KOIL Energy Reports Third Quarter 2025 Results

Core Insights - KOIL Energy Solutions reported a revenue of $6.4 million for Q3 2025, reflecting a 22% growth compared to both the previous quarter and the same quarter last year [4][18] - The company has successfully entered the renewables sector, securing significant contracts, including a project for spooling subsea power cables for an offshore wind farm [2][5] - The gross margin for the quarter was 32%, down from 40% in Q3 2024, attributed to a higher mix of pass-through procurement costs [7][18] Financial Performance - Revenue for the three months ending September 30, 2025, was $6.4 million, a 22% increase year-over-year, with service revenue growing by 33% and fixed-price contracts increasing by 15% [4][18] - Gross profit totaled $2.1 million, maintaining the dollar amount from the previous year but reflecting a margin decline due to increased costs [7][18] - Adjusted EBITDA was reported at -3% of revenue, equating to a loss of $249,000, primarily due to a write-off of a receivable from a UK client [8][21] Strategic Developments - KOIL Energy has secured its first contracts in Brazil, including a maintenance survey and a rental equipment agreement, marking a significant step in its growth strategy [6][18] - The company is proactively managing project contingencies to address cost volatility and protect profit margins [9] Operational Highlights - The company recognized its service team for successfully executing a significant contract in the renewables sector, receiving positive client feedback [5] - Selling, general, and administrative expenses increased to $2.5 million, largely due to a write-off of a receivable [7][18]