Stabilis Solutions, Inc.

What they do

Stabilis produces LNG at its own liquefiers — a 100,000 gallon-per-day plant in George West, Texas and a 30,000 gallon-per-day plant in Port Allen, Louisiana — and supplements that supply with purchases from about 31 third-party production sources. It delivers LNG to customer work sites using its own cryogenic trailer fleet and outsourced equipment, a service it markets as a 'virtual natural gas pipeline.' It also rents cryogenic equipment and provides engineering and field support services, and it generates a separate earnings contribution from its 40%-owned Chinese joint venture BOMAY Electric Industries, which is accounted for under the equity method.

Revenue drivers

• LNG Product revenue (production plus transportation and logistics) — The core business: LNG sold and delivered from company-owned liquefiers and third-party supply, with revenue included in a single LNG Product line. Pricing is set off natural gas and competing fuels such as diesel, fuel oil, and propane, and varies with customer volume, contract duration, and credit profile.
• Aerospace customers — Aerospace is called out as the growth driver in Q2 2026, with revenues from those customers up 71% year over year. The company has not disclosed the dollar size of the segment.
• Data center behind-the-meter power generation — A multi-year LNG supply contract for behind-the-meter power generation at a U.S. data center is described as the company's largest customer contract to date, with service starting in early 2027, plus a separate six-month commissioning supply agreement beginning in Q3 2026.
• Marine bunkering and cryogenic equipment/services — Marine is a stated longer-term target via the proposed Galveston facility. Two large multi-year marine and power generation contracts completed in Q4 2025, and their absence is the stated cause of the recent revenue decline; equipment rental and engineering services are sold separately or bundled with LNG supply.

Recent performance

Second quarter 2026 revenue was $11.9 million, down 31.2% from the second quarter of 2025, which the company attributed mainly to the completion of large marine and power generation contracts in Q4 2025, partly offset by aerospace and industrial volume growth. The net loss was $4.6 million, or $0.25 per diluted share, versus a $0.6 million loss a year earlier, and included $2.9 million of vessel charter expense from a marine charter terminated late in the quarter after an anticipated customer commitment did not materialize. Adjusted EBITDA was $0.1 million versus $1.5 million a year ago. Operating cash flow was $7.1 million, including $5.0 million of advance payments from a customer on a contract beginning in early 2027. The sequential quarterly revenue series shows $20.3 million in 2025-09-30, $13.3 million in 2025-12-31, $10.4 million in 2026-03-31, and $11.9 million in 2026-06-30.

Strategy

Management describes 2026 as a transition year, with the business having 'troughed' in the first quarter and building through the second half toward sustainable growth in 2027. The main commercial push is behind-the-meter LNG power generation for U.S. data centers, where the company is investing capital and doing pre-commissioning work for a multi-year contract launching in Q1 2027 and has added a six-month commissioning supply deal starting Q3 2026. On the marine side, the company is developing a proposed 350,000 gallon-per-day waterfront liquefaction facility in Galveston, Texas, intended to raise total liquefaction capacity to 480,000 gallons per day and serve cruise and other marine end markets; it received a U.S. Coast Guard Letter of Recommendation on the Waterway Suitability Assessment for that project, which remains in development. The company also continues to pursue additional data center LNG supply opportunities.

Risks

• Customer concentration and contract roll-off — The 31.2% year-over-year revenue decline in Q2 2026 came from the completion of just two large multi-year marine and power generation contracts in Q4 2025, showing how quickly results move when major contracts end.
• Dependence on a large data center contract not yet started — The multi-year data center contract described as the largest in company history begins in early 2027, so the company is carrying capital investment and pre-commissioning costs before any related revenue is recognized.
• Charter and commitment risk on unconfirmed demand — The company incurred $2.9 million of vessel charter expense in Q2 2026 on a marine charter entered into in anticipation of a customer commitment that never materialized, which drove the net loss for the quarter.
• Project development and execution risk on Galveston — The proposed 350,000 gallon-per-day Galveston facility remains in development and depends on the company's ability to construct and operate new infrastructure and obtain federal, state, and local approvals; the 10-K states the business strategy relies on assumptions subject to economic, competitive, regulatory, and operational uncertainties.

Outlook

Management said Q2 2026 results were in line with expectations and guided to second-half 2026 revenues increasing by more than 50% versus the first half, supported by the new data center commissioning contract and continued aerospace demand. The company expects 2027 to be a record year, with full-year revenues ramping to 'well over $100 million' as the multi-year data center contract launches in early 2027. It also said it expects no further earnings impact from the terminated vessel charter beyond the second quarter.