Stabilis Solutions(SLNG) - 2025 Q2 - Quarterly Results

Company Overview 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 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] - Announcement Date: August 6, 2025[1] - Reporting Period: Second quarter ended June 30, 2025[1] - Core Business: Leading provider of clean fueling, production, storage, and last mile delivery solutions[1] About Stabilis Solutions 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] Second Quarter 2025 Performance Highlights Stabilis Solutions reported Q2 2025 performance, emphasizing strategic growth in key markets and summarizing core financial outcomes Management Commentary 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] - Strong demand for turnkey small-scale LNG solutions, underpinned by continued growth in commercial space applications[2] - 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] - Key high-growth aerospace, marine, and power generation markets together increased 15% year-over-year[2] - 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] Strategic and Operational Update 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] - 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] - Consistent cash conversion and efficient cost structure have continued to drive robust free cash flow conversion and a strengthening liquidity position[6] - Invested $1.2 million in capital expenditures for growth initiatives since the beginning of the year[6] Key Financial Summary 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] - 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] - Adjusted EBITDA for Q2 2025 was $1.5 million, compared to $2.1 million in Q2 2024, primarily attributable to lower revenues[8] Consolidated Financial Statements This section presents detailed consolidated operating results, balance sheets, and cash flow statements for Q2 and H1 2025 Selected Consolidated Operating Results 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 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 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] - Acquisition of fixed assets amounted to $1.1 million for the six months ended June 30, 2025[20] Non-GAAP Financial Measures 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 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] 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 This section provides conference call details, cautionary statements regarding forward-looking information, and investor contact details Conference Call and Webcast Details 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] - Date & Time: Thursday, August 7, 2025, at 9:00 a.m. ET[9] - Webcast Link: **https://investors.stabilis-solutions.com/events**[10](index=10&type=chunk) - Conference ID: SLNGQ225[11] - Replay Availability: Through August 14, 2025[11] Cautionary Statements Regarding Forward-Looking Statements 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] - 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] - Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made[14] - 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] Investor Contact For investor inquiries, contact Andrew Puhala, Chief Financial Officer, via phone or email - Contact Person: Andrew Puhala[24] - Title: Chief Financial Officer[24] - Phone: 832-456-6502[24] - Email: ir@stabilis-solutions.com[24]