Excelerate Energy 2025 Q2 Earnings Earnings Dip as Net Income Falls 37.6%

Excelerate Energy reported mixed results for Q2 2025, posting a revenue increase while net income declined. The company raised its 2025 adjusted EBITDA guidance to $420–$440 million, reflecting strong operational performance and strategic investments. The earnings report highlights a 11.6% rise in revenue but a 44.4% drop in EPS compared to the prior year.

Revenue

Revenue for Excelerate Energy grew to $204.56 million in Q2 2025, a 11.6% increase from $183.33 million in the same period last year. Leases remained the largest contributor, generating $136.48 million, while contracts with customers added $68.08 million. Regasification and other services contributed $12.35 million, and LNG, gas, and power accounted for $55.72 million, rounding out the revenue mix.

Earnings/Net Income

Despite the revenue gain, Excelerate Energy’s net income fell to $20.77 million in Q2 2025, a 37.6% decrease from $33.28 million in Q2 2024. Earnings per share also declined sharply, dropping to $0.15 from $0.27 a year ago, a 44.4% decline. The earnings performance reflects a challenging market environment, though the company has remained profitable for three consecutive years in this fiscal quarter.

Price Action

The stock price of Excelerate Energy has faced downward pressure across various time frames. It declined 2.18% during the latest trading day, 3.05% over the past week, and 12.75% month-to-date as of August 12, 2025.

Post Earnings Price Action Review

A strategy of buying Excelerate Energy shares when the company beats revenue expectations and holding for 30 days generated an 81.94% return, slightly underperforming the benchmark's 84.92% return. This resulted in an excess return of -2.98%. The Sharpe ratio of 0.41 indicates a reasonable risk-adjusted return, though the maximum drawdown of 0.00% suggests limited downside over the 30-day period, likely due to the short holding window.

CEO Commentary

CEO Steven M. Kobos emphasized the company’s strong operational and financial performance, with the Jamaica acquisition serving as a key driver of growth. He highlighted Excelerate’s focus on contracted, tariff-proof infrastructure and its alignment with U.S. LNG export momentum and energy transition opportunities. Kobos outlined plans to optimize Jamaica's assets for EBITDA growth and invest $200–$400 million to scale infrastructure, aiming for $80–$110 million in incremental EBITDA by 2030. He expressed confidence in the company's ability to return capital to shareholders and execute its strategic vision.

Guidance

Excelerate Energy raised its 2025 adjusted EBITDA guidance to $420–$440 million, incorporating the positive impact of the Jamaica acquisition. The company expects maintenance capital expenditures of $65–$75 million and committed growth capital expenditures of $95–$105 million, largely tied to the purchase of a new LNG carrier. Over the next five years, the company aims to generate $80–$110 million in incremental EBITDA from its Caribbean expansion, with plans to deliver low double-digit annual dividend growth starting in 2026.

Additional News

The Punch newspaper reported on several developments in Nigeria as of August 12, 2025. The nation is losing approximately four million hectares of land annually to deforestation, according to First E&P. President Bola Tinubu met with Governor Kashim Shettima in Abuja, while Kano state awarded N40.8 billion in contracts for 17 road projects. Meanwhile, concerns were raised over a tanker explosion on the Zaria-Kano highway, and Kebbi Polytechnic expressed dissatisfaction with low student enrollment. In business news, marketers increased petrol prices despite a drop in crude oil costs.