Stabilis Solutions Q1 2025: Navigating Contradictions in Backwardation, Growth Plans, and Market Dynamics
Earnings DecryptMonday, May 19, 2025 7:02 am ET
2min read
Backwardation and market conditions, expansion and capacity plans, marine bunkering and commercial contracts, aerospace market development and long-term contracts, liquefaction train deployment and commercial contracts are the key contradictions discussed in Stabilis Solutions' latest 2025Q1 earnings call.
Revenue Decline and Marine Bunkering Impact:
- Stabilis Solutions reported a 12% decrease in revenues for the first quarter of 2025 compared to the same period last year, although revenues were slightly higher than the fourth quarter of 2024.
- The decline was primarily due to the roll-off of a large contract with an industrial customer and a week of planned downtime with a major marine customer, which reduced bunkering events.
Aerospace Revenue Increase:
- The company experienced a 147% increase in revenues from aerospace customers, contributing to a growth of more than 13% year-over-year in marine and aerospace markets.
- This increase was driven by increased activity with a major aerospace customer, demonstrating strong demand in this sector.
Adjusted EBITDA Decline:
- Stabilis Solutions' adjusted EBITDA was $2.1 million during the first quarter, down from $3.1 million in the previous year.
- The decline in adjusted EBITDA was primarily due to lower revenues resulting from the completion of a customer contract.
Operational Cash Flow and Liquidity:
- The company generated $1 million in cash from operations during the first quarter, maintaining a strong liquidity position of $12.5 million at the end of the quarter.
- This cash flow was achieved despite investments in growth initiatives such as potential Gulf Coast expansion, demonstrating the company's financial resilience.
Revenue Decline and Marine Bunkering Impact:
- Stabilis Solutions reported a 12% decrease in revenues for the first quarter of 2025 compared to the same period last year, although revenues were slightly higher than the fourth quarter of 2024.
- The decline was primarily due to the roll-off of a large contract with an industrial customer and a week of planned downtime with a major marine customer, which reduced bunkering events.
Aerospace Revenue Increase:
- The company experienced a 147% increase in revenues from aerospace customers, contributing to a growth of more than 13% year-over-year in marine and aerospace markets.
- This increase was driven by increased activity with a major aerospace customer, demonstrating strong demand in this sector.
Adjusted EBITDA Decline:
- Stabilis Solutions' adjusted EBITDA was $2.1 million during the first quarter, down from $3.1 million in the previous year.
- The decline in adjusted EBITDA was primarily due to lower revenues resulting from the completion of a customer contract.
Operational Cash Flow and Liquidity:
- The company generated $1 million in cash from operations during the first quarter, maintaining a strong liquidity position of $12.5 million at the end of the quarter.
- This cash flow was achieved despite investments in growth initiatives such as potential Gulf Coast expansion, demonstrating the company's financial resilience.
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