Stabilis Solutions — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenue for the third quarter of 2026 was $14.8 million, a 25% increase sequentially from Q2 2026 ($11.9 million) but a 27% decrease year-over-year from Q3 2025 ($20.3 million).
• Net income was $0.2 million ($0.01 per diluted share) in Q3 2026, compared to a net loss of $4.6 million in Q2 2026 and net income of $1.1 million ($0.06 per diluted share) in Q3 2025.
• Adjusted EBITDA was $1.9 million in Q3 2026, an increase from $0.1 million in Q2 2026 and a decrease from $2.9 million in Q3 2025.
• Cash flow from operations was $3.9 million in Q3 2026, up from $2.4 million in Q3 2025, driven by $5.0 million in advance payments from a customer.
• Total cash, cash equivalents, and restricted cash stood at $18.4 million as of September 30, 2026.
• Deferred revenue increased significantly to $25.0 million ($3.8 million current, $21.2 million noncurrent) as of September 30, 2026, compared to $1.0 million (current) and $0 (noncurrent) as of December 31, 2025.
• Total liabilities were $43.6 million as of September 30, 2026, compared to $16.4 million as of December 31, 2025.
• Cost of revenues was $10.5 million in Q3 2026, down from $14.7 million in Q3 2025, while selling, general, and administrative expenses were $2.5 million, down from $2.8 million in the prior year quarter.
• Time charter expense was $0 in Q3 2026, compared to $2.9 million in Q2 2026 following the termination of a marine vessel charter.

Guidance and Future Outlook:

• A previously announced power generation contract for a U.S. data center is on track to begin in the first quarter of 2027.
• Management expects to deliver profitable growth in 2027, capitalizing on growing demand across key end-markets.
• The company is working toward a final investment decision (FID) for the proposed Galveston LNG facility.
• Management anticipates continued robust demand for small-scale LNG solutions for behind-the-meter power generation at data centers.

Business Segments and Product Lines:

• Data center-related revenue grew to 17% of total revenue in Q3 2026, up from less than 1% in Q2 2026.
• Aerospace sector revenues increased 49% year-over-year, driven by launch and testing activity among commercial space customers.
• Revenue growth in the aerospace and industrial sectors partially offset the completion of large contracts in the marine and power generation sectors in Q4 2025.
• Capital investment and pre-commissioning work for the upcoming data center contract is on track, supported by advance customer payments.

Market and Competitive Landscape:

• The company operates in clean fueling, production, storage, and last mile delivery solutions for multiple end markets.
• Demand for small-scale LNG solutions to support behind-the-meter power generation at data centers remains robust.
• The company is actively pursuing additional opportunities in the data center market to extend growth beyond existing contracts.

Risks and Challenges:

• Future performance depends on demand for and price of LNG, availability and price of natural gas, and general economic conditions.
• Risks include unexpected costs, availability and terms of financing, and the ability to achieve conditions precedent for marine bunkering and other agreements.
• The company faces risks related to achieving additional offtake necessary for FID for the Galveston LNG facility and other commercial contracts.
• Potential construction delays, cost overruns, regulatory or legal impediments, and changes in natural gas derivative prices could impact results.

Management Commentary and Tone:

• Executive Chairman and Interim CEO Casey Crenshaw stated Q3 results were in line with expectations, reflecting anticipated sequential improvement.
• Management noted the first quarter marked the low point for the year following the conclusion of large contracts late in the previous year, with the business improving each quarter since.
• Crenshaw highlighted that the business is well-positioned to capitalize on growing demand and deliver profitable growth for 2027.

Other Key Points:

• The company secured a short-term power generation contract earlier in the year that supported Q3 revenues.
• Advance customer payments of $5.0 million associated with a contract expected to begin in early 2027 were included in Q3 cash flow from operations.
• The company hosted a conference call on November 5, 2026, to review results and conduct a Q&A session.
• Total assets increased to $102.4 million as of September 30, 2026, from $83.1 million as of December 31, 2025.
• Stockholders' equity decreased to $58.7 million as of September 30, 2026, from $66.7 million as of December 31, 2025, primarily due to an increase in the accumulated deficit.