Koil Energy Solutions Reports 78% Revenue Growth to $9.2 Million in Latest Quarter

Koil Energy Solutions, Inc. reported significant financial growth in its latest quarterly results, with revenues reaching $9.2 million for the three months ended June 30, 2026, a 78% increase from $5.2 million in the same period last year. For the first half of 2026, revenues totaled $17.4 million, up 67% from $10.4 million in the prior year. The increase was primarily driven by a rise in both fixed-price project revenues and service work, with new customers contributing approximately $3 million, or 32% of total revenue, during the quarter.

The company's cost of sales also increased, rising 81% to $6.2 million in the second quarter, which was consistent with the higher revenue activity. This resulted in a gross profit of $2.98 million, reflecting a slight decrease in gross profit margin to 32% from 33% year-over-year. Selling, general, and administrative expenses increased by 17% to $2.3 million, attributed to higher personnel costs and legal expenses. Net income for the quarter was $652,000, compared to $61,000 in the prior year, marking a substantial improvement in profitability.

In terms of operational developments, Koil Energy has expanded its service offerings and capabilities, particularly in subsea umbilical handling and maintenance projects. The company secured a significant contract in Brazil, marking its entry into the country's deepwater market, which is expected to enhance its position as a preferred provider in the region. Additionally, Koil acquired a new mobile carousel to support its project execution, further strengthening its operational capacity.

The company’s balance sheet showed total assets of $23.9 million as of June 30, 2026, up from $19.8 million at the end of 2025. Current liabilities also increased to $8.5 million, compared to $5.1 million at the end of the previous year, primarily due to higher accounts payable and accrued expenses. Koil Energy's cash position decreased to $922,000 from $1.5 million, reflecting cash used in operations and investments in capital expenditures.

Looking ahead, Koil Energy anticipates continued growth driven by increased demand for its services in the offshore energy sector. The company is focused on maintaining adequate liquidity through cash flows from operations and its new asset-based lending facility with nFusion Capital Finance, which provides up to $5 million in revolving loans. The management remains optimistic about the company's ability to capitalize on emerging opportunities in the energy market, particularly in subsea projects, while navigating the challenges posed by market volatility and operational demands.