Financial Data and Key Metrics Changes - Third quarter revenue increased by 15% year-over-year, driven by a 21% increase in LNG gallons sold and higher average commodity prices, partially offset by a less favorable customer mix and lower rental and service revenues [9] - Adjusted EBITDA was $2.9 million during the quarter, compared to $2.6 million last year, with an adjusted EBITDA margin of 14.3%, down from 14.6% in the same quarter last year [10] - Cash from operations totaled $2.4 million for the quarter, with liquidity at quarter-end of $15.5 million, consisting of $10.3 million in cash and approximately $5.2 million available under credit facilities [10][11] Business Line Data and Key Metrics Changes - Aerospace revenues increased by more than 88% compared to the same quarter last year, while power generation and marine revenues increased by 31% and 32%, respectively [9] - Approximately 73% of total revenue was derived from aerospace, marine, and power generation customers, up from 60% in the prior year quarter, reflecting continued strength and diversification of demand across these high-growth markets [10] Market Data and Key Metrics Changes - The company capitalized on continued demand for integrated last-mile LNG solutions across markets, with third quarter volume increasing by more than 20% year-over-year [4] - Strong demand trends were noted in marine, aerospace, and power generation sectors, supported by increased commercial space flight activity and robust throughput from cruise activity [4] Company Strategy and Development Direction - The company secured the largest customer contract in its history, a 10-year marine bunkering contract for LNG produced at a proposed facility in Galveston, Texas, with plans to break ground in early 2026 [5][6] - The company aims to construct a Jones Act-compliant LNG bunkering vessel to serve customers in the Port of Galveston and surrounding areas, focusing on building a vertically integrated marine bunkering solution [5] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth opportunities in aerospace and power generation, citing increased demand for distributed power solutions due to domestic investment in new data center capacity [4][17] - The company is focused on executing day-to-day operations to deliver profitable growth while expanding commercial contracts across vertical markets [8] Other Important Information - Capital expenditures totaled $3.9 million, primarily related to early engineering and design work for the Galveston LNG facility and related bunkering vessel [11] - The company is evaluating various financing options for the Galveston project, intending to prioritize a structure that maximizes value creation for shareholders [7] Q&A Session Summary Question: Are there any key permits to watch for regarding the Galveston project? - The company is tracking several permits, including the Texas Railroad Commission and Coast Guard permits, and does not anticipate changes to the timeline [13][14] Question: Can you discuss the end-market demand and capacity expansion for aerospace and power generation? - Management noted strong demand in aerospace due to increased rocket launches and in power generation due to distributed power needs for data centers [15][16] Question: What industry is the late-stage customer in for the marine facility? - The prospective customer is in the cruise industry [19] Question: How does the remaining 15% capacity commitment look? - The remaining capacity could come from multiple customers, including those related to cruise and container ships [20] Question: Was the growth in marine, aerospace, and power generation due to new contracts? - The growth was attributed to a combination of new contracts and existing demand, with expectations for repeatable growth in aerospace [25][26] Question: Is there a strategy change to use more third-party gas? - The company has always utilized third-party supply to build demand and optimize operations, with high utilization of company-owned facilities this quarter [27][28] Question: Will the Galveston project initiate a secondary offering? - Management indicated that while they can fund the project without significant dilution, they may explore capital structure options post-FID [32][35] Question: Is the demand from data centers included in power generation? - Yes, the increased demand from data centers is part of the distributed power solutions being offered [39]

Revenue Performance - LNG Product revenue increased by $3.27 million, or 22.9%, to $17.53 million for the three months ended September 30, 2025, compared to $14.26 million for the same period in 2024[95] - Total revenues for the current quarter were $20.33 million, reflecting a $2.70 million, or 15.3%, increase from $17.63 million in the prior year quarter[95] - Total revenues for the nine months ended September 30, 2025, decreased by $1.0 million, or 2%, to $54.972 million compared to $55.995 million in the prior year[108] - LNG product revenues increased by $1.805 million, or 4.1%, to $46.1 million, while rental and service revenues decreased by 22.8% and 22.3%, respectively[107] Expenses and Income - Cost of revenues rose by $2.1 million, or 17%, to $14.72 million, maintaining 72% of total revenue for both quarters[96] - Net income for the current quarter was $1.12 million, a 12.2% increase from $0.997 million in the prior year quarter[95] - Operating expenses increased by $2.462 million, or 4.5%, totaling $56.708 million, with selling, general, and administrative expenses rising by $1.025 million, or 10.4%[107] - Net income for the nine months ended September 30, 2025, was a loss of $1.092 million, compared to a net income of $2.493 million in the prior year[107] - Selling, general and administrative expenses decreased by $0.3 million, primarily due to lower compensation expenses[99] - The company experienced a decrease in net equity income from foreign joint ventures by $0.2 million due to reduced profits[102] Financing and Investments - The company executed a 10-year bunkering agreement to supply LNG and develop a new 350,000 gallon-per-day liquefaction facility in Galveston, Texas[89] - The company is pursuing financing for the Galveston LNG facility, with no guarantee of successful completion by the required timeframe[89] - Capital expenditures for the nine months ended September 30, 2025, were $5.0 million, primarily for the Galveston expansion and upgrades to existing assets[127] - The company executed a 10-year bunkering agreement to supply LNG for a new 350,000 gallon-per-day liquefaction facility in Galveston, Texas, with project financing to be finalized by Q1 2026[128] Cash Flow and Financial Position - Cash provided by operating activities was $7.934 million, down from $11.522 million in the prior year, a decrease of $3.588 million[123] - As of September 30, 2025, the company had $10.3 million in cash and cash equivalents and $9.5 million in outstanding debt[120] - The company had no off-balance sheet arrangements that could materially affect its financial position as of September 30, 2025[129] Accounting and Reporting - The Company has prepared its financial statements in accordance with U.S. GAAP, requiring estimates and assumptions that impact reported amounts of assets and liabilities[130] - There have been no significant changes in the Company's "Critical Accounting Policies and Estimates" during the three and nine months ended September 30, 2025, compared to the previous year[130] - The Company is classified as a "smaller reporting company" and is not required to provide quantitative and qualitative disclosures about market risk[131] Derivatives and Losses - The company reported an unrealized loss of $19,000 on natural gas derivatives in the current quarter, compared to a loss of $13,000 in the prior year quarter[99]

Financial Performance - Revenues for Q3 2025 were $20.3 million, representing a 15.3% increase year-over-year[4] - Net income for Q3 2025 was $1.1 million, or $0.06 per diluted share, compared to $1.0 million, or $0.05 per diluted share in Q3 2024[8] - Adjusted EBITDA for Q3 2025 increased to $2.9 million, up from $2.6 million in the same quarter last year[9] - Net income for the three months ended September 30, 2025, was $1,119 million, compared to a net loss of $613 million for the previous quarter[21] - EBITDA for the three months ended September 30, 2025, was $2,878 million, significantly higher than $1,420 million in the previous quarter[23] - Adjusted EBITDA for the nine months ended September 30, 2025, reached $6,446 million, compared to $7,795 million for the same period in 2024, indicating a decrease of 17.3%[23] Revenue Breakdown - Revenue from the marine end market surged by 31.5% year-over-year, while aerospace revenue rose by 88.3% and power generation revenue grew by 31.4%[5] Cash Flow and Liquidity - Cash flow from operations was $2.4 million for Q3 2025, slightly down from $2.6 million in Q3 2024[9] - The company had $10.3 million in cash and $5.2 million available under credit agreements as of September 30, 2025[4] - Cash and cash equivalents at the end of the period were $10,305 million, down from $12,220 million at the beginning of the period, reflecting a decrease of 15.6%[21] Assets and Liabilities - Total assets increased to $87,138 million as of September 30, 2025, up from $85,584 million at December 31, 2024, representing a growth of 1.83%[19] - Total current liabilities increased to $13,639 million as of September 30, 2025, compared to $11,627 million at December 31, 2024, marking an increase of 17.3%[19] Project Developments - The company is progressing towards a major LNG liquefaction capacity expansion with a new facility planned in Galveston, Texas[2] - A 10-year marine bunkering agreement has been secured with a global marine operator for LNG supply at the Port of Galveston[2] - Capital expenditures increased during Q3 2025 to support engineering and design work for the Galveston LNG project[2] - A final investment decision for the Galveston LNG project is expected in early 2026[5] Accounts and Expenses - The company reported a depreciation expense of $1,842 million for the three months ended September 30, 2025, slightly lower than $1,860 million in the previous quarter[23] - Accounts receivable increased by $2,721 million during the three months ended September 30, 2025, indicating a rise in outstanding customer payments[21] - The company incurred a bad debt expense of $202 million for the three months ended September 30, 2025, compared to $106 million in the previous quarter[21] Stockholders' Equity - The total stockholders' equity decreased to $66,695 million as of September 30, 2025, down from $67,008 million at December 31, 2024, reflecting a decline of 0.47%[19]

Core Insights - Stabilis Solutions, Inc. reported third quarter 2025 revenues of $20.3 million, reflecting a year-over-year increase of 15.3% [1] - The company achieved a net income of $1.1 million and an adjusted EBITDA of $2.9 million, which is an increase of $0.3 million compared to the previous year [1] - Cash flow from operations was reported at $2.4 million, with total cash of $10.3 million and $5.2 million available under credit agreements as of September 30, 2025 [1] Management Commentary - The Executive Chairman and Interim President & CEO, Casey Crenshaw, highlighted strong operational execution and the company's ability to capitalize on demand for integrated last-mile LNG solutions during the third quarter [1]

Core Insights - Stabilis Solutions, Inc. has entered into a 10-year agreement with a leading investment-grade global marine operator to supply Liquefied Natural Gas (LNG) for marine bunkering operations at the Port of Galveston [1] - This agreement represents Stabilis' first marine bunkering contract for liquefaction supply from its planned expansion along the Texas Gulf Coast [1] Company Developments - The long-term agreement signifies a strategic move for Stabilis Solutions in the clean energy sector, particularly in the LNG market [1] - The partnership with a reputable global marine operator enhances Stabilis' position in the marine bunkering industry [1] Industry Context - The agreement aligns with the growing demand for clean energy solutions in marine operations, reflecting a broader trend towards sustainable energy practices in the maritime sector [1] - Stabilis' expansion along the Texas Gulf Coast is indicative of the increasing infrastructure development for LNG supply in response to market needs [1]

Financial Data and Key Metrics Changes - Revenue during the second quarter decreased by 7% compared to 2024, primarily due to the completion of a large contract with an industrial customer last year [10][11] - Adjusted EBITDA was $1,500,000, down from $2,100,000 in the same quarter last year, with an adjusted EBITDA margin of 8.6%, down from 11.3% [11] - Cash generated from operations was $4,500,000, resulting in a record liquidity position of $16,100,000 at quarter end, consisting of $12,200,000 in cash and approximately $4,000,000 available under credit facilities [12] Business Line Data and Key Metrics Changes - Revenue in the marine, aerospace, and power generation sectors increased by a combined 15% year over year, driven by an 83% increase in aerospace revenues [6][11] - Aerospace revenues more than doubled in the first half of the year compared to the same period in 2024 [7] - Power generation market revenues increased by 10% during the quarter [11] Market Data and Key Metrics Changes - The company is seeing increased interest in LNG as a bridge and backup fueling solution to meet rising electric demand from data centers and other energy-intensive infrastructure [7] - The projected long-term growth in electricity demand is creating a broad range of use cases for LNG solutions [8] Company Strategy and Development Direction - The strategic vision is to build Stabilis into the leading provider of last mile LNG solutions, focusing on becoming the partner of choice for key end markets [8] - The company is actively working on securing long-term customer commitments to support capacity expansion [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth opportunities in marine, aerospace, and power generation sectors, with ongoing commercial discussions progressing well [6][8] - The company is focused on finalizing new contract awards and expects to update investors in the coming months [10] Other Important Information - The company ended the quarter with a net cash position and no net debt, providing strong balance sheet flexibility for strategic capital deployment [12] - Capital expenditures during the quarter were $600,000, with expectations for acceleration in capital commitments as new customer agreements are finalized [12] Q&A Session Summary Question: Inquiry about contractual agreements and potential project financing - Management confirmed that they are working on multiple contracts across marine, aerospace, and power generation sectors, with varying durations from six months to multiple years [14][15] - The contracts are expected to support capital expenditures and project financing for new liquefaction capacity [15] Question: Timing of additional liquefaction capacity - Management indicated that the quickest new capacity could be deployed at the George West facility, with ongoing work on the Gulf Coast liquefier [19][20] Question: Key variables for finalizing marine sector contracts - Management clarified that long-term contracts are essential to underpin project financing for new facilities, which will produce LNG needed for those contracts [22][23] Question: Types of customers in marine contracts - Management stated that discussions are ongoing with multiple end markets in the marine space, primarily focusing on the cruise sector [24] Question: Company’s market positioning and outreach - Management expressed eagerness to communicate the company's growth story and emphasized the importance of securing contracts to generate excitement in the marketplace [32][33]

Core Insights - Stabilis Solutions reported Q2 2025 results with both revenue and net income falling short of expectations, posting a GAAP EPS of ($0.03) against a consensus of $0.01 and revenue of $17.3 million, missing the estimate of $17.84 million by approximately 3.0% [1][2] Financial Performance - Revenue for Q2 2025 was $17.3 million, a decrease of 7.0% from $18.6 million in Q2 2024 [2] - Adjusted EBITDA declined to $1.5 million from $2.1 million, representing a 28.6% decrease [2][7] - Cash flow from operations was $4.5 million, down 10.4% from $5.0 million in the previous year [2] Business Overview and Strategy - Stabilis Solutions focuses on LNG production, storage, transportation, and fueling services primarily in North America, targeting industries such as marine shipping, aerospace, and distributed power generation [3] - The company aims to grow in high-growth markets like marine bunkering, leveraging LNG as a cleaner alternative to conventional fuels [4] Market Dynamics - The revenue mix shifted significantly, with marine, aerospace, and power generation accounting for nearly 77% of total revenue, up from 62% in Q2 2024 [5] - The company signed a two-year bunkering contract for approximately 22 million gallons per year, indicating potential future revenue growth in marine [6] Profitability Challenges - Despite increased commercial activity, profitability metrics declined, with net income turning negative at a loss of $0.6 million compared to a profit in the prior-year quarter [7] - The decline in profitability was attributed to the absence of large-scale projects and a reduction in selling, general, and administrative expenses [7] Financial Health - The balance sheet remained solid with cash and equivalents at $12.2 million and an additional $3.9 million in available credit facilities as of June 30, 2025 [8] - Capital expenditures for the first half of 2025 were $1.2 million, focused on growth projects and operational upgrades [8] Future Outlook - Management did not provide specific quantitative guidance for the remainder of the year but expressed confidence in long-term growth opportunities in marine, aerospace, and power generation sectors [10] - The company emphasized the importance of converting potential deals into signed contracts as a key uncertainty affecting future results [10]

[Part I. Financial Information](index=4&type=section&id=Part%20I.%20Financial%20Information) This section presents the unaudited condensed consolidated financial statements and related disclosures for Stabilis Solutions, Inc. and its subsidiaries [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements for Stabilis Solutions, Inc. and its subsidiaries, including the balance sheets, statements of operations, comprehensive income (loss), stockholders' equity, and cash flows, along with detailed notes providing context on business operations, accounting policies, and specific financial line items [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's financial position, detailing assets, liabilities, and equity at specific points in time Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :-------------- | :------------------ | | Total Assets | $83,244 | $85,584 | | Total Liabilities | $17,762 | $18,576 | | Total Stockholders' Equity | $65,482 | $67,008 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section outlines the company's financial performance over specific periods, presenting revenues, expenses, and net income or loss Condensed Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenues | $17,309 | $18,598 | $34,647 | $38,368 | | Net Income (Loss) | $(613) | $27 | $(2,211) | $1,496 | | Basic and Diluted EPS | $(0.03) | $0.00 | $(0.12) | $0.08 | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) This section details the company's total comprehensive income or loss, including net income and other comprehensive income items Condensed Consolidated Statements of Comprehensive Income (Loss) Highlights (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net Income (Loss) | $(613) | $27 | $(2,211) | $1,496 | | Foreign currency translation adjustment, net of tax | $184 | $52 | $255 | $(414) | | Total Comprehensive Income (Loss) | $(429) | $79 | $(1,956) | $1,082 | [Condensed Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) This section tracks changes in the company's equity over time, reflecting net income, dividends, and other equity transactions Condensed Consolidated Statements of Stockholders' Equity Highlights (in thousands) | Metric | December 31, 2024 | June 30, 2025 | | :-------------------------- | :---------------- | :-------------- | | Total Stockholders' Equity | $67,008 | $65,482 | | Accumulated Deficit | $(35,647) | $(37,858) | | Net Loss (Six Months Ended June 30, 2025) | N/A | $(2,211) | | Stock-based compensation (Six Months Ended June 30, 2025) | N/A | $447 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section summarizes the cash inflows and outflows from operating, investing, and financing activities over a period Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $5,540 | $8,967 | | Net cash used in investing activities | $(911) | $(1,970) | | Net cash used in financing activities | $(1,410) | $(884) | | Net increase in cash and cash equivalents | $3,233 | $6,109 | | Cash and cash equivalents, end of period | $12,220 | $11,483 | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and additional information supporting the condensed consolidated financial statements - The Company operates as an energy transition company providing turnkey clean energy solutions using liquefied natural gas (LNG) to multiple end markets[23](index=23&type=chunk) - The Company holds a **40% interest** in BOMAY Electric Industries, Inc., a Chinese joint venture, which builds power and control systems for the energy industry in China and is accounted for under the equity method[25](index=25&type=chunk) - Management makes estimates and assumptions in preparing the financial statements, including the fair value of equity-based awards, natural gas derivatives, and carrying amount of contingencies[28](index=28&type=chunk) [Note 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION](index=10&type=section&id=Note%201.%20DESCRIPTION%20OF%20BUSINESS%20AND%20BASIS%20OF%20PRESENTATION) This note describes the company's core business, its operational structure, and the accounting principles underlying the financial statements - Stabilis Solutions, Inc. is an energy transition company providing turnkey clean energy production, storage, transportation, and fueling solutions using LNG to diverse end markets[23](index=23&type=chunk)[24](index=24&type=chunk) - The Company's **40% owned** Chinese joint venture, BOMAY Electric Industries, Inc., builds power and control systems for the energy industry in China[25](index=25&type=chunk) - The Company has determined it has a single operating and reporting segment, with the CEO as the Chief Operating Decision Maker[29](index=29&type=chunk) - The Company does not expect the adoption of ASU 2024-03 (effective January 1, 2027) and ASU 2023-09 (effective January 1, 2025) to have a significant impact on its consolidated financial statements[32](index=32&type=chunk)[33](index=33&type=chunk) [Note 2. REVENUE RECOGNITION](index=12&type=section&id=Note%202.%20REVENUE%20RECOGNITION) This note details the company's policies for recognizing revenue from various sources, including LNG product sales, rentals, and services - Revenues are recognized when promised goods or services are delivered and are disaggregated into LNG Product, rental, service, and other categories[35](index=35&type=chunk) Revenue Disaggregated by Source (in thousands) | Revenue Type | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | LNG Product | $14,628 | $14,626 | $28,574 | $30,039 | | Rental | $1,296 | $1,682 | $2,846 | $3,855 | | Service | $1,169 | $1,693 | $2,874 | $3,617 | | Other | $216 | $597 | $353 | $857 | | **Total Revenues** | **$17,309** | **$18,598** | **$34,647** | **$38,368** | Revenue Disaggregated by Geographic Location (in thousands) | Location | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------- | :----------------------------- | :----------------------------- | | United States | $32,958 | $35,880 | | Mexico | $1,689 | $2,488 | | **Total Revenues** | **$34,647** | **$38,368** | [Note 3. PREPAID EXPENSES AND OTHER CURRENT ASSETS](index=14&type=section&id=Note%203.%20PREPAID%20EXPENSES%20AND%20OTHER%20CURRENT%20ASSETS) This note provides a breakdown of the company's prepaid expenses and other current assets, including insurance, supplier expenses, and other receivables Prepaid Expenses and Other Current Assets (in thousands) | Item | June 30, 2025 | December 31, 2024 | | :---------------------------------- | :-------------- | :------------------ | | Prepaid insurance | $294 | $1,044 | | Prepaid supplier expenses | $289 | $167 | | Other receivables | $217 | $204 | | Natural gas derivatives at fair value, current | $0 | $207 | | Deposits | $99 | $129 | | Other | $140 | $151 | | **Total prepaid expenses and other current assets** | **$1,039** | **$1,902** | [Note 4. PROPERTY, PLANT AND EQUIPMENT](index=14&type=section&id=Note%204.%20PROPERTY,%20PLANT%20AND%20EQUIPMENT) This note details the company's property, plant, and equipment, including cost, accumulated depreciation, and depreciation expense Property, Plant and Equipment (in thousands) | Item | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :-------------- | :------------------ | | Cost | $118,596 | $117,246 | | Less: accumulated depreciation | $(69,048) | $(65,518) | | **Property, plant and equipment, net** | **$49,548** | **$51,728** | - Depreciation expense totaled **$3.7 million** for the six months ended June 30, 2025, an increase from **$3.6 million** in the prior year period[46](index=46&type=chunk) [Note 5. INVESTMENT IN FOREIGN JOINT VENTURE](index=15&type=section&id=Note%205.%20INVESTMENT%20IN%20FOREIGN%20JOINT%20VENTURE) This note describes the company's equity investment in BOMAY Electric Industries, Inc., including its operational results and investment activity - The Company holds a **40% interest** in BOMAY Electric Industries, Inc., accounted for using the equity method[47](index=47&type=chunk)[48](index=48&type=chunk) BOMAY's Operational Results (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $29,488 | $22,062 | $51,198 | $39,301 | | Net income | $219 | $770 | $1,180 | $1,307 | Investment in BOMAY Activity (Six Months Ended June 30, 2025, in thousands) | Item | Amount | | :-------------------------------- | :----- | | Balance at December 31, 2024 | $11,659 | | Income from Equity Investment | $537 | | Less: dividend distributions | $(1,637) | | Foreign currency translation gain (loss) | $201 | | **Balance at June 30, 2025** | **$10,760** | - The Company does not believe an impairment of its investment in BOMAY is necessary for the period ending June 30, 2025[50](index=50&type=chunk) [Note 6. ACCRUED LIABILITIES](index=17&type=section&id=Note%206.%20ACCRUED%20LIABILITIES) This note provides a breakdown of the company's accrued liabilities, including compensation, taxes, and other accrued expenses Accrued Liabilities (in thousands) | Item | June 30, 2025 | December 31, 2024 | | :-------------------------- | :-------------- | :------------------ | | Compensation and benefits | $2,902 | $2,408 | | Other taxes payable | $286 | $268 | | Other accrued liabilities | $268 | $890 | | **Total accrued liabilities** | **$3,456** | **$3,566** | - The Company recorded **$1.7 million** in separation-related expenses for the former President and CEO, Mr. Ballard, in the first quarter of 2025, with **$1.0 million** remaining unpaid as of June 30, 2025[52](index=52&type=chunk) [Note 7. DEBT](index=17&type=section&id=Note%207.%20DEBT) This note details the company's debt obligations, including secured term notes, other notes payable, and compliance with debt covenants Debt, Net of Debt Issuance Costs (in thousands) | Item | June 30, 2025 | December 31, 2024 | | :------------------------------------------------- | :-------------- | :------------------ | | Secured term note, net of debt issuance costs | $7,502 | $7,975 | | Insurance and other notes payable | $129 | $883 | | **Total** | **$7,631** | **$8,858** | | Less: amounts due within one year | $(1,295) | $(2,010) | | **Total long-term debt** | **$6,336** | **$6,848** | - The **$10.0 million** Revolving Credit Facility maturity date was extended to June 9, 2028, with **$2.9 million** availability as of June 30, 2025, and no amounts drawn[55](index=55&type=chunk)[56](index=56&type=chunk) - The Company was in compliance with all its debt covenants related to the Revolving Credit Facility and the AmeriState Loan as of June 30, 2025[58](index=58&type=chunk)[61](index=61&type=chunk) [Note 8. RELATED PARTY TRANSACTIONS](index=19&type=section&id=Note%208.%20RELATED%20PARTY%20TRANSACTIONS) This note discloses transactions with related parties, including lease agreements and purchases from entities controlled by company executives - The Company entered into a lease agreement for office space from The Modern Group, controlled by the Executive Chairman, at a market rate of **$28 thousand** per month[64](index=64&type=chunk) Related Party Purchases and Lease Payments (in thousands) | Related Party | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | The Modern Group | $0.1 million | $37 | $0.1 million | $0.1 million | | Chart E&C | $13 | $0.1 million | $0.1 million | $0.3 million | [Note 9. COMMITMENTS AND CONTINGENCIES](index=20&type=section&id=Note%209.%20COMMITMENTS%20AND%20CONTINGENCIES) This note outlines the company's environmental compliance, legal proceedings, and other commitments and contingencies - The Company is subject to federal, state, and local environmental laws and regulations, and believes its operations comply in all material respects[67](index=67&type=chunk) - Management believes the ultimate resolution of various legal actions, claims, and audits will not have a material adverse effect on the Company's financial position, results of operations, or liquidity[68](index=68&type=chunk) [Note 10. STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION](index=20&type=section&id=Note%2010.%20STOCKHOLDERS'%20EQUITY%20AND%20STOCK-BASED%20COMPENSATION) This note details changes in stockholders' equity and the accounting for stock-based compensation, including expense recognition and award grants Stock Compensation Expense (in thousands) | Period | 2025 | 2024 | | :------------------------------- | :--- | :--- | | Three Months Ended June 30 | $0.0 | $0.4 | | Six Months Ended June 30 | $0.4 | $0.8 | - The Company recognized **$0.4 million** in additional non-cash stock compensation expense due to accelerated vesting and amended option exercise terms for the former CEO's equity awards[73](index=73&type=chunk) - No stock-based awards were granted during the six months ended June 30, 2025[71](index=71&type=chunk) [Note 11. NET INCOME PER SHARE](index=22&type=section&id=Note%2011.%20NET%20INCOME%20PER%20SHARE) This note presents the calculation of basic and diluted net income per common share, including the impact of dilutive securities Net Income (Loss) Per Common Share | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Basic and diluted per common share | $(0.03) | $0.00 | $(0.12) | $0.08 | - No dilutive securities were included in the calculation for the six months ended June 30, 2025, as all RSUs had vested and stock options had exercise prices exceeding the market price, making their inclusion anti-dilutive due to the net loss[75](index=75&type=chunk) [Note 12. SUPPLEMENTAL CASH FLOW INFORMATION](index=22&type=section&id=Note%2012.%20SUPPLEMENTAL%20CASH%20FLOW%20INFORMATION) This note provides additional details on cash flow activities, including interest and income taxes paid, and non-cash investing activities Supplemental Disclosure of Cash Flow Information (Six Months Ended June 30, in thousands) | Item | 2025 | 2024 | | :------------------------------------------------- | :--- | :--- | | Interest paid | $285 | $309 | | Income taxes paid | $191 | $403 | | Acquisition of fixed assets included within accounts payable and accrued expenses | $675 | $486 | | ROU assets acquired under operating leases | $425 | $0 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides an overview of Stabilis Solutions' business as an energy transition company, detailing its LNG production, transportation, equipment rental, and engineering services. It analyzes the financial performance for the three and six months ended June 30, 2025, compared to the prior year, highlighting revenue declines, changes in operating expenses, and the company's liquidity position - Stabilis Solutions, Inc. is an energy transition company that provides turnkey clean energy production, storage, transportation and fueling solutions using liquefied natural gas (LNG) to multiple end markets[80](index=80&type=chunk) - The Company generates revenue by selling and delivering LNG, renting cryogenic equipment, and providing engineering and field support services[81](index=81&type=chunk) - The Company received authorization from the DOE in Q3 2022 to export domestically produced LNG to all free trade and non-free trade countries, with initial exports to Europe by June 30, 2025[86](index=86&type=chunk) [Overview](index=23&type=section&id=Overview) This section provides a general description of Stabilis Solutions' business model, including its LNG solutions, liquefaction facilities, and equipment fleet - Stabilis Solutions provides LNG solutions to customers in diverse end markets, including aerospace, agriculture, energy, industrial, marine bunkering, mining, pipeline, remote power and utility markets[80](index=80&type=chunk) - The Company owns and operates two liquefiers in George West, Texas (**100,000 LNG gallons/day**) and Port Allen, Louisiana (**30,000 LNG gallons/day**), and also purchases LNG from third-party sources[82](index=82&type=chunk) - Stabilis operates one of the largest fleets of small-scale LNG equipment in North America, including transportation trailers, vaporizers, storage tanks, and mobile vehicle fuelers[84](index=84&type=chunk) - The Company initiated LNG exports to Europe under its DOE authorization by June 30, 2025[86](index=86&type=chunk) [Results of Operations](index=25&type=section&id=Results%20of%20Operations) This section analyzes the company's financial performance, detailing changes in revenues, cost of revenues, and operating expenses over comparative periods Consolidated Operating Results (Three Months Ended June 30, in thousands) | Metric | 2025 | 2024 | $ Change | % Change | | :------------------------------------------ | :----- | :----- | :------- | :------- | | Total Revenues | $17,309 | $18,598 | $(1,289) | (6.9)% | | Cost of revenues | $12,724 | $13,550 | $(826) | (6.1)% | | Selling, general and administrative expenses | $3,131 | $3,331 | $(200) | (6.0)% | | Net income (loss) | $(613) | $27 | $(640) | n/a | Consolidated Operating Results (Six Months Ended June 30, in thousands) | Metric | 2025 | 2024 | $ Change | % Change | | :------------------------------------------ | :----- | :----- | :------- | :------- | | Total Revenues | $34,647 | $38,368 | $(3,721) | (9.7)% | | Cost of revenues | $25,512 | $27,064 | $(1,552) | (5.7)% | | Selling, general and administrative expenses | $8,064 | $6,787 | $1,277 | 18.8% | | Net income (loss) | $(2,211) | $1,496 | $(3,707) | n/a | - The increase in selling, general and administrative expenses for the six months ended June 30, 2025, was primarily due to **$2.1 million** in severance-related expenses for the former CEO[107](index=107&type=chunk) [Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024](index=25&type=section&id=Three%20Months%20Ended%20June%2030,%202025%20Compared%20to%20Three%20Months%20Ended%20June%2030,%202024) This section compares the company's financial performance for the three months ended June 30, 2025, against the same period in the prior year - Revenues decreased by **$1.3 million (7%)** due to decreased LNG gallons delivered (**$1.5 million** decrease) and lower rental, service, and other revenues (**$1.3 million** decrease), partially offset by increased revenues from higher natural gas prices (**$1.5 million** increase)[92](index=92&type=chunk) - Cost of revenues decreased by **$0.8 million (6%)**, primarily due to decreased LNG gallons delivered (**$1.0 million** decrease) and lower rental, service, and other costs (**$0.5 million** decrease), partially offset by higher natural gas pricing (**$1.5 million** increase)[92](index=92&type=chunk)[93](index=93&type=chunk) - Net equity income from foreign joint venture operations decreased by **$0.2 million (83.1%)** due to decreased net profits by the joint venture[98](index=98&type=chunk) [Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024](index=28&type=section&id=Six%20Months%20Ended%20June%2030,%202025%20Compared%20to%20Six%20Months%20Ended%20June%2030,%202024) This section compares the company's financial performance for the six months ended June 30, 2025, against the same period in the prior year - Revenues decreased by **$3.7 million (10%)** due to decreased LNG gallons delivered (**$3.6 million** decrease), lower rental, service, and other revenues (**$2.3 million** decrease), and unfavorable customer pricing mix/lower take-or-pay revenues (**$0.3 million** decrease), partially offset by increased revenues from higher natural gas prices (**$2.5 million** increase)[104](index=104&type=chunk) - Cost of revenues decreased by **$1.6 million (6%)**, primarily due to decreased LNG gallons delivered (**$2.4 million** decrease) and lower rental, service, and other costs (**$1.0 million** decrease), partially offset by higher natural gas pricing (**$2.5 million** increase)[104](index=104&type=chunk)[105](index=105&type=chunk) - Selling, general and administrative expenses increased by **$1.3 million (18.8%)**, with **$2.1 million** attributed to severance-related expenses for the former CEO, partially offset by lower other compensation expense[107](index=107&type=chunk) [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) This section assesses the company's ability to meet its short-term and long-term financial obligations, including cash flows, debt, and capital requirements - The Company's principal sources of liquidity are cash from operations, cash on hand, and distributions from its BOMAY joint venture[113](index=113&type=chunk) - As of June 30, 2025, the Company had **$12.2 million** in cash and cash equivalents, **$8.4 million** in outstanding debt and lease obligations, and **$3.9 million** in total availability under its debt agreements[115](index=115&type=chunk) - The Revolving Credit Facility maturity date was extended to June 9, 2028, with **$2.9 million** availability at June 30, 2025, and no amounts drawn[114](index=114&type=chunk)[115](index=115&type=chunk) - Management believes current liquidity is sufficient for the next twelve months but continues to evaluate additional financing for future growth or expansion[116](index=116&type=chunk) [Cash Flows](index=31&type=section&id=Cash%20Flows) This section summarizes the cash generated from or used in operating, investing, and financing activities for comparative periods Cash Flows Summary (Six Months Ended June 30, in thousands) | Activity | 2025 | 2024 | Change ($k) | | :-------------------------------- | :----- | :----- | :---------- | | Net cash provided by operating activities | $5,540 | $8,967 | $(3,427) | | Net cash used in investing activities | $(911) | $(1,970) | $1,059 | | Net cash used in financing activities | $(1,410) | $(884) | $(526) | [Future Cash Requirements](index=33&type=section&id=Future%20Cash%20Requirements) This section outlines the company's anticipated cash needs for operations, capital expenditures, debt, and potential strategic initiatives - Cash is required to fund operating expenses, working capital, capital expenditures, debt repayments, equipment maintenance, and potential mergers and acquisitions or market expansion[121](index=121&type=chunk) - Capital expenditures for the six months ended June 30, 2025, were **$1.1 million**, primarily for liquefaction assets, refurbishments, upgrades, and rolling stock[122](index=122&type=chunk) - The Company may pursue additional financing activities, such as refinancing existing debt, obtaining new debt, or debt/equity offerings, but there is no assurance of availability on acceptable terms[121](index=121&type=chunk) [Off-Balance Sheet Arrangements](index=33&type=section&id=Off-Balance%20Sheet%20Arrangements) This section confirms the absence of material off-balance sheet arrangements that could significantly impact the company's financial position - As of June 30, 2025, the Company had no transactions that met the definition of off-balance sheet arrangements that would have a current or future material effect on its financial position, operating results, liquidity, cash requirements, or capital resources[123](index=123&type=chunk) [Critical Accounting Policies and Estimates](index=33&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section discusses the significant accounting policies and estimates that require management's judgment and can materially affect financial reporting - The Company's financial statements are prepared in accordance with U.S. GAAP, requiring management to make estimates and assumptions that affect reported amounts[124](index=124&type=chunk) - There have been no significant changes in the Company's critical accounting policies and estimates during the three and six months ended June 30, 2025, from those disclosed in the 2024 Annual Report on Form 10-K[124](index=124&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=34&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a 'smaller reporting company,' Stabilis Solutions, Inc. is not required to provide quantitative and qualitative disclosures about market risk in this report - The Company is exempt from providing quantitative and qualitative disclosures about market risk as it qualifies as a 'smaller reporting company'[125](index=125&type=chunk) [Item 4. Controls and Procedures](index=34&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the principal executive and financial officers, concluded that the Company's disclosure controls and procedures were effective as of June 30, 2025. There have been no material changes in internal control over financial reporting during the last fiscal quarter - The principal executive officer and principal financial officer concluded that the Company's disclosure controls and procedures were effective as of June 30, 2025[126](index=126&type=chunk) - There have been no changes in internal control over financial reporting that materially affected or are reasonably likely to materially affect internal control over financial reporting during the last fiscal quarter[127](index=127&type=chunk) [Part II. Other Information](index=34&type=section&id=Part%20II.%20Other%20Information) This section provides additional information not covered in the financial statements, including legal proceedings, risk factors, and exhibits [Item 1. Legal Proceedings](index=34&type=section&id=Item%201.%20Legal%20Proceedings) The Company is involved in various legal proceedings and claims in the normal course of business. Management believes that the ultimate resolution of these matters will not have a material effect on the Company's financial position or results of operations - The Company may become party to various legal actions that arise in the ordinary course of its business[129](index=129&type=chunk) - Management's opinion is that the ultimate resolution of these matters will not have a material effect on the Company's financial position or results of operations[129](index=129&type=chunk) [Item 1A. Risk Factors](index=34&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors disclosed in the 2024 Form 10-K, except for the addition of a new risk factor concerning the potential adverse effects of changes in U.S. trade policy, including tariffs, on the Company's business and results of operations - No material changes in risk factors from the Company's Annual Report on Form 10-K for the year ended December 31, 2024, except for one addition[130](index=130&type=chunk) - A new risk factor highlights that changes in U.S. trade policy, including tariffs, may have a material adverse effect on the Company's business and results of operations by potentially reducing demand for LNG or increasing operating costs[131](index=131&type=chunk) [Item 5. Other Information](index=34&type=section&id=Item%205.%20Other%20Information) No officers or directors adopted, modified, or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the fiscal quarter ended June 30, 2025 - None of the Company's officers or directors adopted, modified, or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the fiscal quarter ended June 30, 2025[132](index=132&type=chunk) [Item 6. Exhibits](index=35&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including organizational documents, registration rights agreements, and certifications from the principal executive and financial officers, along with XBRL-related documents - Exhibits include Amended and Restated Articles of Incorporation and Bylaws, Registration Rights Agreements, and Description of Securities[133](index=133&type=chunk) - Certifications from the Principal Executive Officer and Principal Financial Officer (Rule 13a-14(a) / 15d-14(a) and Section 1350) are filed[133](index=133&type=chunk) - Interactive XBRL Instance Document and Taxonomy Extension documents are included[133](index=133&type=chunk) [Signatures](index=36&type=section&id=Signatures) The report is officially signed by J. Casey Crenshaw, Interim President, Chief Executive Officer and Director, and Andrew L. Puhala, Chief Financial Officer, on behalf of Stabilis Solutions, Inc. on August 6, 2025 - The report was signed by J. Casey Crenshaw, Interim President, Chief Executive Officer and Director (Principal Executive Officer)[136](index=136&type=chunk) - The report was signed by Andrew L. Puhala, Chief Financial Officer (Principal Financial Officer)[136](index=136&type=chunk) - The signing date for the report was August 6, 2025[136](index=136&type=chunk)

[Company Overview](index=1&type=section&id=Company%20Overview) Stabilis Solutions, Inc. announced its Q2 2025 financial results, highlighting its position as a leading provider of clean fueling and delivery solutions [Q2 2025 Results Announcement](index=1&type=section&id=Q2%202025%20Results%20Announcement) Stabilis Solutions, Inc. announced its financial results for the second quarter ended June 30, 2025, positioning itself as a leading provider of clean fueling and delivery solutions - Company: **Stabilis Solutions, Inc. (Nasdaq: SLNG)**[1](index=1&type=chunk) - Announcement Date: **August 6, 2025**[1](index=1&type=chunk) - Reporting Period: **Second quarter ended June 30, 2025**[1](index=1&type=chunk) - Core Business: Leading provider of clean fueling, production, storage, and last mile delivery solutions[1](index=1&type=chunk) [About Stabilis Solutions](index=3&type=section&id=About%20Stabilis%20Solutions) Stabilis Solutions specializes in providing clean fueling, production, storage, and last-mile delivery solutions for high-performance brands - Stabilis Solutions is a leading provider of clean fueling, production, storage, and last mile delivery solutions for many of the world's most recognized, high-performance brands[11](index=11&type=chunk) [Second Quarter 2025 Performance Highlights](index=1&type=section&id=Second%20Quarter%202025%20Performance%20Highlights) Stabilis Solutions reported Q2 2025 performance, emphasizing strategic growth in key markets and summarizing core financial outcomes [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlighted continued progress in long-term business development, strong demand for small-scale LNG solutions, and growth in key markets (marine, aerospace, power generation) despite a year-over-year revenue decline due to a completed large project. The company remains focused on generating operating cash flows and maintaining a strong balance sheet for future investments - Continued advancement of long-term business development and growth strategy, deepening customer engagement across marine, aerospace, and power generation end-markets[2](index=2&type=chunk) - Strong demand for turnkey small-scale LNG solutions, underpinned by continued growth in commercial space applications[2](index=2&type=chunk) - Total revenue declined year-over-year in Q2 2025 due to the successful completion of a large, short-duration commercial project late in 2024[2](index=2&type=chunk) - Key high-growth aerospace, marine, and power generation markets together increased **15% year-over-year**[2](index=2&type=chunk) - Focus on generating operating cash flows and maintaining a strong balance sheet and liquidity, with over **$16 million in cash and available liquidity** as of Q2 2025[2](index=2&type=chunk) [Strategic and Operational Update](index=1&type=section&id=Strategic%20and%20Operational%20Update) Stabilis demonstrated strong momentum in high-growth markets, with revenue mix from marine, power generation, and aerospace increasing significantly. The company also maintained consistent cash conversion, supporting balance sheet versatility and growth investments, including $1.2 million in capital expenditures year-to-date - Revenue mix in high-growth marine, power generation, and aerospace end-markets increased from **62% to nearly 77% of total revenue** in Q2 2025[6](index=6&type=chunk) - Demand within these end-markets is driven by multi-year trends such as the commercialization of the aerospace industry and the transition of marine vessels to LNG[6](index=6&type=chunk) - Consistent cash conversion and efficient cost structure have continued to drive robust free cash flow conversion and a strengthening liquidity position[6](index=6&type=chunk) - Invested **$1.2 million in capital expenditures** for growth initiatives since the beginning of the year[6](index=6&type=chunk) [Key Financial Summary](index=1&type=section&id=Key%20Financial%20Summary) For Q2 2025, Stabilis reported revenues of $17.3 million, a net loss of ($0.6) million, and Adjusted EBITDA of $1.5 million. Cash flow from operations was $4.5 million, with $12.2 million in cash and $3.9 million in credit availability Q2 2025 Key Financial Metrics | Metric | Amount (Millions) | | :-------------------------- | :---------------- | | Revenues | $17.3 | | Net loss | ($0.6) | | Adjusted EBITDA | $1.5 | | Cash flow from operations | $4.5 | | Cash and cash equivalents (as of June 30, 2025) | $12.2 | | Availability under credit agreements (as of June 30, 2025) | $3.9 | - Revenue for Q2 2025 was **$17.3 million**, a decrease of **7%** compared to Q2 2024, primarily due to the completion of a large industrial customer contract, partly offset by higher revenues from aerospace and power generation customers[4](index=4&type=chunk) - Net loss for Q2 2025 was **($0.6) million** (or **($0.03) per diluted share**), compared to net income of **$27 thousand** (or **$0.00 per diluted share**) in Q2 2024, reflecting lower net revenues partly offset by a **$0.2 million reduction** in selling, general and administrative expenses[7](index=7&type=chunk) - Adjusted EBITDA for Q2 2025 was **$1.5 million**, compared to **$2.1 million** in Q2 2024, primarily attributable to lower revenues[8](index=8&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) This section presents detailed consolidated operating results, balance sheets, and cash flow statements for Q2 and H1 2025 [Selected Consolidated Operating Results](index=4&type=section&id=Selected%20Consolidated%20Operating%20Results) For the three months ended June 30, 2025, Stabilis reported revenues of $17.3 million, a net loss of ($0.6) million, and an operating loss of ($0.47) million before equity income. This represents a decrease in revenue and a shift from net income to net loss compared to the prior year period Selected Consolidated Operating Results (Three Months Ended June 30, in thousands) | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :---------------------------------- | :------ | :------ | :----------- | | Revenues | $17,309 | $18,598 | -7.04% | | Cost of revenues | $12,724 | $13,550 | -6.09% | | Selling, general and administrative expenses | $3,131 | $3,331 | -6.01% | | Income (loss) from operations before equity income | ($466) | $103 | N/A | | Net income (loss) | ($613) | $27 | N/A | | Basic and diluted per common share | ($0.03) | $0.00 | N/A | | EBITDA | $1,420 | $2,192 | -35.22% | | Adjusted EBITDA | $1,480 | $2,110 | -29.86% | Selected Consolidated Operating Results (Six Months Ended June 30, in thousands) | Metric | H1 2025 | H1 2024 | Change (YoY) | | :---------------------------------- | :------ | :------ | :----------- | | Revenues | $34,647 | $38,368 | -9.69% | | Cost of revenues | $25,512 | $27,064 | -5.74% | | Selling, general and administrative expenses | $8,064 | $6,787 | +18.81% | | Income (loss) from operations before equity income | ($2,529) | $1,482 | N/A | | Net income (loss) | ($2,211) | $1,496 | N/A | | Basic and diluted per common share | ($0.12) | $0.08 | N/A | | EBITDA | $1,580 | $5,547 | -71.52% | | Adjusted EBITDA | $3,549 | $5,213 | -31.92% | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets decreased to $83.2 million from $85.6 million at December 31, 2024. Cash and cash equivalents increased, while accounts receivable and property, plant, and equipment (net) decreased. Total liabilities also saw a slight decrease Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change | | :---------------------------------- | :-------------- | :---------------- | :----- | | Cash and cash equivalents | $12,220 | $8,987 | +$3,233 | | Accounts receivable, net | $4,397 | $6,239 | -$1,842 | | Total current assets | $17,836 | $17,473 | +$363 | | Property, plant and equipment, net | $49,548 | $51,728 | -$2,180 | | Total assets | $83,244 | $85,584 | -$2,340 | | Total current liabilities | $11,341 | $11,627 | -$286 | | Total liabilities | $17,762 | $18,576 | -$814 | | Total stockholders' equity | $65,482 | $67,008 | -$1,526 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash provided by operating activities was $5.5 million, a decrease from $9.0 million in the prior year. Net cash used in investing activities was $0.9 million, and net cash used in financing activities was $1.4 million. The net increase in cash and cash equivalents was $3.2 million Condensed Consolidated Statements of Cash Flows (Six Months Ended June 30, in thousands) | Metric | H1 2025 | H1 2024 | Change | | :---------------------------------- | :------ | :------ | :----- | | Net cash provided by operating activities | $5,540 | $8,967 | -$3,427 | | Net cash used in investing activities | ($911) | ($1,970) | +$1,059 | | Net cash used in financing activities | ($1,410) | ($884) | -$526 | | Net increase in cash and cash equivalents | $3,233 | $6,109 | -$2,876 | | Cash and cash equivalents, end of period | $12,220 | $11,483 | +$737 | - Distributions from equity investment in joint venture contributed **$1.6 million** to operating cash flow for the three months ended June 30, 2025[20](index=20&type=chunk) - Acquisition of fixed assets amounted to **$1.1 million** for the six months ended June 30, 2025[20](index=20&type=chunk) [Non-GAAP Financial Measures](index=7&type=section&id=Non-GAAP%20Financial%20Measures) This section reconciles non-GAAP financial measures, including EBITDA and Adjusted EBITDA, for the three and six months ended June 30, 2025 [Reconciliation of EBITDA and Adjusted EBITDA](index=7&type=section&id=Reconciliation%20of%20EBITDA%20and%20Adjusted%20EBITDA) Stabilis provides EBITDA and Adjusted EBITDA as supplemental non-GAAP measures. For Q2 2025, EBITDA was $1.4 million and Adjusted EBITDA was $1.5 million. Adjusted EBITDA for Q2 2025 includes adjustments for unrealized gain/loss on natural gas derivatives and severance expenses - EBITDA and Adjusted EBITDA are non-GAAP measures used by management to assess the performance and operating results of the business[21](index=21&type=chunk) EBITDA and Adjusted EBITDA Reconciliation (Three Months Ended June 30, in thousands) | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :-------------------------- | :------ | :------ | :----------- | | Net income (loss) | ($613) | $27 | N/A | | Depreciation | $1,860 | $1,768 | +5.20% | | Interest expense (income), net | ($24) | ($28) | N/A | | Income tax (benefit) expense | $197 | $425 | -53.65% | | **EBITDA** | **$1,420** | **$2,192** | **-35.22%** | | Special items* | $60 | ($82) | N/A | | **Adjusted EBITDA** | **$1,480** | **$2,110** | **-29.86%** | *Special items for Q2 2025 consist of adjustments related to unrealized (gain)/loss on natural gas derivatives. EBITDA and Adjusted EBITDA Reconciliation (Six Months Ended June 30, in thousands) | Metric | H1 2025 | H1 2024 | Change (YoY) | | :-------------------------- | :------ | :------ | :----------- | | Net income (loss) | ($2,211) | $1,496 | N/A | | Depreciation | $3,727 | $3,568 | +4.46% | | Interest expense (income), net | ($45) | ($24) | N/A | | Income tax (benefit) expense | $109 | $507 | -78.50% | | **EBITDA** | **$1,580** | **$5,547** | **-71.52%** | | Special items* | $1,969 | ($334) | N/A | | **Adjusted EBITDA** | **$3,549** | **$5,213** | **-31.92%** | *Special items for H1 2025 include $2.1 million related to Mr. Ballard's severance expenses and a subtraction of $0.1 million for a gain related to a property damage settlement, in addition to natural gas derivatives adjustments. [Additional Information](index=2&type=section&id=Additional%20Information) This section provides conference call details, cautionary statements regarding forward-looking information, and investor contact details [Conference Call and Webcast Details](index=2&type=section&id=Conference%20Call%20and%20Webcast%20Details) Stabilis Solutions will host a conference call on August 7, 2025, at 9:00 a.m. ET to discuss Q2 2025 financial results, with webcast access available via the company's investor relations website - Event: **Q2 2025 Conference Call and Webcast**[9](index=9&type=chunk) - Date & Time: **Thursday, August 7, 2025, at 9:00 a.m. ET**[9](index=9&type=chunk) - Webcast Link: **https://investors.stabilis-solutions.com/events**[10](index=10&type=chunk) - Conference ID: **SLNGQ225**[11](index=11&type=chunk) - Replay Availability: Through **August 14, 2025**[11](index=11&type=chunk) [Cautionary Statements Regarding Forward-Looking Statements](index=3&type=section&id=Cautionary%20Statements%20Regarding%20Forward-Looking%20Statements) The press release contains forward-looking statements subject to risks and uncertainties, and actual results may differ materially from expectations. Readers are cautioned not to place undue reliance on these statements, and the company does not undertake to update them unless required by law - This press release includes 'forward-looking statements' within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995[12](index=12&type=chunk) - Actual events, performance, or results could differ materially from those discussed due to factors such as future demand for and price of LNG, availability and price of natural gas, unexpected costs, and general economic conditions[13](index=13&type=chunk) - Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made[14](index=14&type=chunk) - Stabilis does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statement to reflect any change in their expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law[14](index=14&type=chunk) [Investor Contact](index=7&type=section&id=Investor%20Contact) For investor inquiries, contact Andrew Puhala, Chief Financial Officer, via phone or email - Contact Person: **Andrew Puhala**[24](index=24&type=chunk) - Title: **Chief Financial Officer**[24](index=24&type=chunk) - Phone: **832-456-6502**[24](index=24&type=chunk) - Email: **ir@stabilis-solutions.com**[24](index=24&type=chunk)

Financial Data and Key Metrics Changes - Revenue during the first quarter decreased by 12% compared to the first quarter of 2024, but was modestly higher than the fourth quarter of 2024 [12] - GAAP net loss was $1,600,000 or $0.09 per diluted share, compared to net income of $1,500,000 or $0.08 per diluted share in the first quarter of 2024 [13] - Adjusted EBITDA was $2,100,000, down from $3,100,000 in the first quarter of last year, with an adjusted EBITDA margin of 11.9%, down from 15.7% [13] Business Line Data and Key Metrics Changes - Revenue in marine and aerospace markets grew by more than 13% year over year, primarily driven by increased activity with a major aerospace customer [6] - Approximately 51% of revenues were derived from marine and aerospace customers compared to 39% in the first quarter of last year [12] - Power generation revenues remained consistent with Q1 of 2024 [12] Market Data and Key Metrics Changes - The company is focused on expanding its position as a leading small-scale LNG supplier within high-growth sectors, including marine bunkering, aerospace, and power generation [5][6] - The company is actively evaluating the potential expansion of liquefaction capacity in South Texas and along the Gulf Coast [8] Company Strategy and Development Direction - The company aims for long-term growth across core end markets supported by significant multiyear demand [5] - The strategy includes making targeted operating expense investments to support future growth while generating consistent positive operating cash flow [7] - The company remains focused on maintaining a strong balance sheet and liquidity position to fund future growth [9] Management's Comments on Operating Environment and Future Outlook - Management noted that the decline in revenues was primarily due to planned downtime with a key marine customer and the completion of a major project [5] - The company expects steady utilization and demand under existing contracts with potential upside as new opportunities are converted into signed agreements [8] - Management expressed optimism about the growth in commercial aerospace activity and the increasing demand for LNG as a propellant in the space industry [34] Other Important Information - Cash generated from operations during the first quarter was $1,000,000, representing a conversion rate of 50% of adjusted EBITDA [14] - Capital expenditures were $5,000,000, with about 70% allocated to growth initiatives [14] - As of March 31, 2025, the company had total cash and equivalents of $9,000,000 and $3,500,000 available under credit facilities, with total debt outstanding of $9,100,000 [15] Q&A Session Summary Question: Update on contracting side and liquefaction train deployment - Management is actively working on commercial contracts and expects to provide clarity on the timing for final investment decisions in the second or third quarter of this year [21] Question: Customer inquiries in power generation - Management indicated that inquiries are coming from various sectors, including data centers, reshoring manufacturing, and emergency power needs, with a focus on distributed power opportunities [23][24] Question: Details on bunkering operation downtime - The downtime was due to planned maintenance on vessels, which occurs for one week out of the year, affecting bunkering events [30] Question: Indicators of demand for small-scale LNG services - Management noted increased bidding and inbound customer needs in aerospace, marine bunkering, and distributed power markets as indicators of rising demand [32] Question: Impact of SpaceX's plans on demand - Management highlighted the normalization of commercial aerospace activity and the increasing use of LNG as a propellant for rockets as positive indicators for growth in the space industry [34]