Stabilis Solutions' Q4 2024: Navigating Contradictions in Marine Bunkering, Data Centers, and Financial Forecasts

These are the key contradictions discussed in Stabilis Solutions' latest 2024Q4 earnings call, specifically including: Marine Bunkering Expansion Timeline, Data Center Market Focus, Expansion and Financing of Liquefaction Capacity, and G&A Expense Expectations:



Revenue and Market Diversification:
- Stabilis Solutions reported a 4% decrease in revenues for Q4 2024 compared to Q4 2023, with a full-year revenue increase of 0.2% to $73.3 million.
- The decline in Q4 revenues was primarily due to lower oil and gas customer revenues and lower natural gas prices, although it was partly offset by a 35% increase in aerospace revenues, a 23% increase in power generation revenues, and over 500% growth in marine bunkering revenues.
- The company's strategic focus on diversifying its revenue streams by expanding into growth markets like marine, aerospace, and distributed power solutions contributed to this trend.

Operational Efficiency and Adjusted EBITDA:
- Stabilis Solutions achieved a record adjusted EBITDA of $4 million in Q4 2024, representing an increase of $1.1 million compared to the prior year period and a record adjusted EBITDA margin of 23.2%.
- This improvement was driven by enhanced operational efficiency and disciplined capital allocation, contributing to stronger revenue performance in specific sectors.

Capital Expenditures and Infrastructure Development:
- The company directed more than $7 million of its full-year $9.2 million capital expenditures towards growth investments.
- In Q4, Stabilis deployed over $5.5 million for infrastructure development along the U.S. Gulf Coast, relocating an LNG train and expanding storage capacity, in preparation for future growth demands.

Gallons Delivered and Market Dynamics:
- Stabilis delivered over 8 million gallons more to customers in 2024 compared to 2023, with notable growth in the marine bunkering contract initiated in late 2023.
- The timing of growth in the aerospace and marine markets, along with a decline in oil and gas contracts, influenced the year-over-year change in gallons delivered.