Breaking Down Stabilis Solutions, Inc. (SLNG) Financial Health: Key Insights for Investors

You're looking at Stabilis Solutions, Inc. (SLNG) right now and wondering if the small-scale liquefied natural gas (LNG) story is actually translating to real cash flow, and the short answer is: yes, but with a big capital expenditure asterisk. The company's Q3 2025 results show solid operational execution, delivering $20.3 million in revenue-a 15.3% jump year-over-year-plus a net income of $1.1 million and healthy operating cash flow of $2.4 million. That growth isn't just noise; it's driven by the high-growth end-markets we've been tracking, with marine revenue up 31.5% and aerospace a stunning 88.3% year-over-year. Still, the real near-term opportunity is the proposed Galveston LNG expansion, anchored by a 10-year marine bunkering agreement, which could be a game-changer for their Gulf Coast footprint, but honestly, the whole thing hinges on them securing project financing by Q1 2026.

Revenue Analysis

You're looking at Stabilis Solutions, Inc. (SLNG) because you see the long-term potential in small-scale Liquefied Natural Gas (LNG) solutions, but you need to know where the cash is coming from right now. The direct takeaway is this: while year-to-date revenue is slightly down, a major strategic pivot is driving strong, double-digit growth in their core, high-value markets, which is a key signal for future performance.

For the nine months ended September 30, 2025, total revenue was approximately $55.0 million, which represents a modest year-over-year decline of 1.8%. However, the third quarter of 2025 (Q3 2025) told a much better story, with revenue hitting $20.3 million-a solid 15.3% increase over the same quarter in 2024. This divergence shows a clear inflection point, so don't just look at the trailing twelve months (TTM) revenue of $72.27 million which is down 2.40% as of September 30, 2025. The near-term trend is up.

Breaking Down the Revenue Mix

Stabilis Solutions, Inc. generates revenue from four main buckets: LNG Product, Rental, Service, and Other. LNG Product revenues are the largest and most critical component, covering sales of both produced and purchased LNG, plus transportation services. Rental revenues come from leasing their specialized cryogenic equipment, and Service revenues are for engineering and field support. Honestly, the segment breakdown is less important than the end-market shift.

Here's the quick math on their Q3 2025 performance, which shows where the new focus is paying off:

• LNG Product Revenue: This core segment brought in $17.5 million in Q3 2025.
• High-Growth Markets: Approximately 73% of the total Q3 2025 revenue came from aerospace, marine, and power generation customers, a significant jump from 60% in the prior year quarter.
• Geographic Footprint: The company's operations are primarily concentrated in the United States, though they maintain a presence in Mexico.

The Strategic Revenue Shift: Risks and Opportunities

The most important change in 2025 is the deliberate shift away from lower-margin, one-time industrial contracts and toward high-growth markets. This is a defintely a strategic rebalancing. It's why you see the Q3 2025 revenue from these key sectors surging:

This strong performance was partially offset by the scheduled conclusion of a major industrial customer contract, which is what dragged down the overall revenue numbers in the first half of the year. The future is tied to the continued ramp-up in these core sectors-especially aerospace, where they supply rocket propellant for commercial launches, and marine bunkering (fueling ships). The announcement of a new 10-year marine bunkering agreement in Galveston, tied to a planned new liquefaction facility, anchors this long-term strategy. You can dive deeper into who is betting on this pivot by Exploring Stabilis Solutions, Inc. (SLNG) Investor Profile: Who's Buying and Why?

What this estimate hides is the execution risk on the new Galveston project, which is subject to financing by early 2026. Still, the underlying demand trends in their target markets are robust, making the Q3 growth a credible indicator of their new trajectory.

Profitability Metrics

You need to know if Stabilis Solutions, Inc. (SLNG) is consistently turning its growing revenue into real profit, and the short answer is: the trend is positive, but the margins are tight compared to the broader energy sector. The company has shown a clear path to profitability in the second half of the 2025 fiscal year, moving from quarterly losses to a solid net income in Q3.

For the third quarter of 2025, Stabilis Solutions, Inc. delivered a net income of $1.1 million on revenue of $20.3 million, which is a significant turnaround from the losses earlier in the year. This translates directly into the key profitability ratios you should track:

• Gross Profit Margin: Approximately 28%
• Operating Profit Margin: Approximately 5.42%
• Net Profit Margin: Approximately 5.42%

Here's the quick math: The cost of revenues (Cost of Goods Sold) held steady at approximately 72% of sales in Q3 2025, which gives you that 28% gross margin. Since the operating income and net income were both reported at roughly $1.1 million, the operating and net margins are nearly identical at 5.42%, suggesting low non-operating expenses like interest or taxes were a factor in the quarter.

Trends and Operational Efficiency

The most important part of the story isn't the Q3 number alone, but the trend. Stabilis Solutions, Inc. started 2025 with a net loss of ($1.6 million) in Q1 and a loss of ($0.6 million) in Q2, but then posted a net income of $1.1 million in Q3. Year-to-date through Q3 2025, the company still reports a net loss of ($1.1 million) on $55.0 million in revenue, largely due to first-quarter separation and consulting expenses. This tells you the operational shift and demand surge in the marine, aerospace, and power generation markets-up a combined 15% year-over-year in Q2-are driving the recent profitability.

Operational efficiency (cost management) is defintely a core focus. The stable 72% cost of revenues ratio in Q3 2025, despite a 15.3% jump in revenue, shows a controlled cost structure. The management commentary also highlighted a $0.3 million reduction in selling, general and administrative (SG&A) expenses compared to the prior year, directly contributing to the improved net income. That's good discipline.

Industry Comparison: A Reality Check

When you stack Stabilis Solutions, Inc.'s margins against the broader Oil and Gas Extraction industry-a reasonable proxy for the energy services sector-you see the challenge. Based on 2024 median data for U.S. listed companies, the industry averages are substantially higher:

Stabilis Solutions, Inc.'s margins are significantly below the industry median, particularly the operating and net margins. This gap is a function of their business model as a small-scale Liquefied Natural Gas (LNG) solutions provider, which often involves higher logistics and last-mile delivery costs than pure extraction companies. The low operating margin suggests that while the company is managing its cost of goods sold (COGS) reasonably well, its operating expenses (SG&A) are eating up a larger share of the gross profit than peers. To truly compete, they need to scale their new high-growth markets-marine, aerospace, and power generation-to gain operating leverage. You can dive deeper into the market dynamics in Exploring Stabilis Solutions, Inc. (SLNG) Investor Profile: Who's Buying and Why?

Debt vs. Equity Structure

You're looking for a clear signal on how Stabilis Solutions, Inc. (SLNG) funds its operations and growth, and the answer is simple: they are defintely leaning on equity, not debt. The company operates with a remarkably low financial leverage compared to its capital-intensive energy peers, which is a massive green flag for balance sheet stability.

As of the third quarter of 2025, Stabilis Solutions, Inc. reported a total stockholders' equity of nearly $66.7 million. Here's the quick math on their core debt structure, using the Q3 2025 figures for notes payable:

• Total Notes Payable (Debt): $8.261 million (This excludes lease obligations).
• Net Cash Position: The company is net cash positive, ending the quarter with $10.3 million in cash and a total of $9.5 million in total debt and lease obligations.

This is a very conservative capital structure. It means the company can weather market downturns better than highly leveraged competitors. You want to see this kind of discipline.

Debt-to-Equity Ratio: A Clear Outlier

The Debt-to-Equity (D/E) ratio is the clearest indicator of this conservative approach. By dividing their total notes payable by their equity, we get a Q3 2025 D/E ratio of roughly 0.124. (Here's the quick math: $8.261M Notes Payable / $66.695M Equity $\approx$ 0.124).

To be fair, a 0.124 D/E ratio is an outlier in the energy sector. Companies in the liquefied natural gas (LNG) space, which is capital-intensive, often carry much higher leverage. For comparison, some large LNG players show D/E ratios closer to 4.0, and even a peer like Dynagas LNG Partners LP sits around 0.67. Stabilis Solutions, Inc.'s low ratio signals that shareholder capital, not borrowed money, is the primary driver of the business today.

Financing Strategy and Future Debt

The company's recent financing moves reinforce its prudent approach while signaling a strategic shift for major growth projects. In March 2025, Stabilis Solutions, Inc. extended its $10 million revolving credit facility with Cadence Bank, pushing the maturity out to June 9, 2028. This provides a stable, available liquidity buffer, but notably, the company had not drawn any funds on this facility as of the extension.

For its planned Galveston LNG liquefaction facility, a significant capital expenditure, the strategy is to avoid burdening the corporate balance sheet. Instead, the company is evaluating a joint-venture structure, supported by project-level debt and equity from third-party investors. This ring-fences the risk, keeping the core business's balance sheet clean while still pursuing aggressive expansion. This is a smart move that protects the existing equity base. For more on who is funding the company, you can check out Exploring Stabilis Solutions, Inc. (SLNG) Investor Profile: Who's Buying and Why?

Liquidity and Solvency

You need to know if Stabilis Solutions, Inc. (SLNG) has the cash to cover its near-term bills and fund its growth plans. The direct takeaway is that the company's liquidity is sound for day-to-day operations, but the massive Galveston expansion will soon pivot the focus from operating cash flow to project-level financing.

As of September 30, 2025, Stabilis Solutions, Inc.'s balance sheet shows a healthy short-term position. Liquidity ratios are your first check on this, and they look solid. The Current Ratio (Current Assets divided by Current Liabilities) sits at about 1.42. This means the company has $1.42 in current assets-cash, receivables, etc.-for every dollar of current liabilities. A ratio over 1.0 is generally good; this is defintely a comfortable margin.

The Quick Ratio (or Acid-Test Ratio) is even more telling, as it strips out inventory, which can be slow to convert to cash. Here's the quick math: with Current Assets of $19.389 million and Total Current Liabilities of $13.639 million, the Quick Ratio is approximately 1.29. This is a strong result, especially since the inventory figure is a tiny $0.244 million, meaning nearly all current assets are highly liquid cash and receivables.

The trend in working capital (Current Assets minus Current Liabilities) is positive, sitting at approximately $5.75 million. This cushion is critical for managing the ebb and flow of a business that deals with energy commodity prices and long-term contracts. Still, the underlying cash flow dynamics are where the real story is for investors looking at Breaking Down Stabilis Solutions, Inc. (SLNG) Financial Health: Key Insights for Investors.

• Current Ratio: 1.42 (Strong short-term solvency)
• Quick Ratio: 1.29 (High liquidity, minimal reliance on inventory)
• Working Capital: $5.75 million (Solid operational buffer)

Cash Flow: Operations, Investing, and Financing

Looking at the Cash Flow Statement for Q3 2025, the business is generating cash from its core operations. Cash Flow from Operations (CFO) was $2.4 million for the quarter. This is a positive sign, but it was slightly lower than the prior year, a change management attributed primarily to net working capital shifts. That's a normal fluctuation, but it's something to monitor.

The Investing Cash Flow side is where the action is, and it's all about the future. Capital Expenditures (CapEx) totaled $3.9 million in Q3 2025 alone, driven by early engineering and design work for the major Galveston LNG facility. This outflow is strategic. It's a planned deployment of capital for a high-growth project, not a sign of operational distress. The company expects this investment to accelerate, with another $3 million to $5 million in CapEx anticipated in the near term.

On the Financing Cash Flow side, the company ended Q3 2025 with a net positive cash position, holding $10.3 million in cash against total debt and lease obligations of around $9.5 million. This is a great starting point. However, the Galveston project's funding-expected to be met through project-level financing-is the elephant in the room. This will be a major financing event in early 2026, and its successful execution is crucial for the stock's long-term trajectory.

The key risk here isn't current liquidity; it's the successful finalization of the project-level financing for the Galveston expansion by early 2026. If that financing hits a snag, the planned growth-anchored by a 10-year marine bunkering agreement-could be delayed. So, keep an eye on the project finance updates.

Valuation Analysis

You want to know if Stabilis Solutions, Inc. (SLNG) is a bargain or a bubble. The quick answer is: the market is pricing in a lot of future growth right now, but Wall Street sees a massive upside if they execute. It's a classic growth-stock conundrum.

When we look at the core valuation multiples (ratios), Stabilis Solutions, Inc. is trading at a premium compared to many industrial peers. This suggests the stock is currently overvalued on trailing earnings, but the analyst consensus hints at a significant long-term opportunity.

Key Valuation Multiples (2025 Fiscal Data)

Let's break down the metrics. High multiples often signal investor confidence in future earnings, but they also mean less margin for error in execution. Here's the quick math based on recent figures:

• Price-to-Earnings (P/E) Ratio: The trailing P/E is extremely high at around 118.03. This is a massive number, especially compared to the S&P 500 average, and it tells you investors are betting heavily on a huge jump in net income that hasn't happened yet.
• Price-to-Book (P/B) Ratio: At approximately 1.34, the P/B is quite reasonable. This means the stock price is trading just a little above the company's net asset value, which is a good sign of fundamental value.
• Enterprise Value-to-EBITDA (EV/EBITDA): The EV/EBITDA sits at about 12.85. This is a more moderate figure, suggesting that relative to its core operating cash flow (earnings before interest, taxes, depreciation, and amortization), the valuation is less stretched than the P/E suggests.

The P/E ratio is the glaring red flag, but the healthy P/B and moderate EV/EBITDA suggest the business assets and operational performance aren't wildly disconnected from the valuation. The high P/E is likely due to the relatively low net income of $1.1 million reported in Q3 2025.

Stock Performance and Analyst Outlook

Your investment decision also needs to factor in the market's recent sentiment and the professional consensus. The stock has been volatile, which is typical for a smaller, growth-focused energy transition player.

The 52-week trading range for Stabilis Solutions, Inc. has been between $3.29 and $8.28. As of mid-November 2025, the stock price is hovering around the $4.72 mark. In the year-to-date, the stock has dropped by about 18.44%. Still, the recent Q3 2025 results, which showed revenue of $20.3 million and an Adjusted EBITDA of $2.9 million, beat analyst estimates, which could provide a much-needed floor.

The analyst community is split, which is defintely interesting. The current consensus rating is a 'Hold' based on the two analysts covering the stock: one has a 'Buy' rating, and one has a 'Sell' rating. This mixed signal is common when a company is in a major transition phase, like Stabilis Solutions, Inc. is with its Galveston LNG liquefaction expansion project. The average 12-month price target is a striking $10.00, which implies a potential upside of over 111% from the current price. This target is what's driving the high P/E-it's a bet on the future capacity and contracts, like the 10-year marine bunkering agreement.

Finally, if you're looking for income, Stabilis Solutions, Inc. is not a dividend stock. The company has a forward dividend yield of 0.0%, as it reinvests all capital back into growth initiatives like the Galveston facility. If you want to dive deeper into the company's strategic goals, you should review their Mission Statement, Vision, & Core Values of Stabilis Solutions, Inc. (SLNG).

Next Step: Finance should model the impact of the Galveston project's expected financing in early 2026 on the debt-to-equity ratio to assess true capital structure risk.

Risk Factors

You're looking at Stabilis Solutions, Inc. (SLNG) because you see the long-term tailwinds in small-scale liquefied natural gas (LNG), but every growth story has a flip side. For SLNG, the near-term risks center on project execution, commodity price volatility, and the challenge of scaling a capital-intensive business.

The company's financial health, despite a strong Q3 2025 with $20.3 million in revenue, still shows the strain of a volatile market, evidenced by the year-to-date net loss of $1.1 million through the first nine months of 2025. This tells you they are still in a delicate, high-growth phase where execution is defintely everything.

Operational and Market Volatility

The biggest external risk is the inherent volatility of the LNG business. SLNG's performance is directly tied to the 'availability and price of natural gas' and the demand for LNG as a fuel source. When you look at the Q2 2025 results, total revenues for the six months ended June 30, 2025, were $34.6 million, a 9.7% decrease year-over-year, largely due to decreased LNG gallons delivered. That's a clear sign that a dip in demand or a shift in local pricing can hit their top line fast.

The other operational risk is competition. While SLNG is an experienced small-scale player, the broader energy market is full of much larger players. They have to continually win new, high-margin contracts to offset the 'roll-off of the high-margin industrial project' that impacted their Q3 2025 Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin, which dipped slightly to 14.3%.

• Commodity Price Swings: Volatility in natural gas prices directly affects their cost of goods.
• Contract Roll-off: Loss of a single large industrial contract impacts profitability quickly.
• Customer Concentration: Relying on key customers in marine, aerospace, and power generation for 73% of Q3 2025 revenue means a slowdown in any one sector is a material risk.

Strategic and Financial Execution Risks

The company's biggest growth opportunity-the planned Galveston LNG liquefaction facility-is also its most significant strategic risk. This project requires substantial capital expenditure, and its success is contingent on securing financing and customer commitments.

Here's the quick math: The company needs to reach a final investment decision (FID) in early 2026. While they have a 10-year marine bunkering agreement that covers about 40% of the planned offtake capacity, they are still in late-stage negotiations for an additional 20%. What this estimate hides is that if the financing terms are unfavorable or if they fail to secure that extra 20% of long-term contracts, the entire project timeline and projected returns are at risk. The capital expenditures for Q3 2025 were already $3.9 million, primarily related to early engineering and design for this facility.

The company is mitigating these risks by shifting its customer mix. By focusing on marine, aerospace, and power generation, they are deliberately moving away from more cyclical industrial customers. They are also using long-term contracts, like the 10-year marine bunkering agreement, to stabilize future revenue streams, which is a smart move for a company that needs to fund large infrastructure projects. You can read more about the company's full picture in Breaking Down Stabilis Solutions, Inc. (SLNG) Financial Health: Key Insights for Investors.

Growth Opportunities

The core takeaway for Stabilis Solutions, Inc. (SLNG) is that the company is executing a deliberate and successful pivot toward high-growth, higher-margin end-markets, which is already showing up in the 2025 numbers. You're seeing a clear shift away from legacy industrial contracts toward specialized liquefied natural gas (LNG) applications in aerospace and marine.

This strategic rebalancing is the key to their future. It's why, despite some short-term revenue volatility, the consensus analyst estimate for their full-year 2025 revenue is approximately $74.80 million, with an estimated Earnings Per Share (EPS) of ($0.06). That EPS figure is a big improvement over prior periods and reflects the investment in this new growth profile.

Growth Drivers: Aerospace, Marine, and Power

The company's growth is no longer a broad-based bet on industrial use; it's a laser-focused play on three specific sectors. In the third quarter of 2025, roughly 73% of total revenue came from these three target markets, up from 60% in the prior year quarter. This is defintely where the action is.

Here's the quick math on the year-over-year revenue growth Stabilis Solutions posted in Q3 2025, which shows the momentum:

• Aerospace: Revenue rose 88.3%, driven by the increasing pace of commercial space flight activity, which uses LNG as a rocket propellant.
• Marine: Revenue increased 31.5%, capitalizing on the transition of marine vessels to cleaner LNG fuel, particularly for bunkering (fueling).
• Power Generation: Revenue grew 31.4%, largely supported by the massive domestic investment in new data center capacity that needs reliable, on-demand distributed power solutions.

Strategic Capacity Expansion and Partnerships

The biggest strategic initiative underpinning these growth drivers is the planned Galveston LNG project. Stabilis Solutions secured a transformational, 10-year marine bunkering contract with a global marine operator in late 2025, which will anchor the new facility.

This contract alone calls for supplying approximately 50 million gallons of LNG annually. To meet this demand, the new Galveston liquefaction facility is expected to increase Stabilis Solutions' total liquefaction capacity from 130,000 to a projected 480,000 gallons per day. That's a game-changer.

The company is also allocating capital to support this shift. For instance, year-to-date capital expenditures (capex) as of Q2 2025 included approximately $1.2 million directed toward infrastructure upgrades for aerospace and marine bunkering projects.

Competitive Edge in Last-Mile LNG

Stabilis Solutions maintains a strong competitive advantage by offering an integrated, turnkey solution-meaning they handle the entire LNG supply chain from production to the final delivery and fueling. They are one of the only LNG distributors with owned production and a complete North American distribution footprint, which includes a network of over 30 supply points.

This vertical integration is a major moat, especially when you consider the complexity of last-mile delivery, or what they call virtual pipeline solutions. It's hard for a competitor to replicate this network quickly. For more on the company's long-term view, you can review their Mission Statement, Vision, & Core Values of Stabilis Solutions, Inc. (SLNG).

The focus on Environmental, Social, and Governance (ESG) is also a competitive advantage, as their LNG solutions displace higher-emission fuels, helping customers meet their own sustainability goals.