Maxim lowers Stabilis Solutions price target to $10, maintains Buy rating

Maxim Group has lowered its price target on Stabilis Solutions (SLNG) to $10 from $12, while maintaining a Buy rating. The firm believes the company will generate free cash flow in 2025 and use it to fund capital expenditure growth in 2026. Stabilis reported Q2 results with revenue and EBITDA below expectations, but gross profit and free cash flow exceeded estimates.

Stabilis Solutions, Inc. (SLNG), a leading provider of liquefied natural gas (LNG) solutions, reported its second-quarter 2025 earnings, showing a notable miss on both earnings per share (EPS) and revenue forecasts. The company posted an EPS of -$0.03, falling short of the expected $0.03, while revenue reached $17.3 million, below the anticipated $18.99 million. Following the earnings release, Stabilis Solutions’ stock price declined by 2.32% to $4.69, reflecting investor disappointment [2].

The company reported a decrease in total revenues of 7% year-over-year, with revenues totaling $17.3 million for the three months ended June 30, 2025. The decrease was primarily due to a 6.9% drop in LNG deliveries and lower rental, service, and other revenues. For the six months ended June 30, 2025, total revenues decreased by 9.7% year-over-year, driven by similar factors [1].

Stabilis Solutions faced a challenging second quarter, with revenues declining by 7% year-over-year. Despite the shortfall, the company demonstrated resilience in its aerospace segment, where revenues more than doubled in the first half of 2025. The focus on last-mile LNG solutions in marine, aerospace, and power generation markets remains a strategic priority, as evidenced by the 77% revenue contribution from these sectors [2].

The company's net income (loss) per common share for the three months ended June 30, 2025, was $(0.03), compared to $0.00 in the same period in 2024. For the six months ended June 30, 2025, net income (loss) per common share was $(0.12), compared to $0.08 in the same period in 2024 [1].

Maxim Group has lowered its price target on Stabilis Solutions (SLNG) to $10 from $12, while maintaining a Buy rating. The firm believes the company will generate free cash flow in 2025 and use it to fund capital expenditure growth in 2026. Stabilis reported Q2 results with revenue and EBITDA below expectations, but gross profit and free cash flow exceeded estimates [3].

References:
[1] https://www.tradingview.com/news/tradingview:3949e62019141:0-stabilis-solutions-inc-sec-10-q-report/
[2] https://www.investing.com/news/transcripts/earnings-call-transcript-stabilis-solutions-misses-q2-2025-earnings-stock-dips-93CH-4177925
[3] [Maxim Group's Analysis]