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- **ENglobal Acquisition Success**: Diversified into new markets with $1.8M in acquisition costs, early customer interest, and $1.5M-$2M expected H2 losses.
- **$35M Project Win**: Structural steel contract with potential Q4 2025 start, leveraging U.S. manufacturing trends.
- **Financial Resilience**: $62M cash, $19M debt, and $5.3M remaining share buyback capacity despite Q2 revenue decline.
- **Market Momentum**: LNG and petrochemical projects gaining traction as tariffs stabilize, with labor confidence despite Gulf Coast competition.

**【Management Opening Remarks】**
- Cindi Cook welcomed participants and highlighted the release of Q2 2025 results, emphasizing forward-looking statements and non-GAAP financial measures (e.g., EBITDA, adjusted revenue, backlog). She noted the reconciliation of non-GAAP metrics to GAAP in the press release.

**【CEO Commentary】**
- **Q2 Performance**: Revenue of $37.5M and adjusted EBITDA of $1.9M, down from $41.3M and $2.5M in Q2 2024, due to macroeconomic headwinds and slower customer spending.
- **ENglobal Acquisition**: Acquired automation, engineering, and government services businesses to diversify into onshore oil/gas, data centers, and government markets. Early customer reception positive; integration expected to take 6-12 months.
- **Strategic Wins**: Secured a $20M limited notice to proceed for a $35M structural steel project, with potential Q4 fabrication start. Optimistic about LNG, chemical, and marine/civil opportunities.
- **Services Growth**: Expanding into domestic supply and new end markets despite near-term weakness in Gulf of Mexico services.
- **Capital Allocation**: Balancing organic growth, acquisitions (e.g., ENglobal), and shareholder returns via $2.8M share buybacks (leaving $5.3M remaining under 2026 program).

**【CFO Financial Commentary】**
- **Consolidated Results**: Q2 2025 revenue $37.5M (-9% YoY), adjusted EBITDA $1.9M (-24% YoY). Includes $1.8M acquisition costs and $500K post-acquisition losses.
- **Services Segment**: Revenue $22M (-3.5% YoY), EBITDA $2M (9.1% margin vs. 11.7% YoY). Impacted by lower offshore activity and $200K ENglobal losses.
- **Fabrication Segment**: Revenue $15.8M (-15% YoY), EBITDA $1.1M (-39% YoY). Driven by project completions and delays, with $300K ENglobal losses.
- **Liquidity**: $62M cash/short-term investments, $19M debt (14-year term). Strong position to pursue growth and returns.
- **Outlook**: Q3 results similar to Q2, with significant improvement expected in Q4 2025 and 2026. ENglobal expected to incur $1.5M-$2M losses in H2 2025.

**【Q&A Highlights】**
- **End Market Trends**: Increased dialogue in LNG and petrochemical markets due to stabilizing tariffs and U.S. manufacturing policies. Project awards delayed but structural drivers remain intact.
- **Large Project Details**: $35M structural steel project outside oil/gas, leveraging Gulf Island's fabrication expertise. High visibility and time-sensitive execution.
- **Labor Situation**: No significant impact from Gulf Coast projects yet. Confident in ability to attract skilled labor based on prior project success.


Gulf Island Fabrication, Inc. (GIFI) Q2 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

GIFI

GIFI fundamentals

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