Stabilis Solutions (NASDAQ:SLNG) executives said the company ended 2025 with “strong execution,” while acknowledging that the wind-down of two major multiyear contracts drove a meaningful year-over-year decline in fourth-quarter revenue and profitability. On the company’s fourth-quarter 2025 earnings call, management also emphasized growing demand across data centers, aerospace, and marine bunkering, and described 2026 as a “transitional year” as new contracts ramp and the company pursues a final investment decision (FID) for its proposed Galveston liquefaction project.
Contract roll-offs weighed on fourth-quarter results
Executive Chairman and Interim President and CEO Casey Crenshaw said Stabilis successfully wound down operations on two significant agreements during the quarter: a truck-to-ship marine bunkering contract with Carnival Corporation and a contract with a mobile power generation provider serving an electrical cooperative in Louisiana. Crenshaw said the conclusion of these contracts reduced fourth-quarter revenues by approximately 28% and contributed to a year-over-year decline in revenue and Adjusted EBITDA.
Puhala said those declines were partly offset by growth in other segments, with aerospace revenues increasing 17% and industrial revenues rising 12% compared to the same quarter last year.
Adjusted EBITDA was $1.5 million in the fourth quarter, compared with $4.0 million in the prior-year quarter. Puhala attributed the decline in Adjusted EBITDA margin primarily to the conclusion of the two large contracts, as well as a “non-recurring favorable SG&A adjustment and a gain on asset sale,” both of which occurred in the prior-year quarter.
- Fourth-quarter revenue: down 23% year-over-year
- LNG gallons sold: down 22% year-over-year
- Adjusted EBITDA: $1.5 million vs. $4.0 million last year
- Cash from operations: approximately $670,000
Liquidity and capital spending tied to Galveston development
Puhala said liquidity at quarter-end totaled $10.2 million, consisting of $7.5 million of cash and approximately $2.7 million of availability under credit facilities.
Capital expenditures totaled $3.1 million during the quarter, primarily related to early engineering and design work and ordering long lead-time items for the proposed Galveston LNG liquefaction facility and a related Jones Act LNG bunker barge. Puhala said that once project financing is in place and the company reaches FID, future funding requirements are expected to be met through project-level financing.
For the first quarter of 2026, Puhala said Stabilis anticipated investing an additional $1 million to $2 million in the project and routine maintenance capital expenditures. He also said the company expects to invest additional capital into mobile equipment and related assets required for the data center contract set to begin in early 2027, and that this capital investment will be funded by customer prepayments.
Data center contract and broader behind-the-meter opportunity
Management highlighted what it called increasing opportunity in behind-the-meter LNG-based power generation for U.S. data centers. Crenshaw pointed to the company’s February 17 announcement that it had been awarded an estimated $200 million, two-year contract to support behind-the-meter power generation for a U.S. data center. He said deliveries are expected to begin in the first quarter of 2027 and continue through the first quarter of 2029, and that the project will represent the company’s “largest-ever contract in operation” once it commences.
In response to analyst questions, Crenshaw described three areas where Stabilis sees demand in data centers:
- Commissioning support: typically three to nine months, as facilities commission blocks while waiting on pipeline gas or electrical hookups.
- Bridge solutions: typically two to five years, supplying LNG to a power generation company while data centers wait for pipeline gas or power lines.
- Backup supply: LNG used as backup where pipeline-connected natural gas generation is the primary source.
Crenshaw said the estimated $200 million value reflects expected LNG costs and delivery-related costs, based on expected demand over the two-year period, and excludes potential extensions. He also said the contract includes credit enhancement features, including customer support related to capital expenditures and operating costs to help mitigate risk if there are delays or gaps in service. On profitability, Crenshaw said the company views margins on larger contracts as consistent with historical business, while avoiding project-specific detail.
Asked how the company will supply the data center project, Crenshaw said it is not in a region supported by Stabilis’ own liquefaction facilities and will instead use third-party liquefaction offtake agreements, with Stabilis providing “the turnkey LNG solution” including logistics, on-site storage, and regasification. He added that scaling the business is not solely limited by Stabilis’ own liquefiers, but can be constrained by regional LNG availability, trucking distance economics, and the availability of logistics and on-site equipment.
Galveston project: financing, offtake, and FID workstreams
Crenshaw said Stabilis is continuing to work toward FID on the Galveston liquefaction facility and remains in active discussions with potential project equity sponsors and lenders on the financing structure. He said the company has secured customer offtake commitments for 56% of the facility’s planned capacity and is working to sell the remaining capacity.
He described a special purpose vehicle structure funded with project-level debt and equity from third-party investors as the path the company is pursuing, and said Stabilis is continuing engineering, design, and long lead-time procurement to maintain the project schedule while it works toward FID.
Marine bunkering and aerospace: demand signals and constraints
On marine bunkering, Crenshaw told investors the Carnival truck-to-ship contract was not extended because a Jones Act vessel that Carnival had separately contracted to deliver the fuel became unavailable starting in 2026. While he said he could not speak for the customer, he indicated Carnival had expressed a desire to extend, but the vessel’s unavailability prevented an extension under the prior structure. Crenshaw said, in the near term, Carnival may need to adjust routing to access LNG elsewhere or use marine gas oil (MGO) as an alternative fuel.
Crenshaw also discussed the limited supply of Jones Act LNG bunkering vessels in the U.S., estimating there are “about five” such vessels, largely concentrated in the Southeast U.S. market from Savannah/Georgia through Florida. He characterized the situation as a vessel shortage rather than a technology limitation and said expanding bunkering capability to the Gulf Coast is part of the longer-term opportunity.
In aerospace, Crenshaw said commercial launch activity remains robust and the company’s commercial team continues pursuing opportunities with new and existing customers. He noted Stabilis has contracts in the sector that are generally one-year arrangements that can be extended, but not multiyear take-or-pay agreements. He also said the company expects “meaningful growth” in aerospace revenue in 2026 versus 2025, providing an expectation of “north of” 30% growth and “maybe more like 40%,” while adding the company does not yet have a contracted commitment to deploy a dedicated liquefier for an aerospace customer.
Separately, Crenshaw addressed questions about an LNG bunkering vessel chartered from Seaspan (the Garibaldi), stating the company was “still in process” and would provide more detail on a future call.
As it enters 2026, Crenshaw said Stabilis expects lower revenues and profitability in the first half as it bridges toward the start-up of new customer contracts expected to begin in mid-2026 and early 2027, while emphasizing that contracts already in hand provide “strong visibility into sustainable multiyear growth beginning in 2027.”
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.
