Stabilis Solutions (SLNG) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue increased 44% year-over-year to $18.6 million, driven by higher LNG volumes, improved customer mix, and new contracts.

• Net income for Q2 2024 was $27,000, a turnaround from a net loss of $2.2 million in Q2 2023, with record Adjusted EBITDA of $2.1 million, up $2.2 million year-over-year.

• Achieved strong operating cash flow, ending Q2 with $11.5 million in cash and $4.4 million in credit availability, resulting in a net cash positive balance sheet.

• Strategic focus on expanding marine, commercial, and industrial platforms, including LNG bunkering, data center power solutions, and exports to Mexico.

• Growth in rental, service, and other revenues partially offset lower LNG product revenue due to decreased natural gas prices.

Financial highlights

• Q2 2024 revenue: $18.6 million (+44% YoY); H1 2024 revenue: $38.4 million (–4% YoY).

• Q2 2024 net income: $27,000; H1 2024 net income: $1.5 million (vs. $1.1 million loss in H1 2023).

• Q2 Adjusted EBITDA: $2.1 million (11.3% margin), up $2.2 million year-over-year.

• Operating cash flow for Q2: $5.0 million; cash and equivalents at June 30, 2024: $11.5 million; total liquidity: $15.9 million.

• Total debt outstanding was $8.6–$8.7 million, resulting in a net positive cash position.

Outlook and guidance

• Expect to increase CapEx in H2 2024 as South Texas LNG storage expansion comes online, while maintaining strong liquidity.

• Anticipate continued growth in marine, power generation, and aerospace sectors, with data center and high-purity LNG demand as key catalysts.

• Management expects sufficient cash flow and available credit to fund operations for the next twelve months and is evaluating additional financing alternatives.