Koil Energy Solutions, Inc. reported a revenue increase of 6% for the fiscal year ending December 31, 2025, totaling $24.1 million compared to $22.7 million in 2024. The growth was primarily driven by a significant 45% rise in service revenue, which offset a slight decline in product revenue due to delays in large contracts. However, the company's gross profit decreased by 9% to $8 million, attributed to underutilization of personnel and increased costs associated with a new office in Brazil.
The company has made strategic moves, including the opening of a new facility in Macaé, Brazil, which spans 180,000 square feet and focuses on engineering and manufacturing for cable management and umbilicals. This expansion is part of Koil Energy's broader strategy to enhance its service offerings and geographic reach. The company also underwent a name change from Deep Down, Inc. to Koil Energy Solutions, Inc. in 2022, reflecting its commitment to the energy sector.
Operationally, Koil Energy employed 68 individuals as of December 31, 2025, with a focus on attracting skilled labor to support its growth initiatives. The company reported a reserve of $569,000 against receivables, indicating challenges in collecting payments from certain customers. Despite these hurdles, Koil Energy remains optimistic about future demand, particularly in the deepwater and ultra-deepwater markets, which are expected to see increased capital allocation from operators.
Looking ahead, Koil Energy anticipates continued growth driven by rising global energy demand and a resurgence in subsea activity. The company is focused on becoming a leading provider of integrated subsea distribution systems and services. Analysts project a 20% increase in subsea tree awards in 2026, which aligns with Koil Energy's service offerings. The company plans to balance profitability with investment in growth, while also implementing cost containment measures to navigate the inherent volatility in the oil and gas sector.
About Koil Energy Solutions, Inc.
Koil Energy Solutions, Inc. provides equipment and support services for the offshore energy industry, specializing in subsea engineering, manufacturing, installation, and maintenance. Its core products include subsea distribution systems, flying leads, umbilical hardware, and valves. Serving major oil, gas, and renewable energy companies worldwide, it emphasizes technological innovation, reliability, and cost-effectiveness in complex offshore projects.
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