Stabilis Solutions Reports 15% Revenue Growth in Q3 2025, Announces LNG Bunkering Agreement

Stabilis Solutions, Inc. reported a revenue increase of 15% for the third quarter of 2025, totaling $20.3 million compared to $17.6 million in the same period last year. The growth was primarily driven by a 22.9% rise in LNG product revenues, which reached $17.5 million, attributed to increased gallons delivered and higher average natural gas prices. However, the company experienced a decline in rental and service revenues, which fell by 14.9% and 25.9%, respectively. For the nine months ending September 30, 2025, total revenues decreased slightly to $55.0 million from $56.0 million in the prior year, reflecting a challenging market environment.

Operating expenses for the third quarter increased by 12.5% to $19.5 million, influenced by higher costs associated with LNG deliveries and increased selling, general, and administrative expenses. The company reported a net income of $1.1 million for the quarter, a 12.2% increase from $998,000 in the previous year. However, for the nine-month period, Stabilis recorded a net loss of $1.1 million, a significant decline from a net income of $2.5 million in the same timeframe last year. This downturn was largely due to increased operational costs and lower revenues from rental and service segments.

In terms of strategic developments, Stabilis announced a significant 10-year bunkering agreement with a global marine operator to supply LNG and support the development of a new liquefaction facility in Galveston, Texas. This facility is expected to have a capacity of 350,000 gallons per day and is projected to enhance the company's service offerings in the marine sector. The company is currently pursuing financing for this project, with a goal to finalize funding by the first quarter of 2026 and complete construction by the second quarter of 2028.

Operationally, Stabilis reported a total of 18,596,301 shares outstanding as of September 30, 2025, with cash and cash equivalents amounting to $10.3 million. The company has maintained a stable employee headcount and continues to focus on expanding its LNG production capabilities. The company’s investment in its foreign joint venture, BOMAY, contributed to its equity income, although this income saw a decrease compared to the previous year due to lower profits from the joint venture.

Looking ahead, Stabilis Solutions remains cautiously optimistic about its growth prospects, particularly with the anticipated expansion in Galveston. However, the company acknowledges the inherent risks in the LNG market and the need for additional financing to support its growth initiatives. Management believes that the current liquidity position, combined with operational cash flows, will be sufficient to meet the company's needs over the next twelve months, although future financing options will be evaluated as necessary.