Stabilis Solutions, Inc.
For the period ended Sep 30, 2025. Filed Nov 5, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 5, 2025
SLNG$3.58-4.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-06.
0001437749-25-025131
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-05.
0001437749-25-033395
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 61 previous paragraphs and 65 current paragraphs.
32 unchanged; 28 reworded; 5 added; 1 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 18 previous and 22 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (5)
Current report
Current Events and Expansion Efforts
Current report
In the third quarter 2025, the Company announced that it had executed a 10-year bunkering agreement with a leading, investment-grade global marine operator to supply LNG and to anchor development of a new 350,000 gallon-per-day, waterfront LNG liquefaction facility in Galveston, Texas. There are conditions precedent to the bunkering agreement which include the Company successfully finalizing project financing by the first quarter 2026 and completing construction on the Galveston LNG facility by the second quarter 2028. The Company is currently pursuing financing as required under the bunkering agreement; however, there is no guarantee that the Company will be able to successfully obtain the financing necessary and/or complete construction under the required timeframe or at all. See also "Future Cash Requirements" section below. If successful, the new Galveston LNG liquefaction facility is expected to be strategically located to continue to support and expand the Company's service to its cruise customers and expand marine bunkering services to additional marine markets.
Current report
Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024** **
Current report
Expansion Efforts
Current report
In the third quarter 2025, the Company announced that it had executed a 10-year bunkering agreement with a leading, investment-grade global marine operator to supply LNG and to anchor development of a new 350,000 gallon-per-day, waterfront LNG liquefaction facility in Galveston, Texas. Conditions precedent to the bunkering agreement include the Company successfully finalizing project financing by the first quarter 2026 and completing construction on the Galveston LNG facility by the second quarter 2028. The amount needed to finance such a facility exceeds the Company's current working capital and debt availability. The Company is in the process of determining the financing structure for the Gulf Coast expansion, with final investment decision ("FID") to be made in early 2026. The Company has identified a site for the new facility and has completed initial front-end-engineering and design activities. Future short-term capital requirements remain uncertain at this time as there is no guarantee that the Company will be able to successfully obtain the financing necessary and/or complete construction within the required timeframe or at all.
Removed paragraphs (1)
Previous report
Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024** **
Reworded paragraphs (28)
Previous wording
Stabilis Solutions, Inc. and its subsidiaries is an energy transition company that provides turnkey clean energy production, storage, transportation and fueling solutions, using liquefied natural gas (“LNG”), to multiple end markets. We provide LNG solutions to customers in diverse end markets, including aerospace, agriculture, energy, industrial, marine bunkering, mining, pipeline, remote power and utility markets. LNG can be used to deliver natural gas to locations where pipeline service is unavailable, has been interrupted, or needs to be supplemented. LNG can also be used to replace a variety of fuels, including distillate fuel oil, such as diesel and marine gas oil, and propane, among others, to provide environmental and economic benefits. Increasingly, LNG is being utilized as a transportation fuel in the marine industry and as a propellant in the private rocket launch sector. We believe that these fuel markets are large and provide significant opportunities for LNG usage.
Current wording
Stabilis Solutions, Inc. and its subsidiaries provide turnkey clean energy production, storage, transportation and fueling solutions, using liquefied natural gas (“LNG”), to multiple end markets. We provide LNG solutions to customers in diverse end markets, including aerospace, agriculture, energy, industrial, marine bunkering, mining, pipeline, remote power and utility markets. LNG can be used to deliver natural gas to locations where pipeline service is unavailable, has been interrupted, or needs to be supplemented. LNG can also be used to replace a variety of fuels, including distillate fuel oil, such as diesel and marine gas oil, and propane, among others, to provide environmental and economic benefits. Increasingly, LNG is being utilized as a transportation fuel in the marine industry and as a propellant in the private rocket launch sector. We believe that these fuel markets are large and provide significant opportunities for LNG usage.
Previous wording
During the Current Quarter, revenues decreased $1.3 million, or 7%, compared to the Prior Year Quarter. The change in revenue primarily related to:
Current wording
During the Current Quarter, revenues increased $2.7 million, or 15%, compared to the Prior Year Quarter. The change in revenue primarily related to:
Previous wording
*Cost of revenues.*Cost of revenues decreased $0.8 million, or 6%, compared to the Prior Year Quarter. As a percentage of revenue, these costs were 74% and 73% in the Current Quarter and the Prior Year Quarter, respectively. The change in cost of revenues was primarily attributable to:
Current wording
*Cost of revenues.*Cost of revenues increased $2.1 million, or 17%, compared to the Prior Year Quarter. As a percentage of revenue, these costs were 72% in both the Current Quarter and the Prior Year Quarter. The change in cost of revenues was primarily attributable to:
Previous wording
Change in unrealized gain/loss on natural gas derivatives. The Company had a loss of $0.1 million on change in unrealized (gain) loss on natural gas derivatives in the Current Quarter compared to a gain of $0.1 million in the Prior Year Quarter. The loss in the Current Quarter is due to natural gas derivatives maturing.
Current wording
Change in unrealized loss on natural gas derivatives. The Company had an unrealized loss of $19 thousand on change in unrealized loss on natural gas derivatives in the Current Quarter and a loss of $13 thousand in the Prior Year Quarter.
Previous wording
Selling, general and administrative expenses. Selling, general and administrative expenses decreased $0.2 million in the Current Quarter compared to the Prior Year Quarter. The decrease was primarily related to lower compensation expense in the Current Quarter partially offset by $0.1 million of bad debt expense.
Current wording
Selling, general and administrative expenses. Selling, general and administrative expenses decreased $0.3 million in the Current Quarter compared to the Prior Year Quarter. The decrease was primarily related to lower compensation expense in the Current Quarter.
Previous wording
Depreciation. Depreciation expense increased $0.1 million during the Current Quarter as compared to the Prior Year Quarter primarily due to new mobile assets in the Current Quarter compared to the Prior Year Quarter. The increase was partially offset by other assets reaching the end of their depreciable lives.
Current wording
Depreciation. Depreciation expense increased $0.1 million during the Current Quarter as compared to the Prior Year Quarter primarily due to new mobile assets and other capital expenditures. The increase was partially offset by other assets reaching the end of their depreciable lives.
Previous wording
*Gain on disposal of assets.*The Company recorded a gain on disposal of assets of $0.1 million in the Prior Year Quarter related to the sale of certain assets in which proceeds of $0.1 million were received. The Company had no gains or losses on disposal of fixed assets in the Current Quarter.
Current wording
*Loss (gain) on disposal of assets.*The Company recorded a loss of $0.2 million on disposal of assets related to a damaged trailer compared to a gain on disposal of assets of $0.1 million in the Prior Year Quarter related to the sale of certain assets in which proceeds of $0.1 million were received.
Previous wording
Interest (expense) income. Interest income, net was $24 thousand in the Current Quarter compared to $28 thousand in the Prior Year Quarter. In both periods, interest income, net related to interest earned on the Company's cash balances during the quarter.
Current wording
Interest income. Interest income, net was $0.1 million in the Current Quarter compared to $0.1 million in the Prior Year Quarter. In both periods, interest income, net related to interest earned on the Company's cash balances during the quarter.
Previous wording
Other income (expense). Other expense was $24 thousand during the Current Quarter compared to other income of $26 thousand in the Prior Year Quarter related to, in both periods, transactional foreign exchange gains (losses).
Current wording
Other income (expense). Other expense was $35 thousand during the Current Quarter compared to other income of $10 thousand in the Prior Year Quarter related to, in both periods, transactional foreign exchange gains (losses).
Previous wording
Income tax expense. The Company incurred state and foreign income tax expense of $0.2 million during the Current Quarter compared to income tax expense of $0.4 million during the Prior Year Quarter. Income tax expense for the Current Quarter primarily related to foreign income taxes paid on the Company's dividends received from its joint venture investment in BOMAY. Income tax expense for the Prior Year Quarter primarily related to foreign income taxes paid on the Company's dividends received from the Company's joint venture investment in BOMAY and state income taxes related to the Prior Year Quarter operating income. No U.S. federal income taxes were recorded for the Current Quarter or Prior Year Quarter as any net U.S. deferred tax assets generated from operating losses or used from operating income were offset by a change in the Company's valuation allowance on net deferred tax assets.* *
Current wording
Income tax expense. The Company incurred state and foreign income tax expense of $1 thousand during the Current Quarter compared to income tax benefit of $0.1 million during the Prior Year Quarter. Income tax expense for the Current Quarter primarily related to state income taxes. The income tax benefit in the Prior Year Quarter primarily related to revisions in estimated state taxes. No U.S. federal income taxes were recorded for the Current Quarter or Prior Year Quarter as any net U.S. deferred tax assets generated from operating losses or used from operating income were offset by a change in the Company's valuation allowance on net deferred tax assets.* *
Previous wording
The comparative tables below reflect our consolidated operating results for the six months ended June 30, 2025 (the “Current Year”) as compared to the six months ended June 30, 2024 (the “Prior Year”) (unaudited, amounts in thousands, except for percentages).
Current wording
The comparative tables below reflect our consolidated operating results for the nine months ended September 30, 2025 (the “Current Year”) as compared to the nine months ended September 30, 2024 (the “Prior Year”) (unaudited, amounts in thousands, except for percentages).
Previous wording
During the Current Year, revenues decreased $3.7 million, or 10%, compared to the Prior Year. The change in revenue primarily related to:
Current wording
During the Current Year, revenues decreased $1.0 million, or 2%, compared to the Prior Year. The change in revenue primarily related to:
Previous wording
*Cost of revenues.*Cost of revenues decreased $1.6 million, or 6%, compared to the Prior Year. As a percentage of revenue, these costs were 74% and 71% in the Current Year and the Prior Year, respectively. The change in cost of revenues was primarily attributable to:
Current wording
*Cost of revenues.*Cost of revenues increased $0.5 million, or 1%, compared to the Prior Year. As a percentage of revenue, these costs were 73% and 71% in the Current Year and the Prior Year, respectively. The change in cost of revenues was primarily attributable to:
Previous wording
Change in unrealized gain/loss on natural gas derivatives. The Company had a gain of $24 thousand on change in unrealized (gain) loss on natural gas derivatives in the Current Year compared to a gain of $0.3 million in the Prior Year. The decrease in the gain in the Current Year is due to the maturity of natural gas derivatives.
Current wording
Change in unrealized gain on natural gas derivatives. The Company had a gain of $5 thousand on change in unrealized gain on natural gas derivatives in the Current Year compared to a change in unrealized gain of $0.3 million in the Prior Year. The decrease in the gain in the Current Year is due to the maturity of natural gas derivatives.
Previous wording
Selling, general and administrative expenses. Selling, general and administrative expenses increased $1.3 million in the Current Year compared to the Prior Year. Mr. Ballard's severance related expenses accounted for $2.1 million of the increase in the Current Year and were partially offset by lower other compensation expense.
Current wording
Selling, general and administrative expenses. Selling, general and administrative expenses increased $1.0 million in the Current Year compared to the Prior Year. Mr. Ballard's severance related expenses accounted for $2.1 million of the increase in the Current Year. The Company also had higher office lease costs related to the new corporate office lease in the Current Year. The increases in the Current Year were partially offset by lower other compensation expense.
Previous wording
Depreciation. Depreciation expense increased $0.2 million during the Current Year as compared to the Prior Year primarily due to new mobile assets in the Current Year compared to the Prior Year. The increase was partially offset by other assets reaching the end of their depreciable lives.
Current wording
Depreciation. Depreciation expense increased $0.2 million during the Current Year as compared to the Prior Year primarily due to new mobile assets and other capital expenditures in the Current Year compared to the Prior Year. The increase was partially offset by other assets reaching the end of their depreciable lives.
Previous wording
*Gain on disposal of assets.*The Company recorded a gain on disposal of assets of $0.1 million in the Current Year related to an insurance settlement for an asset that was damaged in transit in which proceeds of $0.2 million were received. In the Prior Year, a gain of $0.2 million on the disposal of assets was recorded related to the sale of certain assets in which proceeds of $0.3 million were received.
Current wording
*Loss (gain) on disposal of assets.*The Company recorded a loss on disposal of assets of $0.1 million in the Current Year primarily related to a damaged trailer, partially offset by the sale of an asset in which proceeds of $0.2 million were received. In the Prior Year, a gain of $0.3 million on the disposal of assets was recorded related to the sale of certain assets in which proceeds of $0.4 million were received.
Previous wording
*Net equity income from foreign joint venture operations.*Equity income from the Company's foreign joint venture decreased by $0.1 million in the Current Year compared to the Prior Year due to lower net profits by the joint venture in the Current Year.
Current wording
*Net equity income from foreign joint venture operations.*Equity income from the Company's foreign joint venture decreased by $0.3 million in the Current Year compared to the Prior Year due to lower net profits by the joint venture in the Current Year.
Previous wording
Interest (expense) income. Interest income, net was $45 thousand in the Current Year compared to interest income, net of $24 thousand in the Prior Year. The increase in interest income, net related to interest earned on the Company's cash balances during the Current Year.
Current wording
Interest income. Interest income, net was $0.1 million in the Current Year compared to interest income, net of $0.1 million in the Prior Year. The increase in interest income, net related to interest earned on the Company's cash balances during the Current Year.
Previous wording
Other income (expense). Other expense was $36 thousand during the Current Year compared to other income of $5 thousand in the Prior Year related to, in both periods, transactional foreign exchange gains (losses).
Current wording
Other income (expense). Other expense was $71 thousand during the Current Year compared to other income of $15 thousand in the Prior Year related to, in both periods, transactional foreign exchange gains (losses).
Previous wording
Income tax expense. The Company incurred income tax expense of $0.1 million during the Current Year compared to income tax expense of $0.5 million during the Prior Year. Income tax expense for the Current Year primarily related to foreign income taxes paid on the Company's dividends received from its joint venture investment in BOMAY. Income tax expense for the Prior Year primarily related to foreign income taxes paid on the Company's dividends received from the Company's joint venture investment in BOMAY and state income taxes related to the Prior Year operating income. No U.S. federal income taxes were recorded for the Current Quarter or Prior Year Quarter as any net U.S. deferred tax assets generated from operating losses or used from operating income were offset by a change in the Company's valuation allowance on net deferred tax assets.* *
Current wording
Income tax expense. The Company incurred income tax expense of $0.1 million during the Current Year compared to income tax expense of $0.4 million during the Prior Year. Income tax expense for the Current Year primarily related to foreign income taxes paid on the Company's dividends received from its joint venture investment in BOMAY. Income tax expense for the Prior Year primarily related to foreign income taxes paid on the Company's dividends received from the Company's joint venture investment in BOMAY and state income taxes related to the Prior Year operating income, partially offset by revisions in estimated state taxes in the Prior Year. No U.S. federal income taxes were recorded for the Current Year or Prior Year as any net U.S. deferred tax assets generated from operating losses or used from operating income were offset by a change in the Company's valuation allowance on net deferred tax assets.* *
Previous wording
The Company's principal sources of liquidity have consisted of cash provided by our operations, cash on hand, and distributions from our BOMAY joint venture, which was the case during the Current Year. The Company used cash flows generated from operations to invest in fixed assets to support growth, as well as to pay interest and principal amounts outstanding under our debt agreements.
Current wording
The Company's principal sources of liquidity in the Current Year have consisted of cash provided by our operations, cash on hand, and distributions from our BOMAY joint venture. The Company used cash flows generated from operations to invest in fixed assets to support growth, as well as to pay interest and principal amounts outstanding under our debt agreements.
Previous wording
As of June 30, 2025, we had $12.2 million in cash and cash equivalents on hand, $8.4 million in outstanding debt (net of debt issuance costs) and lease obligations (of which $1.9 million is due in the next twelve months). The Company has total availability under the Revolving Credit Facility and the AmeriState Secured Term Loan Facility of $3.9 million at June 30, 2025. During the six months ended June 30, 2025, the Company made no draw downs on either the Revolving Credit Facility or the AmeriState Secured Term Loan Facility.
Current wording
As of September 30, 2025, we had $10.3 million in cash and cash equivalents on hand, $9.5 million in outstanding debt (net of debt issuance costs) and lease obligations (of which $2.7 million is due in the next twelve months). The Company has total availability under the Revolving Credit Facility and the AmeriState Secured Term Loan Facility of $5.2 million at September 30, 2025. During the nine months ended September 30, 2025, the Company made no draw downs on either the Revolving Credit Facility or the AmeriState Secured Term Loan Facility.
Previous wording
Net cash provided by operating activities totaled $5.5 million for the six months ended June 30, 2025 compared to $9.0 million for the same period in 2024. The decrease in net cash provided by operating activities of $3.4 million as compared to the Prior Year was primarily attributable to lower net income in the Current Year.
Current wording
Net cash provided by operating activities totaled $7.9 million for the nine months ended September 30, 2025 compared to $11.5 million for the same period in 2024. The decrease in net cash provided by operating activities of $3.6 million as compared to the Prior Year was primarily attributable to lower net income in the Current Year.
Previous wording
Net cash used in investing activities totaled $0.9 million for the six months ended June 30, 2025 compared to $2.0 million for the six months ended June 30, 2024. The decrease in net cash used in investing activities in the Current Year of $1.1 million was primarily due to cash paid to purchase additional liquefaction assets to support growth in the Prior Year.
Current wording
Net cash used in investing activities totaled $4.8 million for the nine months ended September 30, 2025 compared to $3.2 million for the nine months ended September 30, 2024. The increase in net cash used in investing activities in the Current Year of $1.6 million was primarily due to cash paid for capital expenditures to support growth.
Previous wording
Net cash used in financing activities totaled $1.4 million for the six months ended June 30, 2025, compared to $0.9 million for the six months ended June 30, 2024. The increase in cash used in financing activities in the Current Year compared to the Prior Year is due to additional debt payments on the AmeriState Loan and payments related to finance leases for new mobile assets.
Current wording
Net cash used in financing activities totaled $1.8 million for the nine months ended September 30, 2025, compared to $1.3 million for the nine months ended September 30, 2024. The increase in cash used in financing activities in the Current Year compared to the Prior Year is due to additional debt payments on the AmeriState Loan and payments related to finance leases for new mobile assets.
Previous wording
Capital expenditures for the six months ended June 30, 2025 were $1.1 million and primarily related to the purchase of additional liquefaction assets, refurbishments and upgrades to existing assets and rolling stock. Future capital expenditures will be dependent upon business needs and value-adding investment opportunities as well as the availability of additional capital at favorable terms which is difficult to predict. At June 30, 2025, the Company had open purchase orders and payables related to capital expenditures of approximately $0.1 million.
Current wording
Capital expenditures for the nine months ended September 30, 2025 were $5.0 million and primarily related to the preliminary work and ordering long lead time items related to the Company's Galveston expansion, refurbishments and upgrades to existing assets and rolling stock. Future capital expenditures will be dependent upon business needs and value-adding investment opportunities as well as the availability of additional capital at favorable terms which is difficult to predict. At September 30, 2025, the Company had open purchase orders and commitments related to capital expenditures of approximately $4.0 million. See additional discussion regarding the Company's potential expansion efforts below.
Previous wording
The discussion and analysis of our financial condition and results of operations are based on our Condensed Consolidated Financial Statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) which requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities known to exist at the date of the Condensed Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. We evaluate our estimates on an ongoing basis, based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. There can be no assurance that actual results will not differ from those estimates. There have been no significant changes in the Company's “Critical Accounting Policies and Estimates” during the three and six months ended June 30, 2025 from those disclosed within the Company's Annual Report on Form 10-K for the year ended December 31, 2024 as filed with the SEC on February 25, 2025.
Current wording
The discussion and analysis of our financial condition and results of operations are based on our Condensed Consolidated Financial Statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) which requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities known to exist at the date of the Condensed Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. We evaluate our estimates on an ongoing basis, based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. There can be no assurance that actual results will not differ from those estimates. There have been no significant changes in the Company's “Critical Accounting Policies and Estimates” during the three and nine months ended September 30, 2025 from those disclosed within the Company's Annual Report on Form 10-K for the year ended December 31, 2024 as filed with the SEC on February 25, 2025.