New Fortress Energy (NFE) Plunges 42.86% as Q2 2025 Net Loss, $20B LNG Project Collapse, Debt Woes Spur Liquidity Fears

New Fortress Energy (NFE) plunged 42.86% on September 9, hitting an intraday low of 48.57% as investor confidence crumbled amid a cascade of financial and strategic red flags. The sharp selloff followed a Q2 2025 report revealing a $556.8 million net loss, a 29.5% year-over-year revenue decline to $301.7 million, and $699 million in asset and goodwill impairments. Weak performance in core liquefied natural gas infrastructure operations, coupled with the collapse of a $20 billion Puerto Rico LNG project, underscored operational fragility.

Compounding concerns, the company announced strategic reviews to address liquidity challenges, raising fears of restructuring or insolvency. A ninth amendment to its credit agreement extended debt maturity but failed to resolve cash flow issues. Analysts responded with caution, including a downgrade from Johnson Rice to "Hold," citing "weaker-than-expected cash flow generation" and elevated bankruptcy risk. Short interest remained high at 25.67% of the float, reflecting bearish bets on the company’s near-term viability.

Market sentiment turned decisively negative as Puerto Rico’s termination of LNG contract negotiations and delays in regulatory filings highlighted geopolitical and governance risks. Despite asset sales like its Jamaica business, NFE’s reliance on short-term liquidity measures has eroded trust. With analysts slashing earnings estimates and debt burdens persisting, the stock remains vulnerable to further declines until the company demonstrates a credible path to stabilizing its operations and debt structure.