Gulf Island Reports Second Quarter 2025 Results

Core Insights - Gulf Island Fabrication, Inc. reported a second quarter 2025 revenue of $37.5 million, a decrease from $41.3 million in the same period last year, with a net loss of $0.6 million compared to a net income of $1.9 million in Q2 2024 [5][6][12] - The company achieved an adjusted EBITDA of $1.9 million for Q2 2025, down from $2.5 million in the prior year, reflecting challenges in the offshore services market and lower fabrication activity [5][6][8] - The company completed the Englobal Acquisition, which is expected to enhance its service offerings and profitability in the long term, despite anticipated losses in the short term [4][14][16] Financial Performance - Consolidated revenue for Q2 2025 was $37.5 million, down 9.2% from $41.3 million in Q2 2024 [5][6] - The net loss for Q2 2025 was $0.6 million, compared to a net income of $1.9 million in Q2 2024 [5][6] - Adjusted EBITDA for Q2 2025 was $1.9 million, a decrease of 24% from $2.5 million in the same quarter last year [5][6][31] Division Performance - Services Division revenue was $22.0 million, a decrease of 3.5% from the previous year, primarily due to lower offshore maintenance activity [7][8] - Fabrication Division revenue was $15.8 million, down 15.4% compared to Q2 2024, attributed to reduced small-scale fabrication activity [9][10] - The Corporate Division reported an operating loss of $3.1 million for Q2 2025, compared to a loss of $2.0 million in Q2 2024 [11][12] Acquisition Details - The Englobal Acquisition included assets from ENGlobal Corporation's automation, engineering, and government services businesses, aimed at broadening Gulf Island's service offerings and customer base [14][16] - The total capital commitment related to the acquisition was $5.5 million, with expected post-acquisition losses of $1.5 million to $2.0 million for the remainder of 2025 [16][18] Balance Sheet and Liquidity - As of June 30, 2025, the company had cash and short-term investments totaling $62.2 million, with total debt of $19.0 million at a fixed interest rate of 3.0% [12][35] - The company repurchased approximately 437 thousand shares of common stock for $2.8 million during the quarter, reflecting a commitment to balanced capital allocation [13][12] Market Outlook - Management expressed optimism about improved bidding activity in the fabrication market and the strategic potential of the Englobal Acquisition, anticipating profitability contributions from the acquired business in 2026 and beyond [4][14]