Koil Energy Solutions, Inc.

For the second quarter of 2026, Koil Energy reported revenue of $9.2 million, up 78% from $5.2 million in the second quarter of 2025. Gross profit was $3.0 million, or 32% of revenue, versus $1.7 million, or 33% of revenue, a year ago. Net income was $652,000, or $0.05 per diluted share, compared with net income of $61,000, or $0.01 per diluted share, last year. EBITDA was approximately $1.1 million, up $955,000 year over year, with a 12% EBITDA margin. Looking ahead, management said the major carousel project will be executed during the second half of 2026, and it highlighted a new Brazil subsea services contract and continued growth in distribution systems, Brazilian expansion, and rental equipment rather than giving quantified full-year or next-quarter guidance.

Erik Wiik said the company is seeing a “point of delivery” on initiatives that have been in progress for nearly two years, especially international expansion and a heavier push into service and rental equipment. He emphasized that Koil’s strategy is centered on three growth pillars through 2030: distribution systems, Brazilian expansion, and rental equipment. His tone was confident and upbeat, repeatedly framing the quarter as validation of the strategy and execution.

Kurt Keller focused on the financial inflection: revenue of $9.2 million was up 78% year over year, gross profit reached $3.0 million at a 32% margin, SG&A was $2.3 million, and net income was $652,000, or $0.05 per diluted share. He noted that 32% of revenue came from customers acquired in the last 12 months and that headcount rose to 90 FTEs and contractors from 74 a year ago. On the balance sheet, he said working capital was $3.8 million, including $922,000 in cash and $7.3 million in net receivables, and that Koil entered an asset-based lending facility with up to $5 million capacity, with $2.4 million borrowed at quarter-end.

Analysts and shareholders focused on whether the company’s growth strategy had reached an inflection point, whether rental equipment had become a larger opportunity than previously appreciated, and what the Brazil business could become. Management said the inflection is real, pointing to new international customers and operating leverage, and explained that rental and service now produce a “double growth effect” because Koil earns both equipment and technician revenue. On Brazil, management said the recent award was a service job and that service growth may outpace manufacturing there over the next couple of quarters, while the carousel project was described as a second-half execution item with the old carousel generating storage day-rate revenue.