Stabilis Solutions (SLNG) Q1 2026 earnings summary

Executive summary

• Q1 2026 results reflect a transition period after the completion of two large multi-year contracts in marine and behind-the-meter power generation at the end of 2025, resulting in a near-term revenue and earnings headwind.

• Revenue for Q1 2026 was $10.4 million, down 40% year-over-year due to the conclusion of two major contracts that accounted for over 50% of prior year revenues.

• Aerospace revenues grew 31% year-over-year, offsetting declines in other sectors.

• Secured a $200 million, 2-year LNG supply contract for a U.S. data center, starting Q1 2027.

• Commercial activity remains robust, with active engagement across multiple end markets and a growing pipeline of opportunities.

Financial highlights

• Q1 2026 revenue was $10.4 million, down approximately 40% year-over-year, mainly due to a 41% decrease in LNG gallons sold and lower rental/service revenue.

• Net loss of ($4.1) million, or ($0.22) per diluted share, compared to ($1.6) million, or ($0.09) per share, in Q1 2025.

• Adjusted EBITDA was ($0.7) million, down from $2.1 million in Q1 2025, primarily due to the loss of the two large contracts.

• Cash flow from operations was $12.4 million, including $15 million in advanced payments for a major data center contract.

• Cash and equivalents totaled $13.7 million (including $10.6 million restricted) as of March 31, 2026.

Outlook and guidance

• Results are expected to improve meaningfully in the second half of 2026 as new contracts ramp up, with substantial growth anticipated in 2027 from a $200 million, two-year data center contract starting in Q1 2027.

• Additional $10–12 million in capital investments planned for equipment and supply for the data center project, funded by advanced payments.

• Management expects sufficient liquidity for the next twelve months but notes that additional capital will be required for expansion projects.

• Final investment decision for the Galveston facility is targeted for later in 2026, contingent on securing additional offtake agreements.

• The first half of 2026 is seen as a temporary lull, with recovery expected in the back half of the year.