Stabilis Solutions, Inc.

Second-quarter revenue was $11.9 million, down approximately 31% year over year. Adjusted EBITDA was $0.1 million versus $1.5 million in the prior-year quarter. Aerospace revenue increased 71% year over year, and LNG volumes sold in aerospace were up 79% year over year and 87% sequentially. Cash flow from operations was $7.1 million, including $5 million of advanced payments for the behind-the-meter data center contract; total liquidity was $18.9 million, including $4.5 million of unrestricted cash and $5 million of revolver availability. Capital expenditures were $2.3 million. For the balance of 2026, management expects results to build steadily in Q3 and Q4, with second-half revenues expected to increase by more than 50% versus the first half of 2026. Looking ahead to 2027, management said revenue should exceed $100 million and that adjusted EBITDA margin should expand to the high teens, but it did not provide formal 2027 guidance.

Casey Crenshaw said Q2 represented the low point of the year after the end of two large multiyear contracts in 2025, and that momentum has strengthened meaningfully since then. He emphasized that data center power generation and aerospace are the two main growth engines, with new awards and the company’s asset-light model allowing it to scale without building capacity ahead of demand. He was constructive on the outlook, calling 2026 a pivotal year and saying the business is set up for a record 2027.

Andy Puhala walked through the quarter’s financials and liquidity, highlighting $11.9 million of revenue, $0.1 million of adjusted EBITDA, $7.1 million of operating cash flow, and $18.9 million of total liquidity at quarter end. He explained that adjusted EBITDA excluded about $2.9 million of vessel charter costs, which he said would not recur now that the charter has been terminated. On capital spending, he said Q2 capex was $2.3 million, mainly for data center equipment and Galveston LNG engineering/design, and noted future investments are expected to be funded by customer advance payments. He also said the company expects materially higher revenue in 2027 to drive meaningful adjusted EBITDA dollar growth and margin expansion to the high teens because fixed costs are largely in place, the model is asset-light, and contracts pass through commodity risk.

Analysts focused heavily on the new data center business, asking how commissioning, bridge, construction, and backup-power contracts differ economically and operationally. Management said construction jobs can last around 24 months but are lower value, commissioning is typically around a six-month phase, bridge power can run from one to five years, and long-term backup is still a developing opportunity rather than a signed contract. On aerospace, management said demand is strong but longer-term commitments have been hard to secure because customers historically preferred flexibility and launch cadence has been uneven; they think tightening LNG supply and more predictable launch schedules could improve contract duration. They also clarified that the six-month commissioning agreement is already being deployed, with liquids expected next month in August, and that the $20 million in customer prepayments for the 2027 data center project have now been completed, with no additional payments expected.