Stabilis Solutions Q2 Earnings Call Highlights

Stabilis Solutions (NASDAQ:SLNG) reported second-quarter 2026 revenue of $11.9 million, down approximately 31% from the prior-year period, as large marine and power-generation contracts concluded in late 2025. The company said growing aerospace and industrial activity partially offset the impact of those completed agreements.

Adjusted EBITDA was $0.1 million, compared with $1.5 million a year earlier. Chief Financial Officer Andy Puhala said adjusted EBITDA excluded approximately $2.9 million in vessel charter costs associated with an LNG bunkering vessel leased in late 2025 for a prospective marine customer. The charter was terminated late in the second quarter, and Puhala said Stabilis does not expect further profit-and-loss impact from the vessel beyond the reported quarter.

Data Center Contracts Expected to Drive Second-Half Recovery

Executive Chairman and Interim President and CEO Casey Crenshaw said the first quarter represented the company’s low point for 2026 following the expiration of two major multiyear contracts at the end of 2025. Activity strengthened in the second quarter, he said, with aerospace LNG volumes rising 79% year over year and 87% sequentially. Non-power-generation industrial volumes increased more than 67% year over year.

Stabilis expects revenue and profitability to improve in both the third and fourth quarters as recently awarded contracts begin service and replace demand from the completed contracts. Crenshaw said second-half revenue is expected to increase by more than 50% compared with the first half of 2026.

During the quarter, the company secured a contract to provide behind-the-meter LNG for power generation during commissioning of another U.S. data center. The arrangement is expected to last about six months, though Crenshaw said it could extend beyond that period. In response to an analyst question, he said equipment was being deployed and LNG deliveries were expected to begin in August.

Management described four potential phases of data center-related business: construction, commissioning, bridge power during operations, and long-term backup generation. Construction projects can last roughly 24 months but involve comparatively lower fuel volumes, according to Crenshaw. Commissioning projects are generally associated with 50-megawatt to 75-megawatt power requirements and commonly last about six months, Puhala said.

Bridge-power opportunities can run from one to five years, depending on the timing of grid or pipeline connections. Crenshaw said the largest revenue opportunities in Stabilis’ current commercial funnel are bridge-power projects, while construction and commissioning represent the highest number of opportunities.

2027 Contract and Revenue Expectations

Stabilis expects to begin deliveries early in 2027 under what Crenshaw described as the company’s largest contract to date: a behind-the-meter bridge-power project for a U.S. data center. The contract extends into early 2029 and is expected to generate approximately $100 million of annual revenue over its two-year term.

As of the end of the second quarter, Stabilis had received $20 million in customer prepayments for equipment, mobilization and project readiness. Puhala said the company received an additional $5 million early in the third quarter, completing the $25 million of advance payments due under the contract.

Driven primarily by that project, management expects 2027 revenue to exceed $100 million and said it anticipates a record year in both revenue and profitability. While the company did not provide formal 2027 guidance, Puhala said Stabilis expects the larger revenue base to generate meaningful adjusted EBITDA growth and adjusted EBITDA margin expansion into the high teens as projects ramp up.

The company said its model uses a combination of internally produced LNG, purchased LNG, logistics, mobile equipment, engineering and field services. Crenshaw said current power-generation contracts are being supplied largely with third-party LNG, allowing Stabilis to pursue larger projects without building production capacity in advance. Puhala added that contracts are designed to pass through commodity-price risk.

Aerospace Demand Continues to Grow

Aerospace revenue increased 71% from the second quarter of 2025, according to Puhala. Crenshaw said launch activity among commercial space customers continues to rise and that Stabilis has supplied LNG to three rocket-launch customers so far in 2026. The company is in discussions to add a fourth customer later this year.

Management said it has visibility into approximately the next 18 months of aerospace demand but has not yet secured substantial longer-term contracts. Crenshaw attributed the lack of fixed-volume commitments partly to inconsistent launch schedules and ongoing research and development across rocket operators. Puhala said tighter domestic small-scale LNG supply as data center demand grows could potentially encourage customers to make longer-term supply commitments.

Liquidity and Galveston Project Progress

Cash flow from operations totaled $7.1 million in the second quarter, including $5 million of restricted advance payments for the data center project beginning in the first quarter of 2027. Capital expenditures were $2.3 million, primarily for data center-related equipment and infrastructure as well as engineering and design work for the proposed Galveston LNG facility.

At quarter-end, Stabilis had total liquidity of $18.9 million, including $4.5 million of unrestricted cash and $5 million of availability under its revolving credit agreement.

On the proposed Galveston LNG bunkering project, Crenshaw said the company is not yet able to provide a firm date for a final investment decision, which depends on obtaining commercial offtake and an appropriate financing structure. In July, the U.S. Coast Guard issued a letter of recommendation on the project’s Waterway Suitability Assessment, covering the facility and related barge transit routes. Crenshaw called the action a meaningful regulatory milestone while emphasizing that marine bunkering is only one component of Stabilis’ broader growth plans.

About Stabilis Solutions (NASDAQ:SLNG)

Stabilis Solutions (NASDAQ: SLNG) is a U.S.-based marketer and distributor of cryogenic liquid products and liquefied natural gas (LNG). The company operates a nationwide network of terminals and bulk delivery assets, supplying industrial gases such as liquid oxygen, nitrogen and argon, as well as specialty products including carbon dioxide and hydrogen. Stabilis Solutions serves a broad array of end markets—from food and beverage processing to environmental applications and power generation—by ensuring a reliable chain of custody from production to point of use.

In addition to its cryogenic gas portfolio, Stabilis Solutions has developed a growing LNG business, providing clean-fuel solutions for heavy-duty transportation and on-site energy needs.

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