id=Former%20Shipyard%20Division) The Shipyard division's wind-down was completed in Q1 2025, resulting in no revenue or operating activity compared to the prior year - The wind-down of the Shipyard division was completed in Q1 2025, with the expiration of the final warranty period for its ferry projects[12](index=12&type=chunk) Shipyard Division Performance (Q1 2025 vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Revenue** | $0 | $0.4M | | **Operating Income** | $0 | $0.3M | [Corporate Division](index=2&type=section&id=Corporate%20Division) The Corporate Division reported a slight improvement in operating loss to $2.1 million and EBITDA loss to $2.0 million for Q1 2025 year-over-year Corporate Division Performance (Q1 2025 vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Operating Loss** | $(2.1)M | $(2.2)M | | **EBITDA Loss** | $(2.0)M | $(2.1)M | [Strategic Developments](index=3&type=section&id=Strategic%20Developments) [ENGlobal Corporation Acquisition](index=3&type=section&id=ENGlobal%20Corporation%20Acquisition) On April 15, 2025, Gulf Island agreed to acquire ENGlobal Corporation's automation, engineering, and government services businesses, aiming to broaden offerings and diversify markets with a $4.0 million capital commitment - The acquisition includes ENG's automation, engineering, and government services businesses, with the automation segment having generated approximately **$10.0 million in revenue in 2024**[16](index=16&type=chunk) - Strategic benefits include broadening product offerings, strengthening fabrication with engineering capabilities, and diversifying end markets[16](index=16&type=chunk) Acquisition Financial Details | Metric | Value | | :--- | :--- | | **Total Capital Commitment** | $4.0 million | | **Initial DIP Financing** | $2.5 million | | **Payment for Loan Assumption** | $1.5 million | | **Expected Operating Loss (6-12 months)** | $1.0M - $2.0M | [Financial Statements and Reconciliations](index=2&type=section&id=Financial%20Statements%20and%20Reconciliations) [Balance Sheet and Liquidity](index=2&type=section&id=Balance%20Sheet%20and%20Liquidity) As of March 31, 2025, the company maintained strong liquidity with **$67.5 million in cash and short-term investments** and $19.0 million in debt, while continuing its share repurchase program Key Balance Sheet & Liquidity Metrics (as of March 31, 2025) | Metric | Value | | :--- | :--- | | **Cash & Short-Term Investments** | $67.5 million | | **Restricted Cash** | $1.2 million | | **Total Debt** | $19.0 million | | **Debt Interest Rate** | 3.0% (fixed) | - In Q1 2025, the company repurchased **86,364 shares** of common stock for **$0.6 million**, at an average price of **$6.57 per share**[15](index=15&type=chunk) [Consolidated Financial Tables](index=5&type=section&id=Consolidated%20Financial%20Tables) This section presents the unaudited consolidated financial statements for Q1 2025, including the Income Statement, Balance Sheets, and Cash Flows, with comparative data [Consolidated Results of Operations](index=5&type=section&id=Consolidated%20Results%20of%20Operations) The consolidated income statement for Q1 2025 reports revenue of $40.3 million, gross profit of $6.6 million, net income of $3.8 million, and a diluted EPS of $0.23 Consolidated Results of Operations (in thousands, except per share data) - Q1 2025 | Line Item | Three Months Ended March 31, 2025 | | :--- | :--- | | **Revenue** | $40,273 | | **Gross profit** | $6,615 | | **Operating income** | $3,280 | | **Net income** | $3,827 | | **Diluted income per share** | $0.23 | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets were $138.2 million, total liabilities $41.5 million, and total shareholders' equity increased to $96.7 million from $93.1 million at year-end 2024 Consolidated Balance Sheet Highlights (in thousands) | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $111,580 | $105,409 | | **Total assets** | $138,162 | $133,216 | | **Total current liabilities** | $22,789 | $21,376 | | **Total liabilities** | $41,457 | $40,114 | | **Total shareholders' equity** | $96,705 | $93,102 | [Consolidated Cash Flows](index=9&type=section&id=Consolidated%20Cash%20Flows) For Q1 2025, net cash provided by operating activities was $2.2 million, with net cash used in investing and financing activities, resulting in a net cash increase of $1.4 million Consolidated Cash Flows Highlights (in thousands) - Q1 2025 | Cash Flow Activity | Three Months Ended March 31, 2025 | | :--- | :--- | | **Net cash provided by operating activities** | $2,219 | | **Net cash used in investing activities** | $(300) | | **Net cash used in financing activities** | $(567) | | **Net increase in cash** | $1,352 | [Non-GAAP Measures and Reconciliations](index=3&type=section&id=Non-GAAP%20Measures%20and%20Reconciliations) The company uses non-GAAP measures like EBITDA and adjusted EBITDA to supplement GAAP figures, providing detailed reconciliations to reflect operating performance excluding non-cash and non-recurring items [Explanation of Non-GAAP Measures](index=3&type=section&id=Explanation%20of%20Non-GAAP%20Measures) Non-GAAP metrics such as EBITDA and Adjusted EBITDA are used to clarify operating results by excluding non-cash and non-recurring items, with adjusted revenue and gross profit also presented for ongoing operations - The company believes EBITDA is useful as it shows operating results excluding non-cash depreciation and amortization; Adjusted EBITDA further removes non-recurring items (like property sales) and the results of the discontinued Shipyard division[20](index=20&type=chunk) [Non-GAAP Reconciliations](index=5&type=section&id=Non-GAAP%20Reconciliations) For Q1 2025, adjusted revenue and gross profit equaled GAAP figures due to the Shipyard division's completed wind-down, with Consolidated Adjusted EBITDA reconciled from net income to $4.5 million Consolidated Adjusted EBITDA Reconciliation (in thousands) - Q1 2025 | Line Item | Q1 2025 | | :--- | :--- | | **Net income** | $3,827 | | Income tax expense | $2 | | Interest expense (income), net | $(549) | | Depreciation and amortization | $1,256 | | **EBITDA** | **$4,536** | | Gain on property sale | - | | Shipyard operating income | - | | **Adjusted EBITDA** | **$4,536** |

Core Viewpoint - Gulf Island Fabrication, Inc. reported solid first quarter results for 2025 despite macroeconomic uncertainties, with a focus on strategic actions taken in recent years to maintain financial strength and operational flexibility [4][5]. Financial Performance - Consolidated revenue for Q1 2025 was $40.3 million, a decrease from $42.9 million in Q1 2024. Net income was $3.8 million compared to $6.2 million in the prior year [5][29]. - Adjusted EBITDA for Q1 2025 was $4.5 million, up from $3.7 million in Q1 2024, excluding a prior year gain of $2.9 million from the Fabrication division [5][10]. - The Services division reported revenue of $19.9 million, down 22.2% from the previous year, primarily due to reduced offshore maintenance activity [7][8]. - The Fabrication division saw revenue increase by 20.7% to $20.7 million, driven by higher small-scale fabrication activity [9][10]. Strategic Initiatives - The company is pursuing organic growth initiatives, including a new cleaning and environmental services offering, and has entered into an agreement to acquire certain assets of ENGlobal Corporation, which is expected to enhance its product and service capabilities [4][15][17]. - The total capital commitment for the acquisition of ENG is $4.0 million, with expectations of operating losses in the range of $1.0 to $2.0 million during the integration period [17][18]. Balance Sheet and Liquidity - As of March 31, 2025, the company had cash and short-term investments exceeding $67 million, with total debt of $19 million at a fixed interest rate of 3.0% [13][39]. - The company repurchased 86,364 shares for $0.6 million during the first quarter under its share repurchase program [14]. Market Outlook - The company anticipates a challenging market outlook for the remainder of 2025 due to macroeconomic uncertainties and reduced capital spending by customers in the Gulf of America [4][5].

Core Viewpoint - Gulf Island Fabrication, Inc. is set to report its financial results for the first quarter of 2025 on May 6, 2025, after market close, indicating a focus on transparency and communication with stakeholders [1]. Company Information - Gulf Island is a prominent fabricator of complex steel structures and modules, providing specialty services such as project management, hookup, commissioning, repair, maintenance, scaffolding, coatings, welding enclosures, civil construction, and cleaning and environmental services to the industrial and energy sectors [3]. - The company's clientele includes U.S. energy producers, refining, petrochemical, LNG, industrial and power operators, and EPC companies, highlighting its significant role in the energy sector [3]. - Gulf Island is headquartered in The Woodlands, Texas, with primary operating facilities located in Houma, Louisiana, indicating its geographical focus and operational capabilities [3]. Conference Call Details - A conference call will be held on May 6, 2025, at 4:00 p.m. Central Time to discuss the financial results, demonstrating the company's commitment to engaging with investors and analysts [2]. - The call will be accessible via webcast on the company's website, and participants can also join by phone, ensuring broad accessibility for stakeholders [2].

Financial Data and Key Metrics Changes - For the full year 2024, the company generated revenue of $159 million and adjusted EBITDA of nearly $13 million, converting this to approximately $13 million of free cash flow [9][17] - Consolidated revenue for Q4 2024 was $37.4 million, flat from Q3 2024 but down from $44.6 million in Q4 2023, primarily due to lower services revenue [23] - Adjusted consolidated EBITDA for Q4 2024 was $3.7 million, up from $2.9 million in Q3 2024 but down from $6.6 million in Q4 2023 [24] Business Line Data and Key Metrics Changes - Services division revenue for Q4 2024 was $18.8 million, a decrease of 23% compared to Q4 2023, driven by lower new project awards and delayed project opportunities [25] - Fabrication division revenue for Q4 2024 was $19.6 million, a decrease of $1 million or 4.9% compared to Q4 2023, but showed year-over-year growth when excluding prior year benefits from customer change orders [26] - Corporate division EBITDA was a loss of $2.3 million for Q4 2024, compared to a loss of $2 million in the prior year period, due to higher costs associated with diversification initiatives [28] Market Data and Key Metrics Changes - The company is seeing increased bidding activity in markets outside of oil and gas, such as infrastructure, government, and high-tech manufacturing [9][10] - The lifting of the ban on LNG projects has led to a resumption of activity in the Gulf Coast region, with anticipated construction activity increasing [11][12] - The company expects lower capital spending levels from services customers in the Gulf of America during 2025 due to lower demand for crude [14] Company Strategy and Development Direction - The company is focused on expanding its small-scale fabrication business and diversifying its services, particularly in cleaning and environmental services [9][14] - Capital allocation priorities for 2025 will include investing in organic growth, strategic acquisitions, and potential capital returns to shareholders [19][20] - The company aims to build on its foundation while waiting for the right large project opportunities, maintaining a disciplined approach [13][17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for large-scale fabrication projects, particularly in LNG and nuclear sectors, despite the uncertainty in timing [11][32] - The company anticipates lower full-year 2025 consolidated EBITDA compared to 2024 due to expected lower capital spending by services customers [33] - Management highlighted the resilience of the small-scale fabrication and services business despite market headwinds [17] Other Important Information - The company ended Q4 2024 with approximately $67 million in cash and short-term investments, providing significant liquidity for growth opportunities [28][31] - The company has remaining authorization to repurchase approximately $3.7 million of its common stock under its share repurchase program [29] Q&A Session Summary Question: Opportunities in the fabrication segment - Management noted significant opportunities in LNG projects in Texas and Louisiana, with expectations for momentum in the back half of the year [39][40] - There has been a pickup in activity in nuclear projects, with RFQs being fielded from various customers [43][44] Question: Acquisition opportunities - Management indicated that while there is cash available for acquisitions, the challenge lies in the bid-ask spread between buyers and sellers [46]

Financial Data and Key Metrics Changes - For the full year 2024, the company generated revenue of $159 million and adjusted EBITDA of nearly $13 million, converting this to approximately $13 million of free cash flow [9][17] - Consolidated revenue for Q4 2024 was $37.4 million, flat from Q3 2024 but down from $44.6 million in Q4 2023, primarily due to lower services revenue [23] - Adjusted consolidated EBITDA for Q4 2024 was $3.7 million, up from $2.9 million in Q3 2024 but down from $6.6 million in Q4 2023 [24] Business Line Data and Key Metrics Changes - Services division revenue for Q4 2024 was $18.8 million, a decrease of 23% compared to Q4 2023, primarily due to lower new project awards and delayed Spark Safety project opportunities [25] - Fabrication division revenue for Q4 2024 was $19.6 million, a decrease of $1 million or 4.9% compared to Q4 2023, but showed year-over-year growth when excluding prior year benefits from customer change orders [26] - Services EBITDA for Q4 2024 was $1.4 million, down from $3.2 million in the prior year period, reflecting lower revenue and a less favorable project margin mix [25] Market Data and Key Metrics Changes - The company is seeing increased bidding activity in markets outside of oil and gas, such as infrastructure, government, and high-tech manufacturing, particularly following the success of a NASA project [9][10] - The lifting of the ban on LNG projects has led to a resumption of activity in the Gulf Coast region, with anticipated construction activity expected to increase over the next two to three years [11][12] Company Strategy and Development Direction - The company is focused on expanding its small-scale fabrication business and diversifying its services, while also pursuing strategic acquisitions to enhance growth [18][20] - Capital allocation priorities for 2025 will include investing in organic growth, hiring key personnel, and pursuing acquisition opportunities [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the pickup in bidding activity for large-scale fabrication, although they anticipate that many large projects will not be awarded until the latter half of 2025 [13][32] - The company expects lower capital spending levels from services customers in the Gulf of America during 2025, which may impact overall EBITDA [14][33] Other Important Information - The company ended Q4 2024 with a cash and short-term investments balance of approximately $67 million, consistent with the previous quarter [28] - For the full year 2024, the company generated free cash flow of $12.9 million, with anticipated lower capital needs for 2025 [29][30] Q&A Session Summary Question: Opportunities in the fabrication segment - Management noted significant opportunities in LNG projects in Texas and Louisiana, with expectations for momentum in the latter half of the year [39][40] - There has been a pickup in activity in nuclear projects, although these will take time to materialize [43][44] Question: Acquisition opportunities - Management indicated that while there is cash available for acquisitions, the current bid-ask spread has made it challenging to find suitable opportunities [46]

Revenue Dependence and Customer Concentration - The company’s revenue and profitability are heavily dependent on the offshore oil and gas industry, which is historically cyclical[70]. - In 2024, two customers accounted for 51% of the company’s consolidated revenue, down from 53% in 2023[75]. - The company relies on a small number of customers for a significant portion of its revenue, which poses risks if any major customer reduces spending[75]. - The company remains dependent on the oil and gas industry, which is historically cyclical and subject to volatility in prices, impacting revenue and profitability[112]. Market and Competitive Risks - Competitive pricing in the industry has negatively affected the company’s ability to recover project and overhead costs[76]. - The company faces increased competition from foreign fabricators with lower operating costs and government subsidies[74]. - The competitive labor market has made it difficult to attract and retain skilled personnel, which could affect project execution and profitability[99]. - Increased demand for construction labor has resulted in higher costs, potentially impacting the company's financial condition[100]. Operational Challenges - The company has experienced significant volatility in oil and gas prices, impacting capital expenditures and drilling activities from traditional customers[70]. - The company’s short-term profitability may be impacted by delays in project awards and execution, leading to potential idle workforce costs[78]. - The company’s contracts are often fixed-price or unit-rate, exposing it to risks of cost overruns and variations from estimated performance[79]. - The company’s operations are subject to risks from supply chain disruptions, labor costs, and project execution challenges[72]. - Supplier and subcontractor delays have negatively impacted project results, highlighting the reliance on third parties for raw materials and services[89]. - The company may experience significant delays in deliveries of key raw materials due to inflation and availability issues, which could impact future projects[91]. - The backlog is subject to changes due to delays, suspensions, or terminations, which could significantly impact expected revenue and timing[87]. Financial and Capital Management - The company has not made significant investments in new equipment or refurbishment, leading to potentially higher future repair or replacement costs[86]. - Future capital needs may arise for working capital, capital expenditures, and strategic opportunities, which could impair the company's ability to operate if additional capital cannot be raised[111]. - The company may face challenges in enhancing shareholder value through the share repurchase program due to potential stock price fluctuations and market liquidity issues[109]. - The Board has authorized a share repurchase program of up to $5.0 million, with $3.7 million remaining for repurchases as of now, effective through December 31, 2025[108]. Regulatory and Environmental Risks - Legal and regulatory changes, including tariffs and trade restrictions, may increase costs and disrupt supply chains for the company's fabrication projects[122]. - Compliance with regulatory and environmental laws is becoming increasingly complex and expensive, with potential strict liability for environmental damages[125]. - Regulatory responses to climate change, such as carbon taxes and cap-and-trade regimes, may adversely affect demand for oil and natural gas, impacting the company's services[126]. - Offshore construction and drilling may face restrictions from environmental groups and new regulations, potentially affecting business prospects[127]. - Climate change poses potential physical risks, including increased costs and operational disruptions due to severe weather events, although future financial risks cannot be reliably estimated[124]. Safety and Management Concerns - The company’s safety assurance program is critical to maintaining compliance and preventing injuries, which could otherwise lead to financial losses and reputational harm[104]. - The company’s ability to manage new business lines effectively is uncertain, and failure to do so could reduce shareholder value[106]. - Activist shareholders hold over one-quarter of the company's stock, which could create uncertainty about strategic direction and divert management's attention[128]. Infrastructure and Operational Dependencies - The company’s facilities are vulnerable to physical damage from hurricanes, as evidenced by past experiences with Hurricane Francine[82]. - The company relies on the Houma Navigation Canal for access to open waters, and potential funding issues for dredging could hinder operations[129].

Financial Performance - Consolidated revenue for Q4 2024 was $37.4 million, a decrease of 16.1% from $44.6 million in Q4 2023; adjusted consolidated revenue was $37.3 million, down from $44.0 million[6]. - Consolidated net income for Q4 2024 was $4.3 million, compared to $7.1 million in Q4 2023; adjusted consolidated EBITDA was $3.7 million, down from $6.6 million[7]. - Full year 2024 consolidated revenue was $159.2 million, an increase of 5.4% from $151.1 million in 2023; adjusted consolidated revenue was $158.1 million, down from $181.5 million[8]. - Full year 2024 consolidated net income was $14.7 million, compared to a net loss of $24.4 million in 2023; adjusted consolidated EBITDA was $12.8 million, down from $17.0 million[9]. - Revenue for the three months ended December 31, 2024, was $37,416 thousand, a decrease of 16% from $44,550 thousand in the same period last year[30]. - Net income for the three months ended December 31, 2024, was $4,295 thousand, compared to a net loss of $24,402 thousand for the same period last year, marking a turnaround in profitability[30]. - Basic income per share for the three months ended December 31, 2024, was $0.26, compared to a loss of $1.51 per share in the same period last year[30]. - Adjusted revenue for the twelve months ended December 31, 2024, was $158,138 thousand, down from $181,484 thousand in the previous year, representing a decline of 12.8%[31]. - Adjusted gross profit for the twelve months ended December 31, 2024, was $20,663 thousand, compared to $23,961 thousand for the previous year, reflecting a decrease of 13.3%[32]. - EBITDA for the three months ended December 31, 2024, was $4,840 thousand, compared to a loss of $20,417 thousand for the same period last year, showing a recovery in operational performance[34]. - Adjusted EBITDA for the twelve months ended December 31, 2024, was $12,759 thousand, down from $16,969 thousand in the previous year, indicating a decline of 24.5%[34]. Division Performance - Services division revenue for Q4 2024 was $18.8 million, a decrease of 23.2% from Q4 2023, primarily due to lower new project awards[11]. - Fabrication division revenue for Q4 2024 was $18.7 million, a decrease of 4.9% from Q4 2023, attributed to the prior year including favorable customer change orders[14]. - Services Division revenue for the three months ended December 31, 2024, was $18,824, a decrease of 7.8% from $20,245 in the previous quarter[37]. - Fabrication Division new project awards increased to $22,649 for the three months ended December 31, 2024, up 33.0% from $16,902 in the previous quarter[37]. - EBITDA for the Fabrication Division for the twelve months ended December 31, 2024, was $14,464, an increase of 4.7% compared to $13,807 in the previous year[38]. - Shipyard Division operating income for the three months ended December 31, 2024, was $1,132, compared to a loss of $106 in the previous quarter[37]. Cash and Investments - Cash and short-term investments balance at December 31, 2024, was $67.3 million, providing capacity for investments in growth initiatives and potential shareholder returns[18]. - Cash and cash equivalents decreased to $27,284 as of December 31, 2024, from $38,176 as of December 31, 2023, a decline of 28.5%[44]. - Total cash provided by operating activities for the twelve months ended December 31, 2024, was $18,248,000, up from $7,197,000 in the previous year[45]. - The company reported a net cash increase of $5,678,000 for the three months ended December 31, 2024, compared to an increase of $11,819,000 in the previous quarter[45]. - Cash, cash equivalents, and restricted cash at the end of the period totaled $28,481,000, up from $22,803,000 at the end of the previous quarter[45]. Shareholder Actions - The company repurchased 59,170 shares for $0.3 million at an average price of $5.49 per share during Q4 2024[19]. Future Outlook - The company expects full year 2025 consolidated EBITDA to be less than the adjusted consolidated EBITDA of 2024 due to lower overall capital spending levels indicated by customers[4]. - The wind down of the Shipyard division's operations is expected to be completed in March 2025[16]. Expenses and Liabilities - The company reported a significant reduction in general and administrative expenses, which were $3,698 thousand for the three months ended December 31, 2024, compared to $16,278 thousand for the same period last year[30]. - General and administrative expenses for the Corporate Division for the twelve months ended December 31, 2024, were $8,754, an increase from $8,286 in the previous year[38]. - The Company reported a total operating loss of $2,399 for the Corporate Division for the three months ended December 31, 2024, compared to a loss of $1,780 in the previous quarter[38]. - Total liabilities decreased to $40,114 as of December 31, 2024, from $49,457 as of December 31, 2023, a reduction of 18.5%[44].

Core Insights - Gulf Island Fabrication, Inc. reported its financial results for the fourth quarter and full year 2024, highlighting a focus on enhancing business durability and predictability through small-scale fabrication and diversification beyond oil and gas [4][5]. Financial Performance - Fourth quarter consolidated revenue was $37.4 million, down from $44.6 million in the prior year, while adjusted consolidated revenue was $37.3 million compared to $44.0 million [7][8]. - Full year consolidated revenue increased to $159.2 million from $151.1 million, but adjusted consolidated revenue decreased to $158.1 million from $181.5 million [10][11]. - Consolidated net income for the fourth quarter was $4.3 million, down from $7.1 million, and for the full year, net income was $14.7 million compared to a net loss of $24.4 million in the previous year [9][11]. Division Results - Services Division revenue for Q4 2024 was $18.8 million, a decrease of 23.2% from the previous year, primarily due to lower new project awards and delayed project opportunities [13]. - Fabrication Division revenue for Q4 2024 was $18.7 million, down 4.9% from the prior year, attributed to the absence of favorable customer change orders seen in the previous period [15]. - Shipyard Division revenue for Q4 2024 was $0.1 million, a decrease of $0.4 million, with operations winding down and expected completion by March 2025 [17]. Management Commentary - The CEO emphasized the company's commitment to growth initiatives and maintaining financial flexibility, with a cash and short-term investments balance of over $67 million at year-end 2024 [4][5]. - Looking ahead to 2025, the company anticipates lower overall capital spending levels from customers in the Gulf of America, expecting full year 2025 consolidated EBITDA to be less than the adjusted consolidated EBITDA of 2024 [5]. Balance Sheet and Liquidity - As of December 31, 2024, the company had total debt of $19.0 million with a cash and short-term investments balance of $67.3 million, including $1.2 million of restricted cash [19][38]. - The estimated fair value of the debt is $12.3 million based on market interest rates [19]. Share Repurchase Program - During 2024, the company repurchased 230,938 shares of common stock for $1.2 million under its share repurchase program, averaging $5.21 per share [20].

Company Overview - Gulf Island Fabrication, Inc. is a leading steel fabricator and service provider to the industrial and energy sectors [3] - The company specializes in complex steel structures and modules, offering services such as project management, hookup, commissioning, repair, maintenance, scaffolding, coatings, welding enclosures, civil construction, and cleaning and environmental services [3] - Gulf Island's customer base includes U.S. and international energy producers, refining, petrochemical, LNG, industrial and power operators, and EPC companies [3] - The company is headquartered in The Woodlands, Texas, with primary operating facilities located in Houma, Louisiana [3] Financial Reporting - Gulf Island will report its financial results for the fourth quarter and full year 2024 after the market close on March 4, 2025 [1] - A conference call to discuss the financial results will be held on the same day at 4:00 p.m. Central Time (5:00 p.m. Eastern Time) [2] - The conference call will be accessible via webcast on Gulf Island's website and by phone [2]