KOIL Energy Reports First Quarter 2025 Results

Core Insights - Koil Energy Solutions, Inc. reported first quarter 2025 results that fell short of expectations after four consecutive quarters of strong performance, attributing the decline to increased base costs and volatility in fixed-price contracts [2][4] - The company generated revenue of $5.3 million, a 9% decrease from the previous year, with EBITDA of $339,000, resulting in a 6% margin [2][10] - The gross margin was 31%, impacted by increased headcount and lower labor utilization, leading to a net income close to break-even [2][10] Financial Performance - Revenue for Q1 2025 was $5.3 million compared to $5.8 million in Q1 2024, marking a 9% decline [10] - EBITDA decreased by $394,000 year-over-year, with adjusted EBITDA for Q1 2025 at $339,000 compared to $734,000 in Q1 2024 [10][13] - The company reported a net loss of $29,000 for Q1 2025, contrasting with a net income of $576,000 in the same quarter of the previous year [10][13] Operational Highlights - Two-thirds of recent growth in service contracts was linked to the installation of equipment built in the previous year, indicating the success of the company's bundling strategy [3] - Order intake and bidding activity have significantly increased, suggesting positive momentum for the remainder of 2025 [3][4] - The company plans to focus on improving financial execution, workforce utilization, and disciplined working capital management in upcoming quarters [4] Balance Sheet Overview - As of March 31, 2025, the company had working capital of $5.1 million, accounts receivable of $4.9 million, and cash on hand of $2.2 million [2][10] - Total assets increased to $19.2 million from $18.7 million at the end of 2024, while total liabilities rose slightly to $10.6 million [12]