Key Highlights

  • Revenue was USD 14.84 million against a USD 15.36 million estimate and USD 20.33 million a year earlier.
  • EPS of USD 0.01 compares with an estimate of USD -0.01, on Net Income of USD 0.19 million.
  • A multi-year Data Center LNG contract carries estimated Revenue of about USD 200 million, with deliveries scheduled from 2027.
  • Advance payments on that contract total USD 25.0 million, with the final USD 5.0 million received in the third quarter.

Stabilis Solutions (NASDAQ:SLNG) built its third quarter narrative around a multi-year take-or-pay contract awarded in February 2026 to Supply LNG for behind-the-meter power generation at a data center. Deliveries are scheduled to run from the first quarter of 2027 through the first quarter of 2029, and the initial term is estimated at about USD 200 million of revenue. Quarterly revenue was USD 14.84 million against an estimate of USD 15.36 million, and EPS was USD 0.01 against an estimate of USD -0.01.

How the Contract Fits the Quarter

The company said two multi-year contracts that ended in the fourth quarter of 2025, one for temporary remote power in Louisiana and one for truck-to-vessel marine bunkering in Galveston, accounted for approximately 19% and 32% of 2025 annual revenue. The company tied the lower results to those completions.

The data center customer has paid USD 25.0 million of advance payments, including a final USD 5.0 million in the third quarter. The payments offset a percentage of future invoices until fully applied and may fund equipment, LNG supply and commissioning for the project. The unused portion is held as restricted cash.

Results Around the Contract

Revenue was USD 14.84 million against USD 20.33 million a year earlier, a decline of 27% as stated. LNG product revenue was USD 11.55 million against USD 17.53 million. Rental revenue was USD 1.93 million against USD 1.37 million.

Cost of revenues was USD 10.51 million against USD 14.72 million. Income from operations was USD 0.16 million against USD 1.07 million, including Equity income of USD 0.10 million from the foreign joint venture. Net income was USD 0.19 million, or USD 0.01 per share, against USD 1.12 million, or USD 0.06.

For the nine months, revenue was USD 37.13 million against USD 54.97 million, and the net loss was USD 8.52 million, or USD 0.46 per share, against USD 1.09 million, or USD 0.06.

Financing, Cash and the Galveston Project

Unrestricted cash was USD 1.5 million and restricted cash was USD 16.8 million at September 30. Debt, net of issuance costs, and operating Lease obligations were USD 8.9 million, with compliance with all covenants reported. Operating Cash Flow for nine months was USD 23.37 million against USD 7.93 million.

A June amendment to the revolving Credit agreement set a minimum fixed charge coverage ratio of 1.20 to 1.00 starting with the quarter ending March 31, 2027, and required a blocked cash Collateral account funded with at least USD 5.0 million. Management said it needs additional Capital to fund expansion, including the proposed Galveston LNG liquefaction facility, a 350,000 gallon-per-day project with total capital estimated at USD 350 million to USD 400 million. A ten-year bunkering agreement with a cruise operator covers approximately 16% of its planned capacity, and a final Investment decision is targeted for later in 2026 or early 2027.

Quarter in Numbers

Revenue of USD 14.84 million sits alongside net income of USD 0.19 million, unrestricted cash of USD 1.5 million and USD 25.0 million of advance payments received.

Management named the dated items it is working toward: first deliveries under the data center contract in the first quarter of 2027, an early termination fee of USD 0.8 million payable January 1, 2027, the fixed charge coverage test beginning March 31, 2027, and the Galveston final investment decision.