Stabilis Solutions Q1 Earnings Call Highlights

Key Points

• Q1 revenue and profitability fell sharply as Stabilis Solutions reported $10.4 million in revenue, down about 40% year over year, with adjusted EBITDA turning negative $0.7 million. The decline was tied mainly to the completion of two large contracts in marine and behind-the-meter power generation.
• Management expects a second-half recovery driven by growing demand in data centers, aerospace and other markets. The company highlighted a new estimated $200 million minimum data center contract set to start in 2027, plus near-term commissioning work that could help replace lost revenue later in 2026.
• Liquidity improved thanks to customer advance payments, including $15 million related to the future data center project, leaving Stabilis with $17.2 million in total liquidity at quarter-end. The company also said it remains committed to the delayed Galveston LNG project and is seeking new customers and financing partners.

Stabilis Solutions NASDAQ: SLNG reported a weaker first quarter of 2026 as the liquefied natural gas supplier worked through the expected loss of two large multi-year contracts that ended in late 2025, while management said demand in data centers, aerospace and marine markets supports a recovery later this year.

Executive Chairman and Interim President and CEO Casey Crenshaw said the quarter reflected “the expected transition” following the completion of two large contracts in the company’s marine and behind-the-meter power generation markets. He said those contract roll-offs created a near-term revenue and earnings headwind, but added that commercial activity remains encouraging.

“Demand for small-scale LNG and integrated last-mile delivery solutions continue to grow,” Crenshaw said. He said awarded contracts and the company’s active pipeline provide “increasing visibility into improved performance” through the rest of 2026.

Revenue Falls as Marine and Power Contracts Roll Off

Senior Vice President and Chief Financial Officer Andy Puhala said first-quarter revenue was $10.4 million, down approximately 40% from the first quarter of 2025. The decline was driven primarily by a 41% decrease in LNG gallons sold and lower rental and service revenue, partially offset by a slight increase in the underlying commodity price.

Puhala said Stabilis recorded no revenue from marine customers during the quarter, while revenue from behind-the-meter power generation was not material because of the completion of the large multi-year contracts late last year. Those declines were partially offset by continued growth in aerospace and legacy markets, where revenue rose 31% and 26%, respectively, compared with the prior-year period.

Adjusted EBITDA was negative $0.7 million in the quarter, compared with positive $2.1 million a year earlier. Puhala said the decrease was primarily attributable to the completion of the two large contracts.

He also noted that adjusted EBITDA excluded approximately $1.5 million of vessel charter costs incurred during the quarter. The costs relate to a non-Jones Act vessel leased in the fourth quarter of 2025 in anticipation of supporting a marine bunkering contract. Puhala said the company is working to fully sub-charter the vessel and expects a sub-charter agreement during the second quarter.

Data Center Work Expected to Support Second-Half Recovery

Management emphasized data center-related demand as a key driver of expected improvement. Crenshaw said Stabilis expects results to improve “meaningfully” in the second half of 2026, even before the expected 2027 startup of a previously announced large data center contract.

That award is an estimated $200 million minimum two-year contract to support behind-the-meter power generation for a U.S. data center. Delivery is expected to begin in the first quarter of 2027 and continue through the first quarter of 2029.

Crenshaw described the contract as a validation of Stabilis’ platform and its position in the distributed power market. He said the company’s value proposition includes not just LNG supply, but sourcing, logistics, storage, regasification and last-mile reliability.

During the question-and-answer portion, Crenshaw said a separate data center-related commissioning project is expected to start near the end of the second quarter and run through the end of the year. He described that work as a six- to 12-month construction commissioning project, distinct from the larger bridge power contract scheduled for 2027.

Crenshaw said Stabilis expects the commissioning work and other commitments to replace the contracts that ended at the close of 2025 on the profit-and-loss statement during the back half of the year. He said commissioning activity is currently more active than longer-term bridge power projects, though the company is working on opportunities in both areas.

Aerospace and Industrial Demand Remain Areas of Growth

Crenshaw said demand in the aerospace market remains strong, with commercial space customers increasing activity and LNG requirements. He said Stabilis continues to view aerospace as a long-term growth opportunity because of its ability to provide high-purity LNG, reliable delivery and fit-for-purpose solutions for customers with technical requirements.

In response to a question about LNG supply for data center contracts, Crenshaw said the company can use both its own supply and third-party capacity. He said the current data center projects are not expected to primarily use molecules from the company’s George West facility, allowing Stabilis to grow revenue without absorbing internal production capacity.

Crenshaw said much of Stabilis’ own offtake is currently being drawn into industrial projects and aerospace. He said the company expects George West volumes to return to more reasonable utilization levels in the third and fourth quarters of 2026, though not full utilization.

Galveston LNG Project Delayed but Still Pursued

Crenshaw also addressed the company’s Galveston LNG project. Stabilis announced last month that it terminated an offtake agreement for the proposed facility after a customer did not agree to a requested modification intended to facilitate financing.

While the termination delayed the project timeline, Crenshaw said Stabilis remains committed to pursuing Galveston LNG. The company is in active discussions with other potential customers to sell the available capacity and continues to engage with financial partners that have expressed support for the project.

Crenshaw said the project remains an important part of Stabilis’ long-term strategy, particularly for serving demand in the Port of Galveston and broader Gulf Coast marine market. During Q&A, he said the company anticipates that the customer tied to the terminated contract could still do business with Stabilis in Galveston later, either as part of offtake supporting financing or as a spot market customer after construction.

Liquidity Boosted by Data Center Advance Payments

Puhala said cash flow from operations was $12.4 million in the quarter, including $15 million of advance payments from a customer tied to the behind-the-meter data center contract scheduled to begin in the first quarter of 2027. Those payments are restricted to support equipment purchases and other project preparations.

Stabilis ended the quarter with total liquidity of $17.2 million, including $13.7 million of cash, of which $10.6 million was restricted, and $3.5 million of availability under credit agreements.

Capital expenditures totaled $5.3 million in the quarter, primarily related to equipment purchases for the large data center project. Puhala said the company expects to invest an additional $10 million to $12 million for equipment and guaranteed supply tied to that project, funded by advance payments received in the first quarter and additional advance payments expected during the year.

Crenshaw said the first half of 2026 represents a “temporary lull” as Stabilis transitions from completed contracts and prepares for new contract activity. He said management remains focused on converting current and future demand into sustainable, profitable growth while maintaining financial discipline.

About Stabilis Solutions NASDAQ: SLNG

Stabilis Solutions NASDAQ: SLNG is a U.S.-based marketer and distributor of cryogenic liquid products and liquefied natural gas (LNG). The company operates a nationwide network of terminals and bulk delivery assets, supplying industrial gases such as liquid oxygen, nitrogen and argon, as well as specialty products including carbon dioxide and hydrogen. Stabilis Solutions serves a broad array of end markets—from food and beverage processing to environmental applications and power generation—by ensuring a reliable chain of custody from production to point of use.

In addition to its cryogenic gas portfolio, Stabilis Solutions has developed a growing LNG business, providing clean-fuel solutions for heavy-duty transportation and on-site energy needs.

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