Stabilis Solutions Reports 12.3% Revenue Decline and Net Loss in Q1 2025

Stabilis Solutions, Inc. reported a decline in financial performance for the first quarter of 2025, with total revenues of $17.3 million, down 12.3% from $19.8 million in the same period last year. The decrease was primarily attributed to a reduction in the gallons of liquefied natural gas (LNG) delivered, which accounted for a revenue drop of approximately $2.1 million. Additionally, revenues from rental, service, and other sources also fell, contributing to an overall decline of $1 million. The company recorded a net loss of $1.6 million, compared to a net income of $1.5 million in the prior year, resulting in a basic net loss per share of $0.09.

Operating expenses increased to $19.4 million from $18.4 million year-over-year, driven largely by a significant rise in selling, general, and administrative expenses, which surged by 42.7% to $4.9 million. This increase was largely due to severance-related costs associated with the departure of former CEO Westervelt T. Ballard, Jr. The cost of revenues decreased slightly, reflecting lower LNG delivery volumes, while depreciation expenses rose marginally due to new asset acquisitions. The company also reported a net equity income from its foreign joint venture, BOMAY, which increased to $368,000, up from $197,000 in the previous year.

In terms of operational metrics, Stabilis Solutions maintained a cash balance of $9 million as of March 31, 2025, with total liabilities decreasing to $17.1 million from $18.6 million at the end of 2024. The company’s total assets also declined to $83.1 million, down from $85.6 million. The headcount remained stable, with no significant changes reported. The company continues to focus on its LNG production and logistics services, which are critical to its business model, particularly as it seeks to expand its market presence in North America.

Strategically, Stabilis Solutions has made significant management changes, appointing J. Casey Crenshaw as Executive Chairman and interim CEO following the departure of Mr. Ballard. The company has also extended its revolving credit facility with Cadence Bank to June 2028, providing additional liquidity as it navigates current market conditions. The company is actively exploring opportunities for geographic expansion and product adoption, particularly in the marine and aerospace sectors, where LNG is increasingly being utilized as a cleaner alternative to traditional fuels.

Looking ahead, Stabilis Solutions remains cautiously optimistic about its future, emphasizing the importance of generating sufficient cash flows to support operations and potential growth initiatives. The company is committed to evaluating additional financing options to enhance its liquidity and capitalize on market opportunities, although it acknowledges the inherent risks and uncertainties in the LNG industry.