Stabilis Solutions Reports 31.2% Revenue Decline in Q2 2026, Secures New LNG Contract

Stabilis Solutions, Inc. reported a significant decline in financial performance for the second quarter of 2026, with total revenues of $11.9 million, down 31.2% from $17.3 million in the same period last year. The decrease was primarily attributed to the conclusion of two multi-year contracts that accounted for a substantial portion of the previous year's revenue. The company also experienced a drop in LNG product revenues, which fell to $11.0 million from $14.6 million, reflecting a 24.6% decrease. For the first half of 2026, total revenues were $22.3 million, a 35.7% decline compared to $34.6 million in the first half of 2025.

Operating expenses for the second quarter decreased to $16.7 million from $17.8 million year-over-year, largely due to reduced costs associated with lower LNG deliveries and decreased average natural gas prices. However, the company incurred a new time charter expense of $2.9 million related to the termination of a lease for a marine bunkering vessel, which contributed to a net loss of $4.6 million for the quarter, compared to a loss of $0.6 million in the prior year. For the first half of 2026, the net loss widened to $8.7 million from $2.2 million in the same period of 2025.

In terms of strategic developments, Stabilis Solutions has secured a multi-year contract to supply LNG for power generation at a data center, with deliveries expected to commence in early 2027. The contract is valued at approximately $200 million, and the company has received $20 million in advance payments, which are classified as restricted cash and deferred revenue. Additionally, the company is advancing plans for a new LNG liquefaction facility in Galveston, Texas, which is projected to require an investment of $350 million to $400 million.

Operationally, Stabilis Solutions reported a cash position of $4.5 million in unrestricted cash and $14.3 million in restricted cash as of June 30, 2026. The company has also seen an increase in cash provided by operating activities, totaling $19.5 million for the first half of 2026, compared to $5.5 million in the same period last year. This increase was primarily driven by the advance payments received for the data center contract. However, the company continues to face challenges, including the need for additional capital to fund its expansion efforts and the potential impact of geopolitical events on energy costs.

Looking ahead, Stabilis Solutions remains focused on its growth strategy, which includes the construction of the Galveston LNG liquefaction facility and the commencement of operations for the data center contract. The company is also exploring additional financing options to support its expansion plans. While management believes that current liquidity and capital resources are sufficient to fund ongoing operations, they acknowledge the inherent risks in the LNG industry and the need for careful monitoring of financial covenants under existing debt agreements.