Stabilis Solutions, Inc. Q1 FY2025 earnings call

• Core end markets include marine bunkering, aerospace, power generation with significant multiyear demand.
• Revenue and adjusted EBITDA declined due to planned downtime and a completed industrial project, but marine and aerospace grew over 13% YOY.
• Actively advancing commercial discussions across end markets, focusing on being a leading small-scale LNG supplier in high-growth sectors with limited traditional LNG infrastructure.
• Making targeted operating expense investments in commercial, technical, and operations teams to support future growth.
• Actively positioning to scale with customers, potential expansion of liquefaction capacity in South Texas and Gulf Coast, with growth-focused costs reflected in results and consistent positive operating cash flow.

Revenue in the first quarter decreased 12% compared to Q1 2024 but was modestly higher than Q4 2024. The decline was primarily due to a large industrial contract roll-off and planned downtime with a marine customer, offset by a 147% increase in aerospace revenues. Marine and aerospace revenues grew over 13% YOY. Approximately 51% of Q1 2025 revenues were from marine and aerospace customers, compared to 39% in Q1 2024. GAAP net loss was $1.6 million or $0.09 per diluted share, vs net income of $1.5 million or $0.08 per diluted share in Q1 2024. Adjusted EBITDA was $2.1 million, down from $3.1 million in Q1 2024. Cash generated from operations was $1 million, and as of March 31, 2025, total cash and equivalents were $9 million with $3.5 million availability under credit facilities and $9.1 million in debt outstanding, resulting in essentially no net debt.

• Actively working on commercial contracts for additional liquefaction train, expecting clarity on contracts in Q2/Q3 2025.
• Expect steady utilization and demand under existing contracts with upside potential as new opportunities convert to signed agreements.
• Focused on maintaining strong balance sheet and liquidity position to fund future growth and capitalize on long-term demand.

• Changes in U.S. trade policy and tariff regimes are not expected to directly impact the business.

Q: On the contracting side, any color on timing of commercial contracts for additional liquefaction train?

A: Casey Crenshaw says they're actively working on contracts, expected clarity in Q2/Q3 2025, timing pushed a bit but no change in expectation.

Q: Types of customer inquiries in power generation?

A: Casey Crenshaw says it's all of the above, including data center reshoring, manufacturing, standby emergency, baseload power; Andrew Puhala adds looking at launch schedules, testing schedules, deliveries of dual fuel/LNG-powered vessels.

Q: Indications of demand for small-scale LNG services?

A: Casey Crenshaw says increased bidding, inbound customer need in aerospace, marine bunkering, distributed power sectors; Andrew Puhala mentions looking at launch schedules, marine vessel deliveries and customer plans.