Gulf Island Reports Third Quarter 2025 Results

Core Insights - Gulf Island Fabrication, Inc. reported strong third-quarter results for 2025, with revenue of $51.5 million, an increase from $37.6 million in the prior year period, and adjusted EBITDA of $2.5 million, down from $2.9 million [4][6]. Financial Performance - Consolidated revenue for Q3 2025 was $51.5 million, compared to $37.6 million in Q3 2024, representing a year-over-year increase of 37.9% [6]. - Net income for Q3 2025 was $1.6 million, a decrease from $2.3 million in Q3 2024 [6]. - Adjusted EBITDA for Q3 2025 was $2.5 million, down from $2.9 million in the prior year [6]. - The Services Division generated revenue of $21.5 million, a 6.2% increase from the previous year, primarily due to the Englobal government services business [7]. - The Fabrication Division saw revenue of $30.6 million, a significant increase of 78.6% compared to Q3 2024, driven by large structural steel components projects [10]. Division Performance - Services Division operating income was $0.8 million, down from $1.4 million in Q3 2024, with EBITDA of $1.3 million, a decrease from $1.9 million [8]. - Fabrication Division operating income was $2.1 million, slightly up from $2.0 million in Q3 2024, with EBITDA increasing to $2.9 million from $2.7 million [11]. - The Corporate Division reported an operating loss of $1.8 million for both Q3 2025 and Q3 2024, with adjusted EBITDA losses of $1.7 million [12]. Strategic Developments - The company is focusing on business diversification, highlighted by the acquisition of Englobal and contracts in infrastructure and government services, such as the rebuild of the Francis Scott Key Bridge [5]. - Gulf Island entered into a definitive agreement to be acquired by IES Holdings, Inc., with shareholders expected to receive $12.00 per share in cash upon completion of the transaction [16]. Balance Sheet and Liquidity - As of September 30, 2025, the company had cash and short-term investments totaling $64.6 million, with total debt of $19.0 million at a fixed interest rate of 3.0% [13]. - The estimated fair value of the debt was $13.3 million based on market interest rates [13]. Share Repurchase Activity - During Q3 2025, the company repurchased 42,761 shares for $0.3 million at an average price of $6.75 per share, but has suspended further repurchases due to the pending acquisition [14].