Stabilis Solutions (SLNG) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue grew 15% year-over-year to $17.6 million, driven by increased LNG demand, improved pricing, and a shift to long-term contracts, with 68% of revenue under ratable agreements, up from 43% last year.

• Net income for Q3 2024 was $1.0 million, or $0.05 per diluted share, reversing a prior year loss and reflecting improved operating performance.

• Marine and aerospace markets now comprise 40% of total revenues, up from 11% last year, with significant progress in these segments.

• Strong liquidity and net cash position, with cash and equivalents at $12.4 million and $3.2 million available under credit facilities at quarter-end.

• The company operates in the LNG sector, providing production, storage, transportation, and fueling solutions to diverse end markets.

Financial highlights

• Q3 2024 revenues were $17.6 million, up 15% year-over-year; nine-month revenues were $56.0 million, up 2%.

• Net income for Q3 2024 was $1.0 million; nine-month net income was $2.5 million, reversing a prior year loss.

• Adjusted EBITDA reached a record $2.6 million, up $2.1 million from the prior year; margin increased to 14.6% from 3.5%.

• Gross margin improved to approximately 28% in Q3 2024 as cost of revenues decreased.

• Cash and cash equivalents at September 30, 2024, were $12.4 million; total debt was $9.3 million.

Outlook and guidance

• Full-year 2024 capital expenditures expected between $8 million and $10 million, with growth CapEx rising for key initiatives.

• Management expects sufficient cash flows and available credit to fund operations and growth for the next twelve months.

• Ongoing evaluation of capital sources and financing alternatives to support expansion, focusing on industry-savvy partners.

• Anticipates continued growth in marine, data center, and aerospace markets as demand for cleaner fuels rises.

• Focus remains on expanding last-mile services and growing the pipeline of contractual revenue for increased operating leverage.