Stabilis Solutions (SLNG 3.19%), a provider of small-scale liquefied natural gas (LNG) production, distribution, and fueling services, reported Q2 2025 results on August 6, 2025. The key news was that Both revenue and net income (GAAP) fell short of expectations. The company posted GAAP EPS of ($0.03), missing the $0.01 analyst consensus, and revenue of $17.3 million, which underperformed the $17.84 million estimate by about 3.0%. Results were partly shaped by the completion of a significant one-time customer contract, which reduced overall revenue despite notable gains in targeted marine, aerospace, and power generation markets. In summary, Stabilis Solutions made progress in shifting its business toward higher-growth sectors, but struggled to compensate for revenue loss from large, lumpy projects and faced a decline in profitability metrics.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | ($0.03) | $0.01 | $0.00 | — |
| Revenue (GAAP) | $17.3 million | $17.84 million | $18.6 million | (7.0 %) |
| Adjusted EBITDA | $1.5 million | $2.1 million | (-28.6 %) | |
| Cash Flow from Operations | $4.5 million | $5.0 million | (10.4 %) |
Source: Analyst estimates for the quarter provided by FactSet.
Business Overview and Strategy
Stabilis Solutions provides LNG production, storage, transportation, and fueling services, focused on North America. It primarily serves industries where LNG is becoming a leading alternative fuel, such as marine shipping, aerospace, and distributed power generation.
The company is targeting high-growth markets like marine bunkering, where LNG replaces conventional marine fuels to comply with stricter emissions regulations. It seeks to grow its customer base by offering turnkey LNG solutions, benefiting from cost and operational advantages over traditional fuels. Key success factors for Stabilis include developing new client relationships, maintaining competitive pricing, and consistently delivering LNG safely and efficiently.
Quarter Highlights and Performance Drivers
The revenue mix changed significantly, marking progress toward business transformation. Marine, aerospace, and power generation together accounted for nearly 77% of total revenue, up from 62% in Q2 2024. However, this expansion did not fully replace revenue lost after a large, short-term industrial contract ended at the close of 2024, contributing to the 7.0% company-wide revenue decline compared to Q2 2024.
Segment data shows that the transition to serving customers in new markets, like marine LNG fuel supply, remains a key theme. Within marine, the company’s recent two-year bunkering contract for about 22 million gallons per year, signed during Q4 2023, along with a strong pipeline of LNG-powered vessel orders as of December 31, 2024, signal possible future revenue growth. In aerospace, Stabilis benefits from higher rocket launch rates and increased testing demand, as LNG is used as a propellant for modern commercial launches. For distributed power generation, rising power needs from digital and industrial customers help drive project volume, but deals are often smaller and timelines unpredictable.
Despite higher commercial activity in core markets, profitability declined. Adjusted EBITDA fell from $2.1 million to $1.5 million. Net income (GAAP) turned negative, with a reported loss of $0.6 million, reversing a small profit in the prior-year quarter. The company attributed these results to the lack of a repeat large-scale project and a $0.2 million reduction in selling, general and administrative expenses, which partly offset the decrease in net income.
The balance sheet remained solid. Cash and equivalents were $12.2 million as of June 30, 2025, with an additional $3.9 million in available credit facilities. Operating cash flow remained positive at $4.5 million. Capital expenditures reached $1.2 million in the first half of 2025, mainly directed toward growth projects and operational upgrades.
Looking Ahead
For the rest of the year, management did not provide detailed quantitative guidance for expected revenue or earnings. The leadership team did reiterate confidence in the long-term growth opportunities in marine, aerospace, and power generation verticals. However, they acknowledged that moving new projects from potential deals to signed contracts is a key uncertainty that could impact results moving forward.
Investors should closely monitor developments in new contract wins, especially those that could fill gaps left by completed one-off projects. The company’s emphasis remains on maintaining liquidity, deploying targeted capital expenditures, and building deeper client relationships.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
