New Fortress Energy 2025 Q1 Earnings Disappointing Performance as Net Income Plummets 448%

New Fortress Energy(NFE) reported its fiscal 2025 Q1 earnings on Jun 30th, 2025. New Fortress Energy's financial results for Q1 2025 fell short of expectations with a significant drop in revenue and a net loss, contrasting sharply with the prior year's performance. The company raised guidance, increasing its FY 2025 EBITDA expectations, which signals optimism for future growth despite current challenges. Investors should closely monitor the company’s strategic moves and market conditions to gauge potential recovery.

Revenue
New Fortress Energy's total revenue for Q1 2025 was $430.32 million, representing a 34.4% decrease from the $656.16 million reported in the same quarter of the previous year. Operating revenue contributed $384.88 million, while vessel charter revenue accounted for $45.44 million. Additionally, other revenue segments added $40.22 million, culminating in total revenues of $470.54 million.

Earnings/Net Income
New Fortress Energy reported a net loss of $197.37 million in Q1 2025, a stark contrast to the $56.67 million profit recorded in Q1 2024. Earnings per share swung to a loss of $0.73 from a profit of $0.26, marking a significant negative change. The EPS indicates poor performance compared to the previous year.

Price Action
The stock price of New Fortress Energy has jumped 10.67% during the latest trading day, has surged 62.75% during the most recent full trading week, and has surged 17.31% month-to-date.

Post-Earnings Price Action Review
The investment strategy of acquiring NFE stock when its revenues surpass expectations, then holding for 30 days, has historically resulted in poor outcomes. This approach has yielded a substantial negative excess return of -166.92%, along with a compounded annual growth rate (CAGR) of -41.23%, significantly underperforming the benchmark. The strategy also experienced a considerable maximum drawdown of -96.67%, emphasizing the high risk and negative returns involved. The Sharpe ratio of -0.55 further underscores the unfavorable risk-to-return profile. Investors should exercise caution, as the strategy demonstrates pronounced volatility and potential for significant losses, suggesting the need for alternative investment approaches.

CEO Commentary
New Fortress Energy's CEO emphasized robust liquidity, highlighting pro forma liquidity of over $1.1 billion and a focus on refinancing the balance sheet with high-quality cash-flow assets. The CEO noted the strategic importance of long-term supply contracts generating nearly $500 million in annual margin, positioning the company for sustainable cash flows. Additionally, the CEO acknowledged challenges, including refinancing uncertainties and delays in the FLNG #2 project, while maintaining an optimistic outlook on growth opportunities, particularly in Puerto Rico's energy market and Brazil's power auctions, reinforcing the commitment to disciplined capital expenditure management.

Guidance
New Fortress Energy updated its guidance for FY 2025, raising EBITDA expectations to a range of $1.25 billion to $1.5 billion. The company maintained SG&A at $30 million per quarter, with asset sales targeted at $2 billion in net proceeds. There is a forecasted $110 million incentive payment from Puerto Rico and a $25 million annual capacity payment from the CELBA power plant. Pro forma liquidity is projected to exceed $1.1 billion, with plans for corporate debt refinancing over the next 12 months.

Additional News
New Fortress Energy (NFE) has been actively reshaping its business landscape through strategic moves. Recently, the company finalized the sale of its Jamaican assets and operations to Excelerate Energy for $1.055 billion, which includes the LNG import terminal in Montego Bay and other facilities. This move is aimed at reducing corporate debt and optimizing financial stability. Furthermore, NFE has engaged in a three-year charter agreement for its FSRU Energos Freeze with Energía 2000 S.A. in the Dominican Republic, aligning with its strategy to expand energy access in the Caribbean. Amidst these operational adjustments, the company has received a notice from Nasdaq for non-compliance due to delayed filing of its Form 10-Q, although efforts are underway to resolve this issue swiftly.