Inve US ▾
SLSLNG

Stabilis Solutions (SLNG) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Energy· Aug 12, 2026

Source: earnings call transcript

Executive summary

Stabilis Solutions Q2 FY26 — Strong Data Center and Aerospace Momentum

Stabilis Solutions reported Q2 FY26 results reflecting a trough quarter, with significant momentum building for the second half of 2026 and a record 2027. The company is strategically leveraging its asset-light model to capitalize on strong demand from data centers and aerospace, securing substantial new contracts. While the Galveston LNG project faces timeline extensions, management emphasizes the robust organic growth in its core markets.

Highlights

5

  • Aerospace LNG volumes sold up 79% year-over-year and 87% sequentially in Q2 FY26.

  • Non-power generation industrial business volumes grew more than 67% year-over-year in Q2 FY26.

  • Secured a new data center commissioning contract expected to begin service in Q3 FY26.

  • Secured largest-ever contract for data center bridge power, expected to generate approximately $100 million in annual revenue over a two-year term starting early 2027.

  • Received $20 million in customer prepayments by Q2 end for the large 2027 data center contract, with an additional $5 million in early Q3 FY26.

Concerns

4

  • Q2 FY26 revenue decreased approximately 31% year-over-year to $11.9 million due to completion of large contracts in Q4 FY25.

  • Adjusted EBITDA was $0.1 million in Q2 FY26, down from $1.5 million in the prior year period.

  • Incurred $2.9 million in vessel charter costs in Q2 FY26 related to a terminated LNG bunkering vessel lease.

  • Galveston LNG project timeline extended with no firm date for Final Investment Decision (FID) due to ongoing work on commercial offtake and financing structure.

Guidance & targets

CategoryTargetConfidence
Second half 2026 revenue
increase by more than 50%
high materiality
High
Full-year 2027 revenue
exceed $100 million
high materiality
High
Full-year 2027 Adjusted EBITDA margin
high teens
high materiality
High

Orderbook & backlog

Data Center Bridge Power Contract $100M annual revenue Q2 FY26

Expected to generate $100M of revenue annually over its two-year term, starting early 2027. This is the largest contract the company has ever secured.

Deals & partnerships

U.S. data center Supply behind-the-meter LNG for commissioning 6 months

Service expected to begin in Q3 FY26. Term could extend beyond six months.

U.S. data center Behind-the-meter power generation (bridge power) $100M annually 2 years

Largest contract company has ever secured. Deliveries expected to begin early 2027 and extend into early 2029. Received $25 million in customer prepayments to fund equipment and preparations.

Capital programs

Galveston LNG Project underway

Proposed small-scale LNG bunkering project on the Gulf Coast. Timeline extended, no firm FID date. U.S. Coast Guard issued a letter of recommendation on waterway suitability assessment in July, validating safety and navigability.

Risks & headwinds

Completion of large multiyear contracts Q2 FY26 impact, concluded Q4 FY25

Q2 FY26 revenue decreased 31% YoY to $11.9M; Adjusted EBITDA $0.1M vs $1.5M prior year.

Mitigation:New contracts coming online, expected incremental improvements in Q3 and Q4 FY26, with H2 FY26 revenues up >50% vs H1 FY26.

Galveston LNG project timeline extension Ongoing

No firm date for Final Investment Decision (FID).

Mitigation:Working to secure commercial offtake and financing structure. Achieved regulatory milestone with U.S. Coast Guard letter of recommendation on waterway suitability.

Vessel charter costs for terminated marine bunkering contract Q2 FY26

$2.9M

Mitigation:Charter terminated late in Q2 FY26; no further P&L impact expected beyond Q2. Costs excluded from adjusted EBITDA as extraordinary.

What to watch in Q3 FY26

Data Center Commissioning Contract Start

Q3 FY26 (August)
Current Contract executed, equipment deploying
Target Liquids delivered, service begun

Why it matters

Verifies the start of a new data center revenue stream and execution capability.

So we've executed the contract, as we discussed, and the equipment is being readied and being deployed like right now with anticipated liquids being delivered, I believe, next month. So this month, August. So it's happening right now.

Find out whether SLNG delivers this. Inve re-checks your case every morning.

Q&A highlights

Can you elaborate on the revenue and profitability differences between data center contracts for commissioning, bridge power, and potential long-term backup, especially how backup contracts would be structured?

Construction projects can be 24 months, lower volume. Commissioning is typically 6 months for 50-75 MW. Bridge power is 1-5 years, for first-mover advantage or grid delays. Long-term backup is a developing opportunity, similar to a peaker plant, where LNG would be provided on-site for grid/pipeline outages, but no contracts are in place yet.

“Long-term backup is where they would provide equipment and infrastructure and a supply contract to provide like almost like a peaker plant where you would provide LNG on site, if there was issues related to the pipeline outages or connection to the grid outages, it would turn on just like your diesel backup or something like that would be in a different application.”

asked by Martin Malloy · answered by J. Crenshaw

2 min read 5 chapters

Detailed narrative

Data Center Market Expansion

Stabilis Solutions is actively pursuing opportunities across various phases of data center development, including construction, commissioning, bridge power, and long-term backup. The company secured a contract for behind-the-meter LNG supply for a U.S. data center commissioning, expected to start in Q3 FY26 with a six-month term. A significant contract for bridge power, starting early 2027, is projected to generate approximately $100 million in annual revenue over two years, positioning 2027 as a record year for the company.

Aerospace Business Growth

The aerospace segment demonstrated strong momentum, with LNG volumes sold increasing 79% year-over-year and 87% sequentially in Q2 FY26. This growth is driven by increased launch activity among commercial space customers. Stabilis currently supplies LNG to three leading rocket launch customers and is in discussions to add a fourth later in 2026, highlighting this market as a durable long-term growth avenue.

Asset-Light Operating Model

Stabilis emphasizes its asset-light model, which allows it to scale into demand without significant upfront capital investment. The company combines its own production with purchased supply, logistics, mobile equipment, and expertise to meet demand. This flexibility is crucial for pursuing large opportunities like data center projects, as it avoids the need to build capacity ahead of demand and reinforces its position as a leading small-scale LNG provider.

Galveston LNG Project Update

The proposed Galveston LNG project, aimed at marine bunkering, has an extended timeline with no firm date for a Final Investment Decision (FID). The company is working to secure commercial offtake and financing. Despite delays, the project achieved a regulatory milestone with the U.S. Coast Guard issuing a letter of recommendation on the waterway suitability assessment, validating safety and navigability for proposed operations.

Financial Performance and Outlook

Q2 FY26 revenue was $11.9 million, a 31% decrease year-over-year, primarily due to the conclusion of large contracts in Q4 FY25. Adjusted EBITDA for the quarter was $0.1 million, down from $1.5 million in the prior year. However, the company anticipates a strong second half of 2026, with revenues expected to increase by over 50% compared to the first half, and projects 2027 revenues to exceed $100 million with adjusted EBITDA margins in the high teens.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.