Stabilis Solutions Q2 2026 Earnings Call Summary

1Key Financial Results and Metrics

Revenue: $11.9 million, down 31% year-over-year, primarily due to the completion of large contracts in 2025.

Adjusted EBITDA: $0.1 million, a decline from $1.5 million in Q2 2025, impacted by $2.9 million in extraordinary vessel charter costs (now terminated).

Cash Flow: $7.1 million from operations, including $5 million in advanced payments for a future data center contract.

Liquidity: Total liquidity at $18.9 million, with unrestricted cash of $4.5 million and $5 million available under a revolving credit facility.

Capital Expenditures: $2.3 million, focused on equipment for upcoming projects.

2Strategic Updates and Business Highlights

Market Recovery: Notable recovery in business activity following a low point in Q1 2026, with significant growth in aerospace (LNG volumes up 79% year-over-year) and industrial sectors (up 67%).

New Contracts: Secured a contract to supply LNG for a U.S. data center, expected to begin in Q3 2026, with potential for extension beyond the initial six-month term.

Future Growth: Anticipated revenue growth from new contracts, particularly in data center commissioning and bridge power projects, with expectations for a 50% increase in second half revenues compared to the first half of 2026.

Long-term Outlook: Projected record revenues and profitability for 2027, driven by a major contract expected to generate $100 million annually.

3Forward Guidance and Outlook

2026 Outlook: Expect steady revenue and profitability improvements in the second half, with a focus on executing new contracts and capitalizing on growing demand in data centers and aerospace.

2027 Projections: Anticipate revenues exceeding $100 million, with expectations of adjusted EBITDA margins expanding into the high teens as operational efficiencies improve.

4Bad News, Challenges, or Points of Concern

Revenue Decline: Significant year-over-year revenue drop due to the end of major contracts, raising concerns about short-term financial stability.

Galveston LNG Project Delays: Timeline for the Galveston project has extended, with no firm date for a final investment decision, dependent on securing commercial agreements and financing.

Market Competition: The aerospace sector has historically not committed to long-term contracts, which may limit revenue predictability and growth potential.

5Notable Q&A Insights

Data Center Contracts: Different phases (construction, commissioning, bridge power) have varying revenue profiles, with bridge projects offering the most significant revenue opportunities.

Aerospace Growth: While current contracts are short-term, there is potential for longer-term agreements as demand tightens and launch cadences stabilize.

Backup Power Opportunities: Currently, most data centers rely on diesel for backup power, but there is a growing trend towards using LNG, which could present significant future opportunities. Overall, Stabilis Solutions is positioned for growth in the latter half of 2026 and into 2027, driven by new contracts and a recovery in key markets, despite facing challenges related to revenue declines and project delays.